Vince Lanci: Why Larry Fink Says Indias Love Of Gold Hasnt Helped Their Economy | Arcadia Economics

➡ Arcadia Economics talks with Larry Fink, a businessman, who is trying to sell more of his products as the market he’s been in for years is falling apart. He’s trying to convince people in India to open up to more Western financial ideas and his own products. However, his methods have caused problems in the past, like when his company, BlackRock, made bad loans and had to be saved by the Federal Reserve. This has led to big losses for central banks, which could take money away from important things like infrastructure and social safety nets.

So when a man like Larry Fink tells you a pet rock hurts capital markets by just sitting there, when people like he were at ground zero for the greatest wealth confiscation in a generation, you know who you’re dealing with. You’re dealing with a salesman who is a capitalist when he makes money and a socialist when he loses it. A man who’s desperate to sell more product to an opening market as the one he has operated in for decades is now literally crumbling under his multiplier effect.

Welcome to the morning markets and metals with Vince Lancey where each morning Vince brings you the financial and precious metals news to get you ready for your day. And now, here is Vince. Good morning. I’m Vince Lancey. And today’s market rundown we will talk about while Larry Fink in premium we have an excellent fx, a report by credit Agricole with a nice little section on the drivers behind gold.

And they’ve been really on top of their gold game lately anyway. And then we will look at the news. But first, let’s check prices. The dollar is up 27 right away, I’m just going to tell you. The dollar is up 27 and gold is up ten year bond yield is up three. Basis points at is down five handles at 5246. The vix is steady to slightly firmer at 13 0.

04. Gold is up $13 at 22. Oh, 773. Silver is surprised down 22. I’m sorry. Down twelve cents at twenty four. Forty eight. Told you. Sorry, I just had to do that. Copper is down 48 basis points at 397. Bitcoin is up 1242 at 70. Spot 716. Ethereum is 35. 78, up over 2%. Actually, platinum palladium are both up. Palladium is up over 1% at 1001. And platinum is at 899, up $5.

87. Oil is up $0. 76 again. And natural gas is down a penny at 158. Grains are mixed with only soybeans down. You can see those on your screen right there. Okay. Just look at those prices for a second. What’s going on? Well, some of its noise, right? Theres always noise involved. Some of its getting ready for the next data. And theres not a lot of data today, but this is gold going up with the dollar.

Now if golds going up with the dollar, you look at bonds. Are bonds stronger or weaker? Bonds are weaker. Then thats people selling bonds, putting their money in cash and putting a little bit in gold in aggregate. And thats what you see during a financial crisis. You see that in Europe when theres a problem with say a euro problem. You see it in the US with a domestic banking problem or a debt awareness problem or a spending problem or a government shutdown problem.

Those are the things that correlate with that triad moving there. So I don’t know if that’s happening, but that’s symptomatic of it. With oil up as well. It could be just inflation fears. It really could be. The dollar would be stronger during inflation fears initially because the Fed might tighten to react to it. It’s disconnected a little bit at the moment, but we’ll see. One thing I will say though is gold is now being bought during us hours.

It’s not bought in Asia, at least lately. It’s bought in late Europe or mid European, which means people are anticipating buying in the US. The whole thing is getting kind of, the whole world is flip flopping a little bit. All right, so Larry Fink, okay, where is that? All right. I woke up today and I just, I think. What’s the expression? I chose violence. Here’s the Goldfix homepage.

And King dollar gets cash traded. That’s getting some views as well on zero hedge. India’s love for gold has done little for its economy and investors. That’s Blackrock’s Larry Fink talking. We’re going to talk about that presently. Ok. India’s love for gold has done little for its economy and investors. Good morning. I’d like to address the indian community of potential investors as well as americans who see these.

Larry Fink the other day had an interview on CNBC about India and its capital markets. He was extolling the virtues of american capital markets and saying that Indias propensity to save an assets like gold were hindering its economic growth. Now there are merits to this concept. The US capital market has been a great thing in helping leverage innovation and ingenuity towards economic growth and progress for all of humanity.

But all things can get overdone, especially when capital doesnt get allocated based on merit. And upon being overdone, abused capital markets, like anything not taken in moderation, caused great strife for those of us not in the codger of elitists who carry politicians like loose change in their pockets and certainly not the way they were framed by Mister Fink. Let’s be clear about what he was doing. He was marketing on CNBC to Indians to open up India to more western financialization and his own products.

That in and of itself is not a bad thing. But he’s doing it at a time when the US way of doing things specifically, the leverage and financialization, which he surreptitiously marketed to listeners as, quote, the multiplier effect is unwinding in the west and leaving destroyed bridges, both domestically and european in its wake. Leverage grants in healthy doses and accompanied by robust trust in those utilizing such leverage.

The ability for a healthy economy to grow. It can also easily be abused and then become a vehicle for bubble creation, poor risk management, and what I call white collar welfare. More commonly known in the US as corporate socialism. BlackRock is one of the companies that, when making bad loans that went bad or failed to properly manage its own portfolio risk, ask the Fed to bail it out.

