Money printing jumps… World debt dangers… US deficit balloons… Consumers grow wary… Rich investors prepare for stock market troubles. Here’s some of the latest news about the fundamentals that drive gold and silver prices higher over time.
Money Supply Explodes! “Nothing Short of Spectacular.”
With two months to go, 2019 M2 growth is on track to easily exceed 2016’s record $854 billion expansion. Recent M2 growth is nothing short of spectacular. M2 has jumped $329 billion in ten weeks, about an 11.5% annualized pace. Over 26 weeks, M2 surged $677 billion, or 9.3% annualized.
–Credit Bubble Bulletin (11/9/19)
World Debt Warning!
Ratings agency Moody’s has issued a debt downgrade warning to the entire world…. It cut its global sovereign outlook to “negative” from “stable” for 2020, cautioning that “disruptive and unpredictable” politics was worsening the slowdown in growth.
‘Unsustainable’ Budget Deficit Swells 34% in October
The federal government, which ended the 2019 budget year with its largest deficit in seven years, began the new budget year with a deficit in October that was 33.8% bigger than a year ago as spending hit a record.
The Treasury Department said Wednesday that the deficit last month totaled $134.5 billion, up from a shortfall in October 2018 of $100.5 billion.
–Money and Markets (11/14/19)
American Consumer Comfort Crashes
Despite stocks soaring to record highs, The Bloomberg Consumer Comfort index fell last week to 58.0 from 59.1 a week earlier, and has now plunged 5.4 points in three weeks, the biggest such drop since 2008…
Wealthy investors are bracing for a ‘significant drop’ in stocks
Even as the market ascends to new heights, wealthy investors are bracing for a turbulent period that could produce a “significant drop” in equity benchmarks in the near term.
That is according to a recent survey produced by UBS Wealth Management that finds that some 55% of deep-pocketed investors are preparing for a drop in the market before the end of the 2020.
Wealthy investors hold 25% of their portfolios in cash, far higher than the roughly 5% that UBS recommends on average.