China is revolting, tired of the never-ending lockdowns. Plus a look at gold and the economy.
China Revolts Over Lockdown
November 23 (King World News) – Art Cashin, Head of Floor Operations at UBS: Overnight, in Asia, Japan is close for Labor Thanksgiving Day and the other Asian markets are all leaning mildly better, probably in reaction to the rally their Americans put on yesterday.
There are reports of unrest in a variety of places in China as the Covid crackdown seems to be wearing out the patience of the populace. There are also reports that the demonstrations have turned somewhat hostile with Foxconn workers demanding the bonuses that were promised if they quarantined themselves at the factory. In Europe, changes are somewhat marginal. We are, leaning toward the upside in aggregate, and they are waiting to see what happens with their American cousins.
As dawn hits Central Park, U.S. equity futures are leaning marginally higher. I wonder if they ate up a chunk of their seasonality yesterday. Again, at the end of this missive, we will go through the seasonal assessment of a real pro.
CHINA WORRIES MARKET WITH COVID MEASURES
Gerald Celente: Many investors are preparing for a relatively quiet week with Thanksgiving on Thursday, but China’s COVID lockdowns and the Federal Reserve may cause some traders to feel indigestion after their feasts.
Beijing placed parts of the city of more than 21 million under a lockdown after three deaths, including the death of an 87-year-old man. The country of 1.4 billion recorded 24,730 news cases on Sunday…
Billionaire and mining legend Ross Beaty, Chairman of Pan American Silver, just spoke about what he expects to see in the gold and silver markets and also shared one of his top stock picks in the mining sector CLICK HERE OR ON THE IMAGE BELOW TO HEAR BEATY’S INTERVIEW.
Liu Xiaofeng, the deputy director of Beijing’s municipal Centre for Disease Control and Prevention, told Reuters that Beijing is facing its most complex outbreak to date.
Loretta Mester, the Cleveland Federal Reserve president, told CNBC that the central bank has “more work to do, because we need to see inflation really on a sustainable downward path back to 2 percent.”
We’ve noted that there is a high likelihood that the Fed will ease off the gas a little in December and announce a 50 basis point hike, instead of 75 basis points. Mester said the central bank will raise the funds rate, “but we’re at a reasonable point now where we can be very deliberate in setting monetary policy.”
We have also extensively reported that the Fed’s and the European Central Bank’s 2 percent inflation goal is a myth. For nearly two years, central banksters on both sides of the Atlantic have played down the inflation risk, calling it “temporary” and “transitory,” while the mainstream media blackballed those of us who had forecast “inflation is rising” as a reality.
The precious metal fell below $1,738 by yesterday afternoon due, in part, to the jump in the U.S. dollar value and rising Treasury yields.
As we have long noted, gold becomes less attractive to foreign investors when there’s a strong dollar. The precious metal, which is a non-yielding asset, also loses some interest when it competes with higher Treasury yields.
Gerald Celente has said gold should be trading significantly higher than its current price due to all of the world’s uncertainty. The Ukraine War is expanding and Kyiv is becoming more desperate for NATO to take an active role in the conflict. We forecast that low gold prices are just temporary and it remains the world’s #1 safe haven asset…
Powerhouse merger caught Rio Tinto’s attention and created a huge opportunity in the junior gold & silver space CLICK HERE OR ON THE IMAGE BELOW TO LEARN MORE.
MarketWatch noted that Thanksgiving week tends to be a good time for stocks. The S&P 500 has risen 49 out of 72 times during the week in past years and rose 60 times when counting just Wednesday through Friday. The stock market is closed on Thanksgiving and ends early on Friday.
But investors were still digesting comments from Fed officials who confirm what we have forecast: When they meet in mid-December, the banksters will seek rate hikes below 75 basis points… which marks a monetary policy easing.
As we note above in our Economic Update, forecasting the direction of where equity markets will move has zero to do with hard data and socioeconomic facts since the game is rigged.
However, we maintain our forecast for a continuing decline in the real estate sector with the commercial business sector taking the biggest hit.
Despite gains on Wall Street, everyday Americans seem to be facing a different reality.
GlobeSt.com noted that the typical apartment renters have to work harder to pay their rent.
The report cited a recent study by Zillow that found rents in the U.S. have increased 36.9 percent, while the average wage is up only 23 percent.
Miami has seen rents balloon and the report said the typical renter needs to work “three full-time days more than they did five years ago to earn enough to pay the typical rent in that metro area.”
ALSO JUST RELEASED: Everything Is Packed: Hotels, Stores, Restaurants, Airports. How Is This Possible? CLICK HERE.
ALSO JUST RELEASED: BUCKLE UP: Last Time This Happened Silver Skyrocketed $30 CLICK HERE.
ALSO JUST RELEASED: HI-HO SILVER: Staggering 194 Million Ounce Silver Deficit For 2022, Plus Gold And More CLICK HERE.
ALSO JUST RELEASED: FTX Implodes As A Series Of Bullish Catalysts Are Emerging For Gold CLICK HERE.
ALSO JUST RELEASED: A Chinese Reserve Currency And Gold, Continued Massive Inflation And The End Of Cheap Money CLICK HERE.
To listen to the man who helps to oversee $140 billion globally discuss stock market crashes and inflation as well as what he is doing with his own money right now CLICK HERE OR ON THE IMAGE BELOW.
To listen to Alasdair Macleod discuss the BIS officially closing down its gold swaps and much more CLICK HERE OR ON THE IMAGE BELOW.
© 2022 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. However, linking directly to the articles is permitted and encouraged.