Deepcaster, and a select few others, have noted that the economy is moving into a phase of an apparent deflation. The hallmark of this apparent deflation has been, and is, (and, Deepcaster forecasts, for a few months will increasingly be) the takedown in price (again) of precious metals and of strategic tangible assets in general and, in particular, of crude oil. Full Story
By: Bill Bonner & The Daily Reckoning Crew - 5 January, 2007
-If you thought 2006 was hot - watch out for this year...a faith-based financial system... -The news - or an episode of Rocky and Bullwinkle? -When hedge funds stop hedging they become just like every other pool of money looking for a hot return...and more! Full Story
By: Peter Schiff, Euro Pacific Capital, Inc. - 5 January, 2007
December’s larger than expected jump in non-farm payrolls is predictably being touted as evidence of a more vibrant U.S. economy. Unfortunately, the data does not support this conclusion. The bloated service sector added 178,000 jobs, while manufacturing shed another 12,000 jobs. What this means is that 178,000 more workers will be consuming goods while 12,000 fewer will be making them. The result will be larger trade deficits that merely compound already stretched global imbalances and exacerbate America’s inevitable day of reckoning. Full Story
So, for right now I'm in the silver juniors/explorers with both feet. Only a little loose change remains in the till. Optimistically, I'm seeing the volumes are waning, an indication that the flushing is finishing. GLD & SLV are still being unloaded, yes, but when you compare gold/silver equity volumes of today with the week before Christmas and May we are in better shape. I will tell you this, that although I may have committed prematurely, there's no other place I'd rather be. Imagine if you had to make a decision to buy now? Would you? Full Story
In short, the "Fed Model" of pricing equities – developed in the early 1990s to make schmucks buy stocks every time bond prices rose – has ceased to be theory. Stocks must go up when bond yields go down, because all that free money from Japan has to go somewhere. It's become an immutable law of the universe, defying gravity, bending light and turning pumpkins into horse-drawn carriages all at the same time. Full Story
By: Chris Mayer & The Daily Reckoning Crew - 4 January, 2007
-Is liquidity like water?...losing money to black holes... -Burning the butts of hedge fund managers...fissures in the low end of the mortgage market... -Destiny is great at rolling sevens (and sixes) in the markets...and more! Full Story
By: David N. Vaughn, Gold Letter, Inc. - 4 January, 2007
We never can predict with 100% certainty what will happen tomorrow but we can recognize and identify trends that are in development now. So, what are the trends that just may shape 2007? Well, the US dollar seems to certainly be heading lower. The real estate market will continue its slide down hill. The slow eroding forces of inflation will continue just like death and taxes. American jobs will continue heading to Asia. And I believe resource stocks will continue to shine as the world shrinks further and its demand for raw finite materials grows. Also, the rush to find an alternative energy to replace oil consumption will grow with a great deal of intensity and nuclear energy will fill this need. Full Story
Difficult as the market was to trade yesterday, we needn’t feel the least bit anxious about what might lie ahead for the stock market. My longstanding DJIA target of 13045 remains viable, and it has kept us streadfastly on the right side of the market for months. However, yesterday’s action has raised a yellow flag, since the Industrial Average fell without having achieved a 12613 Hidden Pivot target broached yesterday morning in the chat room. The actual high was 12580, or 33 points less than we’d expected. Full Story
-The Year of Living Ridiculously...so many records were broken in 2006, we could barely keep up with them... -Rapids, waves, swells, tsunamis...no matter what you call it, there is a huge amount of liquidity in the world.... -Making our guesses and taking our chances...and more! Full Story
By: Bob Chapman, The International Forecaster - 3 January, 2007
The recovery in real estate from 2001 through 2005 didn’t happen by chance. It wasn’t part of a recovery cycle. It was planned and executed by the Federal Reserve. The result was predictable and easy to understand. The Fed lowered interest rates to the lowest level since the 1930s, and allowed people to buy homes who were totally unqualified. This injection of the unqualified into the system forced prices to unsustainable heights. This housing boom manufactured at the Federal Reserve allowed homeowners to borrow against their newly created equity allowing the boom to feed on itself and to keep the economy afloat. There was nothing typical about this recovery. It was fed by the lowest interest rates in 75 years, rates only seen during the Great Depression. Full Story
By: Richard Daughty, The MOGAMBO GURU - 3 January, 2007
