Goldtent TA Paradise

Good Morning Goldtent

1. RTV says:

   February 21, 2018 - 9:01 am at 9:01 am

   http://schrts.co/yb36Lh

   • Fullgoldcrown says:

     February 21, 2018 - 9:03 am at 9:03 am

     Resistance is Futile…The Empire Strikes back.

2. Highroller says:

   February 21, 2018 - 9:13 am at 9:13 am

   a quip from dk analytics posted a few ago.In short, higher rates = impossible to repay debt. They gotta keep dollar low and inflate the problem away or else….

   9.
   As we’ve mentioned before both in posts and videos, we could see a $1.5trn
   –
   $2trn plus dollar federal deficit
   within a few years if not sooner. And if the Fed really sells $600bn of Treasuries a year, at what price
   —
   how
   high of a yield
   —
   will investor
   s and the ROW be willing to soak up between
   $1.5trn
   –
   $2.6trn worth of US
   Treasuries possibly coming on to the market
   annually for a time? Does
   President
   Trump raise any of these issues?
   10.
   The abov
   e is of particular concern as the ROW finances a US goods and services deficit that averages about
   $500bn a year and expanded to
   $600bn in 2017
   . Meanwhile,
   America is a net debtor nation to the tune of $8.4trn
   :
   Source:
   https://fred.stlouisfed.org/series/IIPNETINA
   In such a wo
   rld, when you openly state that the US government would welcome a weaker dollar in a period of
   low interest rates, great external financing dependency, a weakening currency, and rising inflation, you are driving
   away potential investors and thus de facto r
   aising the cost of borrowing, especially if sentiment shifts or
   confidences wanes! (And, by the way, if currency debasement helped to reduce trade deficits, America, having
   the tailwind of a dollar that has fallen about 80% since Bretton Woods dollar gold
   standard was terminated nearly
   47 years ago, should have huge annual trade surpluses by now in place of
   gaping deficits
   !)
   11.
   You cannot simultaneously grow a spendthrift federal government, cut taxe
   s, and then be sanguine. You can’t
   grow spending by
   $300bn plus
   , reduce tax revenues by an estimated
   $280bn
   , and add it to a
   $666bn deficit
   and
   over $21trn in debt and
   expect
   good things
   … Any kindergartner knows this, Mr. President!
   12.
   In short, Trump is NOT leveling with the American people in terms of what really needs to be done for the benefit
   of future generations who will otherwise be hobbled by mountains of debt and the related financing costs, namely:
   focus on
   cutting government
   spending, achieving a balanced budget, aggressively pursuing litigation reform (US
   liability costs are
   2.6 times the EU average
   ),
   securing
   long
   –
   lasting regulatory relief, and pursuing the solid money
   that Andrew Jackson pursued when he killed the second US central bank
   . Noteworthy, the portrait of Andrew
   Jackson, who Trump greatly admires, adorns the oval office. A daily inspirati
   on or “propaganda?”
   13.
   Let us really drive the point home on Trump policy recklessness: America is some $68trn in debt when combining
   federal, state, corporate, and individual/family level debt. US GDP is nearly
   $20trn
   . Each one percentage point
   higher borrowing costs from abnormally low interest rates increases America’s cost of funding by roughly $680bn
   p.a. (most debt, including the US government’s, is not long
   –
   term in nature, thus susceptible to high
   er refinancing
   costs if interest rates keep rising). In fact, if the average cost of borrowing rose by just two percentage points
   —
   say 10
   –
   year Treasuries yielded 4.8%
   —
   the US’s financing cost would quickly soar by $1.36trn or by 7% of GDP.

   • Fullgoldcrown says:

     February 21, 2018 - 9:26 am at 9:26 am

     So…its bond yields they need to supress NOT the Dollar ?

     The Euro peons have the same problem…they don’t want a strong Euro either.

     It looks like they all take turns trying to lower their currencies.

     • Highroller says:

       February 21, 2018 - 9:38 am at 9:38 am

       currency wars as they call it, gold probably got this figured out. Socrates figures capital will rush to usa if/when Eurozone collapses which in turn will cause demand for the greenback which in turn = couple trillion in interest payments. QE IV or blow up. How do they suppress bond yields??

3. Northstar says:

   February 21, 2018 - 12:36 pm at 12:36 pm

   One word – toast.