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1.The SPDR fund tonnage increased again yesterday, and
now sits at 967 tons.This is obviously good news for all higher gold
price enthusiasts.
2.Please click here now. Double-click to
enlarge.Gold is attempting to stage a nice upside breakout from a small
symmetrical triangle pattern.
3.In the short term, whether a rally happens or not
probably depends on what happens with the bond market.Please click here now. Double-click to
enlarge this short term T-bond chart.
4.Since the Brexit vote occurred, both gold and T-bonds
have been drifting lower.Sometimes gold leads the bond market.Sometimes it�s
the other way around, but it will be difficult for gold to stage a major
rally now without a bond market rally.
5.In the big picture, inflationary pressures are
rising significantly, and in 2017 a divergence in the gold-bonds relationship
may start to manifest itself.
6.Please click here now. Double-click to
enlarge this long term gold stocks versus gold chart.
7.Gold stocks have been in a long twenty-year bear cycle
against gold bullion, and the cycle won�t be over until money velocity and
bank loan profits end their own twenty-year bear cycles.
8.I�ve suggested that 2017 is the year that happens.When
it does, gold stocks should enter a multi-decade bull cycle that I would
argue is better termed a �bull era�.
9.Please click here now. CNBC commentator Rick
Santelli recently flew into a rage when hearing the news that Janet Yellen
may try to seek congressional approval to buy stocks.
10.The average working class person in the Western world
can�t afford to live normally anymore, even when working multiple
jobs.Janet�s latest solution, horrifically, is to try to pump up the stock
market even more than her predecessor already did with his crazed QE
programs, and leave Main Street to rot.
11.Some gold analysts may cheer for more useless QE and
other silly central bank schemes, but these programs are highly deflationary
for Main Street. From a demographics standpoint, the West is an ageing
society, so by definition QE cannot fix anything.
12.Attention gold stock enthusiasts: Inflating Wall
Street and deflating Main Street does not create a bull cycle in gold stocks.It
prolongs the twenty-year bear cycle.The bottom line is that QE is the
disease, and rate hikes are the cure.Rate hikes end the madness of forcing an
ageing society to move savings out of banks and into speculative investments
to �promote growth�.
13.QE destroys the standard of living of the Western
world�s working and middle classes.It makes housing an investment rather than
a place to live.It encourages crazed government bureaucrats to borrow even
more money than they already have done.That money is then promptly wasted on
ludicrous regime change and entitlement schemes.
14.I have to wonder if the next program to �help�
most of the Western world�s citizens will be for central banks to buy food
commodities.That would make food an investment and completely annihilate the
financial state of most citizens.Would Janet Yellen call that, �good news
for inflation�?I don�t know.I would call it an act of lunacy.
15.The only things that QE has inflated are houses and
government bonds, and that is opening the door to an �endgame� type of
scenario.
16.Janet Yellen is going to have to face the fact that
rate hikes are desperately needed to save Main Street from the government
monster that is enveloping almost everyone, including the central bank.She�s
also going to have to face the fact that the rate hikes are going to be
followed by more PBOC devaluation of the yuan.The latest yuan devaluation
is already in play now, in advance of an anticipated US rate hike in
December.
17.There�s not going to be any �making America great
again�.The demographics of America are the demographics of a dying
empire, regardless of who is sitting in the big White House chair.
18.At some point, Janet Yellen and the rest of the
Western world are going to have to accept that the West is out, and Chindia
is in, in terms of empire leadership �action�.
19.Rising rates fit well with an ageing society.It�s just
common sense.Rising rates stop real estate speculation and lower rents.Also,
many senior citizens can�t afford the higher property taxes that are now in
play in this �healthy� real estate market.
20.Going forwards, it�s madness to believe that roughly
350 million Americans can compete against 2.5 billion hungry Chindians.In a
nutshell, it�s time for the West to retire from the empire leadership game, and
enjoy that retirement.
21.The government bond market Ponzi scheme must end, and
the diabolical attack on America�s elderly savers must end.Cowards attack the
elderly, and Janet Yellen should think very hard about that fact at her
upcoming rate policy meeting in December.I think Janet will do the right
thing, not just in December, but throughout 2017.
22.I�m predicting that she is ready to begin raising
rates more consistently, which is what she should have been doing from the
start of the 2015 calendar year.
23.Please click here now. Double-click to
enlarge this key GDX chart.Like gold bullion, gold stocks appear to be �ripe
for a rally�.Note the position of my 14,7,7 Stochastics series
oscillator, at the bottom of the chart, but please click here now.If Janet Yellen doesn�t
get away from promoting government borrowing and crushing savers, money
velocity and bank loan profits are not going to recover, and gold stocks are
going to go right back down to multi-decade lows against both gold and the
dollar.
24.Janet pulled the plug on QE, as I predicted she
would.Now it�s time for her to stop doing the bidding of a debt-soaked
government.It�s not time to make America great.It�s time to make it normal,
by raising rates in December, and consistently in 2017.If she does that, gold
stocks, money velocity, and bank loan profits will all soar while an out of
control government gets taken to the woodshed, where it belongs!
Thanks!
Cheers
St
Stewart Thomson
Graceland Updates
https://www.gracelandupdates.com
https://gracelandjuniors.com
www.guswinger.com
Email:
stewart@gracelandupdates.com
stewart@gracelandjuniors.com
stewart@guswinger.com
Stewart Thomson is a retired Merrill Lynch broker.
Stewart writes the Graceland Updates daily between 4am-7am. They are sent out
around 8am-9am. The newsletter is attractively priced and the format is a
unique numbered point form.Giving clarity of each point and saving valuable
reading time.
Risks, Disclaimers, Legal
Stewart Thomson is no longer an investment advisor.
The information provided by Stewart and Graceland Updates is for general
information purposes only. Before taking any action on any investment, it is
imperative that you consult with multiple properly licensed, experienced and
qualified investment advisors and get numerous opinions before taking any
action. Your minimum risk on any investment in the world is: 100% loss of all
your money. You may be taking or preparing to take leveraged positions in
investments and not know it, exposing yourself to unlimited risks. This is
highly concerning if you are an investor in any derivatives products. There
is an approx $700 trillion OTC Derivatives Iceberg with a tiny portion
written off officially. The bottom line:
Are You Prepared?
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