By: Peter Schiff, Euro Pacific Capital, Inc. - 17 April, 2009
In a speech this week summarizing his administration's economic policies, President Obama grossly overstated the support these policies enjoy by claiming, "economists on the left and right agree that the last thing the government should do during a recession is cut back on spending." There are a great many economists who were surprised to learn that, apparently, they now agree with the President. Full Story
By: Jason Hommel, Silver Stock Report - 17 April, 2009
Let's review the fundamentals of gold and silver. The world gold mines produces 2500 tonnes per year, which is about 80 million ounces. With gold at $867, that's $69 billion worth of gold mined each year. That's a tiny market in the scale of world finance, where the USA has $14,000 billion in the US banking system at risk, and has added $11,000 billion of commitments in bail outs, and continues to issue $800 billion bail outs with increasing regularity, with a total budget exceeding $3000 billion, and a budget deficit approaching $1500 billion. Full Story
By: Julian D. W. Phillips, Gold/Silver Forecaster - Global Watch - 17 April, 2009
“You can fool all of the people some of the time and some of the people all of the time, but you can’t fool all of the people all of the time, but you can give it a good go and discredit the rest who won’t be fooled!” If it doesn’t go like that maybe it should? Full Story
By: Adam Hamilton, Zeal Intelligence LLC - 17 April, 2009
The withering barrage of misfortune that investors have suffered defies belief. Last year’s horrific 38.5% loss in the stock markets was one of the worst ever witnessed. And this year has offered little respite, with stocks down another 5.7% so far. Such a catastrophic loss of wealth has naturally sparked rampant bearishness, pessimism, and a pervading sense of despair. Full Story
By: Daniel Aaronson and Lee Markowitz - 17 April, 2009
Earlier this week, the Labor Department reported declines in both the Producer Price Index (PPI) and the Consumer Price Index (CPI). Various economists and television commentators believe that these declines are proof that slack in the economy is creating deflation and more than offsetting the inflationary impacts of government stimulus spending and money-printing by the Federal Reserve. A deeper look at the CPI report shows a different picture: Full Story
Fundamentally, the Policy of encouraging ever more Borrowing and Creating ever more Fiat Currency to ostensibly “Solve” Crises created by Excessive Borrowing and creation of Fiat Currency (courtesy of the private for-profit U.S. Federal Reserve) is proving to be a Certain Route to Depression-creation. Full Story
Global central banks are waging an all-out inflationary war on the ongoing credit contraction. The establishment is attempting to thwart the post-bubble deflationary forces via record-low interest rates, deficit spending and quantitative easing (buying assets from newly created money). Over the past 18 months, the post-bubble contraction had the upper hand as it decimated asset prices all over the world. However, it seems to me as though the consequences of monetary inflation and central bank sponsored debasement are finally starting to dominate. Full Story
By: David Morgan, Silver Investor - 17 April, 2009
An article on Reuters recently indicated a United Nations panel has decided much of the world would like to move away from the American currency as the world’s reserve currency. This panel wanted to look into a “basket of currencies” or perhaps another entirely different, new currency to replace the U.S. dollar. Additionally, both the Russians and Chinese have indicated similar concerns. Full Story
One must give a tip of the hat to the Wall Street conmen for engineering a reasonably robust stock rally. The Dow and S&P were led by financials. The Financial Times out of London claims ‘no real money’ was behind the stock rally of over 20%. They must mean huge short covering, enhanced by pressure tactics from Wall Street brokerages themselves. They must mean Working Group For Financial Markets putting to work some of their ‘Black Bag’ money. They must mean influenced arbitrage games from preferred versus common shares, which harmed the public but enriched the insiders. Amazing how a better financial journal on US topics comes from outside the Untied States. Full Story
By: Jason Hommel, Silver Stock Report - 17 April, 2009
The U.S. government is supporting the fraud of the dollar. The "working group on financial markets" also known as the "plunge protection team" consisting of the President, the Secretary of the Treasury, and perhaps the heads of the CFTC and SEC, are actively working to suppress the silver and gold prices by encouraging the leasing of gold from central banks around the world. Full Story
