For those new to gold, here's the deal. In a stock market meltdown, gold goes down due to selling by weak hands who need cash for margin calls. The strong hands take a beat, wait for a bottom. Then they jump in with both feet because they know it's way up from there.
One day later, here is Goldman:
"We are not going down because of recession but because of an unwind of circa 20 trilion carry trades. Only BOJ can stop this."
Sales are crashing at McDonald’s, Coke, and Kraft as low-end consumers run out of money. Meanwhile, it’s record sales at the top, from Lambos to Balenciaga.
This is what happens when the Fed prints $6 trillion: It goes straight into the pockets of the rich via asset markets.
Warning: Credit card interest rates have spiked to 21.19%
A level that has NEVER been seen since 1995
This is happening at a time when credit card debt have surpassed $1 trillion
And personal interest payments has crossed above $500 billion
There is only 1 word to define
The BOJ already surrendered. It's committed to not raise interest rates if the markets are unstable. Since it's impossible to ever raise rates without destabilizing markets,
#inflation
will ravage Japan until the BOJ is forced to crash the markets by aggressively hiking rates.
CAUTION: Credit card interest rates have skyrocketed to a shocking 21.47%
Moreover, credit card debt has crossed the $1 trillion mark
And personal interest payments have risen to over $500 billion
At this rate, the consumer is heading for trouble
To make things worse, excess
This is the biggest negative revision to payrolls since the global financial crisis.
Crucially, it took place in an election year and was meant to pad the numbers, making the economy appear much stronger than it was
The U.S. Now Has:
1. Record $17.7 trillion in household debt
2. Record $12.4 trillion in mortgages
3. Record $1.6 trillion in auto loans
4. Near record $1.6 trillion in student loans
5. Near record $1.1 trillion in credit card debt
Total mortgage debt is more than double
The Yen is tumbling. That's happening because 10-year JGB yield is being kept artificially low by BoJ. Japan has to do that because debt is 250% of GDP, so allowing 10-year JGB yield to rise freely would lead to a debt crisis. Yen weakness is the price Japan has to pay for this.
JUST IN: 🇺🇸 Warren Buffett sold another $981 MILLION shares of Bank of America.
‼️Buffett now holds $278 Billion in CASH and selling stocks like never before, including Apple.
He's getting ready for a crash...
Did anyone notice that gold hit a new all-time high today? A few of us did. It's fascinating how mainstream business media ignores the story. Could it be because the rally in gold is actually the collapse of the dollar?
Buffett is hoarding $188 billion in cash in short term Tbills collecting 5.4% rate.
Every time Buffett hoards record amounts of cash as the Fed raises rates an epic stock crash happens within the next 12 months, like it did in 2000, 2008, 2020 and now….
Warning signs are starting to pile up on the Nasdaq for the first time in years.
Despite the Composite hitting multiple new highs in recent weeks, more stocks have been falling to new lows than new highs. This is a highly unusual split that has typically preceded weak returns.
This is interesting:
Hedge funds have been selling US tech stocks at the fastest pace in at least 7 years this month, according to Goldman Sachs.
Semiconductor stocks have been the most heavily sold, followed by software and internet stocks.
This comes after Nasdaq 100 has
BREAKING: Job openings have just seen a sharp move down today
This kind of a steep declining has only been seen 3 times since 2000
All 3 ended in a sharp economic downturn
#Gold
just hit another record high, but few investors notice or care. With so much attention focused on
#Bitcoin
, investors are not only missing out on gold's gains, but the significance of the rise. Gold is warning that money policy is too loose and
#inflation
is headed higher.
Americans can't afford their mortgages.
Debt to Income Ratio on FHA mortgages hit 44% in 2022.📈
Highest % ever. Even higher than 2007-08 Bubble.
Lots of defaults / foreclosures coming for low-income homeowners.
(Source: Fannie Mae)
BREAKING: $ASML craters -15% after the semiconductor lithography provider sees bookings drop by 50%
3Q bookings EU 2.63B, est. EU 5.39B
*The AI bubble just popped.
