Silver and Platinum

 Hi readers 

As your all aware I am not a precious metals believer.

But when the chance comes to make money then that it money is money.

I have been watching the Comex reserves on both platinum and Silver.

Silver is currently down to 36 million ounces and Platinum is down to 142,000 ounces.

With the current silver contracts in the market place silver will be down to 16 million and platinum down to 30,000ounces by the of the year.

Russia is the largest producer of both silver and platinum in the world. With the current bullshit sanctions on Russia next year the Comex will run out of these metals,bank dealers won't be able to open contracts on these commodities if the Comex doesn't have them.

What that will do to price is another thing. Could we have a LME  issue at the Comex absolutely!

So how do we play this moving forward?

Maybe a look into buying some bars of the metal and also stocks that produce this metal is the best way to play it.

 I'd be very cautious about purchasing ETF's as if the EFT's have Russian stocks in them then you wont get the best moves moving forward.

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how to fix inflation

 Hi readers 

So the Fed has moved rates almost 2% and inflation in the US has fallen some .3 of a percent.

Ok I'll be honest rate rises don't work in an inflationary environment anyone who has an economics degree will tell you that rates don't do squat to inflation.

The only way to tackle inflation and the reason I'm saying this is because I do know that there are government accounts reading the blog, bank reserves.

The moment you increase bank reserves is the moment you will start to tackle inflation.

Currently bank reserves are at 2% if that was to increase to 10% or even 15%  you would see inflation fall dramatically. Credit is what is pumping inflation and not what people believe. (central banks)

If central banks demand that banks hold 15% capital reserves all credit would stop.

I say this because for every dollar given out as credit banks hold 2% reserve yes thats right 2 cents.

I hope that sinks in.

I found out from the RBA website that $26.6 billion in cash is floating around in the economy.

For those who don't know in Australia you cant take more that $10k in cash out of the bank at the one time. For this amount of cash to be floating around it tells me that people have been slowly storing cash away, and I congratulate them.

Banks are trying to have people move away from cash and use there system of money.

Yet when there technology goes down there is no compensation for loss or damages, just believe in the banking system.

For what its worth I don't believe in banks or the banking system.

 

RBA has just increased inflation again

 Hi readers 

I've keep to myself to see how the market plays out.We have seen a number of conflicting issue and yet inflation is still rising.

We have seen the Fed raise rates and export inflation around the world.

It shouldn't be a surprise to all of you as I did warn you that it would come.

Markets are bouncing around couple of hundred points side to side trying to suck retail into the game.

Retail is being lured into the belief that the market has bottom but has it really! 

I don't believe it has and I see further falls moving forward.

As this is being typed the reserve bank of Australia has just increased interest rates by .25% yet they just saw inflation slap 7.3% in Australia..

What is the real reason the RBA isn't increasing rates by .50% or more to combat inflation?

The property market is likely to collapse, the same with Canada, both central banks are unable to increase rates as there actions will result in property falling apart.

If property falls apart in valuations as is expected then everyone who has bought for the last 15years will be mortgage slaves, thats when your in negative equity and that your valuation of your property is less that your current mortgage.

This move by the RBA will only increase inflation so all is good for a higher rate in the future.

On a side note in the area I reside the largest shopping center Doncaster Westfield  has been busy as over the last 3 weeks. What I tend to do is just go out and walk around and see if people are shopping or just window shopping. I can  tell you people are shopping regardless of whats happening to them financially. live the moment and we can deal with the ramifications later type attitude. I can tell you that 2023 will be the nightmare year for the world.

With record debt in Australia I fear what will play out but lets see how things involve.

The governments budget what's much of a budget if anything it was smoke and mirrors.

There is no way the government will build 1 million properties in 3 years.

The budget numbers don't add up and with the lower tax receipts due to a stagnant economy and stockmarket there is no way that there numbers will come true

The budget was nothing but a publicity stunt to notify the public that the electricity bills will increase by 50%. 

The question is why when we have coal, oh that right climate change shit. Did I tell you all that the east coast of Australia is being flooded by rain. So mush for climate change its nothing but a massive hoax readers.

As an example and please check this for yourselves, in 1974 the western suburbs of Melbourne was blocked off for 6 days due to rain and flooding.

Its all cycles and Climate change is just that cycles. but people are so foolish to believe that , they forget about the basis of whats really playing out.

So now the worlds energy is increasing in price not because it costs more but only because of climate change shit.

Governments around the world are NOT governing for there people.

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Inflation is growing

 Hi Readers

So we have heard from the FED who is being cornered.

The lies and deceit that they have played out for so long is coming home to roost. The bottom line as we have said before unless interest rates are above the inflation rate inflation will continue to rise .

People/investors need to stop believing the bullshit the media is spinning as they are being played.

I say this because we have already seen 2 quarters of negative GDP and yet the government including the Federal Reserve refuse to call is as its is ( a recession). 

So lets look at whats they are really concerned about? 

Sure inflation is the after affect of what occurs before hand.

The biggest feeder to inflation is wage rises and every central banks is fully aware of it.

It's for this reason that central banks are moving aggressively to limit businesses from raising wages. By killing demand they are anticipating that businesses won't be able to offer wage rises. 

Don't think that the central banks have your best interests at hand. they don't and if anything they simply refuse to acknowledge thats its there easy money policy that has created the inflation we are currently in.

Now we see all the countries who have serious inflation on a population recruitment drive. so whether your in the UK ,Canada, Australia or New Zealand all are after skilled migration which is wonderful. My question is what have they been doing for he last 10 years. as this policy was running for 8 years straight from 2010.

Inflation readers has grown a head and with that it is here to stay whether we like it or not .

