Gerald Celente: Central Banks Can’t Stop a 2019 Debt Disaster (Podcast)
BY MONEY METALS
THEDAILYCOIN.ORG
DECEMBER 15, 2018 ·
Gerald Celente: Central Banks Can’t Stop a 2019 Debt Disaster Podcast by Mike Gleason – Money Metals
Coming up the one and only Gerald Celente joins me to talk about the upcoming trends for 2019 both geopolitically and economically. Gerald breaks down the chaos in Europe, tells us whether or not major protests are likely to break out here in the states and shares his outlook for the metals. Don’t miss a tremendous interview with Gerald Celente, publisher of the Trends Journal and top trends forecaster in the world, coming up after this week’s market update.
Well, as Democrat leaders face off against President Donald Trump over the federal budget, bulls and bears in the gold and silver markets are facing off at key price levels.
The gold market attempted to rally above the $1,250 level this week but ran into some selling pressure. As of this Friday recording, gold prices come in at $1,236 per ounce, off 1.0% for the week.
Turning to silver, prices rose into a critical resistance zone between $14.75 and $15.00 per ounce. Silver has traded in that area many times over the past couple months but it hasn’t managed to close above the $15.00 level since August.
A break above that stubborn chart resistance could force a lot of institutional bears in the futures markets to cover their short positions. A big short covering rally could then follow.
Silver currently trades at $14.58 per ounce on the heels of a 0.7% weekly decline. Platinum prices are down 0.9% this week to trade at $792. And finally, palladium looks lower by 0.3% as prices for the white-hot white metal come in at $1,237 per ounce to essentially trade at parity to the gold price.
Next week’s trading could get volatile following the much anticipated Fed meeting. Policymakers are expected to hike interest rates once again, but they may strike a dovish tone for 2019.
St. Louis Federal Reserve Bank president James Bullard recently called for his colleagues to hold off on further rate hikes. Wall Street and Washington are also putting pressure on the central bank to pause.
President Trump continues to express frustration and concern over rising interest rates. He sees a threat not only to the stock market but also to the government. The Treasury Department is being forced to go on a borrowing binge due to rising budget deficits. It faces higher borrowing costs as it rolls over trillions of dollars in debt at higher interest rates in the months ahead.
The Treasury Department reported on Thursday that the federal government ran a higher than expected deficit in the month of November, coming in at $205 billion. That’s an alarming amount of red ink to spill in one month. Federal spending for November was up 18% compared to the same month just a year ago.
There is plenty of blame to go around for the rampant fiscal irresponsibility in Washington. Congressional Democrats insisted on boosting domestic spending. Congressional Republicans insisted on boosting military spending. And President Trump failed to use his veto pen when bloated bipartisan spending bills reached his desk.
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