$NVDA $AMD $MU
🟥WARNING🟥
Credit card debt is surging exponentially, far surpassing levels seen in 2008 and 2020. History suggests that such high levels of credit card debt often precede economic crashes.
U.S. Treasuries will soon be rerated from risk-free to guaranteed loss. The debt is unpayable, and politicians lack the integrity for an honest default. Interest rates will be held negative indefinitely, so anyone who holds a U.S. Treasury to maturity is 100% guaranteed to lose!
With
#gold
at $2,550 and
#oil
at $67, one can buy 38 barrels of oil with just one ounce of gold. Outside of the pandemic oil crash, oil has never been this cheap. That's good news for gold mining stocks, but bad news for Americans, as it means much higher oil prices are coming.
Current situation:
1. Stocks are rising like we have avoided a recession
2. Gold prices are rising like we are heading into a recession
3. Oil prices are rising like we are heading toward WW3
4. Bond prices are falling like geopolitical tensions are easing
5. Crypto is
🚨🇺🇸BREAKING: U.S. NATIONAL DEBT SURGES BY $500B IN JUST 3 WEEKS
In just 21 days, the national debt has ballooned by nearly half a trillion dollars, bringing the total to over $35.7 trillion as of mid-October.
This rapid increase comes as interest payments on the debt alone are
Payrolls slow to a crawl while 5 and a half million Americans have given up even looking for a job.
At this point we’re 7 million jobs below Trump’s pre-pandemic trend. Media gaslighting is on full blast. But even the Fed is realizing they screwed up.
Central banks have played with fire for years. Now the world is about to be burned. They kept interest rates artificially low, blowing up a global debt bubble. But as
#inflation
reared its head, rising rates pricked that bubble. Now it's time to pay the piper. The game is over.
🟥WARNING🟥
The Canadian housing bubble is currently in the process of bursting. The last two times we witnessed such a significant year-over-year plunge, the economy experienced severe economic recessions.
The United States biggest fear is a breakdown in the bond market.
China is rushing to gold.
Japan is looking to prevent a collapse in its currency.
Is it a sign of a healthy market if a country's central bank has to intervene in its debt market every time there's an issue?
Nikkei looking at a -5% open Monday, will bring 3-day drop to 13% and spark epic deflationary shock
Idiots at the Bank of Japan blew up the world again
Bank of Japan waves the white flag, promises to never again hike rates when markets are "unstable."
Given markets were not at all unstable until they hiked, this effectively means the BoJ is promising to never again hike rates 🤡
🟥The recession is upon us. Despite the prolonged inversion of the yield curve, the stock market continues to reach new highs, reminiscent of the situation in 2006-2007, just before we were plunged into one of the most significant financial crises of our lifetime.
WARNING: Credit card defaults are sharply rising
This is the case for all age brackets
Especially the younger ones
The 18 to 29 age bracket is at its highest level in +10 years
This is worsened by over $1 trillion in total credit card debt
And credit card interest rates
#Gold
is down over $80. This is actually a bearish sign for the markets, which have crashed to new morning lows, with the Dow off over 3% and the
#NASDAQ
down more than 6%. Gold going down suggests markets don't expect the
#Fed
to come to the rescue with an emergency rate cut.
Goldman: Unless China does QE now, the current market rally will crash and burn and the economy will be a crater. If China does do QE, oil will soar, and gold and bitcoin will be orders of magnitude higher.
For the first time in history, the world’s top central banks are shrinking their balance sheets (QT) at the same time.
Last month, the Bank of Japan announced that it would reduce its bond holdings worth ~$5 trillion.
Now, the BoJ joined the Fed, the European Central Bank, the
Fed Unexpectedly Kills Bank "Free Money" Bailout-Fund Arbitrage Scheme As It Ends BTFP Program | ZeroHedge
FRB、BTFPプログラム終了に伴い、銀行の「フリーマネー」救済資金裁定スキームを予想外に中止
So much for Japan's stock market miracle: the yen surge has hammered the Nikkei and will soon wipe out all 2024 gains; this will crush optimism and any hopes for sustainable wage gains. And if BOJ hikes rates it will also blow up the bond market.