Tag: biiwii.blogspot.com

A Byproduct of the Twist? Gold Manipulation

Posted on by The INO.com Team

By Gary Tanashian

As the world awaits the Greek election, there was news today right here in Wonderland:

Treasurys rise after record-setting auction

Our great nation is selling more bonds (AKA debt) this week to keep itself afloat. Guess what? Demand was strong for 10 year notes.

Next up, 30 year debt will be peddled on Thursday. With the Fed on the bid, either in action or in implied waiting, one might expect that to be another bumper day. Continue reading "A Byproduct of the Twist? Gold Manipulation" →

Don't Personalize the Markets

Posted on by The INO.com Team

By Gary Tanashian

A few articles I have written lately have elicited some responses that have been less than complimentary.  This generally comes with the 'public writer' territory, but negative feedback seems to come more intensely when the market is at critical junctures where its fortunes are potentially near a point of change.

It goes both ways as I routinely hear from bulls, bears and even gold bugs when I write something that looks "dumb" because it is out of alignment with a current trend, but is actually looking for Continue reading "Don't Personalize the Markets" →

Reviewing the Macro 'Play'

Posted on by The INO.com Team

There are signs in the recent jobs and ISM reports that the previously inflated economy is decelerating. Late last week, the clown running JP Morgan said stupid things about the smart [read: talented] people he has running his high risk trading operations. Europe is of course front and center as it continues to fall apart, with Gilts and Bunds rising on ‘safe haven’ buying and the bonds (debt) of Greece and other Euro basket cases declining toward their value, which is less than zero.

The precious metals appear to be watching for signs of outwardly promoted QE policy. But NFTRH has remained cautious on the timing of this pending a crack in the US stock market, so let’s review the big index. Continue reading "Reviewing the Macro 'Play'" →

WoW! Gold's Wall of Worry

Posted on by The INO.com Team

By Gary Tanashian

May 8, 2012

Excerpted from this week's newsletter, NFTRH186:

Gold is grinding out a wall of worry that began construction out of a natural unwinding of the momentum that came in during the acute phase of the Euro crisis. More bricks were added weekly by various luminaries calling bearish; the most recent being Buffett’s right hand man, Charlie Munger: “Gold is a great thing to sew into your garments if you’re a Jewish family in Vienna in 1939 but civilized people don’t buy gold – they invest in productive businesses.”

The Munger quote was forwarded by a subscriber as was another piece by an analyst extrapolating George Lindsay’s work to forecast a coming “Thelma & Louise moment” (as in cliff dive) for gold. Add to the list an analyst calling ‘buy’ on US stocks and ‘sell’ on gold (after the Au-SPX ratio has made a long consolidation to support) and the first few minutes of this BNN interview with respected geologist Brent Cook http://watch.bnn.ca/ - clip671131 (“we’re going to see some real destruction across the board in the junior sector”) and we can see the makings of some nasty sentiment that is
opposite the over bullish condition we noted was so dangerous last summer. Continue reading "WoW! Gold's Wall of Worry" →

30 year / 2 year yield curve forecasting deflation event directly ahead?

Posted on by The INO.com Team

By Gary Tanashian

The 30 year / 2 year Treasury yield curve has been on a steady march higher since 2007.  This makes sense since that was the year things started falling apart in inflated, debt saturated developed global economies, led by the nation that showed 'em how it's done when it comes to economic management by inflation; the US.

When long term yields are rising faster than short term yields, it is a sign of stress building toward either a breakout in inflation expectations or, as has been the case thus far since 2007 (and really, since the age of Inflation onDemand began in 2001), impending reversal of the excesses.  Unfortunately, in an age where economies are managed by inflation (by monetization of Treasury/Sovereign debt in service to increasing money supplies) these reversals tend to be shall we say, violent. Continue reading "30 year / 2 year yield curve forecasting deflation event directly ahead?" →