Is this the real reason the Dow is plunging 450+ points today?
Fastest Pace Since 2014
By Peter Boockvar, author of the Boock Report
March 22 (King World News) – Here is a portion of what Peter Boockvar wrote as the world awaits the next round of monetary madness: As for manufacturing, employment and inventory building drove the headline gain. New orders and production did moderate. Input buying rose at the fastest pace since September 2014 “which a number of survey respondents linked to pre purchasing and stock building ahead of expected raw material price rises (particularly steel related items).” The underline is mine.
Input Cost Inflation Fastest Since 2011!
What followed was this, “Efforts to boost pre production inventories also led to intense pressure on supply chains where lead times lengthened to the most since early 2014.” This then lead to higher inflation as “manufacturers signaled a steep and accelerated rise in their average cost burdens in March, which was overwhelmingly attributed to rising raw material prices. The overall rate of input cost inflation was the fastest since September 2011.” Below is a chart of the CRB raw industrials index and you can see we are just off a 4 year high.
CRB At 4-Year High!
“Negative Real Interest Rates STILL”
I remain positive on most commodities and a 1.625% fed funds rate that we now have is only barely getting to where the current rate of core PCE is and is still below core CPI. Thus, negative real interest rates STILL in the 9th year of an economic expansion.
King World News note: So many things can go wrong and yet the stock markets are still priced for perfection. The unwind may have already begun, but the real question is how far down will the Dow collapse before this bear market ends? In the meantime, gold and silver are preparing to break key levels on the upside, and sentiment in the mining share market is at rock bottom, a perfect setup for a major upside move once the paper games come to an end.
Why I Bought 400,000 Shares Of This Gold Exploration Company
A 16-Bagger In Gold?
Eric King: “I’m a shareholder (purchased 400,000 shares so far in the open market) of your company (symbol TORQ in Canada and TRBMF in the US). I know the insiders have been buying as well and can’t seem to get enough of this stock. You guys are not in this for a double or a triple. When I see you guys (insiders) buying this aggressively (over 2.5 million shares of insider purchases recently), you’re looking to make 5X or 10X your money.”
Michael Kosowan, CEO (insider): “You are right, we don’t look at making 20% or 30%. The large insider shareholdings means that we are really looking to monetize to a larger entity. Our vision is to build these assets and get to over $10 a share (roughly 16X higher than the current price of 63 cents!)…To learn more about which gold exploration company insiders have been buying like crazy CLICK HERE!
***Also Just Released ALERT: Fed Trapped – No Way Out! Also, Paulson Fund Shutdown Marks Bottom In Gold CLICK HERE.
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