Many, many times we have opined that the Fed would not fight inflation at the expense of growth and that proved true last week. This concept permits a measure of inflation and it permits the issuance of money headed overseas to promote world growth [paying for imports], called ‘stable’ money creation. But as we are all aware the over-issuance of money [supplying more than necessary to provide just the right amount of the medium of exchange to make the economy [global as well as local] function with stable prices, has now had a long history one likely to get longer too. Full Story
Underwriting the $100 billion in subprime real-estate losses forecast by his top monetary wonk, Ben Bernanke at the Federal Reserve, Dubya is in effect doing what many small-town US banks did during the early stages of the '30s Depression. Full Story
By: Peter Schiff, Euro Pacific Capital - 31 August, 2007
This week, Larry Kudlow and others strongly chastised Bernanke for his failure to read the writing on the wall and urged the Fed Chairman to quickly slash the Fed Funds rate. Methinks the pundits doth protest too much. For years, Kudlow, who practically coined the term “Goldilocks economy,” has dismissed with scorn suggestions that the American economy was anything less than ragingly healthy. Full Story
By: Bob Chapman, The International Forecaster - 31 August, 2007
Greg Wilkins President and CEO of Barrick Gold says, “The industry has struggled from a lack of investment. It is fine to talk about great gold prices for the last couple of years, but the Bank of England tried to put the gold mining industry out of business back in 1999 and there was very little adjustment for many years.”
He refers to Gordon Brown’s sales of gold between 7/99 and 3/02 of 395 tons sold at about $275.00 an ounce. What he doesn’t tell you is that Barrick was working with the central banks to suppress prices. This is why Barrick was created in its present form. Just more lies. Full Story
Wallace, Idaho – “I'm not a liberal or a conservative. I just want to wake up the world.” So said Aaron Russo during our interview with him upon the release of his revolutionary new movie, “America, Freedom To Fascism” late last year. Full Story
As an important US holiday approaches (Labor Day), a reflection is in order of the extremely dangerous footing we find our nation in, and the predicament that a nation of laborers finds itself in. Full Story
Bernanke and the Federal Open Market Committee are now paying the price of their tight-money policies that began the month that Bernanke became FED chairman: February, 2006. He inherited the boom and bubbles that Alan Greenspan’s expansionist monetary policy had created. This expansion began in mid-August, 1982, under Paul Volcker, and accelerated in the month Greenspan took over: October, 1987. With stop-and-go policies to restrain price inflation, Greenspan concealed the irreversible direction of an 18-year era of loose monetary policy. Full Story
The evolving metamorphosis underway in world financial markets is nothing more than the global re-allocation of available cash. The artificial liquidity created by government counterfeiting and accompanying facile lending policies is/was unsustainable, and the collapse of the sub prime mortgage business is merely the first symptom in what will continue to reorder the economic universe. Full Story
Dr. Bernanke was merely a Fed governor at the time, rather than chief pooh-bah at the world's biggest central bank. But with the S&P500 index already 7.5% off its top of 24th March that year – way up there at 1552 – he was clearly planning for the main event of his professional career:
Saving the United States from a second Great Depression. Full Story
Unfortunately, now that the Fed has made it implicit that it will do whatever it takes to keep the financial system liquid, it appears doubtful that any rescue attempt can succeed. The central bank will be pushing on a string, as the saying goes, unable to trigger yet one more borrowing binge by consumers who have become hopelessly trapped in the worst real estate slump since the Great Depression. Moreover, we doubt the Fed even knows what it is doing as it plays whack-a-mole with each new financial crisis that springs up. Full Story
By: Greg McCoach, The Mining Speculator - 29 August, 2007
As investors we need to consider what our objectives are for holding gold before we can correctly decide what items to purchase. Some people who are more savings oriented, tend to emphasize owning the metal, while others who are looking to make a big return, tend to emphasize the mining stocks. For the money that you have to invest in gold, we generally recommend 50% in physical and 50% in mining shares. Full Story
Over the last few weeks we’ve experienced extreme volatility, and fear, in the financial markets. The event itself wasn’t unexpected around here. After all, we’re on record as expecting to see the Greater Depression materialize in the years to come. Maybe even starting now. Full Story
Investors continue to experience losses in their portfolios due to the recent market fears.
