Investors should get ready for a massive jolt in global markets.
March 8 (King World News) – Egon von Greyerz: “The 2006-9 crisis was never resolved. Global debt is up from $125 trillion in 2006 to $280 trillion today. The problem is that as debt has more than doubled, risk has gone up exponentially!
Meanwhile, gold and silver prices are determined in a casino of fake paper claims that bear no resemblance to supply and demand of the underlying physical metals.”…
Billionaire Eric Sprott just bought a 20% stake in a mining company
to find out which one click here or on the image below
Oh, it’s a long, long time from May to December
But the days grow short when you reach September
When the autumn weather turns the leaves to flame
One hasn’t got time for the waiting game
“September Song,” 1946 & 1965
Danielle DiMartino Booth at Quill Intelligence: Of Frank Sinatra’s 1965 re-recording of “September Song,” the Wall Street Journal’s Allen Barra wrote, “By 1965, years of Jack Daniel’s and unfiltered Camels had taken their toll on his pipes (as Sinatra referred to his vocal cords), but experience in the form of more polished style and technique carried him through.” Barra wrote the retrospective in 2015 on the occasion of the 50-year anniversary release of the album “September of My Years,” which won the Grammy for Album of the Year. By 1965, “The Chairman of the Board’s” popularity was waning as the Beatles and the Rolling Stones revolutionized popular music. The better known, and arguably best song he ever recorded – “It Was a Very Good Year” – made clear the changes endemic in the month of September weighed heavily on Sinatra’s mind as his 50th birthday approached on December 12th.
Markets smell Spring in the air. September may as well be arriving in the next century. But the six months will come and go. The September 6th expiration of “emergency” unemployment benefits will be the subject…again…come summer.
In the interim, contextualizing the magnitude of the $1.9 trillion stimulus package is challenging. One of the most dramatic deltas is the decline in Bloomberg consensus expectations for first-quarter spending as November turned to December.
… In the meantime, we will likely see the biggest burst of postwar spending in history. If you factor back in the 5.5 million who have left the workforce, February’s unemployment rate would rise from 6.2% to 9.1% It follows that 91% of working-age Americans are employed today. Furthermore, back in April, when the official unemployment rate hit 14.7%, and allowing for statisticians potential undercounting all who were displaced, we can say with some certainty that about 80% of American workers did not lose their income.
Layer onto that roughly 200 million American adults will receive a directly deposited stimulus check. The size of the U.S. labor force is 160 million. And nearly a fifth of U.S. households make more than $150,000, the cutoff for receiving the full $1,400 stimulus check. Let’s estimate that 128 million workers therefore are eligible for the full checks and of that pool, 80% have not lost income. That gets you to 102 million, which we can then round down to 100 million who will receive stimulus checks who have not suffered a loss of income.
A two-income married couple with three children making $150,000 will get $7,000. Those in this cohort are behind the 20.5% saving rate. In anticipation of the direct deposit spending in train, credit card spending for Spring Break should be magnificent. The U.S. services sector is poised to get a massive jolt.
Because this next injection of fun money can thus be spent more freely, it can also be expected to be more inflationary. For younger working recipients of the checks, that inflation is hoped to be of the asset variety. Per Deutsche Bank, 50% of those between the ages of 25-34 will be plunking their “stimmy” money into the stock market; sliced differently, 43% of those making more than $100,000 will be doing the same. The proverbial casino is wide open for business.
As for those who remain unemployed, the stimulus checks are but an appetizer. Tack on to them $300 a week in extra unemployment benefits. Now double that given the median nationwide rent is about $1,200 that doesn’t have to be paid due to the extension of the eviction moratorium (or a mortgage payment if applicable given that moratorium has also been extended). For each child in the household under the age of 6, the unemployed will receive another $300 check per month (or $250 per month for children between ages of 6-18). The Affordable Care Act premium or COBRA payments would also be covered. The bill extends $45 billion to pay low-income households; utility bills as well. And finally, there’s tax relief of $10,200 for those who received unemployment benefits in 2020 to mitigate any income tax shock.
With all due deference to U.S. lawmakers, what recipient would return to the workforce when the two biggest line items in their budgets – rent and healthcare – are covered in addition to what they receive on top of that? The September debate will be raging before we know it.
Also of importance…
Multiple High Grade Discoveries
Joe Hebert: Eric, we have made multiple high grade discoveries, and importantly, we have also had a 100% success rate on targets. Now we have property wide geophysics underway for new target generation.
Outcrop Gold Corp. is also pleased to announce that it has been named to the 2021 TSX Venture 50, a ranking of top performing companies traded on the TSX Venture Exchange. Outcrop was ranked fourth in the Mining Sector with a market cap increase of 1,381% and a share price increase of 392% in 2020.
The TSX Venture 50 is an annual program showcasing the top performing listed companies from five industry sectors: Clean Technology and Life Sciences, Diversified Industries, Energy, Mining, and Technology. Winners were selected based on three equally weighted criteria: market capitalization growth, share price appreciation and trading volume for the year ended December 31, 2020. A brief video on Outcrop highlighting this achievement can be found at www.tsx.com/venture50 and by clicking the link below:
TMX Interview with Outcrop President and CEO Joe Hebert
“We are honoured to be recognized by the TSX Venture as a top 10 Company in our sector,” commented Joe Hebert, President and CEO of Outcrop. “We have worked hard to deliver value through drilling multiple discoveries during 2020 at Santa Ana in Colombia. In 2021, we look forward to establishing Santa Ana as a world-class silver district, advancing other projects in our portfolio and continuing to leverage the excellent platform provided to us by the TSX.”
About Outcrop Gold
Outcrop is a hybrid prospect generator active in Colombia acquiring gold and silver exploration projects with world-class discovery potential. Outcrop performs its own grass roots exploration and then employs a joint venture business model on its projects to maximize investor exposure to discovery and minimize financial risk. Outcrop has seven primary projects in Colombia. While Outcrop’s other projects are available for joint venture, Outcrop will continue to drill and de-risk the Santa Ana high-grade silver project. Outcrop Gold, symbol OCG in Canada and new US symbol is OCGSF.
Gerald Celente discusses the imminent global boom as the world prepares to open economies, what surprises to expect, as well as what’s next for the gold market and you can listen to it by CLICK HERE OR ON THE IMAGE BELOW.
To listen to Alasdair Macleod discuss the gold and silver takedown and what to expect next CLICK HERE OR ON THE IMAGE BELOW.
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