On the heels of some wild trading across the globe, we are now approaching a “line in the sand.”  Also, look at what is really happening in the US economy.

“Line In The Sand”
October 29 (King World News
) – Here is a portion of what Peter Boockvar wrote today as the world awaits the next round of monetary madness:  
The Chinese yuan continues its move towards 7.0 vs the US dollar. It’s lower for the 5th day in the past 6 and the drama is getting closer on how the PBOC will react….

Yuan Moving Towards “Line In The Sand” At 7.0 vs US Dollar

Is it a policy line in the sand or just a number?…

Listen to the greatest Egon von Greyerz audio interview ever


There was a veiled threat on Friday on the part of the PBOC towards market players. In terms of the Chinese authorities attempts at dealing with the economic slowdown, it is interesting that they are getting some supply side chops on with the proposed tax cuts. Considering the amount of debt the private sector has accumulated, it is good to see some reliance on fiscal measures instead of the constant reliance on monetary steps.

US Economic Front: From the Dallas Fed Manufacturing Report
Chemical manufacturing:

“The availability of skilled workers will limit growth.”

Primary Metal Manufacturing:

“Tariffs need to be resolved.”

Fabricated Metal Product Manufacturing:

“We might see some softening in 2019.”

More Comments Regarding The US Economy
“Being in manufacturing and housing, we are seeing pressures on multiple fronts. Interest rates are starting to cause hesitation in the new construction and remodeling projects. Tariffs are increasing material costs in metals as one would expect. Wages and benefits are increasing every day as the ability to find good employees is near impossible. Training costs are increasing as turnover is very high (employees jumping from employer to employer, gaining wage increases). The vast amounts of rain in Texas has also proved to be a substantial cause for what I would consider a downturn in housing.”

“Tariffs are still a factor when every job requires purchasing such material. Some customers understand, others are just deciding to get it elsewhere when we ask for money to cover the increased cost.”

“Competition for projects is starting to intensify. This is a strong indication that our competitors are slowing down and are not getting the volume of work that we currently have. This also indicates that the large companies are having fewer projects being bid for construction. This could be temporary, but from my experience, it is never a very good situation in the short term for future business activity.”

Gold & Silver
King World News note: In the midst of all of this, gold and silver are trading lower today even though the COT structure remains solidly bullish for both gold and silver.  Meanwhile, the mining stocks are trading nearly 1% higher on the day.  It will be very interesting to see if how gold, silver and the mining shares trade for the next couple of weeks.

Egon von Greyerz discusses his meeting with the Chinese and what they are up to in the gold market as well as what other surprises are in store for the last two months of 2018 CLICK HERE OR ON THE IMAGE BELOW.

ALSO JUST RELEASED: Greyerz – THE END OF AN AMAZING STREAK: Since 1928 – We Have Just Witnessed A Very Rare Event CLICK HERE TO READ.

To listen to the man who worked side-by-side with the Chairman of the Comex in the 1970s and called the stock market crash of 1987 CLICK HERE OR ON THE IMAGE BELOW.  What he had to say about what is coming for stocks, bonds and gold is priceless.

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