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What is not mentioned in that statement though is there is roughly $2 trillion more in Fed balance sheet expansion sloshing around in the system since then, and likely another $2 trillion +/- will be added over the course of the next month or so. They are literally buying everything everywhere.
And other central banks are doing the exact same thing at the same time across the world. Add to all of that the IMF is discussing dollarizing the world further.......
Well the Fed just hit your call this morning. Another $2.3 trillion announced this morning. Do you see even more easing soon after this morning's announcement?
Well the Fed just hit your call this morning. Another $2.3 trillion announced this morning. Do you see even more easing soon after this morning's announcement?
Ben, more is coming. Much more. Keep in mind my ultimate call is the Fed will expand their balance sheet into the $15 trillion - $20 trillion range by the end of 2021. We haven't seen anything yet.....
Ben, more is coming. Much more. Keep in mind my ultimate call is the Fed will expand their balance sheet into the $15 trillion - $20 trillion range by the end of 2021. We haven't seen anything yet.....
So if deflation is a given. why stay in US cash dollars?
So if deflation is a given. why stay in US cash dollars?
you're not buying gold, silver or Chinese yuan?
Cash is king in a deflationary environment. Ray Dalio had a terrible call at the end of January when he said "cash is trash." He doubled down on that call a few days ago. During this moonshot in stocks cash is trash for the shorter-term, and the dollar will take a hit. Later this year into 2021 cash will once again be king when we see massive deflationary forces come to a head again. "Cash will be trash" when the next major inflationary cycle kicks up 2-3 years down the road from now.
During the deflationary bust later this year into 2021 is the time to load up on gold and silver because they will be taking a major hit. I would not be surprised to see gold get down around 1K at the nadir of the bust later this year into 2021. Load up time. Because gold and silver will do VERY well during the inflationary cycle starting 2-3 years out. I think gold will ultimately hit 10K-12K per ounce within the next 5-7 years.
Cash is king in a deflationary environment. Ray Dalio had a terrible call at the end of January when he said "cash is trash." He doubled down on that call a few days ago. During this moonshot in stocks cash is trash for the shorter-term, and the dollar will take a hit. Later this year into 2021 cash will once again be king when we see massive deflationary forces come to a head again. "Cash will be trash" when the next major inflationary cycle kicks up 2-3 years down the road from now.
During the deflationary bust later this year into 2021 is the time to load up on gold and silver because they will be taking a major hit. I would not be surprised to see gold get down around 1K at the nadir of the bust later this year into 2021. Load up time. Because gold and silver will do VERY well during the inflationary cycle starting 2-3 years out. I think gold will ultimately hit 10K-12K per ounce within the next 5-7 years.
there's a huge spread between spot and physical right now, and physical is hard to come by - partially due to mining and transport issues because of the virus, but mostly due to high demand for physical. I expect it to be the same if PMs drop even further, which it likely will if we experience another margin call situation.
Last edited by blahblahyoutoo; 04-09-2020 at 10:23 AM..
Heard that story for the past 20 years with Gold and Silver. Widows and orphans long the SP laughed at the Goldbugs. Doubt Gold Goes up down the road without stocks at least keeping pace. The metals markets are too small for the big players so they won't run there.
Someone asked me in a PM about the next couple of weeks. I am not a day trader, but I think we will see some weakness soon to rev up the media talking-head's narrative of a retest of the lows. It will just take a couple bigger down days to get them going again. I think this will be a head fake but it will also provide the Fed the opportunity to step in and engage in more record-setting balance sheet expansion. Upward bias continues after that. Record balance sheet expansion continues. Moonshot continues........
THIS is the narrative that will eventually force the Fed off of the gas during the moonshot. Stocks exploding higher will not be popular with a lot of Main Street. I said this in some past posts, but there is going to be a narrative out there that Wall Street got disproportionately bailed out compared to Main Street (again). The Fed will step off the gas and all of this exponential leverage will unwind very quickly. It will lead to the greatest deflationary bust since The Great Depression and it will start in the back half of 2020 into 2021.
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