We continue to remind ourselves, as should all investors in the natural resource sector, that the big picture has not changed and the reasons and arguments for these investments are as sound today, if not more so. Corrections will come and yes, they will go, leading us to another great rally. But obviously that day not yet arrived. Patience and focus is essential for all of us at this time. Full Story
The most recent Commitment of Traders Report (COT) confirmed the epic clean out of speculators in silver and gold, and a host of other commodities in the dramatic sell-off centered on Thursday, August 16. The COT, for positions held as of August 21, indicated dramatic speculative selling and commercial buying in gold and silver, resulting in unusually bullish set-ups in each. Full Story
Wilkins neglects to mention that while the Bank of England was selling its gold, Barrick was borrowing hundreds of tonnes of central bank gold and selling them short into the market, assured that the company need not repay the gold for 15 years or more, if ever. (That is, the central bank gold loaned to Barrick was more of a gift than a loan -- provided that Barrick used the gift to do exactly what its CEO now condemns the Bank of England for doing, destroying the gold mining industry.) Full Story
The whole banking system is a gigantic fraud, a ponzi scheme, a sophisticated confidence trick. The bankers are the purveyors of NOTHING apart from misery and economic destruction and all charged at Interest, they are simply parasites who prey off the real economy that produces real products and real services. Full Story
One defense that cash savers and hard-put investors might choose is gold bullion. No one's credit-backed promise, and impossible to create at will, gold remains as far from today's mountain of complex financial junk as an investor can get. Full Story
The financial market globally is up to its elbows in one of the strangest and most complicated credit crises in history. Events have come in rapid succession with mind-numbing effect. No sooner does the dust settle in one part of the market than it is kicked up in another. Through it all, the reactions on the part of the participants have been the stuff of a good financial thriller. We thought it would be interesting to catalog some of that reaction for you on one web page. So here they are - from the witty and profound to the scary and downright silly - our Top 25 Quotes on the Credit Crisis of '07. Full Story
By: Roland Watson, The Silver Analyst - 28 August, 2007
Panic has seized the minds of many as the shaking of a credit implosion rumbles through the marketplaces of today’s moneychangers. The ground is giving way beneath them threatening to suck them into a financial hell of derivative defaults and dishonored debts. The penalty is eternal death for hedge funds doomed never to rise again whilst for others they escape those searing flames by the skin of their solvent teeth. Full Story
The debt economy makes us all vulnerable to unforeseen crises: illiquidity, insolvency, low credibility. All three are institutionally visible today. They are threatening Cramer's world.
All three are the result of the moral hazard of central banking. This is why Cramer screamed against the Federal Reserve System. He was correct: the FED is responsible. Earlier. Full Story
1st Hour: Headline news & market forecast. Spotlight Picks with big dividends. The International Forecaster and Chris Waltzek answer listener questions.
All of the gold the central banks have sold has been readily absorbed by the market. If supply decreases and demand stays even, what will the price do?
Or what will happen if demand increases while supply dwindles? Lastly, who’s buying all this gold? A novel idea – the central banks should sell their gold to the people of their nation, as more likely then not it is theirs to begin with. Full Story
By: Bob Chapman, The International Forecaster - 26 August, 2007
The yen has recently been weakened again in the cartel's latest manipulation to support sagging markets. As of 5:30 am EDT, Thursday, the yen is at 116.248 yen per dollar and 157.450 yen per euro, or about 2 and a half yen per dollar and 4 yen per euro weaker since Friday's close, about 2 yen per dollar and 3 yen per euro weaker since Tuesday's close and about 1 and a quarter yen per dollar and 2 yen per euro weaker since Wednesday's close. Note that Wednesday's Dow gain of 145+ points was due mainly to a weakening of the yen and this trend is likely to continue in the short term. A yen reversal will not only be bullish for stocks, but also will be very bullish for PM's and commodities. If these yen exchange rates hold or get weaker, you can expect a big day for everything but bonds, which will get hit as money flows back to stocks, PM's and commodities. Full Story
Time is the least common denominator of all things, including in the stock market. We’d all be lost if we couldn’t look at the clock throughout the day since time is our frame of reference for the day’s activities. So are the days of the calendar and so are the dominant equity market cycles. Full Story
From that point we move out, to a new financial system, initially built around precious metals. The radius of trust expands, the economy becomes more efficient and the cycle starts again as a new generation forgets the lessons of the past. Full Story
By: Julian D. W. Phillips, Gold/Silver Forecaster - Global Watch - 26 August, 2007
The gold price has continued to look solid in the $650 area. Confidence in the banking, not just the mortgage system was given quite a blow last week. The $ rallied, but is in the process of turning down again. What lies ahead and why? Here are some of our views, which were published in the latest edition of the Gold Forecaster last week. These views are now being expanded there, with a closer look at the two types of “liquidity” supply. Full Story
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