Member Info for booboouberbear

https://www.cnbc.com/2021/10/13/us-beats-china-as-the-number-one-destination-for-bitcoin-miners.html

An interesting side story in these power hungry times...

“How did you go bankrupt?” Bill asked. “Two ways,” Mike said. “Gradually, then suddenly.” Ernest Hemingway's “The Sun Also Rises”. Once of the most nuanced quotes in all of literature.

What’s worrying for the US Consumer is house prices (which is 40% of CPI) still has a full 12 months of rent rises to factor in, energy costs haven’t even filtered through to raw inflation yet (or knock on effects like fertiliser and food costs) and wait till you see rising salary costs filter through with 10 million job needing filled. Energy could get very nasty indeed.

Today will be followed by the usual “…transitory…honest…buy more stocks” narrative. I still think we can see an “8” in front of US Inflation at some point this this / early next year.

As for AUX, it just continues it’s grand tour of manipulation. Nothing new there.

Pretty much, RTN. Crypto if left unchecked will essentially turn the US into an unregulated multi-currency system, it will destabilise the dollar and dethrone it as the worlds reserve currency.

Why pay tax in dollar denomination for example if you can do everything in an under the counter currency tax free? It wont be allowed to last because it can’t.

US RPI and Core Inflation numbers are out next Wednesday, expect big jumps in both with the lag of house prices (which makes about 40% of the Core number) will start to feed through in higher rents. Energy Costs are the elephant in the room here, they could already be showing up in a big way due to Oil and Nat Gas going higher, but the biggest supporter going forward will be wage inflation, official numbers already show this at 4.6% (and it’s way, way higher that than in the real world).

The question as you rightly say, CD, is so what? The market has swallowed this “transitory” nonsense hook, line and sinker, they have to, because if inflation actually becomes a real issue and the Fed has to go and slam on the breaks next year, carnage will do it an injustice on what will happen to the equity / housing markets.

For now, it’s a fingers in the ears number for the markets and hope for the best!

A nervous tick / reaction to the immediate jobs report, I have full faith in the spives to crash the AUX price as we go through the day's trading on COMEX.

Big miss on the payroll numbers out of the US. It’s starting to show a trend of reduced labour market participation which is showing up in labour market shortages and wage inflation. It'll will all probably be ignored by the market I guess.

Interesting that it has a current MCAP £20/30m more than SHG!

Everything is being sucked down into the vortex created by higher US Yields / US Dollar and it will surely get worse you’d imagine…if this is how they are behaving when the US Fed still has interest rates anchored at 0% and buying up USD$120T in crap per month, god help us if they actually have to slam on the breaks quickly if inflation starts to gain speed with what maybe an out and out energy crisis coming up on our bow…

Just ruled all Cryptocurrencies illegal. And therein lies Cryptos true weakness, as soon as it starts to affect or threaten the working currencies of nation states they’ll simply regulate them out of existence.

It probably won’t be too long before western countries do so also.

Will be interesting to see what the market events are leading up to Wednesday and the Fed’s bi-monthly statement / interest rate / tapering decision.

Looks like the market could be putting a gun to Powell’s head here on his tapering decision…

It certainly will be interesting to see how it all transpires, starting with Fed’s decision on tapering this Wednesday and Jay Powell’s speech after it. Personally, I think we are in for a very messy autumn and winter.

Great RNS, being so early in the process on the first round of drilling and delivering implied resource conversion ratios of 130 and 110% is pretty exciting stuff considering the recent high grades aren’t even included and with more targeted follow up drilling rounds to follow, this is looking more and more like it can move into the 10g/t gold mine category which is special stuff in today’s resource world and will means AISCs will be some of the lowest in the world.

As mentioned below, I don’t expect the SP to move, the market’s are being routed and there is much more to come!

Good shout.

Good post, Minecheck and one whose sentiments I would (largely) agree with.

The trend since the “Great Recession” (and the truth is it can be traced back to the central banks response to 9/11) is that equity and property markets being inflated through easy monetary means are good for the economy, generally, whereas in the century previous to this a good economy judged equity and property valuations, now equity and property valuations appear to judge the state of the economy, to such a point any serious realignment in either would be utter calamitous to the financial system and the economy at large.

The US for example now has an equity market valued at 200% of GDP (USD$45T+), which is now 100% or so above the average going back over a century, a 40/50% pull back in US equity and property valuations down to historical average norms and valuations would at this point create a full blown depression. The same goes for property valuations if they ever drop.

More expensive equities and housing (and soon to be more and more expensive energy) is sucking more and more life out of real GDP and productivity as it vacuums up all the capital and a financial system that has got itself into such a predicament where a material fall in either will cause a full blown financial breakdown.

Hard to see an obvious exit here.

With inflation comfortably above the growth rate and with what appears to be an energy shock in store in natural gas prices (maybe oil too) over the winter, rising tax rates (in Europe and the US) to pay for the Covid response and fiscal stimulus that is running out, how long will it be before the West is in a recession? My own view is we are barrelling towards this and it will be with before 6 months as I don’t see how any growth can be achieved in this circumstance we find ourselves in.

And the question is what we do at this point, more stimulus?

Someone is certainly currently climbing on board here is the share purchase sense. The same kind of late price action happened here last Friday PM and the high grade RNS for WK came first think Monday, I wonder if the next round of NL drill results, Singida Update, VAT refund could be due as soon as Monday?

https://www.kl.gold/our-business/australia/fosterville-mine/default.aspx

For my money we are heading in this direction (a long way off of course), the grades are becoming truly special.

If it turns out to be a proper world beater, you’d have to expect a major to come in and help us out, yes.

More incredible numbers, as per the last RNS, they clearly think they have found something truly special at the “undisclosed” location and are now mapping this out to be drilled in depth.

The resource update will be all telling on where we are going, at over 10g/t we would be heading towards the richest / lowest costs gold mines in the world:

https://www.kitco.com/news/2021-09-03/Richest-gold-mines-in-the-world-in-Q1-2021-report.html