By: By Andrew Mickey, Q1 Publishing - 17 April, 2009
For better or worse, we’re living in a world of change. It’s no secret. There’s going to be a lot of changes in the next few years. Regulations, accounting rules, taxes, money supply, healthcare tech, and on and on – it’s all changing. And it’s changing faster than ever. Full Story
Previous Goldsmiths have mentioned the media links to the Rothschild Cabal. It doesn’t matter whether the Cabal owns the media sources outright or whether they are just linked for some other reason. For sure, all of the US national media and much of the world media is categorically controlled by the Cabal. I cannot think of any US national media source that is not linked in some way to the Cabal. Full Story
By: Richard Daughty, The MOGAMBO GURU - 17 April, 2009
Merely looking at the expression of profound disbelief on my Disbelieving Mogambo Face (DMF) and the sheer terror shining in my eyes lets you know that something is seriously, seriously wrong, and what is wrong is that this $956.8 billion half-year federal financial deficit – alone! – is more than the entire monetary base of the United States of one year ago ($826.9 billion)!!! Full Story
From a subscriber in the chat room, here’s a despairing note to those who would attempt to trade the night session: “Good luck in the after-hours market,” he wrote. “Those mother******s run stops like nobody’s business.” Full Story
By: The editors of BIG GOLD, Casey Research - 16 April, 2009
You haven’t worn it since you donned bell bottoms and danced to Saturday Night Fever. Yes, we’re talking about that gold chain that now looks suspiciously like a Mr. T starter-necklace. The one that’s done 30 years in solitary, locked away in a jewelry box. Have you ever thought of trading it for some cash, perhaps to a processor of scrap gold? If so, how do you cash out? Is it really worth the trouble? And just as important... will you have to deal with the people who put on that cheesy Super Bowl ad? Full Story
Of all institutions the gold standard occupies a paramount position as an instrumentality of human freedom, private property, private enterprise, and responsible government. The nature of the gold standard should reveal something as to why it is a necessary and natural companion of human freedom. Full Story
The fact is that anyone with an understanding of monetary history could have predicted the inevitability of the current financial crisis. Only the timing of the onset of the crisis and the trigger that started it were areas of uncertainty. I first publicly predicted the current crisis at the Gold Rush 21 Conference in August 2005. I was a delegate, not a featured speaker. The talk was impromptu and off the cuff. Full Story
Now that the Dow has rallied almost 1500 points from its lows, the experts are snapping out of their panic induced stupor, the masses are wondering what in the hell possessed them to dump everything at or very close to the bottom and the few that resisted the urge to surrender and give into panic are finally feeling somewhat vindicated. So what is the right response? Full Story
The price of gold is about 900. That is 900 steps in price. The otc derivatives issue is no friend of gold. Nor was Hitler. Where an issue is a positive or negative driver of the gold price, none are your friend. You have 900 friends. Your friends are the 900 steps in the gold price. Focus on your friends. They are all there for you. With 100% loyalty. Full Story
Once we see the economy begin to turn up, not slow its decline as we are now seeing, will be the “food’ that the gold bulls will jump on. Until than I think it safer to play the short side of Gold. How deep a break will set things up for when the next sustainable rally takes place. Full Story
While I continue to believe that the next breakout in Gold is still months away, we have seen in just a short while, some very encouraging signs on the sentiment front. Accumulating is certainly a wiser prospect now that the luster of the metals has faded yet only superficially. Full Story
Shiller proposes the massive expansion and extension of the State into the American economy "to get us out of the current economic slump, and to restore confidence." This is utter nonsense. The economy would not have tumbled and would long since have been recovering had the government stayed out of it altogether. American confidence is legendary. Americans are ready at any time to take and manage risks. Only concerted government policies can bypass and undermine this American characteristic. Full Story
By: John Browne, Senior Market Analyst for Euro Pacific Capital - 16 April, 2009
