By: Bill Bonner & Eric Fry, The Daily Reckoning - 5 May, 2006
-Where the money is...who can resist the energy revenue?...the Exodus of cash continues... -Iran still refuses to back down...an interesting summer ahead...can teach an old "new conservative" new tricks... -There are others further down the road to ruin than America...homeowners cashing out...marry me, marry my debt...and more! Full Story
By: John Williams & The Daily Reckoning Crew - 4 May, 2006
-Here's a shocker: those employed on Wall Street believe that stocks are on the rise... -Happiness mongers are out in full force...Friedman tries to wrap his head around the oil crisis... -Keep your eyes peeled for Empire of Debt billboards in the D.C. area...we are not economists - nor do we play them on T.V....and more! Full Story
My analysis of the gold and silver market is very different from the conventional. I am a monetary scientist. Supply and demand equilibrium analysis means nothing to me. For a monetary metal both supply and demand are undefinable. There is no way to quantify speculative supply, still less demand. Yet without it the gold market is like Hamlet without the prince, to borrow a phrase from Samuelson. Full Story
By: Doug Casey & The Daily Reckoning Crew - 3 May, 2006
-The trouble with public life in this great empire is that people don't have the proper disrespect for it...why must everything be taken so seriously? -Hey, big spenders...the Land Before Internet...no one left to protect the dollar... -Gasoline and crude inventories on the rise...sleeping under the stars in Argentina...and more! Full Story
We have all read reports of upper-class Iranians stockpiling gold as tensions continue to rise, but this shouldn’t really have much of an effect on the price level as Iranian demand is a rounding error in the world of gold. The reason why gold has more than doubled over the last four years has to do with the diminishing amount of confidence in paper assets, namely those denominated in U.S. dollars. Savvy investors in Asia and Europe are very much aware of the risks of holding dollars, yet most of us in the Western Hemisphere are still asleep at the wheel. Full Story
From COT week to COT week the price of gold is up by 4.75%. This is the strongest weekly performance since November 22, 2005. Back in November the gold commercials aggressively padded their short position in an attempt to hold gold below $500 an ounce. Today $700 an ounce is beginning to look like a forgone conclusion as the commercials reluctantly admit their defeat. Full Story
By: Richard Daughty, The MOGAMBO GURU - 3 May, 2006
I am happy to report that the Federal Reserve is not increasing Total Fed Credit with its usual disregard to the sheer economic insanity of constantly creating more and more debt, money and credit, although being down by $3.5 billion last week is nothing to write home about ("Dear Mom and Dad, It's been a swell week at camp! The Federal Reserve is tightening money by some insignificant little amount, and now we are going for a canoe ride! Love, Tommy.") Full Story
By: Peter Schiff, Euro Pacific Capital, Inc. - 2 May, 2006
Yesterday, in a turnaround reminiscent of the 1960's film "Cool Hand Luke, “the bosses at Morgan Stanley finally succeeded in getting poor old Stephen Roach's mind right. For years Mr. Roach had caused headaches up and down Wall Street for his stubborn "failure to communicate" the upbeat messages so vital to the investment trade. Instead he was one of the most influential voices calling attention to the dangers of America's lack of domestic savings and production, growing current account imbalances, and reliance on asset-based consumption. The more upbeat Stephen Roach now anticipates the rosy "soft-landing." scenario. Full Story
Not unexpectedly, the Bolivian government has seized the production facilities of the various gas and oil producers within their borders. The companies have 180 days to accept new terms or be evicted from Bolivia. In a continued socializing of natural resources in South America, higher oil prices are causing governments across the world to eye profit rich oil companies with envy. Full Story
The FED will not stabilize the money supply for long. Bernanke is famous for his speech in which he compared the FED to a helicopter full of paper money. He is attempting to overcome that blunder with tight money. But the result of tight money will be a recession. Then it will be a depression. He knows this. He has hailed Milton Friedman for having told the economists in 1963 that it was the FED’s deflationary policies that produced the great depression. Full Story
Take a look at the chart below if you want to see just how silly investors can get. I’ve deleted the title bar so that you can speculate on what it shows. Note in particular the bottle-rocket action of the last two price bars. Is this the chart of a company that has found a way to extract gold from seawater? To cure cancer…or baldness? To neutralize radioactive waste with a laser? Full Story
By: The Mogambo Guru & The Daily Reckoning Crew - 1 May, 2006
-The wicked world of money...the President's Budget that shows not what is, but what he wishes were... -Nature has found the United States too big for her britches...a banana republic - sans the bananas... -The unhappiest people in the world...no assets - but no debt, either...and more! Full Story
I spent the past week in Dubai -- City of Gold -- a hub for both bullion and jewelry trade. Gold Jewelry here is sold by weight and purity, with most of the jewelry being either 22 karat or 24 karat gold (24 karat gold is pure gold; 22 karat is 22/24ths pure, or 91.67%). In contrast, much of the jewelry sold in the United States is either 10 karat (41.67% gold) or 14 karat (58.3% gold). 22 and 24 karat gold jewelry is soft and impractical for everyday wear, which is why most of the jewelry in the West contains considerably less gold. Full Story
Richard Daughty, who describes himself as "the angriest guy in economics,” is writer/publisher of The Mogambo Guru economic newsletter and a general partner and COO for Smith Consultant Group, serving the financial and medical communities. Prior to joining Smith, Daughty was a financial adviser to American Express Financial Advisers in Clearwater, Florida. He holds an MBA in operations research from the University of South Florida and is a strong advocate for sound fiscal and monetary policy. His comments appear frequently in such fine publications as GoldSeek.com, the Daily Reckoning and Barron’s. Full Story
By: Bob Chapman, The International Forecaster - 30 April, 2006
As we have said often before in order to just play catch up with inflation, gold would have to sell at $1,700 an ounce. Yes, you have lost 50% of your buying power over the past 25 years. Then comes the play to offset everything else to $3,500. These are the projections we made six years ago and we’ll stick with them. That doesn’t mean gold can’t go to $5,000 or $6,000 in a blow-off market, it can. Gold is cheap and it’s a steal until we see $1,700 an ounce. Then we’ll have to figure where it is going from there. This is the lock, the opportunity of a lifetime for investors. Do not wait for pullbacks. Full Story
By: John Mauldin, Millennium Wave Advisors - 30 April, 2006
Be careful what you wish for. You just might get it. This week we look at a more transparent Fed, Japanese monetary policy, the powerhouse rise of gold, and a rather important op-ed piece in the Wall Street Journal, with a theme of seeing how they all impact the dollar. There is more than a little intrigue in the markets, and we try and make sense of it. We are going to quote a number of friends who each give us a piece of the puzzle, and see what it all means. But I'll give you a preview: it means more volatility and a weaker dollar. Full Story
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