Sam Jacobs, Business Insider Australia July 13, 2018, 5:42A
- Research from Credit Suisse suggests North Korea could become a $100 billion economy within 10 years.
- This would be possible only if it were to denuclearise, reform its policies, and open its borders to foreign investment.
- Industry experts have speculated the country may also be sitting on $6 trillion in resources - 190 times its 2016 GDP.
Recent negotiations between North Korea's Kim Jong Un and US President Donald Trump have provided a glimmer of hope for the hermit kingdom's economic outlook.
Markets are now watching to see whether the North Korean leader follows through with his pledge to denuclearise. The next step will be policy reforms, which will open North Korea's economy to foreign investors.
Credit Suisse analyst Trang Thuy Le estimates North Korea could become a $100 billion economy within 10 years if it takes a path towards modernisation.
Even it happens, a $100 billion economy still comprises just 0.1% of today's global GDP.
This past week I was invited to be a keynote speaker at Rick Rule’s Sprott Natural Resource Symposium.
And every year, gold is a key topic on everyone’s mind.
Let me remind you of a very old saying…
Gold is the Currency of Kings
Silver is the Currency of Gentlemen
Barter is the Currency of Peasants
Debt is the Currency of Slaves
In the long run, I’m very bullish on gold. But like all commodities, gold is very cyclical.
The price of gold and other important data I’ll show you in a moment is something I’m paying very close attention to through my holdings.
I’ve written big checks and made big buy orders on assets that I believe are very cheap and well-priced in today’s currency commodity markets.
These are the types of companies I want to own. Why? Because I believe a major will want it in its portfolio in a few years. And all for reasons, I’ll explain further down in this missive.
Published 5:06 PM ET Sun, 15 July 2018 Updated 7:07 PM ET Sun, 15 July 2018
It’s all built on shaky foundations, said longtime market bear and former Republican Congressman Ron Paul.
This market is in the “biggest bubble in the history of mankind,” and when it bursts, it could cut the stock market in half, he told CNBC’s “Futures Now” Thursday.
“I see trouble ahead, and it originates with too much debt, too much spending,” Paul said.
By Steve Sjuggerud
THURSDAY, JULY 19, 2018
Don't get caught up in the headlines...
Trade wars, interest-rate hikes, and U.S.-North Korean relations continue to dominate the news. We're in a sea of uncertainty. And markets hate uncertainty.
Don't get caught up in it, though. Don't let the headlines scare you out of stocks.
What if you'd let the U.S. credit downgrade scare you out of stocks in 2011? Or election uncertainty push you out of the market in 2016?
You'd have missed out on a LOT of money. And today, selling because of the headlines is still a bad idea.
We still have plenty of upside ahead. And the reason for that is simple...
Before we go any further, I need you to do me a quick favor.
Take a look at the chart below. It shows the Nasdaq Composite Index over the past nine years...
BY JAMES RICKARDS Posted July 17, 2018
America’s most powerful weapon of war does not shoot, fly or explode. It’s not a submarine, plane, tank or laser. America’s most powerful strategic weapon today is the dollar.
The U.S. uses the dollar strategically to reward friends and punish enemies. The use of the dollar as a weapon is not limited to trade wars and currency wars, although the dollar is used tactically in those disputes. The dollar is much more powerful than that.
The dollar can be used for regime change by creating hyperinflation, bank runs and domestic dissent in countries targeted by the U.S. The U.S. can depose the governments of its adversaries, or at least blunt their policies without firing a shot.
Before turning to specific tactics, consider the following. The dollar constitutes about 60% of global reserves, 80% of global payments and almost 100% of global oil transactions. European banks that make dollar-denominated loans to customers have to borrow dollars to fund those liabilities
Editor, Casey Daily Dispatch
By Justin Spittler, editor, Casey Daily Dispatch
The smart money’s moving off the sidelines… and into cryptocurrencies.
This would be a big deal for any asset. But for cryptos, it’s a game changer.
You see, up to this point, retail investors have dominated the cryptocurrency market. In fact, former Wall Street hedge fund manager turned crypto expert Mike Novogratz says retail investors make up 98% of today’s market.
In a way, that’s good. After all, cryptos have given everyday people an opportunity to bet on the biggest technological revolution since the internet—ahead of Wall Street.
In the process, many folks have turned small sums of money into million-dollar fortunes.
But here’s the thing…
• Retail investors can only take cryptos so far…
Greetings from Vancouver!
Today’s show is packed full of great information… You’ll want to get a pen ready before listening.
I welcome back good friend—and Wall Street Unplugged regular—John Petrides. John is managing director and portfolio manager at Point View Wealth Management. He’s got a phenomenal pulse on the market.
Listen as John reveals three critical things to pay attention to during earnings season, which is now underway.
New information suggests that the cost to produce gold is much higher than what the market realizes. As the cost to produce gold has skyrocketed over the past two decades, the mining industry has hidden certain costs by placing them in their capital expenditures. This has lowered their “Cost of Sales” figures but has significantly increased their capital expenditures.
Furthermore, this massive cost shift has forced the gold mining industry to tackle these big problems, with big solutions. However, these big solutions come at a big cost. For example, as the average gold ore grade has fallen substantially over the past 20 years, the gold mining industry now has to move a great deal more ore to produce the same or even less gold.
