Business

The US Dollar collapse has already triggered a major move in inflation plays.

To whit, Gold has broken its SEVEN-YEAR downtrend.

As the US Dollar continues to drop hard over the next 12 months, Gold and other inflation plays will be exploding higher.

Below is a chart of an inverted US Dollar (blue line) and Gold prices (black line). As you can see, Gold is now leading. And as the US Dollar drops, Gold will be roaring even higher.

Smart investors will use this trend to make literal fortunes.

Remember the outrage one year ago when it was revealed that in its push to pad its top, and bottom line, Warren Buffett's favorite bank had engaged in outright criminal account churning and "cross selling", opening some 2.1 million unauthorized client accounts without permission (subsequently this extended to unsolicited car insurance policies extended on Wells auto loans). Well it turns out there was not nearly outrage, because as the bank revealed this morning, the "real" number was higher. 67% higher.

At the start of the year, we were surprised when SocGen's Albert "Ice Age" Edwards, the biggest perma-deflationist on Wall Street, flipped his outlook on the US economy, and said he now expected a fast spike in inflation driven by wage growth, which in turn would prompt an even more accelerated tightening cycle by the Fed. We did not see it, and said so, pointing out that the bulk of US job growth in recent years has been among industries that have little to no wage power.

Thanks to a surge in government spending in Q2, Canada's GDP grew at 4.5% SAAR. This is the best growth since Q3 2011 and is the best growth of all G-7 nations in Q2.

This is higher than the highest economist estimate...

Following June's MoM decline in incomes, Americans saw a modest 0.4% bounce in July (better than expected). However, their spending grew less than expected (up 0.3% MoM vs 0.4% expectations).

However, real personal spending rose just 0.2% MoM in July (below expectations).

This sent the US personal savings rate down to just 3.5%, the lowest since December 2016.