By: John Browne, Senior Market Strategist, Euro Pacific Capital - 20 August, 2010
Now may be a time when those individual investors still holding US securities and bonds might wish to follow the example of the People's Bank of China and begin harvesting their dollar gains. With the proceeds, investors should allocate to economies showing growth based on genuine demand and solid fundamentals. Full Story
Private citizen, Alan Greenspan, could afford to be blunt. “Our choices right now,” he said in early August 2010, “are not between good and better; they’re between bad and worse. The problem we now face is the most extraordinary financial crisis that I have ever seen or read about.” Full Story
Based on the comments and emails I'm receiving lately, it appears more and more people are hopping on the deflation bandwagon. These correspondences have exposed to me an obvious misunderstanding of basic facts. While I suppose I am an "inflationist", I'm the first to admit that deflationists have some valid arguments to support their claims. But at the end of the day, their arguments are flawed; I just don't see deflation as a realistic threat moving forward. Full Story
A recent report from Credit Suisse has warned that wage inflation in China is going to put pressure on the profit margins of major Western brands dependent on Chinese manufacturing over the next 12 months. Full Story
By: The Gold Report and Joe Foster - 20 August, 2010
Portfolio Manager Joe Foster calls himself a "stock picker." And he's pretty good at it. Class A shareholders in Van Eck Global's International Investors Gold Fund have seen an average return of almost 25% for 10 straight years under his care. "I'm looking for the gold companies that are going to outperform the indexes, my peers and gold," Joe says in this exclusive interview with The Gold Report. Full Story
By: Adam Hamilton, Zeal Intelligence LLC - 20 August, 2010
Silver has been drifting in a rather lackluster summer. Ever since surging to $19.50 in mid-May, this often-popular white metal has been grinding sideways to lower. By late July it had fallen over 10% to about $17.50. But despite silver’s recent excitement-bereft sojourn, it actually has excellent potential for a big autumn rally in the coming months. Full Story
A Momentous Event in the World of Economics and Finance occurred just a few days ago, but, unfortunately, while many investors noticed it, many did not fully appreciate its importance. That event was the public announcement by The (private for-profit) Fed that it would monetize (via Quantitative Easing) Debt. Full Story
By: Daniel Aaronson and Lee Markowitz - 20 August, 2010
The Federal Reserve is trying to fight deflation by keeping interest rates low for an extended period and by accumulating fixed income securities. Lower interest rates are acting as a headwind, rather than a stimulant, by reinforcing deflationary psychology. Investors should not assume that more action by the Fed will necessarily boost asset prices and should instead consider how additional action could reinforce price declines. Full Story
By: Louis James, Chief Metals Strategist, Casey Research - 20 August, 2010
I was pounding pavement instead of kicking rocks recently, on Wall Street of all places. There were Suits hanging around outside the familiar iconic buildings, despondently smoking cigarettes. In my surely biased opinion, the feel of the place was distinctly less energetic than usual. But what really struck me was not one, but two guys with sandwich-board placards announcing “WE BUY GOLD” – for different companies. Full Story
The gold dinar and silver dirham markets are increasing in liquidity as the precious metals’ market share in ordinary daily transactions is increasing. This poses a mortal threat to the systemically and terminally wounded fiat currency franchises. The outcome of this fight over currency will play a vital role in determining the degree of human rights, civil liberties and individual freedom over the coming decades. Full Story
In his weekly radio address this past Saturday, President Obama happily commemorated the 75th anniversary of Social Security. From my perspective, the milestone is nothing to celebrate. For although the president spoke earnestly about the "obligation to keep the promise" of Social Security, in reality, the program will wreck the government's finances within 10 years. Full Story
One day, and it may be very close at hand, we are going to have still one more financial crisis from this huge sale of questionable junk bonds. As is always true today, when these debts come due, the taxpayers will be asked to make them good. This is especially true to whatever extent these bonds are sold to Rothschild Cabal banks and financial institutions which have a proven ability to cover their losses and bad investments with taxpayer bailouts. Full Story
By: Julian D. W. Phillips, Gold/Silver Forecaster - Global Watch - 19 August, 2010
There are many companies out there from those exploring, to those with proven deposits right the way up to junior companies already in production. These are safer than the unknown, so, subject to the takeover enhancing shareholder value and not diluting it, takeovers are a very good way to go and a way that will be followed increasingly by large mining companies in the future. Full Story
So than what’s behind gold’s move right now? My guess is that the so called “smart money investors” have come to the conclusion that the US and other world governments have little choice but to add in one form or another, more financial stimulus. How they disguise the stimulus seems immaterial to me as what I see is the printing presses running and US debt being monetized. Full Story
