'Buy American and Hire American' - Got Gold?

Gold

We Got What We Deserved

Lots of comments being made about the speech. Dividing, insulting, protectionist. Right now all we care about is that made what we had been calling inevitable. The marketing of a weaker dollar has begun. And it is wrapped in jingoistic Buy American lingo.

This is the 1970's, but worse. Corporations will preserve their profit margins better on the back of subsidies and passed through expenses to the consumer. And the dollar will either weaken outright, or protective trade tariffs will make import costs too high for you to afford. The American consumer is going to be a trapped client.And the product standards will slip because you can't go anywhere else. Here is the moment.."WE WILL FOLLOW TWO SIMPLE RULES: BUY AMERICAN AND HIRE AMERICAN"

Buy American, Because you will have no choice

Trump on the USD: Protection will lead to great prosperity and strength. I will fight for you with every breath in my body. And I will never, ever let you down.
America will start winning again, winning like never before.
We will bring back our jobs. We will bring back our borders. We will bring back our wealth, and we will bring back our dreams. We will build new roads and highways and bridges and airports and tunnels and railways all across our wonderful nation. We will get our people off of welfare and back to work rebuilding our country with American hands and American labor. We will follow two simple rules -- buy American and hire American.

Are you kidding me? Protection will lead to prosperity? Protectionism is not protection. it is government creating inefficiencies that you will pay for one way or the other.

Get ready to get screwed. Yes, you'll get a job, but your wages wont keep pace with inflation. Your consumer needs will increase in cost. Your purchase choices will be limited and thus sub par product will be created here.

Yes, Globalism hurt us. But so will protectionism. Its not the ideologies. Its the people using them for their own ends. The illusion of choice is why we're screwed. Who benefits? The powerful on the backs of the people.

We were Warned.

Lap it up Trump-ettes. Lap it up. Right now corporations are lining up for their incentive to stay in the U.S. And you'll be paying for it either through a debased dollar or locked in domestic choices. Some of our points from several previous posts as far back as August 2016 are happening now.

1970s inflation thesis is intact, more so now.
HELICOPTER MONEY- the permanent monetization of debt (bonds become like stocks in a sense) is the preference here. Just roll the debt forward, repeat...Steepens curve, trickles down better, used successfully to finance Vietnam.
also gives people jobs.. illusion of safety, creates confidence and esteem in public... but inflation kills buying power
BUY AMERICAN will become the cry, and noone will be able to buy anything else because of the inflation.
The endgame is inflation... but the game now is to spend as much money as we can before inflating. Look for the US to just buy stuff likethechinese do in advance of debasing
Gold like the 70's will be last to rally in this inflationary cycle. Gold does not lead in real inflation. look it up.. slow rally.. spike is end in 1970-1984 mkt
Fed will chase inflation. their inability to get rid of deflation for 10 yrs is proof they wont be able to just raise rates to stop the acceleration.
Real rates will stay negative.forcing more money into stocks, even while bond yields start to rise.
Fed will buy stocks now. This way it can hedge inflation,issue debt, and monetize it without flattening curve. China will also buy stocks
trump, brexit, nationalism- be careful what you wish for- trade tarrifs, isolationism etc.
can the EU survive? what a mess without fiscal unity, monetary policy is at its end
Banks will do well as financiers of infrastructure, deregulation as Trump is happy to become an insider
Gold will have technical pressure every time it gets to $1250- $1280 now
Yield curve will continue to steepen- Banks, Fed, want that.
QE hinders curve steepening but sterilizing money printing with long end bond buying. [or just unwinding the balance sheet- SK 1/20]
Platinum/ Gold spread is worth looking at
New Silver/ Gold contract will serve to increase Silver buying net/net and narrow the spread from retail interest.
Silver/Gold./Copper Ratio trades are on our radar now
The UK is still the template for the US going forward- strong stocks, weak Dollar.. but not weak fast enough.
Trade wars will make it hard for USD to weaken.Fischer already rationalizing that

Real Rates and Gold

We've said several times that the Fed will chase inflation. Here it is put another wa via the acting man.

Secondly, there is a strong and not exactly unreasonable suspicion that most of the economic policies favored by the Trump administration (at least some of which will presumably be backed by the Republican-controlled legislature) are likely to push price inflation up. Higher government spending, tariff hikes, the possible deportation of cheap illegal workers, etc., are all deemed to lead to higher consumer prices.
The problem is that the real savings needed to support and maintain a lengthened production structure never existed – they were an illusion created by the printing press. The same holds for the decline in consumer demand implied by an increase in savings – it simply hasn’t happened (at least not to the extent indicated by market interest rates). The real funding for long term investment projects still needs to come from somewhere though.

Real rates will not support the surges coming.

Buy Gold, Buy stocks that export, Buy volatility, stop buying TVs.

Inflation, protectionism, curve steepening, increasing the term of our debt, corporate subisidies that will not "trickle down" to you. Expect major pull backs in Gold as markets get over done easily. Gold is now a BTD product

Opportunity Squandered.

Very sad. The left had an opportunity to self assess and grow. Instead they are hurling insults like crybabies. Meanwhile the Right also had a chance to change and ask itself, "How Trump?". But it did not. And now the US is looking down the barrel of inflation, escalated trade wars, and any good that can come of rebuilding America will be gutted by the time it hits main street. Enjoy it sheeple.

Good Luck