"Fiat Money Quantity" & $11,000 Gold

If gold (priced in dollars today) bore the same relationship to the quantity of dollars in existence some eighty years ago, the price range in today’s dollars would be between $4,000 and $11,640...

Former German Central Banker Reveals "The Real Danger In Finance"

"These distorted markets are increasingly hostage to unfathomable political risk...the real danger in finance is the not one that tends to be discussed: that banks will topple over (as they did in 2008). It is, rather, the threat that investors and investment groups will be wiped out by wild price swings from an unexpected political shock..."

Key Events In The Coming Week

The key economic releases this week include industrial production on Monday, CPI on Tuesday, and housing starts on Wednesday. There are several scheduled speeches from Fed officials this week. The Beige Book for the November FOMC period will be released on Wednesday.

Frontrunning: October 17

  • Bonds Selloff Spreads on Inflation Concern; Stocks Fall With Oil (BBG)
  • Trump charges U.S. election results being rigged 'at many polling places'  (Reuters)
  • CNN’s Stelter Blames Firebombing of NC Republican Office on Trump's 'Over Heated' Rhetoric (Newsbusters)
  • Britain, France seek EU condemnation of Russia over Syria (Reuters)
  • Inside the Secret Society of Wall Street's Top In-House Lawyers (BBG)

"Pounded" - How Not To Manage A Fiat Currency

The Bank of England’s inept monetary policies under Mark Carney’s governorship seem certain to expose the fragility of fiat sterling to wider public attention and skepticism. If the consequences weren’t so serious, we might thank him for unwittingly toppling the status quo. But the inevitable crisis, many times worse than that faced in 1975, cannot be embraced even by the most extreme financial masochist. This is why people in Britain and America will increasingly find solace in gold.

Inflation Is About To Spike Due To The "Base Effect"

In June, oil was still down 20% relative to a year prior. Last month, that year-over-year change had already risen to 0%. And if prices hold at current levels, oil will be up 45% at year-end. To repeat for emphasis, that’s -20% YoY to +45% YoY in the space of six months."

Frontrunning: October 11

  • Samsung scraps Note 7 (Reuters)
  • Note 7 fiasco could burn a $17 billion hole in Samsung accounts (Reuters)
  • Trump's struggles may depress Democratic voter turnout (Reuters)
  • Major Investor Sues Theranos  (WSJ)
  • S. Africa’s Gordhan to Be Charged; Rand Plunges Most Since June (BBG)
  • Oil price falls back from one-year highs, hit by OPEC deal concerns (Reuters)

Key Events In The Coming Week

In the US focus will be on the market's reaction to the second presidential debate, FOMC Minutes but also retail sales, import and producer prices and Michigan sentiment. We also hear from various Fed speakers throughout the week, and Chair Yellen gives a keynote speech on Friday.

Frontrunning: October 10

  • Rancorous Debate Gets Personal (WSJ)
  • In debate, Trump signals aggressive close to his campaign (AP)
  • Trump Ends Nightmare Weekend With Over-the-Top Debate (BBG)
  • Trump vs Clinton: He calls her a devil, she says he abuses women (Reuters)
  • Ryan discussed revoking Trump endorsement (Politico)
  • Trump's body language during debate raises social media eyebrows (Reuters)