Dateline: NO-vember 12, 2019

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Explosion of debt to make gold prices skyrocket, just wait for it
Ballooning debt has not yet exploded, and the debt to GDP ratio keeps expanding, and this eventually will drive gold prices much higher than current levels.

“There are a lot of catalysts that have pushed gold to where they are now. We broke through that $1,400 ceiling and now the $1,400 seems to be the floor,” Clark told Kitco News on the sidelines of the Silver and Gold Summit in San Francisco. “It’s not surprising that gold came a little weaker recently, but when you think about it, the big catalysts that are out there, that will drive gold and silver higher, haven’t even begun to play out yet”… (Continue to full article)

Gold prices to skyrocket on overdue volatility in 2020
From a macroeconomic perspective, several of the longer-term problems that would be bullish for gold will likely manifest in 2020, including a recession and an escalation of the trade wars tensions with China, this according to Peter Hug, global trading director of Kitco Metals.

“From a physical perspective, if you’re an investor from a medium to longer term perspective, you just stay with this market and if your holdings are under your percentage allocation that you were looking to apply to your portfolio from the perspective of gold, then you just add to the position at these levels because I think 2020 is going to be a very, very volatile year and I think it’s going to be very positive for the metals”… (Continue to full article)

Gold prices to cross $1,600 in 2020 despite year-end consolidation – RBC Capital Markets
It is not surprising that gold is consolidating into year-end, but it doesn’t mean that it won’t cross into the $1,600 territory next year…

Gold is likely to finish the year in the $1,400s range as the precious metal has run out of steam due to higher U.S. equities, monetary policy direction and positive U.S.-China trade headlines, said RBC Capital Markets commodity strategists Christopher Louney.

We’ve consistently been calling for consolidation before year-end (which is arguably something we are seeing now). Our Q4 average price forecast is $1484/oz… (Continue to full article)

How To Spend $45,000 On A $27,000 Car
As cars become more expensive, and trade-ins worth less and less, buyers go deeper in debt on new cars. Consumers, salespeople and lenders are treating cars a lot like houses during the last financial crisis: by piling on debt to such a degree that it often exceeds the car’s value. This phenomenon—referred to as negative equity, or being underwater—can leave car owners trapped.

Some 33% of people who traded in cars to buy new ones in the first nine months of 2019 had negative equity, compared with 28% five years ago and 19% a decade ago, according to car-shopping site Edmunds. Easy lending standards are perpetuating the cycle, with lenders routinely making car loans with low or no down payments that can last seven years or longer… (Continue to full article)

Economists Are Still Hooked On The Myth That Saving Is Bad For The Economy
According to new data from the US Bureau of Economic Analysis, the personal saving rate in the US in September 2019 was 8.3 percent. That puts it near a six-year high, and comparable to the saving rate we saw during the early 1990s.

Indeed, the personal saving rate has been heading upward steadily for the past eighteen months. And that’s a bit of an unusual thing. For at least the past fifty years, the saving rate has tended to increase when the economy is doing poorly, and decrease when the economy is doing well. We saw this in the late seventies and early eighties during the age of stagflation and the 1982 recession. We certainly saw it in the wake of the 2008 financial crisis, when the saving rate quickly rose from a near-low of 3.8 percent in August 2008, more than doubling to 8.2 percent during may of 2009. But now… (Continue to full article)

No Recession, Ever Again? The Yellowstone Analogy
Central banks’ attempts to eliminate recessions insure a devastating financial fire that will burn down the entire global financial system…

The global financial system has been busy piling up dead wood since the brief fire in 2008-09 threatened to burn down the entire system. All the derivatives originated and sold prior to 2009 were supposed to, along with “self-regulating markets” (heh), limit the risks in the financial systems to near-zero… (Continue to full article)

Worse Than Payday Loans For US Consumers? Online Installment Loans Up 10 Fold Since 2014!
Some politicians went after Payday Loan companies, but many of the loan shark practices have moved online and business is booming…

Some Democrat politicians went after Payday Loan companies but many of the same loan shark practices (charging triple digit interest rates) have moved online. And growth in this industry (loan volume) is up around 10 fold since 2014! YIKES!… (Continue to full article)

We Cannot Grow Our Way Out Of The Debt Pyramid
There is only one way the U.S. debt and deficit problems end. Are you prepared for it?

The United States has both a debt and deficit problem, driven by years of overspending and unfunded promises made by politicians of both parties to pay for war, health care and retirement benefits to current and future seniors. Their solution to the problem is simply going more into debt. There is only one way this kind of thinking ends. Are you prepared?… (Continue to full article)

No Blue Eyes here…

Jamie Dimon Tells 60 Minutes He’s a Patriot; There’s Good Reason to Think He’s a Crime Boss
Dimon was interviewed by Lesley Stahl this evening on the CBS investigative news program, 60 Minutes. The gist of Dimon’s argument is that candidates for President, such as Senator Elizabeth Warren, should stop vilifying him simply because he’s “successful.” Dimon also wants the public to know that it’s “dead wrong” to think he’s not a “patriot.”

JP Morgan the Pirate (Jamie Dimon)

Dimon is a bit more than “successful” when it comes to the pile of money he has accumulated.

According to Forbes, Dimon is worth $1.6 billion. The bulk of that money has come from stock grants while serving as Chief Executive Officer of the largest bank in the U.S., JPMorgan Chase, since December 31, 2005 as well as Chairman of the Board since December 31, 2006. Unfortunately, there is a very substantive argument against Dimon being a patriot and a very persuasive argument… (Continue to full article)

For Millions of Americans in the Middle of the Country, it Feels Like an Economic Depression Right Now
It may still feel like “the economy is booming” for those at the top end of the economic food chain in big coastal cities such as New York and San Francisco, but for millions of hard-working Americans in the middle of the country, talk of a “coming recession” is absolutely ludicrous because it already feels like a severe economic depression is happening right now… (Continue to full article)

About These Most Recent Price ‘Corrections’ in the Gold Market
Here is some perspective…

First is a chart below of the three recent major price declines, bear attacks driven by concerted contract dumping by a bullion banks holding heavy short positions. We know this by the volume of contracts being suddenly put forward on the ‘sell side.’ And second is a comparison of the two major gold corrections from this year.

As you may recall the Spring 2019 gold correction resolved into a very brisk rally to the upside, as the shorts were squeezed by determined buying by large speculators. Let’s see how this latest price decline resolves… (Continue to full article)

[Got physical… close at hand?]

Let’s do something about that…

Protecting Your Wealth is heard at 3:00 p.m. (Eastern Time), each Tuesday and Thursday on Republic Broadcasting Network. Jeffrey Bennett, host of the program will be sharing over 60 years of his personal experience in the precious metals markets, in addition to educational commentary regarding YOUR financial health and welfare.

Kettle Moraine, Ltd.
P.O. Box 579
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Call or TEXT: 1 – 602 – 799 – 8214
gold@morganapreciousmetals.com

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