Scholars and scientists have long debated if the famed Anger Of The Mogambo (AOTM) was so powerful that if my puny Earthling brain literally exploded from the outrage of this monstrous monetary insanity committed by the Federal Reserve, would my pounding, pounding heart make my headless body run around seeking some spooky, malevolent revenge? Full Story
At this time of year, it is natural to analyze and review. In addition to normal year-end reflections, I find myself especially contemplative as I have just celebrated 30 years of marriage and will soon cross the milestone of having spent 60 years on this earth. Round numbers just seem to make you more reflective. I am most grateful for the gift of life and for sharing it with a woman of unique inner and outer beauty. But, of course, this essay is about silver. Full Story
1st Hour: * A review of this weeks top market headlines. * Goldseek Radio's Spotlight Pick. If you'd like to be added to Chris's free Spotlight Pick e-mail list, for each weeks ticker symbols and related information, please send a message to: goldseekradio@hughes.net * Bob Chapman and Chris Waltzek evaluate the true inflation figures, review the top market headlines and answer listener's questions. * Gary Kaltbaum from Fox News joins the broadcast. 2nd Hour: * 1st Featured guest: Sara Nunnally from WaveStrength. * 2nd Featured guest: Steven B. Lord from The Trend Investment Group. Full Story
By: The Mogambo Guru & The Daily Reckoning Crew - 2 January, 2007
-Ford was no dope - he pointed out that the United States was running out of two things necessary in an empire: money and energy... -Our hair has deserted us...but our foolishness hangs around like a loyal sidekick... -Last chance to get in on the Agora Financial Reserve...New Year's irresolutions and wishful thinking...and more! Full Story
By: Dr. Ron Paul, U.S. Congressman - 2 January, 2007
At some point Americans must realize that Congress, and the Federal Reserve system that permits the creation of new money by fiat, are the real culprits in the erosion of your personal savings and buying power. Congress relentlessly spends more than the Treasury collects in taxes each year, which means the U.S. government must either borrow or print money to operate-- both of which cause the value of the dollar to drop. When we borrow a billion dollars every day simply to run the government, and when the Federal Reserve increases the money supply by trillions of dollars in just 15 years, we hardly can expect our dollars to increase in value. Full Story
In ancient India gold jewellery came into being because during the olden days the people did not have access to banking and other financial instruments to preserve wealth. Jewellery at that time was the most convenient and most efficient medium of storing and preserving family wealth. Given the condition of the Indian economy, it seems Indians are yet again running out of the choices about preservation of wealth. Gold, even today, remains the best bet for them. Full Story
-What do the Fates have in store for us in 2007? -The more others are mistaken, the greater the opportunities for us to amuse ourselves... -Looking back - before we can look forward...one more day to get in on the best investment opportunity of the year...and more! Full Story
By: Bob Chapman, The International Forecaster - 1 January, 2007
Stupidity has become a mantra in America. Evidentially Americans like to be brainwashed. You explain how their government is lying to them and screwing them and they do not want to hear about it. Corporate CEO’s, Wall Street, government economists and analysts do not get it, or don’t want to get it. You tell these thinkers real inflation is over 10% and the answer you get is the Fed has tightened very aggressively and inflation is not going to be a problem. When you explain the issuance of money and credit that has been over 12% annualized for four years and has neutralized the beneficial affect of higher rates, they do not want to hear about it. Such truth might ruin their day or make them think there could be problems. Full Story
A specter haunts executive mansions, chambers of legislatures, and halls of universities: the ghost of the gold standard. Governments and academia have utterly failed in discharging their sacred duty to provide a serene environment for the search for and dissemination of truth regarding economics in general and monetary science in particular. Full Story
By: John Mauldin, Millenium Wave Advisors - 1 January, 2007
I am taking some time off from writing over the holidays, but good friend Barry Ritholtz offered to write this week's letter. It is a very thought-provoking piece on the importance of what he calls the "real estate industrial complex" to the economy. Loaded with charts and statistics, it is the type of work I have come to expect from Barry over the years. Barry is Chief Market Strategist for Ritholtz Research and Analytics in New York. Full Story
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