Notes From Underground: A Podcast for the Road

There were no surprises from the FEDERAL RESERVE on Wednesday. There was no discussion of yield curve control but there was plenty of confirmation about the FED‘s concern surrounding the damage done to the lowest on the employment ladder.

The U.S. central bank will pursue LOWER FOR LONGER IN PURSUIT OF A MODICUM OF SOCIAL JUSTICE FOR LAST HIRED, FIRST FIRED, which impacts minorities far more than those in the higher levels of education. As Chairman Jerome Powell explained, “They didn’t do anything wrong.”

For the record, as a citizen I agree with the assessment but I question this policy position for the chairman. (Please do not turn this into a political discussion. We are all about policy here.)

Enjoy the PODCAST as it represents what I am trying to achieve in the weeks, months and years ahead.

Click here to listen to the podcast featuring myself and Peter Boockvar.

Tags: ,

26 Responses to “Notes From Underground: A Podcast for the Road”

  1. The Bigman Says:

    Did anyone hear David Rosenberg on CNBC this AM? He made a strong case for long bonds partially based on the historical deflation that follows pandemics and the experience in Japan. I know Yra hates long bonds now and rejects that we are turning Japanese That said the long bond has had a great return the last year. Rosenberg sees the 30 yr going to 0.5% which would represent a 36% increase in value Interested in the thoughts of others.

    • yraharris Says:

      Bigman–his case became stronger after the Curve failed to steepen following the DOVISH POWELL—-it is a trade for me and not an investment buying the long end—certainly it is a reactionary instrument so trade it with the feet of Nureyev

  2. Pierre C. Says:

    Conversation with Charles Dumas
    Thought you would enjoy 👍

  3. The Bigman Says:

    Hey remember the “temporary” repo crisis- nothing to see here move along. Well here may be the real story. looks like Blackrock has supplanted Goldman-Sachs as the BFF of the Fed:

    https://wallstreetonparade.com/2020/06/blackrock-authored-the-bailout-plan-before-there-was-a-crisis-now-its-been-hired-by-three-central-banks-to-implement-the-plan/

    • yraharris Says:

      Bigman–one day we will have a coffee—-the fact they hired Blackrock a further stain on the shroud of the FED Chairman

  4. Pierre C Says:

    Bernard Connolly latest book, soon to be released

  5. P Ch Says:

    Connally’s latest book, soon to be released

    On Wed, Jun 10, 2020 at 8:29 PM Notes From Underground wrote:

    > Yra posted: “There were no surprises from the FEDERAL RESERVE on > Wednesday. There was no discussion of yield curve control but there was > plenty of confirmation about the FED’s concern surrounding the damage done > to the lowest on the employment ladder. The U.S. ” >

  6. Chicken Says:

    “Yield Curve Control” – Brainard.

  7. The Bigman Says:

    Well o wise one looks like you are going to get your eurobonds after all. Chances all countries will vote aye on this one? will the first eurobonds yield a negative interest rate?

  8. The Bigman Says:

    Don’t look now but spot silver is in backwardation with the Sept futures contract. Kitco selling Eagles for $30/ounce. Can you say physical shortage Next stop spot at $28

  9. Quentin Says:

    is yra blogging anymore?

  10. jon jonsen Says:

    where have you gone joe dimaggio…

  11. The Bigman Says:

    Hey Yra I’m well Thx for asking and assume you are as well. Hate to say it but we need this blog more than ever. Miss Mike Temple Chicken and all the others. Based on their incredibly low death rates compared to US, EU and Latin America(poor Mexico can’t catch a break) I have started to invest in Asia x Japan. You are right I was too early on silver- about 10 years too early. Question the knock against gold was always that it had no yield so is that now the knock against the euro USD yen et al? The only difference I see is that there is a limited amount of gold the others evidently are limitless. FWIW from the peanut gallery. TBM

  12. Pierre C. Says:

    Glad to see people are still posting some.
    Yra, I think I have found the answer to your question of what will the Fed do in case of high unemployment and high inflation.(at least this will be their response)

    Click to access FOMC_LongerRunGoals.pdf

    Also, I am earning a return (IN gold and silver) ON my gold and silver at Monetary Metals.
    When I get a chance I will post a picture of one of my statements,

    https://monetary-metals.com/

  13. The Bigman Says:

    Pierre I am a follower of the Monetary Metals analysis but have been unsure about their yield for PM program. It seems to me to be the same as leasing gold and introducing third party risk. What is the guarantee that the borrower of the gold can return it and pay the interest in metal? Thx TBM

  14. Pierre C. Says:

    Hi Bigman
    First I will post the link for Yra, that disappeared:

    :https://www.federalreserve.gov/monetarypolicy/files/FOMC_LongerRunGoals.pdf

    As far as Monetary Metals, I: will do my best to break it down. MM leases out gold to companies that use gold. Such as Jewelers, bullion dealers.
    My metals stay in storage, at no costs to me, until I sign a leasing agreement. Than I am in control of how much metal I want to, if any, to allocate to such lease. Leases last from 6 months to one year, not more. Interest rates have been from 2% to 4% for more riskier leases.
    When a potential lease comes up, I receive a detailed report that includes. What the business is using the gold for, the risks involved and how those risks have been mitigated by MM. For example, through insurance,gold not on counter party balance sheet, able to visit the vault, etc..: (too many to list here).I can also dig further on my own if I wish.
    Basically, my gold provides collateral for a business that uses gold. This mitigates the dollar risk of the gold price for the business. IE: they know in advance how many ounces of gold they will have to repay.
    Here’s the free market aspect to it. Lessors and lessees have to agree on an interest rate to make the deal happen. And,like Keith says, since no one will lend out their gold for a negative interest rate, how real money is suppose to work,.(I would just take mine home and bury it.) no deal is made if the parties cant agree on a rate.

    I believe that MM has sample lease examples on their website.
    I hope this helps

    • Redoctober Says:

      After your leasing agreement, if your gold is collateral for 3rd party business loans, wouldn’t it be the case that your gold is now a guarantor and secondly the loan issuer now by law have first rights to your gold in event of default regardless of how safe it sits in your vault. Basically somebody’s terms and conditions have overriden yours in another legal paper which you have no perview?

      Is this the correct layman understanding as i am no expert?

      • Pierre C. Says:

        Redoctober
        I’m not a lawyer and cannot specifically answer your question.
        I don’t believe it’s a “loan”. As all businesses need a line of credit to operate the gold acts as collateral for the credit.
        Yes, there are risks involved that is why you earn a return. Steps have been put in place to mitigate those risks and due diligence has been performed. Pros and cons have been weighed.
        Who said: “six percent interest can draw gold from the moon,”

  15. yraharris Says:

    Nice ongoing discussion as I am preparing to restart the writing—-many podcasts to post and doing one tomorrow night with richard Duncan

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.


%d bloggers like this: