SO THE Italian government today asked the International Monetary Fund to monitor its reform program. It may or may not be coincidence that the G20 summit, which ended today, saw discussion about boosting global liquidity by the use of Magic Money – otherwise known as the IMF's Special Drawing Rights. Full Story
Is Greece the canary in the coal mine? Less than a week after European leaders crossed the T’s and dotted the I’s on the debt-restructuring plan for Greece, the prime minister's ruling party called for a surprise referendum on the E.U. debt deal. Then on Thursday he called it off. Sovereign debt and fiat currencies are all paper. Full Story
Thus far, my analysis of Europe has focused on the super-leveraged banking system (26 to 1). At these levels, even a 4% drop in asset prices wipes out equity. That alone warrants concerns of systemic risk. The situation is not much better at non-Financial European corporations. Indeed, the debt situation is so endemic to Europe as a whole that corporate Debt to Equity ratios for ALL of the PIIGS as well as the supposedly fiscally conservative countries of France and Germany are TERRIBLE. Full Story
By: Adam Hamilton, Zeal Intelligence - 4 November, 2011
October was truly an epic month for the stock markets. The flagship S&P 500 stock index rocketed 10.8% higher! As its best month since December 1991 and best October since 1982’s, October 2011 was inarguably awesome. While it remains fresh in our minds, it is important to remember the psychology leading into it. Fearmongering ran rampant in late September, hyper-bearishness reigned supreme. Full Story
By: David Galland, The Casey Report - 4 November, 2011
While I haven't made a scientific study of the topic, I suspect the leading genre for popular entertainment – and for popular delusions of crowds, for that matter – revolves around magical worlds. As illustration, the Harry Potter series will serve. Full Story
Most investors in project generators do so because they understand searching for a deposit and actually building a mine is a long, difficult, risky and extremely expensive road to travel and that the trip can take many years and many millions of dollars, sometimes tens of millions of dollars. But investors in project generators can take a business-like approach to maximizing their exposure to many different quality projects that offer the opportunity for the much coveted and sought after multi times return on invested capital while preserving close to their original ownership interest. Full Story
How refreshing it is when a Major Government makes, and admits to, Market Intervention, based on Market and Economic Realities, and not on Hope or Delusions, or Misinformation or Disinformation or Manufactured “News”. Full Story
By: Christopher and Larry LaBorde - 4 November, 2011
Last week the LaBorde family was down in South Louisiana at the New Orleans Investment Conference. After attending a presentation on China by the very passionate Dr. Stephen Leeb, author of Red Alert: How China's Growing Prosperity Threatens the American Way of Life; it became more apparent that China is becoming an economic super predator. His explanation of the current situation seemed comparable to a boxing match. Full Story
The Silver Summit is not for tossers. It is a celebration of the entrepreneurs in our midst who see the beauty of realized dreams as they gaze at mere rocks and by sheer will, turn them to metals. We are all, whether investors or survivors, wealthier as a result. Full Story
By: Rick Ackerman and Cam Fitzgerald - 4 November, 2011
Back in July, Cam Fitzgerald asserted here in a guest editorial that policymakers would eventually succeed in stabilizing the global financial system, triggering a huge bull market in stocks. He also asserted that commodities and precious metals would not participate in the rally. In the essay below, Cam shouts “I told you so!” Readers may find themselves disagreeing, however, especially since precious metals have shown signs of life in recent days. Full Story
By: Julian D. W. Phillips, Gold/Silver Forecaster - Global Watch - 3 November, 2011
Angela Merkel told the German Bundestag last week that in the absence of a deal on the Eurozone debt crisis, “Nobody should take for granted another fifty years of peace and prosperity in Europe: if the euro fails, Europe fails”. Full Story
By: Chris Powell, Secretary/Treasurer, GATA - 3 November, 2011
Denying a recent freedom-of-information request from a citizen of the United Kingdom, the Bank of England has insisted on secrecy for its swapping and leasing of gold from the national reserves. Replying on October 24 to GATA supporter James Burn, who sought a more precise accounting of the British gold reserves, Bank of England spokeswoman Jackie Keating wrote that the gold swap and leasing information is "market sensitive" and its disclosure "would allow enquirers to find out what gold transactions have been taking place." This, the bank's spokesman wrote, would impair the interests of both the British government and the bank's "private customers," to whom the bank "owes a duty of confidentiality." Full Story