The Fed, of course, obliged them. Rather than letting the poorly run companies in their portfolio die, they vacuumed up the losing trades represented in the form of bonds and ETF portfolios at exorbitant values, including shares that BlackRock held. Including Blackrock, actually executed by BlackRock. All right, now, these central banks, having implemented QE because that’s what that was, to the delight of the world’s blackrocks, are taking major portfolio losses.

They may not be talking about it too much in the US, but they certainly are talking about it in Germany and Europe, and they’ll be talking about in the US as well. Those losses are going to suck money from infrastructure development and social safety nets. This is key for you, the human being who’s not the CEO of Blackrock. Those losses are going to suck money from infrastructure development and social safety nets at a time when we cannot afford to cut back on either and are, in fact, expanding them.

Infrastructure is being expanded to build America back, whatever you want to call it, right? The social safety net is being taxed, is being strained by immigrants and a growing cohort of retirees, which means if you can’t cut back on them, which means more printing, which means more inflation, which means more crime, more poverty and lowered standards of living, all to bail out the black rocks of the world who are now moving on to the next town from the US to the town of India to sell their products.

So when a man like Larry Fink tells you a pet rock hurts capital markets by just sitting there, when people like he were at ground zero for the greatest wealth confiscation in a generation, you know who you’re dealing with. You’re dealing with a salesman who is a capitalist when he makes money and a socialist when he loses it. A man who’s desperate to sell more product to an opening market, as the one he has operated in for decades, is now literally crumbling under his multiplier effect.

Gold finally is a barometer of trust in the people running things. And from where we sit, that trust is starting to run low. All the sales pitches in the world will not make it come back. Make them earn your trust. Okay, so there’s the story. India’s love for gold has done a little for its economy. You can read that on CNBC or we have an attenuated version of that here.

Moving on the news. Janet Yellen warned in Wednesday’s speech that China’s surplus of clean energy products is depressing prices in global markets and squeezing us green manufacturing. Oh no, China’s being capitalist. Sorry. A top Federal Reserve official said disappointing inflation data means the US central bank data should push back the timing of cutting interest rates from their current 23 year high. I wonder if this whole pal getting dovish was really something to make him look not political.

And then he can slowly pull the rug out on rate cuts as data comes in. That’s what I think is going on. Well, you know, I can’t prove that. The Biden administration has warned of a lengthy disruption to one of the US’s busiest ports. You know what that’s all about. And I’m going to say this. Normally insurers would take a hit from that and they may still take a hit.

But if the federal government says they’re going to help people out, what they’re doing is they’re pre bailing out the insurance companies and you’re probably going to see that so it doesn’t become a headline crisis for insurers. You’re going to see that because it’s an election year and he can’t afford to have any more fires expand so that he can’t put them out quickly. Amazon said it’s investing additional 2.

75 billion in Anthropoc. That’s an AI company. Disney backed down on Wednesday from a long running legal battle. Money talks, bullshit walks. Tick Tock has launched a previous unreported 2. 1 million advertising campaign as senators review a House passed bill that could ban the popular social media app. Well, there you go. Geopolitics, us media, us military said it destroyed four long range drones launched by iranian backed iraqi.

I’m sorry, Houthis in Yemen. According to Reuters, the data today, pending home sales, the premium today. I recommend it. The credit agricol. I used to read their stuff all the time when I was on the floor because they would go around and they worked with car and they know the FX markets better than most, but their writing hadn’t really been anything of interest to me until recently, again.

So they’ve been talking about the economy a lot, and they have a nice section here. Where is that? Yeah, here’s your article. Right? And there’s a nice section here on gold and as well as their forecast. And that report is PDF’d at the bottom. What I would like to do now. We did that already. Let’s talk about gold for a second. Let me put those little lines up that I like to draw.

Okay. That’s really ugly looking, isn’t it? All right, these are the lines that matter. Just do this. Forget these goofy lines that I drew, right? Just forget them for now. All right, so these are the lines that I’m talking about that matter the most. Well, actually, this line should be lower. I don’t know why I moved that. Oh, I know why. Because I was. Never mind. I was doing some art.

Okay. This was the trading range and what I had assumed and I was right about, but I was not right about how aggressive they were that there was an american buyer in here. I thought they were waiting for pullbacks, and apparently they’re not. So we’re above here. I was going to come in today and say, above this line, you’re bullish. Below that line, you’re bearish. Bearish because you think the market has a good chance of retracing back to the middle of this range.

Or lower. Right. If you’re bearish and bullish, because above this, this wick is pretty much done. That means we’re above 2200. That means once we get above the teens, 20, 215, there will be really nothing to hold it back. See, this year, that’s option related. See that top? I mean, I’m not saying it’s not government stepping in related, but I’m saying it’s option related. When you break the teens gold can, it’s escape velocity.

Look at what’s going on. Aspects of this market are telling you that people are worried about either government problems or the reaction to government problems, which should be more printing. Anyway, I’m Vince. Have a great day. Catch you later. Thanks for watching. This morning’s markets and metals update with Vince Lancy, brought to you each day by Miles Franklin. Precious metals for this week’s special is 2023, dated 1oz.

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