Rightly, the students of Austrian Economics have laid the blame for the current economic crisis squarely on the doorstep of the Keynesian policies of governments and central banks. However, in this case, there are other culprits involved, most notably the former titans of financial services. Full Story
Many Americans, and indeed many people the world over, have lived in a Ponzi bubble economy for more than a decade. They have applied the Greater Fool Theory in the false belief that they would always be able to sell their house or their stocks or bonds or other highly leveraged assets to “bigger fools” than they were for buying them in the first place. With the collapse of the housing bubble and the stock market it begs the question “Who is the ‘greater fool’ now?” Full Story
So far this week has been very tame as traders are sit on the side lines, waiting to see which way everything will go. I have posted a few charts so we can keep tabs on where gold, silver and oil are currently trading as we go into the second half of the trading week. Full Story
The last several days has had much media attention on the Chinese proposal to resurrect the importance and role of the so-called Special Drawing Rights in international finance. The Goldsmiths, Parts LV, LVIII and LXII, addressed this development. Because this event and its subsequent fall out have affected important subjects like the US/global economy, gold, and the markets in general, this Goldsmiths will provide an update and a few more comments. Full Story
By: Richard Daughty, The Mogambo Guru - 16 April, 2009
The Census Bureau released its estimates of retail and food services sales for March, which they “adjusted for seasonal variation and holiday and trading-day differences, but not for price changes” which is too bad since I don’t feel right unless I have something to be angry about, and I am angry about the Federal Reserve creating so much new money and credit that it will allow the Congress to deficit-spend almost $2 trillion this year alone... Full Story
With Tea Party protests erupting across the U.S., we wonder whether the anger will mutate into riots once taxes are actually raised. So far, though, and as far as we’re aware, all of those extravagant stimulus packages have yet to cost Joe Taxpayer a dime. How can this be, you ask, when the U.S. Government supposedly has gone trillions of dollars deeper in hock to pay for it all? Full Story
By: Bob Chapman, The International Forecaster - 15 April, 2009
Tiny Tim wants to have the FDIC finance, at six to one leverage without recourse, the public-private partnerships which will overpay for toxic waste to create a market for these "assets" at somewhere near par so the balance sheets of the legacy banks and the Fed can be saved at taxpayer expense. The private side of these proposed public-private partnerships does not expect to make a profit, and that is not the point. The real purpose for these public-private partnerships is to enable the Illuminist institutions to buy their trillions in toxic waste FROM EACH OTHER, at values approaching par. Full Story
This April 15 is the 94th year that Americans have had to file an income tax. For most Americans, the day is a non-event. The federal and state governments have already collected the taxes due by withholding from each paycheck over the course of the calendar year. Most Americans never saw the money and have no real idea that they earned it. Full Story
On 4 March 2009 the Armenian Dram went poof, on 6 February 2009 the Kazakhstan Tenge went poof, in October 2008 the Iceland Krona went poof, during 2008 the British Pound went poof and the Contentital Dollar went poof prompting the Founding Fathers to craft particular monetary powers and disabilities in the United States Constitution. Full Story
Last year gold and silver prices fell into a hole with the general stock markets, so the obvious conclusion is that if the stock market rally turns into another bear phase then gold and silver stocks will also fall. Full Story
By: Gary Dorsch, Editor, Global Money Trends - 15 April, 2009
Since the historic 1987 stock market crash, the Federal Reserve has responded to every recession in the US economy by slashing interest rates, and funneling massive amounts of money into the hands of Wall Street’s aristocracy, - the ruling class that dominates the two political parties in Washington. The Fed’s cash injections have usually found their way into assets, including commodities, stocks, and mortgage-backed securities, and often fueling speculative binges into stratospheric heights. Full Story
