By: Peter Schiff, Euro Pacific Capital, Inc. - 10 October, 2008
More than just a mere liquidity or credit crisis, the current financial storm represents the death throes of the old global economic order, and perhaps the birth pains of a new one. The sun is setting on the borrow and spend culture that has defined us for a generation. Our long ride on the global gravy train is finally coming to an end, and once it does nothing will be the same. The sooner we come to grips with this the better. Full Story
By: Bill Bonner & The Daily Reckoning Crew - 10 October, 2008
-The day of reckoning is upon us…we hope you took our advice and sold stocks on rallies and gold on dips… -The U.S. Treasury is following Britain's example and nationalizing the banks…the Great Credit Contraction gets worse… -Big Al is getting beaten up by the press…financial weapons of mass destruction…and more cheery thoughts and insights to take you into the weekend! Full Story
By: Adam Hamilton, Zeal Intelligence LLC - 10 October, 2008
Despite popular sentiment at extreme VXO spikes, the world isn’t ending. Periodic fear extremes are natural and self-limiting. They will burn out on their own accord just when things look the darkest. Stocks aren’t going to zero, they still represent valuable fractional ownership stakes in elite companies that are going to continue to thrive over the long-term. Going long at these fear spikes is immensely profitable for the brave. Full Story
By: Julian D. W. Phillips, Gold/Silver Forecaster - Global Watch - 10 October, 2008
Events on the banking, credit and foreign exchange fronts are behaving in a startling and frightening way. Not only are equity markets crashing but currencies are worrisome especially now with what appears to be a strong $, but falling against the Yen. Full Story
The Bottom Line is that The Crises are not over - - they are only just beginning. Therefore, one must be constantly vigilant to proactively take steps to protect one’s wealth and profit to the extent one may from the ever-increasing number of crises. Full Story
Financial world chaos and extreme market volatility have pretty much sidelined the vast majority of the juniors in the diamond mining sector, according to RBC Capital Markets’ highly regarded diamond analyst Des Kilalea. The senior players remain solidly in the game—albeit in a rather defensive posture—and can anticipate strong price performance to return once the economic storm subsides. In this exclusive Gold Report interview, the veteran analyst also steps back to give us a fascinating Cliffs Notes synopsis of Diamond Geology 101. Full Story
As the price of silver increases, we generally see greater demand for silver bullion coins, particularly when there is expectation that the price has some way to run. The opposite is true when prices are falling. However, silver will always remain important to investors as a way of spreading risk in uncertain times. Full Story
I believe we are in a transition phase and after the financial meltdown is complete, those still standing will see that gold is the shining star and the only place to invest, including the junior mining shares. At that point, those investors will understand what our readers have been focused on for quite some time. Full Story
By: David Morgan, Silver Investor - 10 October, 2008
As this article is being penned, the silver price as quoted by New York is in the $12.00 area. The amount of open interest for silver is 100,000 plus, which is almost 6 times as great as the entire dealer inventory. In monetary terms, 85,000,000 ounces at $12 per ounce, yields just over one billion dollars, or in terms of today’s financial parlance, about 1/700 of the amount Paulson just pushed through Congress for the latest “bailout.” Full Story
The dollar and Japanese yen are both soaring in relative terms, which will make bad domestic conditions even worse--though at the moment neither the U.S. nor Japan needs any prodding from their exporters to run their printing presses 24/7 and bail out pretty much anything that moves. Now the stage is set for all the world's fiat currencies to start falling in tandem. The Death Spiral has begun. Full Story
By: Peter Cooper, Arabian Money - 10 October, 2008
Gold and silver are benefiting from a flight to safety, and also an increasing realization that inflation is sure to follow the multi trillion dollar bailout of the global banking system. Full Story
These two analyses are meant to provide a measure of comparing the amount of gold in the world to the amount of paper money using published official sources. The two measures of money used are themselves quite limited in scope. Full Story
Much has already been written about the untimely demise of investment bank Bear Stearns. Most, if not all, that has been written to date – deals with issues related to equities / expiring options – or the share price. Recently, new information has come to light which allows us to forensically examine the demise of Bear Stearns from a completely different angle – GOLD. Full Story
The role of the Federal Reserve and fat cat banks to cause the Great Depression of the 1930s is well documented and needs no explanation from me. It happened. It is history and one can easily study it. But remember, the student may have to be careful of accepting exactly what the historians wrote because historians tell lies and write lies just like everybody else. So some IQ and hard work may be needed to decipher truth. Full Story
By: Richard Daughty, The Mogambo Guru - 10 October, 2008
Well, I say that these foreigners will turn up to loan us money as long as we have weapons, technology, land and useful assets to sell them, but the time will soon come when they will be peddling them to us. In the meantime, how big is the derivatives monster that is going to destroy the world's economic system? Full Story
By: Gary Dorsch, Editor, Global Money Trends - 9 October, 2008
The latest downward spiral in the global commodity and stock markets, coinciding with several high profile bank failures, is conjuring up fears of the calamities of the Great Depression of the 1930’s. European and Asian stock markets are plunging as terror and panic hits Wall Street. The US Congress finally passed a massive $700 billion rescue package to unclog the credit markets, yet US stock markets have continued to plummet, shedding $1.5-trillion in value last week. Full Story
