Last year Turkey's lira crisis quickly morphed into a Euro-zone crisis as Italian bond yields blew higher and the euro quickly reversed off a major Q1 high near $1.25. It nearly sparked a global emerging market meltdown and subsequent melt-up in the dollar. This week President Erdogan of Turkey banned international short-selling of the Turkish … Continue reading Is Turkey “City Zero” in Global Contagion
stocks
Meet the New Merkel, Same as the Old Merkel
So Angela Merkel is out as leader of the Christian Democratic Union (CDU). In comes Annegret Kramp-Karrenbauer, Merkel's close ally who won the party's support with a very narrow victory over more conservative Friedrich Merz. The goal , as always in Europe, was to maintain the status quo politically. Change needed to change nothing. Brexit negotiations … Continue reading Meet the New Merkel, Same as the Old Merkel
Recession Incoming or Something Worse? 2/10 Spread Collapses
UPDATE: Now stocks are selling off and the 2/10 spread is less than 10 basis points. Gold, however, refuses to sell off while the euro pulls back versus the dollar. Mike Shedlock over at Mishtalk noted yesterday that there have been a couple of troubling inversions in the U.S. yield curve recently. They happened in … Continue reading Recession Incoming or Something Worse? 2/10 Spread Collapses
Private Blog: Market Report – Bibi’s Tough Choices
Preparation is More than Buying Bottled Water
Hurricane Michael caught a lot of people unprepared. What looked like an uneventful gulf storm turned into a raging monster by the time it made landfall in the Florida panhandle. Michael missed us completely this year. I never really worried about it because there was so little error in the track and it was a … Continue reading Preparation is More than Buying Bottled Water
Is Gold Decoupling from Debt?
When I went outside this morning to wrangle my goats to milk them, I noticed something had changed. All of a sudden it was October. It was chilly in a way that only fall in North Florida could be, slightly drier and more temperate. While it was a cold, wet summer for the most part, … Continue reading Is Gold Decoupling from Debt?
Private Blog: Russian Stock Update
New Private Blog post up with a look at the situation unfolding in the Russian equity market and it's effects on our portfolio in the Gold Goats 'n Guns Investment Newsletter. Access to the Private Blog is available for those that sign up with my Patreon at or above the $4.month pledge level.
The Death of the “Death of Contagion” Central Bank Meme
Last year now-former FOMC Chair Janet Yellen downplayed the possibility of another financial crisis. In her hubris she believes the central banks have walled off the financial system from 'contagion risks' brought on by over-investment in synthetic derivative market products. Like generals, however, central planners are always fighting the last war. We're experiencing a major … Continue reading The Death of the “Death of Contagion” Central Bank Meme