It Never Ends

Bob Rinear, January 23 2021

First off, what is inflation? We all recognize it as increasing prices when we buy things. The spinner heads will tell you that no, according to the dictionary, inflation is an increase in the money supply. So let me ask, do we have the dictionary description of what inflation is? Let’s see:

Normally characterized by slow, steady growth, the U.S. money supply has grown 20% from $15.33 trillion at the end of 2019 to $18.3 trillion at the end of July.

Well dang! It looks to me like there’s been a quite hefty increase in the money supply, what says you?  You agree? 

Earlier this month, Jay Powell had to justify his existence, and he does that by spewing baloney to appease the stock gods. Let me share something I grabbed off of CNBC.

In its most recent policy statement, issued in December, the policymaking Federal Open Market Committee said it would keep an accommodative stance until it sees “substantial further progress” toward its employment and inflation goals.

On the employment mandate, Powell stressed the Fed’s new approach to inflation in which it will not raise rates even if unemployment falls below levels that historically would have been considered a warning sign for pricing pressures ahead.

“That wouldn’t be a reason to raise interest rates, unless we start to see inflation or other imbalances that would threaten the achievement of our mandate,” he said.

One such imbalance would be inflation. In recent days, a few Fed officials have cautioned that inflation could move up sooner than the central bank expects and might force the removal of some policy accommodation sooner than committee members have forecast.

“If inflation were to move up in ways that are unwelcome, we have the tools for that, and we will use them,” he said. “No one should doubt that.”

I would love to live on the planet that good old Mr. Powell lives on. Because down here on this orb we call Earth, we have true inflation, both by description and pricing.

First off, what is inflation? We all recognize it as increasing prices when we buy things. The spinner heads will tell you that no, according to the dictionary, inflation is an increase in the money supply. So let me ask, do we have the dictionary description of what inflation is? Let’s see:

Normally characterized by slow, steady growth, the U.S. money supply has grown 20% from $15.33 trillion at the end of 2019 to $18.3 trillion at the end of July.

Well dang! It looks to me like there’s been a quite hefty increase in the money supply, what says you?  You agree?

Now, what happens when all that extra money supply, is chasing the same amount of product or service?  (drum roll here) Well Dang again, it seems it forces prices higher on the stuff we buy!  Imagine that, what a coincidence!

Yet Mr. Powell and his cronies say he won’t raise interest rates until he see’s inflation.  Something tells me the poor boy needs new glasses. Maybe he needs Lazik? Because normal people see inflation all over the place.   Food is higher, energy is higher. How about housing?

House prices continue to rise in all of the country’s 20 major cities, according to Standard and Poor’s, with Phoenix posting the highest increase of 8.96% during the year to Q2 2020, followed by Seattle (6.5%), Tampa (5.89%), Charlotte (5.74%), Cleveland (5.4%), Minneapolis (5.39%), and San Diego (4.98%). More mo...

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2021 OUTLOOK FOR GOLD IS STRONG - Will It Rise to $2,100, $2,500, $3,000 or More?

Guest Writer, January 20 2021

As you know, the performance of gold responds to the interaction of demand and supply, which, in turn, is influenced by the interplay of four key drivers: 

  • Economic expansion;
  • Risk and uncertainty;
  • Opportunity cost; and
  • Price momentum

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Gold?

Bob Rinear, January 16 2021

All day every day, all we hear about is Bitcoin, and how exciting it is. How more and more people are adopting it. Well, as I wrote a few weeks ago, I missed the whole boat on Bitcoin. The idea of it being anonymous was attractive, but the idea that I couldn’t hold it in my hand, had to rely on “wallets” with passwords, and the fact that I think they can indeed shut it off if they want, told me, I didn’t need it.

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LABOR MARKET RESURGENCE SCREAMS TO A HALT - Any Silver Linings Are a Mirage

Guest Writer, January 13 2021

As 2020 came to a brutal end, an unequal K-shaped recovery was interrupted as the pandemic raged on while the government belatedly enacted an incomplete stimulus/relief package. 

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INFLATION ISN'T COMING...IT'S HERE! Will the Fed's Market Manipulation Actually Help?

Guest Writer, January 9 2021

Well, don’t look now, but meaningful, relevant inflation is already upon us — and has been for some time — not just here in the U.S., but all around the world. 

It shouldn’t come as a surprise either. After all, it’s the Fed’s explicit goal. And what else would you expect when the nation’s money supply (M-2) has grown by 410% since 2000 — and $3.7 trillion, or 24%, in 2020 alone?

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Bitcoin Madness?

Bob Rinear, January 6 2021

The topic I would rather talk about is the situation that’s taking place in Georgia with the Senate race, and then of course whatever madness is going to happen on Wednesday. But, since we don’t know the outcome to either, I’d like to just take a minute and chat about Bitcoin for a minute.

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Merry Christmas!

Bob Rinear, December 19 2020

So I shall celebrate this Birthday with prayer and meditation. I will come back from the daily grind to contemplate my reason for being here and what ever job I should be doing while I am.  I don’t have all the answers, but I have to believe in something. I shall believe in a God, and that when this body of meat and bones runs its course, I hope I am accepted as one of his. 

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Random Musings

Bob Rinear, December 16 2020

Call me silly, but if I was being ousted from a job, where crap like that was taking place, I’d be all about finding a way to persecute the person that assigned that error rate.

So, we’ll see how this all shakes out. I still suggest that some rocky times are ahead.

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TREASURY STILL HOLDING $340 BILLION IN CARES ACT FUNDING - Just $114 Billion Has Been Handed Over to the Fed

Guest Writer, December 12 2020

However, according to the Fed's December 10th H.4.1 report, almost 9 months after the CARES Act became law, Treasury has handed off to the Fed only $114 billion of the authorized $454 billion total. 

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Hold On Tight

Bob Rinear, December 9 2020

Sorry to burst your bubble, but the media is not your friend. The media is the friend of Globalists. The Friend of communists and socialists.

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What do You Know?

Bob Rinear, December 5 2020

Basically what I’m trying to say is that I don’t take hardly anything at face value. In the stock market, just listening to some talking head on TV will wipe out your account in a heartbeat. Getting tips from the kid at McDonalds only works in market manias. I don’t believe earnings releases, nor Government economic reports. Hell our own Feds say they can’t see any inflation, meanwhile the paper towels that used to be 12.50 for a case are now 24. I guess Fed’s don’t buy paper towels.

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Curiouser and Curiouser

Bob Rinear, December 2 2020

This has NOTHING to do with electing Biden or heels up Harris. They’re simply puppets for the New World Order folks, the UN folks, the “Great Reset” folks.  This is all about getting Trump out of their sandbox. Trump’s most prescient statement was when he uttered “They’re not after me, they’re after you, I’m just in the way.”  And that’s exactly right.

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DESPITE PRESSURES, GOLD HEADING ABOVE $2,000 - Neither Rain, Sleet nor Vaccine Will Keep It Down

Guest Writer, November 21 2020

We know the biggest problem driving the price of gold is the ever-burgeoning stack of public debt, which the folks at ValueWalk believe could be exacerbated by inflation next year.

They recently reported Noble Gold founder and CEO Collin Plume's observation that central banks will have to bear to brunt of "government generosity." 

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Weeklies, Not for the Timid

Bob Rinear, November 18 2020

Today I’m going to talk about “weekly” options. Are they good, bad or indifferent? Let’s chat.

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The Annoying Gap

Bob Rinear, November 14 2020

The key to gap opens, is to be IN the stock and reap the benefits of the gap. Consider the following “facts”.

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