Mar 25, 2020

Gold Is The Safe Haven

Treasury bonds are not a safe haven. The Federal Reserve will own all the Treasury bonds, as well as most other U.S. dollar denominated debt. The problem is that the tens of trillions of dollars the Fed will print to buy all those bonds will be practically worthless. Gold is the safe haven.

Real bond yields will plunge as inflation soars. Normally rising inflation would push up nominal yields to compensate buyers for the erosion of their purchasing power. But since the Federal Reserve is buying to keep nominal yields from rising, the entire bond market is about to be monetized!

Mar 24, 2020

Gold: How It Reacts During Crisis

During the 2008 financial crisis, gold fell about 25 percent and took seven months to make a new high. This time gold only fell about 15 percent, and may make a new high in under a month. This shows how much greater this financial crisis is, and how much more reckless current Fed policy is.

Related trading instruments: SPDR Gold Trust ETF (GLD), Market Vectors Gold Miners ETF (GDX)

Bailing Out The Airline Industry

Watching CNBC anchors spreading more industry propaganda that without a government bailout, the U.S. will not have an airline industry. Without a bailout the U.S. will have a much stronger airline industry. To work at CNBC one must fail a test on free market economics.

Related trading instruments: Delta Air Lines (DAL), American Airlines (AAL), JetBlue Airways (JBLU)

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