FIAT Drainage Has Begun
Vince Lanci for MarketSlant.com
Gold will meet head winds as the world continues to hedge most of its uncertainty with flights to the USD. Unless that uncertainty abates, it must in the end spread all the way to the US. This will happen regardless of what you think of Trump's policies. Trump may accelerate or slow the inevitable. But Government can only slow or speed up market clearing events. They cannot stop them.
One day after South Korea press reported that US special forces, including a Delta Force team and the infamous SEAL Team 6 are participating in local drills, practicing the removal of Kim Jong-un as well as the infiltration and destruction of North Korea’s weapons of mass destruction, North Korea threatened the US with "merciless" attacks if an aircraft carrier strike group led by the USS Carl Vinson, which is currently taking part in joint South Korean drills "infringes on its sovereignty or dignity", Reuters reported on Tuesday.
“It was the best of times, it was the worst of times, it was the age of wisdom,
it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity,…”
Charles Dickens
A Tale of Two Cities
I'm back -- Chris
This week’s meeting of the Federal Open Market Committee is being set up in the financial media as a contest between the anti-inflation tendency led by Fed Chair Janet Yellen and the pro-growth forces led by President Donald Trump. Would that it were so.
European stocks declined for first session in five ahead of Wednesday's Dutch elections, debt ceiling expiration and the conclusion of the Fed's 2-day meeting where it is expected to raise rates by 25 bps. Tightening concerns emerged, also dragging down Asian shares and S&P futures, while the dollar continued its rise for a second day. Crude oil has ended its six-day drop. The pound tumbled 0.8% to the lowest since mid-January in a delayed reaction after Theresa May won permission to trigger the country’s departure from the EU.
Via The Gavekal USA Team,
We recently met with geopolitical strategist Peter Zeihan to discuss world events since the American election and his new book, “The Absent Superpower: The Shale Revolution and a World without America.” In the book, Peter credits energy and resource innovations with reshaping the global geopolitical environment.