The Reason Why CNBC Loves Bitcoin So Much

Yields Are Rising Due To Higher Inflation

Rising nominal bond yields continue to weigh on gold, even though yields are rising due to higher inflation, not stronger economic growth. In fact, nominal yields are rising more slowly than inflation, so real yields are actually collapsing. This is extremely bullish for gold!

The Rise In Oil Prices Is Just Starting!

The price of crude oil is closing in on $80 barrel, trading above $79 for the first time in 7 years. But if you look at a chart this move is only just getting started. The parabolic move higher likely won't kick in until we take out $150 per barrel. That might happen as soon as 2022.

Growth Is Slowing Rapidly

Yesterday the Atlanta Fed slashed its forecast for Q3 GDP from 2.3 percent to 1.3 percent. Back in June its forecast for Q3 growth exceeded 7 percent! Growth is slowing rapidly just as consumer prices are rising substantially. Stagflation is already a reality. I dare the Federal Reserve to taper. Buy gold!

The U.S. Has No Ability Or Intention Of Ever Repaying The Debt

The reason a failure to raise the Debt Ceiling will lead to a default on the National Debt is that the U.S. has no ability or intention of ever repaying the debt. It will only borrow to keep the Ponzi scheme going until lenders wise up and dump their Treasuries and U.S. dollars.

Inflation In New Cars

Despite reporting falling sales, General Motors (GM) reported that average selling prices rose to $47,467, a 20 percent increase over the past year. That's ten times the Fed's official 2% inflation target. If prices rise another 20 percent this year, the average new General Motors (GM) car will set you back $57,000. Thanks to the Federal Reserve.

There Is Nothing Transitory About This Inflation!

For the ninth consecutive month, producer prices rose more than expected. The .7% jump resulted in a 8.3% year-on-year (YOY) gain. 

Excluding food and energy the rise was 7.3 percent! So far in 2021 the PPI is up 7 percent. Annualized the rise equates to 10.5 percent. There is nothing transitory about this inflation!

Bitcoin: Horrible Technicals

Horrible week technically for Bitcoin. GBTC had an outside reversal week. It took out the prior week's high, then closed below the prior week's low. The pattern may repeat on a monthly chart too. GBTC already took out the August high. Now it just needs to closed below the August low.

Central Banks Keep Buying Gold

Central banks globally added another net 56.7 tons of gold to their reserves in May as more banks dip into the gold market, according to the latest data compiled by the World Gold Council.

Gold-buying by central banks slowed last year from the record pace we saw in 2018 and 2019. That trend has continued into 2021, but buying is ahead of last year’s pace as many countries continue to load up on the yellow metal.


-- in Schiff Gold

Video: Labor Market, Inflation and Gold

 

• Inflation spilling into the labor market. 
• Pressures pushing dollar down and costs up. 
• What does Basel III mean for gold? 
• CNBC pundits are as clueless now as they were in 2006 and 2007.

Inflation Forces Retailers To Sharply Increase Prices

As inflation forces all retailers to sharply raise their prices look for lots of excuses as to why it's happening. But the biggest excuses will come from the government and the Federal Reserve, that will blame everything and everyone but their own policies.

You Don't Buy Gold To Get Rich

You don't buy gold to get rich. You buy gold to stay rich. Most people who are buying Bitcoin are doing so to get rich. The problem with putting too much money into something that has the potential to make you rich is that it also has an even greater potential to make you poor.

Bitcoin: Supply & Demand Dynamics

The price of Bitcoin is set by supply and demand. The problem for Bitcoin HODLers is that the future supply of people who own Bitcoin and need to sell will exceed the demand from people who don't own Bitcoin and want to buy. All Bitcoin owners need to sell. No one needs to buy.

Fed Policy Has Failed To Produce Real Economic Growth

The Senior Economic Reporter on CNBC claims the weak jobs report vindicates Fed policy. It actually confirms the opposite. Fed policy has failed to produce real economic growth. April's anemic Jobs Report proves the Federal Reserve only succeeded in creating inflation and blowing bubbles.

Bitcoin & Gold

Gold falling and Bitcoin rising in the face of massive money printing doesn't mean Bitcoin has replaced gold as the preferred store of value. In reality, investors are not buying gold because they're not worried about inflation. They're confident the Federal Reserve has it under control.

Inflation Is A Big Threat

Those who think inflation isn't a threat and the Federal Reserve will stay loose are wrong. Those who think inflation is a threat and the Federal Reserve will tighten are wrong. Inflation is a bigger threat than the latter thinks, but the Federal Reserve will ease further to support asset prices and consumption.

Also exploding federal budget deficits, and a new housing bubble, leaves both the public and private sector extremely vulnerable to rising interest rates. So as inflation expectations push rates up, the Federal Reserve will crank up QE to push them back down to prevent a financial crisis.

High Inflation Is Bullish For Gold, Bearish For Nasdaq Stocks!

While high inflation is very bullish for gold, historically it has been very bearish for high-multiple growth stocks. Instead of dumping their gold and gold mining stocks due to rising inflation and higher bond yields, investors should be selling NASDAQ stocks.

Cryptos: There's No Substantive Difference Between Bitcoin and Dogecoin

All of those Bitcoin bugs, like Novogratz criticizing Elon Musk for promoting Dogecoin can't see the irony that there is no substantive difference between Bitcoin and Dogecoin. In fact, Dogecoin, despite its being started as a joke, is arguably the superior crypto currency!

Bitcoin: Was Lincoln Wrong?

Abraham Lincoln once said "You can fool all the people some of the time and some of the people all the time, but you cannot fool all the people all the time.” The only way the Bitcoin bubble won't burst is if Lincoln was wrong.