Apart from repeats of Two and a Half Men, Australians have been saturated in negativity courtesy of the financial press. In moderation KFC is one of life’s most enjoyable guilty pleasures, being bombarded with GFC for the last 18 months has not been one of them. It got to the point where it felt some form of bottom was in place, and only hindsight will tell us the shape. Full Story
This year’s corporate mantra for a crowd of junior explorers and miners is quite simple: “get us some near term gold production fast” (or some variation thereof). The motive of course is pure: get the share price up. For companies with $2 million to $200 million in the bank the magic bullet to riches is perceived to be the acquisition of that one gold property or company that everyone else has missed. Full Story
As I am not in the securities business or of making recommendations on investments, I can not say what any person should do on this threat. As a minimum, we all should be aware of it and give it some consideration. For my own situation, I can say with full confidence that if I had some money/gold, I would take action to get it out of the US. I wouldn’t delay much longer. There is too much of a risk in waiting. Full Story
By: Richard Daughty, The Mogambo Guru - 15 April, 2009
The worst part of the problem is, of course, that people seem, astonishingly, to agree that the purpose of government is to constantly enact new laws and expand entitlement spending. I don’t know where they got that stupid idea, but what happened for half a century was, as we see, disastrous. Full Story
No sooner do we crown Goldman Sachs our Bear Rally King than…THWUMP!...the stock gets socked with a $15 loss, its worst day in recent memory. There were some lurid stories on the Web to help turn yesterday’s selloff into a gang-bang, including one at SeekingAlpha.com that wondered aloud whether Goldman deserved to share in AIG’s bailout booty if, as is rumored, Goldman made a ton of money shorting AIG stock before the insurance firm collapsed. Full Story
There is much in the media these days about short selling, naked short selling and the "uptick rule." Some claim that naked short sellers collude with "Rumor Mongers" to collapse stock like Bear Stearns, Lehman Brothers and so on. There is little in the media about the specific mechanics of short selling or the concept of synthetic short selling. Full Story
Now, I’m never happy for someone to lose their job (although he didn’t actually lose his job completely, Dreman still manages many other funds). But, if we look at the history of when legendary fund managers get fired, it’s a very good sign for those of us with both short and long-term time horizons. Full Story
A number of different factors have converged, creating what could be a lift-off point for the price of silver (and gold). This confluence of readily verifiable factors shows the silver market to be in a low risk and high reward situation. The factors involve both the paper and physical silver markets. The only question, as always, is if the manipulators, led by JPMorgan and protected by the CFTC, can thwart the set up once prices rally. Full Story
The grand and glorious global housing bubble came to an end not because it had caused so much money to be borrowed. It came to an end because no more money could be borrowed. Debt bubbles come to traumatic conclusions not because so much credit had been created. Debt bubbles implode when no more credit is available. Lack of credit, the fuel for a mania, is what comes to be the problem. Full Story
Since the start of the new millennium and new century, many of the old truisms that applied to economic forecasting are no longer relevant. So many things have changed in the last nine years that a new set of economic “rules” is in order. Full Story
Londoners recently had a party for the G-20 meeting. But they are not alone as it seems everyone is partying these days with civil unrest in Greece, China, Iceland, Ireland, Canada, and even the United States is having tea parties. The Association for Southeast Asian Nations, ASEAN, scheduled a summit on 12 April 2009 in Bangkok and Pattaya Thailand. Full Story
One of those busy macro charts comin' at ya. I am getting a bit tired of fooling around with the short term noisy picture of gold and want to again shift to the big picture where it is so quiet and where rational and monetarily sane people should be focused. Sometimes the trader in me gets interested in the short term, but this is where the real money is made - or preserved. Full Story
When China made a $3 billion investment in Blackstone Group this just had to mark the top of the private equity bubble. It did. Likewise Goldman Sachs raising $5 billion off the back of the best Wall Street rally since 1933 ought to invite the same degree of skepticism. Full Story