By: The Energy Report and Atticus Lowe - 19 August, 2010
Atticus Lowe, chief investment officer with West Coast Asset Management, is the kind of guy you would want making your investment decisions. He is coauthor of The Entrepreneurial Investor: The Art, Science and Business of Value Investing. In this exclusive interview with The Energy Report, Atticus discusses his value investing strategy. Full Story
In today’s shaky economy and jittery investment markets, investors may well find that their best moves are not discovering the next big thing or a fantastic value, but simply avoiding serious, and costly, mistakes. Here are ten of the most common mistakes we see investors making everyday, and how to avoid making them yourself. Full Story
By: The Gold Report and Doug Casey - 19 August, 2010
As the world sinks deeper into what he calls the Greater Depression, Casey Research Chairman Doug Casey sees default on the U.S. national debt as inevitable—albeit probably in the guise of currency destruction. He anticipates further contraction in real estate, particularly on the commercial front. As long as stocks remain overpriced, he'll shy away from equities—except perhaps in favored sectors such as gold. Full Story
This article is a sequel to my article entitled “Gold Market is not “Fixed”, it’s Rigged” which is essential reading before reading this article. The previous article demonstrated that had a trader consistently bought gold on the London AM Fix and sold it the same day on the London PM Fix and repeated it every day from April 2001 through to today the cumulative loss would be $500 per ounce. Yet gold has been in a bull market during that time and a “buy and hold” strategy over the same time period would have returned a gain of $950 per ounce. Full Story
Ben Bernanke and the rest of the Federal Reserve are priming the pump for what could by a hyper-inflationary Christmas. While the Fed continues to build a pile of kindling, the spark could very well be this holiday shopping season. Full Story
SEVENTY YEARS AGO last month, just as the Battle of Britain began, tea rationing struck the seat of empire. Really, Herr Hitler had gone too far this time! Caffeine mixed with sugar, hot water and milk had fuelled the Industrial Revolution just as surely as did cheap coal and expensive sweat. Full Story
By: Richard Daughty, The Mogambo Guru - 19 August, 2010
The US Bureau of Economic Analysis, an “official” source of news, reported what everybody has already known: Government worker compensation in now an average of more than $120,000, or about twice as much as the average private sector worker making less than $60,000. Full Story
Long-term yields could be bottoming here if a T-Bond futures target that we’d flagged the other day holds up. The target, a Hidden Pivot resistance at exactly 134^09 (basis the September contract), lies just two ticks above yesterday’s high, 134^07, and corresponds to a yield of about 3.64% on the 30-Year Bond. Full Story
For many, debt is a burden. For many others, it's a utility to be respected. Regardless of which position you take, realize that there are some situations in which debt is beneficial - and others where it's just dangerous. For the US Government, debt is now just simply dangerous. Full Story
The economic news just keeps getting worse and worse (and worse), validating the view we spiraling down in another recession within a larger depression. Of course the effect this is having on an ever-decreasing population of traders (only the pros are left and their numbers are shrinking too as the trade patterns become increasingly bizarre) is to become even more bearish and keep on buying puts, because at some point stocks will turn lower to reflect the fundamentals, right? Full Story
By: Bob Chapman, The International Forecaster - 18 August, 2010
When government interferes with free markets they cease to work properly. Measures that interrupt and manipulate distort markets on a short to intermediate basis, but the final result is never in doubt. Things are altered but only little changed. What is serious about intervention is that it breaks the social and political contract between government and the people. This is the type of social engineering and pragmatism espoused by John Maynard Keynes, which brings us to where we are today. Full Story
A morbidly obese gentleman labored into Dr. Hayek's office suffering from severe chest pain. The patient also complained that he was unable to consume his usual 10,000 calorie-per-day diet; in fact, he was feeling so sick that he could barely scarf down 9,000 calories. He plead that his love for food remained as strong as ever, but his body just wasn't keeping up with his demands. Full Story
I have often written about the US Treasury and US Mint's very strange behavior when it comes to their part in continuing "business as usual" for the fiat monetary system. Although many have chalked up the Mint's rationing of Gold and Silver American Eagle coins to normal behavior of inept government employees and government bureaucracy, I have a much different take on the subject. Full Story
By: Richard Daughty, The Mogambo Guru - 18 August, 2010
I had just gotten home from arguing with the in-laws about how they were idiots for not buying gold instead of those stupid stocks and mutual funds, and their laughter was still ringing distastefully in my ears when Eric Fry here at The Daily Reckoning put up a chart of the P/E ratio of the S&P500 over the last 30 years since 1981. Full Story
