It’s deja vu as markets are breaking all over the word.

Feeling Deja Vu
July 6 (King World News) – Simon Mikhailovich:  Feeling deja vu…. After rallying in early 2008, gold prices declined ~30% heading into the “Lehman weekend.” A lot of longs got shaken out but, in the end, the only two assets with positive performance in 2008 were gold and the treasuries…

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Markets Are Breaking All Over The World
Fred Hickey:  My contention all along has been that the irresponsible, interest rate suppressing, money-printing central banks would never be able to normalize rates and reverse their printing without causing economic disaster. Therefore, they wouldn’t be able to control inflation. Markets would break 1st.

Fed has barely started hiking rates, has done almost no QT, while ECB can’t even get started. Inflation running at highest rates in 4 decades (over 8%). Real rates still deeply negative. Yet same bozos who’d claimed there’d be no inflation now calling for disinflation. No chance.

All over the world, markets are breaking(emerging markets, currencies etc.), even before central banks up rates to levels anywhere near where they need them to halt inflation. Investors now even building in end to rate hikes THIS YEAR & cuts next year. Central banks have lost control. Investors haven’t recognized.

Every time we near a “crisis,” CB’s “pivot” & create more money. Fed inflated the U.S. money supply a Weimar-like 40% in just 2 years in response to COVID. They have intervened so many times they’ve destroyed the proper functioning of markets, making them “batshit crazy” as Paul Tudor Jones described. As in Weimar and in other highly inflationary periods, everyone (most investors) become speculators. In these types of markets, oil can go negative, as can bond yields.

Speculators “invest” in 20K cryptos, nonexistent “art,” jars containing farts – anything they think a greater fool might buy (nice charts). Meanwhile, historically, money-fueled economies eventually collapse. But inflation does not, drop – it soars because there’s too much money.

Precious metals and commodities do best in stagflation periods. If one stays off margin (no forced selling), keeps plenty of cash reserves to take advantage of “batshit” crazy markets when oil is negative and oil stocks are at historic lows or when speculators are throwing out precious metals, metal stocks generating lots of cash & paying large dividends (even at these depressed prices) & other commodities; then one will fare far better than the speculators who believe MongoDB, other techs & ARKK (all at risk from obsolescence) are “long duration assets”.

***To listen to Matthew Piepenburg discuss why the coming collapse will be far worse than anything we’ve witnessed this century and much more CLICK HERE OR ON THE IMAGE BELOW.

***To listen to Alasdair Macleod discuss the major shock that is coming to the commodity markets as well as what to expect from gold and silver CLICK HERE OR ON THE IMAGE BELOW.

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