Week Ending January 30, 2022
What's Really Going On
Gold started the week well over $1,800 - reaching a high during the week of $1,851.00 only to succumb to the bears and institutional investors who still are holding on to naked shorts by ending the week at $1,782.00. Clearly the weak hands have not covered their negative positions on the yellow metal even in the face of more and more evidence that the economy is hanging on by a thread. To understand how dire the economy is and how deadly it is to the political party in charge, just consider the statements by White House Press Secretary on Monday who lambasted Fox News for reporting on the dangers of a growing inflation instead of reporting on “what she considers to be the news of the day.” As someone who has had a voracious appetite for news for nearly three decades, I would point all who read this to pay attention not so much what the news “says” as to pay attention to what is going on which the news. Pay attention to Liberal news outlets starting to report on not so flattering information for this administration. Do not pay attention to the distractions that are paraded in front of you daily to keep you from watching your money. The world is on the edge of a major correction. The big picture reminds me of how the new world colonist must have felt prior to the issuance of The Declaration of Independence from Great Britain.
As disappointing as the results for Gold were, Silver Bugs are either celebrating a fire sale or wondering what the heck is going on. Silver started the week over $24.00 and closed nearly 10% down from that number at $22.00 and change. Silver at anything around $22.00 is a bargain and someday, when the reality of economics overwhelms the euphoria of crypto currency, and an ever up Dow Jones Industrial Average, it'll pay off.
Much Needed Change
The Federal Reserve Board of Governors continued to show signs of easing the purchasing of assets and preparing for interest rate hikes beginning as soon as March in their scheduled meeting last week. The housing market is already predicting the slow down that could occur when money gets more expensive to borrow. There are dozens of examples of inflation and hyperinflation and how to not to proceed. Turkey just fired their Statistical Director when the annual inflation rate for that country for 2021 came in at 46%. Calculate the increase in food and fuel, which by the way are not included in the Consumer Price Index, and you can start to see that 46% is not out of the question for our homeland. Incidentally, while on this point - one might wonder why the CPI does not include these two incredibly important components of the economy. It is estimated that if they were included, Social Security payments would be 45% higher today than they are.