Against Bitcoin & The Minimum Wage

I think it's interesting the many of the people on social media criticizing me for being against Bitcoin are also criticizing me for being against the minimum wage. If you're anti-force, and support a free market when it comes to Bitcoin you should feel the same way about wages.

Bitcoin: Bubbles, Tesla, Elon Musk

The real reason Elon Musk may be interested in helping to sustain the Bitcoin bubble is that the last thing he wants is for bubbles to start popping. When you live in a bubble it's very dangerous to throw pins at others. The risk is that an errant pin inadvertently pops yours!

Silver: Supply-Demand Dynamics

The supply-demand dynamics are also positive for silver.

Silver investment demand hit a 5-year high in 2020. It won’t likely slow in 2021. And while industrial demand took a big hit due to the coronavirus pandemic, it is expected to rebound as the global economy begins to recover.

Silver demand will also likely get a boost from the push toward solar power and other green energy initiatives in the coming years. Solar power generation is expected to nearly double by 2025 according to a report released last summer by the Silver Institute. Even if the global economy recovers more slowly than expected in the wake of the pandemic, green energy demand for silver will likely remain robust. Analysts expect many government stimulus plans will include funding for green initiatives.

On the supply side, mine output fell sharply in 2020. Production was projected to fall by 6.3% to about 780.1 million ounces. The big drop in silver output is largely a function of mine shutdowns due to coronavirus, but mine output was already trending down before the pandemic. Global mine production fell by 1.3% in 2019.

(in Schiff Gold website) 

The Inflation Threat Will Grow Much Larger

It's clear by the way the Federal Reserve tweaked the language in its official statement that it's more concerned about growth and less worried about inflation. 

This assures the inflation threat will grow much larger as the Federal Reserve ignores its rise and prints more money to fund deficit spending.

Bitcoin Incorporates Elements Of A Ponzi Scheme

Bitcoin is neither a Ponzi Scheme, a Pyramid Scheme, nor a Chain Letter, though it incorporates elements of all three. 

It's really a more sophisticated version modernized for the digital age. 

My guess is that in the future similar schemes will be referred to as a Bitcoin Scheme.

The Reddit Raiders Have Turned Their Attention To Silver Stocks

 It looks like the Reddit raiders have turned their attention to Silver stocks. They're getting smarter. 

Silver stocks are actually cheap, and represent good investment value. The fact that some investors were foolish enough to short these stocks makes their trade even better.

GameStop: The Only People Who Will Walk Away With Any Real Winnings

Attention Bitcoin HODLers: The only people who will walk away with any real winnings from the GameStop (GME) short-squeeze will be those smart enough to sell. 

Those who HODL will likely loose it all. 

Bitcoin HODLers will meet the same fate if they fail to realize their paper profits.

The Greatest Transfer Of Wealth In History

Bitcoin proponents claim that Bitcoin represents the greatest transfer of wealth in history. I partially agree. Not sure it's the greatest but a large wealth transfer is taking place. But the wealth is being transferred from the people who buy Bitcoin to the people who sell it.

Gold Is Wealth, Bitcoin Is Not

Losing the private key to your Bitcoin wallet is not the same thing as forgetting where you buried your gold. When gold is lost the world loses something -- the potential use of that gold as a metal. When Bitcoin is lost the world loses nothing. Gold is wealth. Bitcoin is not.

The Bitcoin Bubble

Talking about the Bitcoin bubble with Liz Claman, Host of FOX Business Network's The Claman Countdown:

Peter Schiff Bursts The Bitcoin Bubble

COVID Stimulus Will Be Paid For By Inflation

I agree with Jeremy Siegel that bondholders will suffer losses as COVID stimulus is paid for by inflation, but disagree with his assessment of how much it will cost. Inflation will be much higher, and the losses far greater than he thinks.

The U.S. Economy After The Pandemic

For all the talk about pent up demand driving strong economic growth after the pandemic, the truth is we must pay the bill for all the stimulus during the pandemic. Because we borrowed so much to mitigate the recession, we need to spend less during the recovery to repay the debt.

Rising Long-Term Rates Shouldn't Be Hurting Gold

Rising long-term interest rates are not helping the U.S. Dollar so they shouldn't be hurting gold. 

The U.S. Dollar is falling despite rising nominal rates because the rise is driven by inflation fears. The Federal Reserve is so far behind the curve it can't even see it. 

This is very bullish for gold.

Lots Of Electrical Power Is Wasted Creating Bitcoin

You can't power anything with Bitcoin.

But a lot of power is wasted creating Bitcoin and operating the network.

Once Bitcoin crashes for good, and all of this finally nonsense finally comes to an end, all of that power will be freed up for productive uses.

Gold Is The Best Money, Not Bitcoin

Bitcoin can't be money as money is the most marketable commodity. 

Bitcoin is not a commodity, so it can't be money. The best Bitcoin can ever hope to be is a digital fiat currency, but it hasn't even managed to achieve that yet. 

Gold is the best money.

Permabulls

It's not a surprise that CNBC's permabulls, who once urged investors to buy stocks based on Trump's plan of tax cuts and deregulation, are just as bullish now despite Biden's plan to raise taxes and increase regulation. They're saying not to let politics influence investments.

Gold & Treasury Yields

Gold traders are the only ones worried about rising Treasury yields. 

Ironically the insignificant rise is actually even less relevant to gold than to other commodities or investment assets. 

If annual inflation is 10% does it really matter if 10-year Treasuries yield 0.9% or 1.1%?

Bitcoin's Rally: Not Being Driven By Wide-Spread Institutional Adoption

The recent surge in Bitcoin is not being driven by wide-spread institutional adoption. CNBC and other crypto shills are exploiting the fact that a few high-profile institutions have taken positions to create the false impression of larger participation to sucker in more buyers.