Some enchanted morning reading:
BI - Rosie explains to the dooooomers why there's zero chance of a recession. But I guess the dooooomers don't listen to him anymore, now that he's been compromised by the Lizard People.
By the way, New Deal Democrat is finally spelling DOOOOOM with the correct number of O's. Good work!
Mineweb - how this year's monsoon is shaping up. Let's listen to some Indians for their opinions about monsoons and gold:
"The Indian Meteorological Department has forecast that the monsoon is supposed to hit the Kerala coast on June 5. Though the margin of error has been fixed at plus or minus four days, and it implies that the monsoon could start on any date between June 1 and 9, there is no sign of rain in the vital area,'' said Manish Kedia, bullion retailer, adding that delayed monsoon could push up inflation, leaving little money in the hands of consumers to buy gold.Interesting... I don't see anything there about negative real US rates, or Treasury spreads, or USD strength.
"A good monsoon strengthens the rural consumption power. Gold sales in rural India are closely linked to monsoon, and good rains and a rich harvest boosts gold purchase by farmers,'' said Prithviraj Kothari of Riddhi Siddhi Bullions, a bullion retailer and export house.
Rural India still accounts for around 60% to 70% of gold sales in India. If monsoon is below normal this year, as has been predicted by scores of analysts and forecasters, gold demand will slow down, he said, mouthing the concerns of several jewellers and bullion dealers.
"The Indian economy is largely dependent on agriculture, a good harvest and more importantly a good monsoon. This entire cycle affects not only rural areas, but also the urban economy. Equities, real estate, precious metals, commodities, all are directly or indirectly affected by the monsoons,'' added Kothari.
He went on to say that higher crop yields imply higher incomes for farmers, which in turn lifts the demand for gold across the country.
Anyway, this year's monsoon season is starting to look like it's going to be bad. So feel free to ignore it entirely to focus on white people's problems.
Climateer Investing - $875 gold by end Q3. Wow! Pretty aggressive call there. I guess he expects a monsoon collapse to drive a worldwide liquidation? I've got a post scheduled for 30 September 2014 where we'll look at this prediction again and see how this turns out.
Guardian - four NYT columnists and Malcolm Gladwell get really high. It's good that they're making fun of Maureen Dowd.