There are big discounts on MBS's lately - the discount is...

There are big discounts on MBS's lately - the discount is considered a risk premium. George Gammon does a real good job on explaining.

The Fed has declared that the only thing they want on the balance sheet is treasuries. This is a problem - MBS's unwanted - does it sound 2008 familiar?

To true - no one is talking about budget cuts - instead there is a new round of stimi due with $1050 cheques about to be sent out. https://www.cbsnews.com/news/stimulus-check-california-inflation-relief-payments/

Potatoes were down 39% for the month, cotton down 20-30%, nickel is down 40%, corn has been smashed. Every goldie has been talking about production cost inflation. If all these commodities are sinking like stones surely that signals some degree peak prices.

Remember inflation IS NOT rising prices - inflation IS  M2 rising and it still is. Wait for the FED to do an about face as recessionary pressures begin to jump in front of us.  Manufacturing Index's sink and Inventory levels start to jump up. Demand is dropping faster than supply trying to meet the disconnect.

Higher prices kill higher prices. And when higher prices exist - supply rushes to meet those prices. I went in yesterday big but clearly too early. I am not worried by my thesis but I should remember to always follow momentum and trend rather than thinking. Thinking is overrated most times when trading.  

Gold is protection from shitty government balance sheets and Gold miners are in peak fear right now precisely at the time when the story is changing.

One thing to note is that the prices on negative interest rates in the next 2 years are exploding in price right now.