By: John Browne, Senior Market Strategist at Euro Pacific Capital - 3 November, 2011
When the news broke earlier this week that Greek prime minister George Papandreou would seek a popular referendum on the bailout deal that had been so torturously negotiated over the previous months, financial panic quickly emerged. A "no" vote by the Greek people would likely lead to a partial dissolution of the Eurozone and could be the beginning of the end of the euro currency itself. Full Story
Not surprisingly the Euro is almost a mirror of the US$. The Euro makes up 57% of the US$ Index. Quite simply if the Euro goes up the US$ goes down and if the Euro goes down the US$ goes up. The Euro is the world’s second most traded currency. It is also a secondary reserve currency as while all central banks carry US$ as the world’s reserve currency most if not all carry the Euro as well. It is estimated that upwards of 27% of central bank reserves are held in Euros. Other reserve currencies include the Japanese Yen, the British Pound and the Swiss Franc. The Euro’s symbol is €. Full Story
By: David Galland, The Casey Report - 3 November, 2011
Of all the social memes related to the economic and investment landscape, none is more dominant than that there is a small cadre of powerful Wall Street money men who, working behind the scenes, effectively control investment markets, the global economy and the politicians that play such a big role in that economy. Full Story
Recently there's been much talk about how infrastructure spending can be a viable solution to our country's current economic woes. President Obama's proposed $447 billion dollar jobs bill contains, among other things, investment in infrastructure projects like road construction. Many progressive economists have called for much more, with some even saying that the utility of such programs is secondary to the short term economic stimulation that would result from hiring unemployed workers. In other words, it doesn't matter what is built, as long as the government creates jobs. But even if the projects are widely regarded as needed, will the benefits justify the costs? Oftentimes the answer is no, as the actions of the Spanish government over the last two decades suggest. Full Story
I am a secular bear on financial assets like stocks. This is my bias. Although I understand we cannot have a replay of the 1930s in America (unlike Prechter), it has already occurred in Greece with an 87% loss from the 2007 peak to recent lows in October (versus 89% for the Dow in the USA in the 1929-1932 bear market). It is different in America because we can use the printing press while Greece cannot, unless Greece decides to leave the Euro. Full Story
By: The Gold Report and Michael Berry - 3 November, 2011
Could a few simple questions help you find winners in the mining space? Dr. Michael Berry, publisher of Morning Notes, thinks so. Berry has taken years of experience picking resource stocks and boiled it down to key questions he asks of every company. Berry turns his high-powered analysis toward the European debt crisis and what it means for gold in this exclusive interview with The Gold Report. Full Story
By: Peter Schiff, CEO of Euro Pacific Precious Metals - 2 November, 2011
I think I know some lab mice that have received less examination than the 2012 Republican primary candidates. It seems with each passing cycle, the campaigning starts earlier, there are more debates, and the media frenzy gets more intense. Yet, with all the pyrotechnics and pageantry, it becomes difficult to figure out what these tricksters actually think when they're behind the curtain. Since the gold price is inextricably linked to the long-term fate of the US dollar, it's rather important for gold investors to be able to forecast how each candidate, if elected, would conduct his/her monetary policy. Full Story
By: Terry Coxon, Senior Economist, Casey Research - 2 November, 2011
Money market funds began as a bright and useful idea, became a habit, and recently have become a bad habit. Money market funds were invented in 1971 as an innovative end-run around Federal Reserve Regulation Q, which prohibited paying interest on demand deposits. The purpose of Reg Q was to stifle competition in the deposit-taking business in order to benefit commercial banks – at the expense, of course, of depositors. Full Story
By: Bob Chapman, The International Forecaster - 2 November, 2011
