by Peter Schiff
Euro Pacific Capital
Donald Trump’s critics have heaped scorn on his calls for protective tariffs to deal with America’s widening trade imbalance and the resulting loss of higher–paying blue color jobs. Some have accused him of trying to turn back the clock in pursuit of a cheap populist ploy and have said that he simply refuses to acknowledge that America is now an information and service economy for which large trade deficits are the new normal. But voters are sensing that The Donald is right to sound alarm bells, and that something radical needs to be done to revive manufacturing to make America great again. But his tariff solution is hardly the best medicine. To be honest, given the even worse solutions that are being offered by the left, Trump’s instincts may be preferable.
People sense the ‘recovery” is bogus, and their rational response is to save more money rather than squander it.
Yesterday, the Federal Reserve held a public board meeting to propose two new Byzantine rules to prevent another 2008-style financial contagion on Wall Street and potential crash of the U.S. economy. Unfortunately, the details brought images of the curtain scene from the Wizard of Oz. If you looked beyond the copious verbiage, there didn’t seem to be much there, there.
First there were seventeen. At length, there was one.
Louis Navellier of Navellier & Associates, returns to the show with must hear market commentary. The gold bullion aficionado prefers real money over currency, which carries a negative interest rate. The precious metals will remain essential core holdings for every investment portfolio, as long as central bankers continue to follow their modus operandi of monetary debasement, worldwide. He recommends that investors follow the steps he’s taking to insure his personal portfolio, by increasing their allocation of gold and PMs shares. The perma-bull is less sanguine on US equities, amid sagging sales / earnings news. While the major indexes tread water, many top flying blue chips are showing signs of distress. Although small-cap stocks are red hot, much of the excitement is due to low floats amid a short-covering rally.
Last weekend, Hillary Clinton dispatched her husband, former President Bill Clinton, to offer a defense of her alleged espionage. The espionage allegations against her are that in order to escape public and Obama administration scrutiny, she had all of her emails as secretary of state diverted from a secure government server to a non-secure server in her home in Chappaqua, New York, and, in so doing, failed to protect state secrets in at least 2,200 instances during her four-year tenure.
Editor’s note: Over the next two days, we’re stepping away from our normal market commentary to bring you a must-read series from Casey Research founder Doug Casey.
Gold trading between Hong Kong and China is expected to rise with the People’s Bank of China announcing on Wednesday a rule change from June 1 to simplify cross-border shipment procedures that would help speed up gold imports into the country.
Stan Druckenmiller, the billionaire investor with one of the best long-term track records in money management, said the bull market in stocks has “exhausted itself” and that gold is his largest currency allocation.
Today KWN is pleased to share two dramatic charts, one revealing a dramatic spike in fund flows into the gold ETF GLD, and the other showing a major warning on the U.S. dollar.
Donald Trump won’t self-fund his general-election campaign, and will instead create a “world-class finance organization,” the presumptive Republican nominee said in an interview Wednesday.
China Warns Its Bearish Analysts to Toe the Line was yesterday’s dog-bites-man story on the front page of The Wall Street Journal. The Chinese government could learn a thing or two studying how this works in the U.S., where complicity between the news media, the banksters and Wall Street serves to float their respective boats. Seldom do the Street’s vaunted analysts meet a stock they don’t like, and even when they hate a stock, it will usually be rated no worse than a ‘hold’. Sell recommendations, as retail investors know all too well, are disseminated to shareholders only after a stock has lost 70% of its value. As for the U.S. financial media, they are only too happy to do the Street’s bidding and to parrot the party line, since digging up actual stories on their own might take a little work.
After being one of the biggest cheerleaders of bitcoin for the last five years what I am about to say may shock some people. In fact, as I began to connect the dots, I shocked myself.