It’s cheaper to borrow next year than right now!

in investing •  2 months ago 

   Great and Wonderful Monday Morning Folks,    

      Gold gives us an early morning pre-sunrise smile with the trade up $5.10 at $1,317.40 and close to the high of $1,318.90 with a low at $1,310.60. Silver is equally as strong with its price now at $15.53 up 12.3 cents and right beside its high of $15.54 with the low at $15.385. This week’s currency activity is still all about British and American politics with the US Dollar now at 96.12, down 3.1 points after reaching a height of 96.19 before heading lower with the low to beat at 95.99. Of course all of this was done way before 5 am pst and before the Comex Openings tranquilizing dart hits our collective asses once again. Venezuela’s current Gold price is now at 13,157.53 Bolivar gaining 54.93 over the weekend with Silver’s price now at 155.106 gaining .749 Bolivar.     

      March Silver Deliveries seemed to have frozen on Friday with today’s early morning count being the same as Friday’s, 45 contracts waiting for receipts, with zero Volume up on the board. Silver’s Overall Open Interest is showing a very slight drop in OI with the count losing only 140 overnighters so far bringing the total to 190,915 obligations.    

      Another emerging market currency took a stab at going lower with the nation of Turkey now blaming JP Morgan for the Lira’s Worst Slide Since the 2018 Crash sending Gold back up to its earlier heights under the Lira, proving the emerging markets failing currencies are gaining momentum as nation after nation turns itself upside down in uncontrollable debt against its natural resources and those with the digital print controls. What else is new?    

      We’re still digesting what the Fed Heads have said as we look at a complete reversal in rising rates with the shortest term Eurodollar (not the Eurocurrency) proving things are upside down as borrowing right now is far more expensive than borrowing 12 months from now. The June 2019 Eurodollar is pegged at 97.435 but June 2020’s are now at 97.775 (after reversing from 96.74). This means if we wait till next year, borrowing money will be cheaper than right now by almost .34 of a %, which means cars, homes, televisions, and all the other what not’s people use credit for will continue to slide at the sales counter, not only here, but everywhere, because rates within the G7 have all stagnated or is in retreat.     

      One of the worst points in the credit crisis the Fed created is in housing. First the Fed’s purchased MBS are being jostled around (liquidating those assets?) within its holdings, and now, we have a complete reversal in all lending. At the same time manufacturing sales are slowing down, as credit cards are already maxed out in order for people to stay in place. The world is awash in debt, digital cash, and paper precious metals. Soon enough, there won’t be any more physical to sell at these prices and up we go. Have a great Monday morning, enjoy it because so far today, the Silver sell signal hasn't work (yet) and hopefully the rest of this week will be far more enlightening for those us who studied and do not trust what the lying press whores have been saying for too long now. Q the rise in prices (and the arrests), and as always …   

Stay Strong! 

J. Johnson  

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