 Raising rates is only putting further pressure on the consumer nothing else. Its not dropping inflation so don't think that inflation will drop any time soon.

This post is for educational purposes.

Seek professional advise on the above. 

Euro is dead and now script is exposed

 Hi Readers 

So I have finally worked out how the euro will collapse.

From the day the Euro started trading every astrology worth there salt knew that the euro would fail. while the euro has been successful from launch but in the long term it would always fail.

Its only after 20 years I've been able to work out how it will fail.

The collapse will be from the energy crisis which is coming in the winter in Europe. With the biggest economy depended on Russian gas, there is no way that the euro will be able to hold its value .

Its already starting to be anticipated and I think its only just the beginning of what will come .

Currently we see that Europe is in a summer season and that the gas usage is low, yet its just enough to get by for know. For those who don't know European winters tend to be very cold with -1 degrees at best and -10 usual. Without gas how do people keep warm or even cook? 

I totally understand the bullshit regarding Climate change but the world isn't simply ready for this transition yet.more people have died from cold weather than warm weather and if anything when you look into the data the planet is becoming far more colder than hotter.

Yes the media keeps spinning out the fact that the planet is getting hotter but the data shows otherwise.

European countries in the EU will start to walk away from the Euro as the energy crisis hits come the winter. We can see that people are already struggling to pay there energy bills at the present time , but its only going to get worse . Yes this is also whats coming to both the USA and to Australia, at the present time they are being sheltered by elections and climate but this will soon end . Its for this reason both the FED and the European bank know that inflation is going to continue to increase.

You do have to wonder why the US is continuing to pump money into the Ukrainian Russian war when the US has no benefit from it. but lets not go there.

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This post is for educational purposes.

Seek professional advise on the above. 

metals no rush

Hi Readers once again we see metals taking a hit after the numbers which came out yesterday.

All but insuring that the Fed will move another 50 basis point in September.

The CNBC goons squad was pushing that the Fed was done only to realize that another move is coming.

I just want to explain how metals are traded in funds as some have asked the Question, while others have no clue.

So an equity fund/hedge fund will have its allocation stocks whatever it is and then will have 5 or 10% in metals physical exposure.

Reason for this is they are only allowed to be in cash of up to 2-5% that's the way most are structured.

 Have more than that amount in cash holding is a violation of the managers fiduciary responsibility to its holders and will be exposed in the quarterly audits.Any violation of there responsibility can have serious legal ramifications.

I say this because both wholesale and retail clients can be pain in the asses, with complaints that the manager was too conservative with there investments or is to bearish on there outlook. Believe me money will move if this is the case, especially in the US.

So what managers do is buy metals and just hold them.

Should they ever get margin called or want to buy a certain stock, rather than mucking up the balance of the portfolio they dumb the metals and have the cash on call for whatever they need to do.

No violations and no drama with cash on call.

So now we come to the other part about when do metals go up?

For those who have been here a while you know that metals don't increase in value on an inflationary environment. Metals like crypto coins are a deflationary tool.Metals will hold and trade much much higher in a deflationary environment. Currently as your all aware we are in an inflationary environment and its for this reason metals will continue to trade sideways to higher but slowly. Please don't believe some of the crap YouTube posters state. they have there own agenda. 

So lets look as some of the scenario's .

1. We have explained above how managers use metal positions, so if we get a slow winding death in the stock market of economy where do metal prices go?

2. February-March 2023 the potential for a crash is very real? where will prices be then!

3. Does the user case for the metal far exceeds the supply?

4. While its a storage of wealth how do you buy necessary. yes heard about the barter way but I'd like to see it before I'm confident to say that..

 This post is only for educational purposes 

ask your financial advisor on more on the above

10.1 UK inflation and its going higher

 Hi Readers markets around the world are trading higher but lets see for how long?

The illusion that the central banks will pivot is nothing more but a dream and hope.

We have just had the Reserve bank of New Zealand increase rates again by .50bps for the fourth time in a row. We have just seen the UK inflation figures and yes over 10% CPI ,so what does that tell you ?

What the central banks are doing isn't working this slow and steady approach is making it worse as inflation is becoming stuck on the economy. 

So what are the options going forward for the central banks? there are a few but they are quickly becoming irrelevant if they don't act soon.

1. Squeezing the balance sheet has to occur this side of Christmas and completed.

2. Raise interest rates way quicker than what they are doing so, the softly softly approach is feeding inflation. Yes central banks are looking to curb demand and allow things to settle down without stimulus, but this idea works well on a computer model not in reality.

3. The biggest fear central banks now have is wage inflation, should the people up-rise for wage rises then this inflation will last for 5 years at the minimum.

4. The other option is to use American economics and have an inflation figure less everything that's going up, if we calculated inflation the same as we did in 1990 the current US inflation would be 16.8% where would interest rates be then ?

5. The only other option which is the right option is to immediately increase rates higher than the rate of inflation. As the IMF said to other countries like Argentina, Brazil and Colombia. These countries got forced to increase rates higher than the rate of there inflation rate. But as the western world is so indebted a interest rate of such would bankrupt or wipe out 30 years of wealth. Now you can see why every government around the world is trying to blame Russia for there inflation which had begun way before Russia's invasion. Inflation begun when all government had started giving stimulus cheque's for free. Regardless of the conditions no government had the right to do what it did. But society has become so entitled in there thinking that instant gratification is a cancer culture.

 So as you can see we are in some very difficult times and those of you who are start can put the two together. The you will own nothing and be happy statement is taking shape infront of our very eyes.

 

This post is for educational purposes.

Seek professional advise on the above.