DaBoyz managed to squeeze a 100-point Dow rally out of punk Q2 earnings from Wal-Mart and Target, and the gain might have been closer to 200 points had traders not suffered an uncharacteristic anxiety attack in the final hour. Imagine what these bandits could get away with if there were actual good news to leverage. Full Story
By: Julian D. W. Phillips, Gold/Silver Forecaster - Global Watch - 17 August, 2010
At the moment, it appears that the gold price is being linked to the state of the global economic growth or lack thereof. Is it? Or are there other factors that contribute to the rise in the demand for gold? A look at the different types of demand gives us perspective on the real influences on the gold price. Full Story
Gold has moved well past its 2008 high and the same has happened with our junior gold index. Silver, at its recovery peak was within 7% off its 2008 high while our junior silver index was 25% off its 2008 high. While the junior silvers have recovered, they have lagged both the junior golds and Silver. Full Story
By: Marin Katusa, Casey’s Energy Report - 17 August, 2010
Mining is a risky business and accidents happen. But when your mine is the world’s largest uranium deposit, fourth largest copper deposit, and fifth largest gold deposit, an accident can cost a little bit more than the average. Something BHP Billiton found out after the shaft accident at its flagship Olympic Dam mine located 560 kilometers north of Adelaide, South Australia. Full Story
By: Jeff Berwick – The Dollar Vigilante - 17 August, 2010
The Federal Reserve and the concept of central banking is one of the biggest scams ever perpetrated in human history. Yet, even to this day, the great majority of people still do not see this reality. In fact, the average man on the street has no idea what central banks even do, what today’s “money” actually is and how it is created much less how they have been defrauding the lower and middle class for decades. Full Story
Let’s have a round of applause for Gman Deng. When you steal the entire wealth of your citizens for yourself, turn them into slaves, and murder millions of those who don’t share your “enlightened new era vision”, who prefer common sense instead of your Frankenstein Movie, yes, Deng, you need something new. Or maybe you shouldn’t have tried to fix what wasn’t broken by robbing and murdering millions. Just a “minor” observation on my part. Full Story
It is what the Blackhawk pilots radioed over Mogadishu, Somalia, it is what the once again popular deflation proponents forecast for asset prices and it is what Ben Bernanke has now radioed to the financial world with regard to the direction of interest rates on the long term treasury bond. Full Story
By: Steven Saville, Speculative Investor - 17 August, 2010
Bernanke was correct back in 2002 when he pointed out that the Fed could always devalue the dollar by increasing its supply, but as far as we can tell that's the only important economics concept he has ever been correct about. Full Story
By: David N. Vaughn, Gold Letter, Inc. - 17 August, 2010
It’s difficult to take the pulse of the nation nowadays with all the events that have occurred on public stage these past couple of years. Fundamentally, we are becoming a nation of haves and have nots. Either we own a home, have a good paying job with superior benefits or we have no job and our home is preparing to go into foreclosure. Full Story
By: Chris Powell, Secretary/Treasurer, GATA - 17 August, 2010
Back in April the U.S. Commodity Futures Trading Commission took action in a commodity market manipulation case that may illustrate what commodity market law enforcement is all about. As part of a settlement agreement, the commission fined Moore Capital Management L.P. of New York $25 million for attempting to manipulate the platinum and palladium futures markets in 2007 and 2008. Full Story
Trading without indicators is like running blind and it encourages emotional trading that is the bane of successful investment and speculation. It is hard to know what to buy or sell let alone just when to do prudently. Thank goodness there are indicators available that provide information of stock and index movement of a more immediate nature making life during these times somewhat more bearable. Full Story
By: Richard Daughty, The Mogambo Guru - 17 August, 2010
Finally the Austrian school of economics, sometimes referred to as the Austrian Business Cycle Theory (SBCT), is getting some respect, as we learn from DailyBell.com, that quoted an editorial from Ron Smith at The Baltimore Sun saying “The few economists that warned that the credit explosion of recent years would hasten and deepen financial disaster were mainly from the so-called Austrian school and were derided by their Keynesian counterparts as kooks. Who looks kooky now?” Full Story
Gold forced a few green shoots through concrete yesterday, setting the stage for a shot this month at June’s all-time highs near $1270. That would require a further rally of just 3.5 percent from current levels, based on yesterday’s $1226.90 settlement price for the Comex December contract. Full Story
The markets have essentially been reacting to the news of the day for what seems like ages. When the news is good, they rise. When it’s bad, or perceived to be bad, the markets get nervous, they become vulnerable and they decline. And investors simply don’t know what to do. They’re still edgy and uncertain. And as long as this continues, the entire outcome could go either way…. Full Story
