Central banks

United States President Donald J. Trump somewhat unpredictably did the predictable by naming Jerome Powell the new Chair of the Federal Reserve.

Stuck in its own petard, the ECB doesn’t believe in a vigorous and durable economic recovery anymore – the only thing that would allow it, as well as over-indebted countries, to fall back on their feet.

If we take the next 10 years, gold (and silver) is likely to vastly outperform most conventional assets like stocks, bonds and property. The Dow is now the most overbought it has been in over 60 years with gold and silver depressed by a fake paper market.

Bill Bonner spoke to James Rickards about central banks’ inability to stop the next financial crisis, as well as a possible financial market lock down.

By having control of the physical market for gold, China can threaten to use it to destabilize the dollar, without destabilizing the yuan.

China and Russia know that it is only a matter of time before the dollar will lose its status as reserve currency. They also know that before this happens, the dollar will start crumbling and eventually disappear into a black hole resulting in an implosion of all the dollar assets and debts.

Venezuela this month allowed a $1.7 billion gold swap with Germany’s Deutsche Bank AG to lapse, according to an opposition legislator who said it weakens the balance sheet of the crisis-stricken OPEC nation’s central bank.

Inflation is coming and it will have a major effect on the world economy and financial markets. This is one of the factors that will drive gold to levels which few can imagine today. Later in this piece, I am discussing 10 Factors which will make gold surge.

The traditional post jobs report rally for gold is in full swing. Gold arrived at a key Fibonacci line at about $1268 as the US jobs report was released.

China, increasingly backed by Russia—the two great Eurasian nations—are taking decisive steps to create a very viable alternative to the tyranny of the US dollar over the world trade and finance. Wall Street and Washington are not amused, but they are powerless to stop it…