Those who believe the European crisis is over are mistaken. The dislocation will continue as their economies slow and political, social and economic events converge into further crisis. The most glaring problem is the banks only taking a 50% loss on Greek bonds. The loss should have been 75% or even 80%. There is absolutely no way Greece can overcome that burden in a slowing European economy and an enraged population. They are still striking and demonstrating and they will continue even under a new government. Full Story
I said before that the current pattern on the silver chart is an extremely bullish pattern. It is no ordinary flag. It is a pattern that often appears before a good goes parabolic. Provided that the silver price can breach the relevant resistance over the next couple of weeks, it will increase dramatically over the next couple of months. Full Story
By: The Energy Report and Rob Chang - 2 November, 2011
While Germany and Switzerland have made headlines with sudden phase-out plans, world leaders from North America to Africa to Asia have reaffirmed their commitment to nuclear power as a low-carbon, low-cost energy solution. Development plans continue for the industry, and the long-term growth picture shows continued uranium demand. In this exclusive interview with The Energy Report, Rob Chang discusses prospects for both junior and major uranium developers and producers, and which companies could be the next belle of the bidding war ball. Full Story
By: Ross Beaty at the Casey/Sprott Summit - 1 November, 2011
Ross Beaty, executive chairman of Alterra Power and serially successful mine finder, talks at the Casey/Sprott Summit When Money Dies about the differences between gold and silver, and why the silver price has gone up so much. Full Story
Greek Prime Minister Papandreou is throwing in the towel: by calling for a popular vote on austerity measures now, we believe he is almost assured a no vote. This allows Papandreou to say that he tried everything he could to avoid a default, but the people have spoken. Having said that, as we write this analysis, Papandreou appears to be changing his mind and may cancel the idea of a referendum as quickly as it came about. Still, the message is clear: a default is coming. Full Story
A near-death experience often provides needed perspective to effectuate real change. But no matter how often the over-regulated and over-subsidized US banking sector flirts with disaster, it never seems to change its ways. Full Story
A lot of amateur investors think there is “free money” to be had, trading gold, based on the seasonal rally that often occurs from August/September. In normal times, that rally is fundamentally driven by the huge Indian gift giving season. In the greatest financial crisis in world history, does it make sense to bet your “gold life” on a gift giving season? I would say that strategy is likely to fail, very badly. Rather than guessing wildly about the next move for gold from $1700, I would suggest you simply stay focused on the size of this crisis. What’s better, owning 1 ounce of gold currently priced at $3000 an ounce, or owning 2 ounces of gold priced at any dollar price? Embrace the scale, not the dollar, as your key to gold wealth building. Full Story
By: Steve Saville, The Speculative Investor - 1 November, 2011
Just for a change and on the off chance that we will be able to obtain some useful information by doing so, we'll now take a look at some long-term monthly charts. The blue line on each of these charts is the 12-month moving average. Full Story
Hemmingway was making the point that modern machinery (today it's computerized trading) was destroying the concept of romantic / ancient war, which is a way of saying, mankind, is maturing in an undesirable and tragic fashion. And in this regard I would have to agree, for to me it appears we are ‘hell-bent on our own destruction’, where everything from the vulgarities associated with technological innovation to excessive population growth are coming together to create the need for a ‘profound shift’ in the way we will be living moving forward, in our socio-economic systems as it were. Full Story
By: The Gold Report and David Goguen - 1 November, 2011
Junior gold explorers are in a predicament; despite record gold bullion prices, stock valuations are suffering. Many of them, even those on the heels of exciting discoveries, are faced with either rounding up the cash and teams needed to build out mines themselves or turning the projects over to companies with the money and infrastructure already in place. In this exclusive interview with The Gold Report, David Goguen, director of institutional sales at PI Financial in Vancouver, discusses the merger and acquisition landscape. Full Story
By: Julian D. W. Phillips, Gold/Silver Forecaster - Global Watch - 31 October, 2011
You would have thought that a ‘resolution’ to the Eurozone debt crisis would have caused gold to tumble, the euro to soar, and the dollar to fall –perhaps with the gold price in the dollar steady. So why is the price of gold behaving as it is? Full Story