July 18, 2018
Over the weekend I came across a recent speech given by hedge fund billionaire Stanley Druckenmiller that really lays out the pitiful state of free markets around the world.
Druckenmiller gave the speech a few months ago upon receiving the 2018 Alexander Hamilton award– which is given to a figure that best carries out the spirit of one of America’s Founding Fathers.
The Alexander Hamilton Institute promotes free markets, free trade and limited government.
And Druckenmiller’s speech below is an excellent discussion of where our economy stands today and how government intervention is grossly distorting the economy– not just in the US, but around the world.
Editor, Casey Daily Dispatch
Justin’s note: The US middle class is dying… and a permanent underclass is taking its place. That’s not something most Americans want to believe. But it’s happening. The signs are everywhere.
The Casey Report editor Nick Giambruno shared this idea with us in May. And now, he’s saying this disturbing trend could take the United States down the same path as Venezuela.
To learn why, I got Nick on the phone…
Justin: Nick, you talked about how a permanent underclass is forming in the latest issue of The Casey Report.
What exactly do you mean by “permanent underclass”? And how long has this been going on?
Nick Giambruno: The US once had the largest and most prosperous middle class in world history. Today, it’s shrunk to its smallest size in generations.
In 2015, the American middle class reached a demographic tipping point. It dipped below 50% of the population for the first time since data collection started on this issue. Today, it’s an official minority group.
In the years ahead, if economic and political trends continue, I expect that tens of millions more Americans will be kicked down the ladder.
Welfare and government dependency is cementing them to the bottom of society—in effect, making them a permanent underclass.
This is a trend that has been going on for decades. But today, it’s really starting to accelerate.
7 Hours Ago
Millennials may have only a little saved for retirement, but they still want to retire early.
A recent Bankrate.com survey asked millennials, classified as Americans ages 18 to 37, what the perfect time to retire would be. Their answer: 61 years old.
If only wishing made it so. Of those millennials already saving, the median retirement account balance is about $19,100. But overall, roughly two-thirds of millennials have nothing saved so far, according to a February report by the National Institute on Retirement Security.
We live in a fast-moving world where attitudes and policies are constantly changing. The biases of decades past are ancient history, and investors must adapt to new ideas and economic trends. If there’s one example of this that you need to know about right now, it’s the cannabis industry, which is making millions for those who know when and how to get in.
Just take a look at the headlines and you’ll see the changes that I’m talking about. Very recently, U.S. Senators Cory Gardner (Republican) and Elizabeth Warren (Democrat) introduced the Strengthening the Tenth Amendment through Entrusting States Act, also called the STATES Act, as a bill into the U.S. Congress.
If it passes, the STATES Act will amend the U.S. Controlled Substances Act so that it “shall not apply to any person acting in compliance with State law.” It’s a huge potential step forward for firms in the business of producing and/or distributing legalized cannabis; no matter where they are located in the world, the STATES Act could produce a ripple effect that will open doors to increased sales and profits.
By Teeka Tiwari | July 17, 2018
Nick’s Note: In May 2017, world-renowned cryptocurrency expert and PBRG guru Teeka Tiwari wrote one of our most popular Daily essays, “They Killed Bitcoin 129 Times; Each Time, It Came Back Even Stronger.”
Since then, the premature obituary continues to grow… Yet despite the recent pullback, bitcoin is still here and thriving. In today’s essay, Teeka explains why bitcoin will emerge even stronger in 2018 and beyond…
By Teeka Tiwari, editor, Palm Beach Confidential
Do you hear that?
It’s the deafening cries of all the bitcoin haters out there.
I want to show you why it’s critical that you ignore all the bitcoin naysayers… and start getting on board with bitcoin.
Believe me when I say it: Bitcoin is here to stay.
Not only that, it’s on the cusp of a massive move higher… along with the entire crypto market coming behind it. It’s a trend you’ll desperately want to be a part of.
So today, I want to tackle the biggest objection to bitcoin I hear… that it’s "worthless..
Ignore the Haters
On June 20, 2011, Forbes wrote, "So, That’s the End of Bitcoin Then."
On January 16, 2015, USA Today wrote, "Bitcoin Is Headed to the ‘Ash Heap.’"
On March 23, 2018, The Independent Republic wrote, “Bitcoin’s Story May Have Come to an End.”
Since 2011, bitcoin’s been declared dead at least 300 times.
Markets have a way of blowing this type of consensus out of the water.
The phrase “yield curve inversion” may not be up there with “Taylor Swift” or “Kim Kardashian,” but it has by now cropped up in the media so often that people are Googling it all of a sudden:
Markets are by now taking this “yield curve inversion” for granted. It’s going to happen, it’s just a matter of time, they say, and whether it’ll be next week or at the next rate hike is not crucial.
This idea that the yield curve must invert is based on the principle that the Fed is raising its target range for the federal funds rate, an overnight rate, and that these higher rates are filtering into short-term Treasury yields, such as the one-month yield, the three-month yield, or the two-year yield. Meanwhile, the 10-year and 30-year yields are doomed to be stuck. And when the two-year yield gets pushed above the 10-year yield, that’s the moment of “inversion.”