This will be very costly for the world, plus quote of the weekend and China fighting inflation.
This Will Be Very Costly For The World
May 24 (King World News) – Egon von Greyerz: We know that cycles are part of life. And some cycles are more extreme than others. What has made this one worse is that governments and central banks have interfered with the natural cycle of ebb and flow. This fatal interference will be very costly for the world.
To continue the open charade of printing money to “accommodate” risk asset bubbles from bonds to beach front homes, the inflationary effects of such fake money (and desperate) monetary policy are now getting impossible to ignore…
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Quote Of The Weekend
Peter Boockvar: The quote of the weekend in my readings from the FT, “Germany’s 10 yr yield was a relatively lofty minus .12% yesterday.” It certainly is relative to what it was but it’s also redefining ‘lofty.’
China Fighting Commodity Price Inflation
It’s not just Bitcoin that is stretching the patience of the control obsessed Chinese. China has had enough of high commodity prices in some of their key inputs. BN is reporting:
“China stepped up its fight against soaring commodities prices, summoning top executives to a meeting that threatened severe punishment for violations ranging from excessive speculation to spreading fake news. The government will show ‘zero tolerance’ for monopoly behavior and hoarding, the National Development and Reform Commission said after leaders of top metal producers were called to a meeting in Beijing with multiple government departments on Sunday.”
It’s hard to think how effective this will be over time as supply and demand will be what it will be, but it is resulting today in a decline in some of their key materials. Iron ore is down almost 5% after a drop last week when the chatter started to heat up. Copper is up today but fell over the 3 prior days. Ag prices, now a huge import of the Chinese, are lower too. BHP fell 1.8% overnight in Australia, down for a 4th day. Rio Tinto was lower by 2.2%, also down for a 4th straight day.
We have a bunch more Fed speak this week and I’m most interested in hearing from KC President Esther George on whether she joins Robert Kaplan and Patrick Harker in wanting to begin the discussions on the taper process as she is considered a hawk but non voting. In that sentence in the minutes what we’re so focused on did say “A number of participants” and however softened that sentence was with mumbo jumbo about the timing, “a number” I guess would mean more than 4 people as anything less would have been considered “a few” or “some.” She speaks at 5:30pm est today.
To listen to Peter’s predictions for silver, gold, and other global markets CLICK HERE OR ON THE IMAGE BELOW.
***To listen to Alasdair Macleod discuss the end of the paper gold and silver markets, LBMA troubles, and Basel III rules impacting gold CLICK HERE OR ON THE IMAGE BELOW.
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