From day one of the new trump, the sudden out of no where urgency about spendiing, efficiency etc, made me think that the focus of the last 25/30 years starting with Greenspan has been a constant drum beating about liquidity, day in, and day out... spreading from USA markets to Europe and then the rest of the world.....huge money printing and other forms of printed liquidity (stock options for one) in a big merry go round based net net net on a massive and still growing debt mountain. If you look at what's been said in the last few weeks in D.C. in the "now it's for real department", aka actions already being taken with more actions to follow... you really gotta wonder if finally, the next market crisis coming is in fact, the debt crisis. Y2k, Internet Bubble, Mortage Paper/Housing Bubble.. those were all bubbles based mainly upon Bubble blowing... Greenspan, Bernanke, and the lessers of the two who have followed them into the CHAIR.
And here you have a day one lame duck saying, yep, what we're doing is going to be painful...
Well people, they might well be setting the charges underneath the debt burg. And they might not actually know they are doing it LOL. (shades of 1789)
By the way, can't recall the supporting link, it currently takes 5 dollars of new debt to generate a single dollar of economic growth in the USA. Whoa!
"Too many large stock markets are in bubble status (U.S., India, and Japan). India has now fully broken its quarterly momentum; the U.S. is halfway there; and Japan is dancing above its glass momentum floor. Also, government debt this time around is a factor, though it wasn’t in 2008 and 2009. It’s a massive, compounded error built over decades and now facing a crisis point. The Dollar’s “dominance” (which, for whatever reason, was put forth years ago as some solid foundation) is in jeopardy. About time. Though we note that Dollar Index movement is often of little consequence to gold trends. Consider that maybe gold is headed much higher. That even just another ho-hum eight-fold move is about to occur. That would shock most investors who still aren’t participating in the monetary metals (or if they are, it’s in single-digit percents). Our assessment of annual and quarterly momentum (and of even more intermediate metrics that have for several months gone into corrective mode and now re-emerged upside) is that gold is a green-light situation. The issues now are the angle of ascent and especially linked markets—silver and the gold and silver miners. That’s where we think focus should be most intense in 2025." |
