Don Coxe: “The Inflationary Potential Is There And It Will Assert Itself”

“I think the tapering talk will continue, but I’m skeptical that we’re going to see any tapering other than perhaps one token attempt to still their critics by making some small cutback…
The money printing that’s been done, and the levels of irregulation that’s being 
imposed on the economy, on businesses and entrepreneurs is such that the inflationary potential is there and it will assert itself.  -Don Coxe

sic semper tyrannis

 

By Tekoa Da Silva, Bull Market Thinking:

Don Coxe, Chairman of Coxe Advisors LLP, has issued a powerful new weekly review of global capital markets, entitled, “Seeds of Deflation.” 

In this updated conference call, Don spoke to a potential impetus behind ongoing taper-talk, inflationary kindling remaining within the economy, and of great interest to our readers–an updated comment on gold.

Beginning at the 17:75 mark, Don noted that, “With all this talk about tapering, I’m cynical enough to believe that what they’re doing is talking about that to prevent the 10 year treasury yields from breaking through 3%, without them [actually] doing anything about it. This is the case where talk is cheap, and it’s better than having to print even more money to buy more and more [assets].”

“I think the tapering talk will continue,” Don added, “but I’m skeptical that we’re going to see any tapering other than perhaps one token attempt to still their critics by making some small cutback.”

Commenting on gold, Don indicated that, “What’s happening with gold, is that the worst fears of gold investors are being confirmed, which is that gold speculators (as opposed to gold investors) could not maintain their positions in gold at $1500, $1600, $1700, $1800 levels, because there was no confirmation, no pass-through from the aggressive money printing being done by the central banks, and at some point, what they say, is that they just plain have to dispose of their position[s].”

Maples Sale(2)In terms of where we are within the gold consolidation, Don said, “I don’t know therefore, at what point…we get a capitulation. So I obviously haven’t changed my views, that ‘as ye’ sow, so shall ye’ reap’—it’s only a question of the time. It’s not like predicting when you’re going to reap the corn and the wheat. The money printing that’s been done, and the levels of irregulation that’s being imposed on the economy, on businesses and entrepreneurs is such that the inflationary potential is there and it will assert itself—but it’s not going to be enough to bail somebody out who’s got a very short-term view.”

Editor’s Note: Don Coxe may be launching a subscription service soon. His conference calls and market comments are currently all free, and available at the website link below. This is a fantastic opportunity to hear and learn from Don every week—which may not be here for very long. Please take advantage of it.

To learn more about Don Coxe (and to follow his regular work) visit: CoxeAdvisors.com

Comments

  1. Gerald Celente just made a prediction:  Tapering will begin AFTER the Christmas Holidays.  They’ve reached the end on being able to pump up the market with endless money.  We’ll know within 1 to 2 months.  Sure, Gerald Celente has been wrong before but overall his forecasting ability is the best in the business.    His call on gold was reaffirmed at $2,000 or higher.

  2. Fall sunder believe it when I see it. Crash will happen when it happens.

  3. reducing taper appears to be mathematically impossible.  The spending needs of the government, particularly when the debt limit/budget crisis hits in Jan or Feb 2014, will make the borrowing needs even greater. Some say 100% more. I think maybe 50%, topping $1.5 trillion.  Many more mortgages are going to go sour as some $6 trillion in sub prime, lines of credit and 5/1 ARMS will start requiring full P&I with rate bumps.  This could seriously impact the housing market  and introduce another round of defaults.  TBTF banks will want their bailouts continue. Obamacare will hit businesses hard, knocking tax revenues downward on a personal and company basis.
    Who’s buyng our debt?   The Fed
    Taper will stay even or more likely increase with MOPE running like a FIAT marathoner, trying to lie its way past the QE gatekeeper.
    Like all lies, the big Lie of Taper is to save someone’s butt and try to convince the people that this government is coming to its sense with some fiscal responsibility.
    Not happening IMO

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