By: Steven Saville, Speculative Investor - 14 April, 2009
Former Fed Chief Alan Greenspan has stridently argued that his decision to lower the Fed Funds Rate (FFR) from 6.5% to 1.0% during 2001-2003 was NOT the cause of the housing bubble. Does his argument have any validity? Full Story
By: Richard Daughty, The MOGAMBO GURU - 14 April, 2009
Now, before I go off ranting and raving about how another bunch of scumbags perpetrated another scam with compliance from government scumbags, let’s concentrate on the important fact that not only are a bunch of guys buying gold and demanding delivery of the actual metal, but now increasing demand has swamped supply! Amazing! Full Story
Anyone who wants to know what’s on the stock market’s evil little mind need only monitor the behavior of one stock: Goldman Sachs [NYSE Symbol: GS]. These days, Goldman is the high-beta vessel of whatever madness appears to rule at a given moment. As such, it’s often possible to predict the stock market’s histrionics based on Goldman’s crazed leadership. Full Story
By: Bill Bonner, The Daily Reckoning - 13 April, 2009
What a wonderful time to be alive! Never has it been easier to feel superior to our fellow man! So many dopey ideas…so many preposterous delusions! So many fools…so eager to part ways with their money! Full Story
By: Dr. Ron Paul, U.S. Congressman - 13 April, 2009
Taxes are the issue this week as Americans struggle to make the April 15th deadline to file their returns. It is a good time to contemplate the effects of big government and what it does to our country. The income tax is one of the most egregious encroachments on our liberties today. It is a form of involuntary servitude, which was supposed to have been outlawed by the 13th Amendment. Full Story
In the spirit of previous undertakings similarly focused on measuring the general sentiment of investors today, and in borrowing the title of a timely piece we penned last fall, we revisit the theme investors remain reticent about ‘Giving Up The Ghost’ on being bullish about stocks these days. Full Story
Gold was the first money chosen in human history. And it remains the best money today. You can carry a large amount of wealth in a small purse of gold. You can hide it from the thieves. Gold is honest money, the money of those who respect property rights. The criminal gang in the Demopublican Party has abolished gold money, but gold remains the best vehicle for those who wish to preserve their assets and keep for themselves the product of their own labor. Full Story
We are in an unprecedented situation in unprecedented times. The process of monetary debasement has now entered the realm of the unimaginable as a result of President Obama’s historic multi-trillion dollar fiscal stimulus, a stimulus requiring the printing of so much money it will make obvious the fact that fiat money has no value at all. Full Story
The premise behind collecting the federal income tax is a complete farce. The IRS claims the tax is voluntary, whereas any sane American realizes that she or he will go to jail if the tax is not paid. This is evident from not only the legal code, but even from the latest 1040 instructions to the taxpayer! Full Story
Technology keeps thrusting forward at an ever increasing rate as the Information Age transforms the world at a rapid pace. Business is happening at the speed of thought as companies are beginning to morph into digital entities in a physical world. Full Story
The Japanese Yen just reached the single most important level on its long-term chart against the U.S. Dollar. The Yen is expected to find significant support around the 99-98 level (meaning 99-98 U.S. Cents per 100 Japanese Yen, the inverse of the usual USDJPY Forex market quote which is given as the number of Yen per U.S. Dollar). Full Story
Gold and oil traders have been on edge for the past few weeks wondering if prices will drop or rally from this correction/pause in prices. You will see in the charts below that gold and oil are at points where they could go either way very quickly. The are currently balancing at key technical points and we will wait for the tipping point. Full Story
If you thought Geithner, Bernanke & Friends were out of touch with the basic principles of Econ 101 -- i.e., Savings=Investment -- you should listen to what some private economists are saying. Richard Koo, for instance. He is Nomura’s chief economist and therefore about as mainstream as they come. But to hear him speak his mind on how to end the recession is to despair of the possibility that private capital will have a significant role to play in whatever economy emerges from the ruins of the one now dying. Full Story