Last week we discussed the concept of relative strength. Again, relative strength is the measuring of one market against another. There are perhaps 1000 mining companies and maybe 5% of them are worthy of your research and investment. Fundamental analysis should lead you to the best companies while technical analysis (relative strength analysis in this case) can generate a precise list of top prospects. Today we are focusing on relative strength in a larger context and will then apply it to the gold stocks. Full Story
The latest economic headline came as a surprise to the pundits, though it actually makes perfect sense from a psychological standpoint. On Friday the Associated Press informed us of “Americans spending more with income almost flat,” per the headline. At first glance this seems almost counterintuitive, yet the sub-heading of this A.P. story put it into perspective: “Americans find tiny returns on savings and decide to spend.” Full Story
Headline news & the Market Weatherman Report. Spotlight Stock Picks. Host Chris Waltzek & Bob Chapman, The International Forecaster discussion and answer listener's questions. GUEST BIOS: Gary Cope, Orex Minerals Inc. Richard Daughty, The Mogambo Guru Report Full Story
No politician wants to end up with his head adorning the railings of some public building, and thus - possibly spurred into action by the video of the grisly end of Colonel Gaddafi - European leaders started to display qualities normally totally alien to them last week, in particular unity and resolve and a rare sense of urgency, in dealing with the acute crisis facing Europe. Full Story
By: John Mauldin, Millennium Wave Advisors - 30 October, 2011
Exactly what happened in Europe yesterday? The market reacted like it was the Second Coming of the Solution to End All Solutions. No problem here! The European debt crisis is solved! But if you look deeply (almost always dangerous when it comes to Europe) there is more to the market "melt-up" than simple euphoria and relief. What you find is a very disturbing unintended consequence that will come back to haunt us, as, sadly, I have written about in the past. Full Story
During the last global long wave winter season that occurred in the 1930s and 1940s major economic changes took place that were similar to what the global economy is experiencing today. The big glaring difference at that time was that free market capitalism was losing vast swaths of global markets to communism, dictatorship and stifling socialism. Full Story
By: Bob Chapman, The International Forecaster - 30 October, 2011
It is now clear to the most casual observer that the world’s monetary and financial system cannot function without massive amounts of additional money and credit. That means the system no longer functions the way it should. Europe really doesn’t know what to do and neither does the Fed and the Bank of England. The exception is throwing more money at the problem and keeping interest rates near zero indefinitely. Full Story
The debt ceiling battle led to a compromise. Congress and the President promised to submit to mandatory budget cuts. A bipartisan super committee was set up to put together a package of debt reduction cuts totaling several trillion dollars over supposedly a decade. If the committee deadlocks, the cuts will begin automatically on January 2, 2013. These must be $1.2 trillion in cuts, or $120 billion a year. Full Story
By: Peter Schiff, CEO of Euro Pacific Capital - 30 October, 2011
Last week, I spent the afternoon visiting the Occupy Wall Street demonstrations in lower Manhattan. I brought a film crew and a sign that said "I Am The 1%, Let's Talk." The purpose was to understand what was motivating these protesters and try to educate them about what caused the financial crisis. I went down there with the feeling that much of their anger was justified, but broadly misdirected. Full Story
By: The Gold Report and Kevin Puil - 30 October, 2011
Investments in the Democratic Republic of the Congo often get dinged with an "exotic locale" discount, but the jurisdiction is much less risky than even a few years ago. Kevin Puil, a portfolio manager with Malcolm H. Gissen & Associates and senior analyst with the Encompass Fund, recently traveled to the Congo and he liked what he saw. In this exclusive interview with The Gold Report, Puil shares his insight about this emerging mining jurisdiction. Full Story
It was another wild week in the markets with some breakouts higher which failed then breakouts lower which failed only to see massive moves higher coming into the end of the week, especially Thursday. You don’t see markets, namely the S&P, move like that very often. Full Story
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