22 Comments

For a man such as Jerome Powell to have the courage, to pull out a knife to hack off his arm, would mean that he actually had packed something in the first place. My vision of this man, is that he is not only lost. But he is buck naked standing there wondering if he should go forth into the briar patch, or let the impending tornado behind him come and sucketh him away.

Knowing that he didn't have the foresight (or the balls) to pack everything he needed for the trip in the first place, my bets are all on him doing absolutely nothing. And letting that tornado take him back to Kansas. The hard way.

Expand full comment

PG V: I think you're the moron. Hope you are not married. Who could stand you for very long. You have an inflated ego (under statement). I know my history very well and, by the way, I have a Master's Degree and retired from Banking as a Vice President. Also, I have been investing for a long time.

You should know that people who belittles others are very insecure themselves.

Expand full comment

There probably ins't enough currency paper to print the trillions that the Federal Reserve has authorized; and it is naught but computer blips . . . ones and zeros. What this nation needs; therefore, is a damned good hacker to gain access, call up Bill Bonner and ask, "Now what?"

Expand full comment

Tom

If the US goes to a digital currency what happens to gold & cash?

Expand full comment
Jun 20, 2022·edited Jun 20, 2022

Janet Yellen and Jerome Powell are stark, raw examples of the Peter Principle on full display. American investors’ mettle is being tested.

Here we find ourselves about 3 months after this BPR missive with this:

Treasury Secretary Janet Yellen went on ABC News television to try to paint a rosy picture of the deteriorating economy.

“I don't think a recession is inevitable,” she said.

Perhaps nothing is inevitable except death and taxes. But the latest economic indicators suggest that another recession caused by bungling central planners is also inevitable.

Bidenomics was predicated on fiscal and monetary stimulus propping up consumer demand.

At the same time, the Biden administration took steps to suppress supply of critical products such as fossil fuels – going so far as to shut down pipeline plans and demand that oil companies stop investing in new sources of domestic production only to later demonize them for not doing enough to alleviate record-high fuel prices!

Other danger signs for the economy:

The Atlanta Federal Reserve Bank’s GDPNow tracker shows economic growth coming in at 0% this spring, down from previous projections of second quarter GDP gains.

The Philadelphia Fed Business Index turned negative for the month of June, the first such contraction since the depths of the COVID lockdowns.

Social mood is collapsing, with the latest University of Michigan Survey of Consumers showing consumer sentiment plunging to a record low.

The upshot is that periods of trepidation can create great buying opportunities. Asset classes that are currently under pressure will eventually reach a bottom. Some markets may be at or near a bottom now. But with the economy likely to worsen before it gets better, risks remain high in economically sensitive assets such as growth stocks and industrial commodities.

Non-cyclical assets such as precious metals tend to be more resilient to economic risks. They may even benefit from an investor flight to safety – especially as it becomes clearer that in a stagflation environment, cash is no safe haven.

Expand full comment

Oh here it is, the old saw, the sky is falling, everyone, buy gold. I hate that advise because for regular folks gold does not keep out the rain and cold nor can it feed you unless someone wants it more than the store of actual food that they have, (fat chance I'd say). The currency devaluation is only troubling if wages don't keep pace. The "problem" is debt, that part the old boy got right, the solution at this late stage, besides devaluation, is what????

Expand full comment

Bill, I agree with you regarding inflation, however, the trend started long before Powell, I am not holding Powell, in high regard only that he is adding to the issue not starting. Ralph Wood

Expand full comment

Since 1980 the inflation rate is up 244%, the buffet indicator is at 202%. The juxtaposition of those numbers indicate a normal progression rate.

The economy is moving along nicely despite what the media reports on all aspects of life. It is strong and financially sound. Go out for a drive and look around. Lots of shopping, dining, and vacationing happening. People filling up their gas guzzlers to the brim! 😂

Gold looks beautiful in the movies, and that’s probably where it should stay.

Expand full comment