“It’s All Gonna Blow Soon, Ain’t It?”

Not too long ago I was chatting with an Australian vineyard owner near Solvang, California.

He asked what I did for work. I told him.

Then he looked at me and said: "It's all gonna blow soon, ain't it?"

I drank his wine and said: "Yep."

Then again, I've been saying that for years...

For now, let's take a step back and consider our "interesting" economic landscape as we come up to our 120th month of an entirely debt-driven and central-bank created "market cycle."

Toward that end, I'll open with a metaphor -a device I do so enjoy...and it's the same one I offered to my wine owner.

The image I have is a beautiful little desert village with fruit stands in the streets, children running through sun-bathed flower beds, and yuppies driving blissfully about in convertibles listening to Michael Bolton's Greatest Hits.

The sun is shining, not a cloud in the sky. All is well, as far as the eye can see. And up there, on the distant horizon, sits a massive dam, behind which millions upon millions of gallons of deadly river water are pushing.

And somewhere, hidden among the walls of that great dam, is a group of very nervous folks - dangling from repelling ropes, with their stubby little fingers desperately plugging holes which are now appearing with increasing frequency.

The image I like to use includes Ben Bernanke, Alan Greenspan, Mario Draghi, and Janet Yellen scurrying from hole to hole to hole, shouting for more corks, fingers, or even silly putty to keep the great dam from, well, crushing them (and the village below) to death...

So where am I going with this?

Read more »

Debt and Currency Risk Rising to the Surface: Another Case for Gold?

Below we look at rising debt levels, the currency risk that follows central bank debt “solutions” and why gold still matters. As March rolls in, the ever increasing disconnect between Wall Street and Main Street continues, as I touched upon in this recent video from New York. Market noise, and thus market questions, are seemingly never-ending: What to buy? What to sell? What to hold? What will the Fed do? Where are markets headed? When will the next recession hit and why?

The Sun is Setting on Junk Bonds…

Below, we re-cap market signals for the month of November, giving special attention to junk bonds (see video here as well) as the first shoe to drop as markets try to run, in vain, from an approaching bear. A Rocky... Read more »