The dollar denominated copper price benefited from a Euro recovery beginning in mid July. Other base metals also gained from the falling Dollar. Traders had become more cautious about gold after its long uptick, but some greater comfort with the economy after Europe managed to push back from the brink also helped the brief move into base metals. However, internal fundamentals are also playing a role copper’s price move. Full Story
By: Frank Holmes, U.S. Global Investors Inc. - 16 August, 2010
I have been speaking and writing about gold’s appeal in a deflationary environment – this is a concept that opposes the conventional opinion that the gold price will not rise without inflation. Those who cling to that singular gold-inflation relationship have not examined the history of gold as money. Whenever there is substantial inflation or deflation, governments tend to either be too slow to react or they overreact with policies, and this is typically good for gold. Full Story
There is nothing super-complicated about sound money. Rather, the truth is pretty simple. In cahoots with the central bank, the government prints unbacked currency. Most dollars are not physical linen – it is merely electrons in bank accounts, which is shown simply here, “Fractional Reserve Banking in Pictures.” Full Story
Much of what passes for “insider” information these days is often conspiracy-edged or largely conjecture. True inside information is actually hard to come by. So what follows is the refreshingly candid and uncut version of my talk with a first-hand participant in the murky and little-understood world of gold bullion, mints, and bullion dealers. Full Story
Isn’t that funny; everybody is getting risk adverse again - what a surprise. Before I highlight an excellent strategy for US and European investors I need to announce two general warnings about the near future. Markets are currently irrational and dangerous because they have factored in growth based on wrong assumptions. This has recently led to the wrong stance on risk in the global markets as well. Full Story
So, I urge you not to buy me at my high. Buy me at my low. In that way, you get my maximum benefit. Do not listen to the media. They are staffed with the students of these banker corrupted economists. They don’t know the difference between supply and demand, and their predictions have an almost perfect record of being wrong. Full Story
Markets were briefly in a tizzy last week because of the rumor the Obama Administration was poised to announce an August Surprise, supposedly the forgiveness of at least a portion of millions of mortgages held by Fannie Mae and Freddie Mac for underwater homeowners. The word on the street was that this planned debt forgiveness was a thinly veiled attempt to cull votes for the November elections. Full Story
The Hindenburg Omen is once again predicting a stock market crash, and we don’t know whether to ignore it and relax because (even) the Wall Street Journal has picked up on it this time, or to instead batten the hatches because sometimes even lousy indicators can be right. Over time, the indicator, invented by a blind mathematician named Jim Miekka, has compiled an unimpressive track record. Full Story
1st Hour: Headline news & the Market Weatherman Report. Spotlight Stock Picks. Host Chris Waltzek & The International Forecaster discussion and answer listener's questions. 2nd Hour: Gerald Celente, Trends Research Institute Kevin Kerr, Kerr Trading Full Story
By: Bob Chapman, The International Forecaster - 15 August, 2010
As we explained in the last issue that when GDP figures are again revised we would find 2nd quarter GDP growth was really 1.3% to 1.5%, not 2.4% revised down from 3.7%. This experience points out the really bogus nature of government statistics. Several months ago we projected that without QE the economy in the 3rd quarter would result in 1% growth and minus 1% in the 4th quarter. Full Story
In 1919 the major London gold dealers decided to get together in the offices of N.M. Rothschild to “fix” the price of gold each day. While this was notionally to find the clearing price at which all buying interest and all selling interest balanced the possibility for market manipulation and self-dealing is inherently systemic in such a cozy arrangement. Full Story
To me, the title is stating the obvious. To many, such talk is ridiculous. To paperbugs, Gold is a bubble about to pop and only stocks make you money over the long haul. To paperbugs, capitalizing the word "Gold" labels me a tinfoil hat wearer, while to me, capitalizing the phrase "federal reserve" (not federal and has no reserves) is blasphemy. Full Story
At what point does a market crash translate to a lengthy bear market and/or an economic recession? This question was taken up by a celebrated historian of the early 20th century, one Otto C. Lightner. Full Story
By: John Mauldin, Millennium Wave Advisors - 15 August, 2010
As I mentioned last Monday night in my Outside the Box, I did not make it to Turks and Caicos, but did end up in Baton Rouge for a special seminar on the Deepwater Horizon Gulf oil spill. I have both good news (or maybe more like less-bad news) and bad news. Today's letter is a report on what I learned. Full Story
By: Richard Daughty, The Mogambo Guru - 15 August, 2010
Bill Bonner here at The Daily Reckoning writes that Tim Geithner, Secretary of the Treasury of the United States of America, is the author of the now-infamous “Welcome to the Recovery” piece he wrote for The New York Times, which I meant to read, and tried to read, but I could only get part way through it before getting visibly upset with such self-serving, lying, sophomoric qualitative excuse-mongering. Full Story
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