Gold price gains of more than 7% during the first quarter of 2014 were cut on the first day of Q2 Tuesday morning, with a rally from overnight lows at $1278 in the spot market fading at $1284 per ounce.
Set aside the gloom and doom and make hay while the sun shines, advises Jim Puplava in his recent Big Picture broadcast, “As Good As It Gets—And It’s Getting Better.”
Patrick Nipper of Renaissance Macro Research joined the Financial Sense Newshour as the weekend technician, and said that risk indicators and seasonal trends warrant caution; however, credit markets aren’t showing any danger signs and still support the market’s current levels.
The “money multiplier theory”, at least in the rigid form in which the Bank presents it, is not essential to FRB and not a necessary component of FRB explanations. I wrote extensively about FRB and I do not think I ever even used the term.
Doubts about the economy have been at play in the market’s tentativeness as well. The U.S economy did reasonably well in the second half of 2013, but lost momentum at the start of this year, with weather getting all the blame for the slowdown.
We have liberals and progressives who use data to demonstrate the correlation between income inequality and recessions or slow growth and then erroneously equate correlation with causation. I think we have sufficiently shown the absurdity of their conclusions.
Jim Bianco warns that China may be in a hard-landing phase right now as economic data continues to deteriorate and more funds flee the country. When asked what the implications are for other markets, he said that it will certainly cause a problem, but he’s not expecting an ’08 crash.