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China/US Trade Updates and The Result on Fed Policy

Cory
October 7, 2019

Chris Temple kicks off today with comments on the news that came out over the weekend regarding China’s comments on trade. China made comments that they are looking for a limited trade deal and will only be focusing on a couple items at the upcoming meeting. While this is not having a major impact on markets it does fly in the face of the optimistic talk we heard all last week. We also touch on the future of Fed policy and the possibility of a major QE program.

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Discussion
20 Comments
    CFS
    Oct 07, 2019 07:30 AM

    IT IS NOT CLEAR THAT TRUMP WILL TRY TO BAIL OUT BANKS THAT HAVE A SERIOUS DERIVATIVE PROBLEM.
    He has not been loath to seek bankruptcy in the past.
    The problem is that the derivative problem is less of a problem UNLESS various banks go belly up. Then it becomes an HORRENDOUS problem which could take out almost the whole economy.
    If that happens gold will not be a safe harbor.
    Gold cannot hold its price if no one can afford to buy !

    Because of his diversion of attention fue to this impeachment issue, I do not believe Trump will tackle the banking problem before the next election. He will just continue to talk up the economy repeatedly.
    I do believe there will be one more 0.25% rate cut this year, but do not know yet whether it will be in October or December.

      Oct 07, 2019 07:52 PM

      When many banks failed in the Depression those with gold did better than those with stocks, paintings, and real estate.

        CFS
        Oct 07, 2019 07:01 PM

        We were on a gold standard back then, so is that really a surprise ?

        (And gold was revalued upwards)

          Oct 07, 2019 07:17 PM

          CFS, ahead of Nixon’s move to completely remove gold from the monetary system, Keynesian economists predicted gold would collapse to $8 or less since it would lose its dollar backing (you can’t make this stuff up) and I think you would have believed them.

          Gold does not require the approval of fictions government to perform the way that it always has. Gold will do spectacularly if banks go belly up en masse since the Federal Reserve Note is no sounder than the ponzi monetary system in which it circulates. In a debt-driven economic collapse, the FRN will be seen for the unsecured debt that it is.

          Confidence is everything to a system built on deception and the con(fidence) artists who run the show know it.

            Oct 07, 2019 07:18 PM

            Error: should read “fictions like government”

    CFS
    Oct 07, 2019 07:45 PM

    INCREDIBLE !

    AOC doubles down.
    https://ocasio-cortez.house.gov/ajs

    Oct 07, 2019 07:30 PM

    OPUS 178 POTUS is RIGHT Exit Syria Now

    https://www.youtube.com/watch?v=AVU0TLb3SoI

    b
    Oct 07, 2019 07:41 PM

    Sounds like pretty good figuring Mr T.
    Gold over cash looks better and better to me all the time.

    CFS
    Oct 07, 2019 07:05 PM

    SW1 AREA OF LONDON WAS CLOSED DOWN BY PROTESTS:
    https://www.youtube.com/watch?v=uD1wzYPWj5k

    AJ
    Oct 08, 2019 08:56 AM

    ‘Things are getting unstable’: global heating and the rise of rockfalls in Swiss Alps
    https://www.theguardian.com/world/2019/oct/02/things-are-getting-unstable-global-heating-and-the-rise-of-rockfalls-in-swiss-alps

    More on the Chinese hoax