Gold News Daily
12.9.16 – Debt To Halt Trump Euphoria
Gold last traded at $1,161 an ounce. Silver at $16.96 an ounce.
NEWS SUMMARY: Precious metal prices slipped Friday on a stronger dollar. U.S. stocks extended gains amid Trump-inspired economic optimism.
Chinese Buyers Find Bargains in Gold –Wall Street Journal
“Gold investors have rushed to the exits since Donald Trump’s surprise victory in the U.S. presidential election, dragging prices to a nine-month low. Now Chinese retail buyers are stepping in to take advantage of the low prices. Gold sellers in Hong Kong, where mainland Chinese often buy gold, report an increase in purchases, some of it for weddings around this month….Changes in buying patterns in China are felt in the world-wide because it is the world’s top gold consumer, accounting for about 30% of global demand. The surge in buying in China is providing a layer of support to gold prices, which are under pressure from expectations that the U.S. Federal Reserve will raise interest rates next week, a move that would likely boost the dollar….’The weakening of the [yuan against the dollar] has also led new investors onto the gold bandwagon as a hedge,’ said a Hong Kong-based head of the bullion desk of a large international bank.”
5 reasons why stocks are in melt-up mode –USA Today
“Call it a moonshot. Or Wall Street euphoria. Or a ‘Trump Rally,’ as investors are pricing in better earnings and economic growth, thanks to the president-elect’s promises to cut corporate taxes, reduce business red tape and spend heavily on infrastructure….Here’s five theories that explain why stocks are in rally mode. 1. Money managers playing catch-up….2. Bond sell-off eases….3. Cash flooding back to stocks….4. ‘Trump Effect.’….5. A trend signal says ‘buy.'”
The recent stock market rally illustrates a huge anomaly between Trump euphoria (based on emotion) and economic reality (based upon solid fundamentals). How long before euphoria is replaced with reality? Now is the time to take some high-flying stock profits off the table to buy some gold – the world’s best wealth insurance at the lowest prices in almost a year!
Trumponomics Will Collapse Under a Mountain of Debt –Stockman/Daily Reckoning
“Financial markets are heading straight into a perfect storm of central bank failure, bond market carnage, a worldwide recession and a spectacular fiscal bloodbath in Washington. Investors should be heading for the hills with all deliberate speed. What is going to stop Trumponomics cold is debt – roughly $64 trillion of it. That’s what is crushing the American economy, and until the mechanics of its relentless growth are stopped and reversed, the odds of achieving and sustaining the 3-4% real economic growth that Trump’s economics team is yapping about is somewhere between slim and none….But quite frankly the debt problem is a thoroughly bipartisan creation that is completely immune to the fact that the White House and both sides of Capitol Hill are now under GOP control. In fact, the nation’s debt affliction actually goes back to August 1971 when Nixon closed the gold window and launched the world on the current destructive experiment with massive central bank driven cred! it expansion….It’s the giant skunk in the woodpile which rebukes the whole fantastic notion currently animating the Wall Street casino that Trumponomics will unleash a powerful wave of fiscal stimulus via tax cuts and infrastructure/defense/veterans/border spending. No it won’t.”
Trump Picks Goldman President Gary Cohn To Be Chief Economic Advisor-Zero Hedge
“It appears that vampire squids are quite adaptable to living inside the swamp that Trump promised to be draining. Following the appointment of former Goldman partner Mnuchin as Treasury Secretary, NBC News reports that Goldman Sachs President and COO Gary Cohn has been selected as National Economic Council Director….Goldman Sachs President, COO Gary Cohn has confirmed President-elect Trump offered him post of National Economic Council Director and assistant to president for economic policy, NBC News said, citing sources. As in the case of Hank Paulson, the question is whether this appointment enables Cohn to dump his massively overbought $210 million worth of Goldman stock tax-free? If so, Cohn just saved over $80 million on taxes just by becoming officially a part of the US administration, instead of merely running the country from the shadows.”