Written by Bryan Lutz, Editor at Dollarcollapse.com:
Every Sunday I like to take time to reflect on what’s happened over the past week, and then share it with you…
So I get up, sit down and start typing.
Sometimes these thoughts end up being about life, other times they are on gold, geopolitical issues effecting the markets, or the economy.
Here are three thoughts for this morning:
1. The world may slowly be losing faith in the dollar but, the US economy is still the US economy.
US corporate bonds have not seen this amount of outflow since 2020.
With so many companies, and banks running on debt, hawking corporate junk bonds to stay alive, investors are losing confidence.
Even debt relief from dropping interest rates hasn’t seemed to raise confidence in corporate bonds.
Instead, it shows the sheer amount of debt these companies have weighing over them.
Where are they placing their money, you ask?
Gold funds.
Gold funds are seeing record inflows.
In fact, the highest inflows in over ten years.
They’re seeing more than triple the amount of 2020 highs.
Once March data rolls in, the next record outflow might be US treasury bonds, but that’s not the case…
Yet.
Despite the drop in the dollar, foreign central banks and investors are still buying US treasury bonds.
Foreign investors and central banks are still betting on the US economy, whatever those bonds turn out to worth in the end.
2. So Nvidia dropped 10% last week. What’s funny is that there was a time when this was big news. Roaring headlines, and all that. Now, it’s just another day in the market. You’ve seen this before.
This is how bubbles work.
For the longest time, Nvidia was an unstoppable force.
No glass ceiling.
No atmospheric o-zone layer shielding it from the great unknown.
There was only ever optimism.
Then like many of the past weeks over the last two months, Nvidia dropped another ten percent.
The optimism has waned, while many investors who bought near the top are still hoping for a grand revival.
I’m sorry to say, you’ve seen this before.
And now that time has passed. The bubble is becoming more clear.
During the early 2000s, Cisco saw the same rise, and then consequent fall.
So far, we are on the downward slope.
3. Good News for those dreaming of Sloppy Steaks on their Saturday night outings during retirement on Miami Beach. Here’s a few good reasons for increased supply of US Cattle.
On New Year’s Eve in 1989, Macho Man Randy Savage picked up Hulk Hogan from his home in Miami for a steak dinner at a classy restaurant on the Miami Beach strip.
When they say down, the Macho Man ordered three rare steaks and two glasses of water.
The waiter was horrified, and ran back into the kitchen without saying a word.
While the waiter was gone, Savage explained to Hogan, “They won’t let us order “Sloppy Steaks,” but we can always order steaks and two glasses of water.”
Returning, the waiter said,”No Sloppy Steaks tonight, sir. But we will fill your order.”
But when those juicy rare steaks were lay down, glasses were raised and steak juice was flying everywhere.
Helluva time for Hogan and Savage (who was running on 40% adrenaline, 60% cocaine, 5% vodka, and 2% undercooked meats.)
US Cattle supply isn’t expected to go up drastically next year, but there will be more meat.
As it turns out, less cattle overall means better grazing for the ones that remain.
So you get bigger, fatter, more muscular cattle.
Have a great Sunday, and remember to have some fun.
