Gold - preparing for the next move
..
It is very likely this new downturn will be substantial. The coincidence of the top of the credit cycle with trade protectionism last occurred in 1929, and the subsequent depression was devastating. The reason we should be worried today is stalling trade disrupts the capital flows that fund budget deficits, particularly in America where savers do not have the free capital to invest in government bonds. Worse still, foreigners are now not only no longer investing in dollars and dollar-denominated debt, but they are suddenly withdrawing funds. According to the most recent US Treasury TIC data, in December and January these outflows totalled $257.2bn.[i] At this rate, not only will the US Treasury need to fund a deficit likely to exceed a trillion dollars in fiscal 2019, but the US markets will need to absorb substantial sales from foreigners as well.
...
[Blockierte Grafik: https://www.goldmoney.com/imag…cles/Tutorials/next_1.png]
Chart 3 gives a longer-term perspective of gold’s valuation. It is of the gold price adjusted by mine supply and for changes in the fiat money quantity. Simply put, FMQ is the sum of cash, bank deposits and savings accounts, and also bank reserves held at the Fed. It is the total amount of fiat money both in circulation and available for circulation.
[Blockierte Grafik: https://www.goldmoney.com/imag…cles/Tutorials/Next_3.png]
ganzer artikel unter:
https://www.goldmoney.com/rese…eparing-for-the-next-move
bg bh