1st Hour: Headline news & Market Weatherman Forecast. Spotlight Stock Picks with big dividends. The International Forecaster and Host Chris Waltzek answer listeners' questions. 2nd Hour: - Puru Saxena, Puru Saxena Limited Full Story
Detractors of our fiat money system (myself not included) are fond of saying that “the Fed is creating money out of the thin air.” If that were true, then the Quantity Theory of Money (QTM) might be valid implying that the present runaway money-printing exercise would indeed lead to hyperinflation before long. How could anyone suggest that the denouement will be deflationary after all? Full Story
By: Bob Chapman, The International Forecaster - 12 April, 2009
For those of you too young to remember, the World Bank and the IMF were creatures of John Maynard Keynes, and then assistant Treasury Secretary Harry Dexter White, a soviet spy. They, the IMF and the World Bank, have competed with commercial banks as an instrument of elitist policy, as an adjunct to one-world policy. Full Story
Why can't folks break the habit of being so pessimistic at market bottoms? Not that we're complaining, if they did that would be one less thing that we'd have to go on. With people writing in to say that gold is going to $800, or $700, things are definitely looking up. Full Story
Anybody who wants to read up on the ‘paradox of inflation’ should turn to Dr Marc Faber’s classic ‘Tomorrow’s Gold’ for guidance. Even six years after publication this remains the best investment book currently on sale. Full Story
Members of the G20 have announced they will, as necessary, reflate their economies to create liquidity, unfreeze credit and restore global economic growth. But can reflation, whether through fiscal expansion, money printing or “quantitative easing,” be introduced without accompanying inflation? John Katz, analyst, writer and blogger for www.thegoldwatcher.com addresses this question in the following article and asks, “will this all end with a house of cards collapse?” Full Story
By: The Gold Report and Peter Schiff - 12 April, 2009
Amid an “inflationary depression” in the U.S., Peter Schiff, president and chief global strategist of Euro Pacific Capital, sees opportunities in the maelstrom. Facing a massive redistribution of wealth, he advises investors to act quickly and “divest U.S. dollar assets into physical precious metals, other currencies and equities outside the United States.” In this exclusive interview with The Gold Report, the widely-quoted expert on money, economic theory and international investing discusses what led up to our current “phony economy” and how investors can actually profit from the crisis. Full Story
By: John Mauldin, Millennium Wave Advisors - 12 April, 2009
The market, we keep hearing and reading, is telling us that there is recovery around the corner. And pundits point to data that seems to suggest the worst is behind us. The leading economic indicators, while still down significantly, seem to be in the process of bottoming. There is a large amount of stimulus in the pipeline. Mark-to-market has been modified. Housing seems to be finding a bottom, if you look at the rise in sales from January. And so on. Full Story
To successfully play the ongoing but fitful Bear Market Rally and to get out or get short in time, it is essential to understand the Main Drivers of Equities and Commodities performance in 2009. That is, it is essential to first understand the underlying causes of the increasingly dismal Economic Performance we earlier forecast for 2009. Full Story
Several of the previous Goldsmiths have examined the hyperinflationary blow out in the Weimar German Republic in the early 1920s. While most of the German people were hurt financially in this cycle, there were a few people who had enough perception to actually make money. The Goldsmiths, Part L, mentions some of these—like persons who bought gold, hard foreign currencies, rare coins, antiques and collectibles. Full Story
By: Richard Daughty, The Mogambo Guru - 12 April, 2009
Some readers helpfully write that they have detected a new pessimism in recent Mogambo Guru newsletters, not to mention a serious decline in writing quality and a big increase in Valueless Mogambo Stupidity (VMS), which they cheerfully enlighten me about with emails such as... Full Story
Another week full of “good” economic news has passed. Preliminary bank earnings floated the stock markets late in the week. Although the specific banks earnings won’t come out for another two weeks the talk is that they will be great. I fail to see how that is possible. Full Story
Gold closed down -1.62% at $878.80 (continuous contract). During the week it hit an intraday low of 865.00. So far, the important $850.00 price level has held. Full Story
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