USDOLLAR RALLY AS SIGNAL OF DEATH: Few seem to comprehend that the USDollar is rallying recently as a result of the imminent death of itself and the USTreasury Bond. A vast liquidation is underway of speculative trades, and of US bank assets. For years many analysts properly understood that the USEconomy is debt dependent. Now credit is drying up, and being denied even to good credit risk customers. The USEconomy is falling off the cliff, and evidence mounts. See car sales in September, down almost 30% by Toyota, down 34% by Ford. Layoffs by the tens of thousands are next, right down the vertically integrated car industry layers. As the USEconomy and US bank system continues in death spiral, the USDollar rallies, during unspeakable ruin to US fundamentals. Recall that the tide went out along the shores in Indonesia and Thailand right before the great tsunami hit almost three years ago. Ditto here! The banking crisis and extreme distress that remains stubbornly unfixable in the Untied States urgently motivates foreigners to quickly assemble, implement, and announce a replacement world currency basket. Watch for a euro currency split soon, where Nordic version will compete viciously against the dead USDollar. Full Story
By: Bob Chapman, The International Forecaster - 9 October, 2008
Unfortunately what we predicted for the market on Saturday became a reality quickly on Monday early. The bear market is upon us, all regular stock and stock funds should be sold even after Dow has fallen 4,000 points. Only keep gold, silver shares and perhaps oil and gas and special situations. There will be a handful of stocks that will run counter to the market. Early Monday was a bloodbath worldwide. In spite of the carnage the US Treasury the Fed and other central banks insist on manipulating the dollar upward. A dollar that now seems to have decoupled from gold and silver. Full Story
I believe we will now avoid the pain of a sharp correction. Instead we will get many years of miserable underperformance in shares, bonds and deposits – the classic backdrop to a strong bull market in Gold. Full Story
By: Jason Hommel, Silver Stock Report - 9 October, 2008
I hope, one day in the future, to mint COMEX bars into new 100 oz. bars, or 10 oz. bars or 1 oz. rounds, when an acceptable and reliable mint can be found.
I'm listing this auction at seekbullion.com Full Story
By: Frank Holmes, CEO US Global Investors - 9 October, 2008
Accelerating central bank liquidity is traditionally bullish for commodities, but given how far things have fallen, the transition to a renewed bull market in emerging economies and commodities could take months. Full Story
By: Joseph Brusuelas, Merk Investments - 9 October, 2008
Thus, we do not anticipate that on a national basis that the manufacturing sector will see any growth during the final two quarters of the year. Our provisional forecast is that industrial production will contract at a rate of -0.7% in Q3'08 and -1.0% in Q4. The risk to that forecast is to the downside due to an expected decline in demand from the external sector going forward and the likely impact caused by a stronger dollar in the coming months. Full Story
By: John Browne, Euro Pacific Capital - 9 October, 2008
Conservative investors should maintain a core holding of hard currency treasury bonds and gold. In addition, they should accumulate further gold holdings on major recession-induced price dips and await, with some sense of comfort, the ultimate collapse of paper currencies. Full Story
Friedrich A. Hayek was barely out of his twenties in 1929 when he published the German versions of the first two works in this collection, Monetary Theory and the Trade Cycle and "The Paradox of Saving." The latter article was a long essay that was to become the core of his celebrated book and the third work in this volume, Prices and Production, the publication of which two years later made him a world-renowned economist by the age of thirty-two. Full Story
‘Twas the death of the dollar and all through the night The ill wind that blew filled wise men with fright. My children stay put, there’s more to the tale For what’s coming next is beyond the sad pale. Full Story
Keep that in mind when things settle down again. Accumulate physical gold on a judicious and regular basis so that you are well prepared to weather the next financial storm before the clouds darken the horizon. Full Story
By: Board of Governors of the Federal Reserve System - 8 October, 2008
Throughout the current financial crisis, central banks have engaged in continuous close consultation and have cooperated in unprecedented joint actions such as the provision of liquidity to reduce strains in financial markets. Full Story
How long it takes for reality to dawn on investors is uncertain. But as you can see from the price of gold and silver today more and more people are getting it. Other articles on this website will guide you with how to gear up for rising gold and silver prices without borrowing. Full Story
By: Joseph Brusuelas, Merk Investments - 8 October, 2008
Given the near meltdown of the domestic system of finance we think that the Fed needs to compel banks to come clean regarding the wreckage littering their balance sheets, provide a temporary guarantee of the payment clearing system and in the near term move to inject capital into the banks. The conditions have been created where by those steps can be taken. Full Story
Seeing beyond the blind curves of bailouts and meltdowns takes the keen vision of a veteran market observer, Roger Wiegand, Editor of Trader Tracks. In this exclusive interview with The Gold Report, Wiegand predicts a “severe bull market” for gold that will include both juniors and seniors. He advises very selective buying. Full Story
By: Dr. Ron Paul, U.S. Congressman - 8 October, 2008
In its embarrassment at being called a "Do-Nothing Congress" the 110th Congress took decisive action and did SOMETHING. No matter that it was the wrong thing. In fact, it wasn't until the Senate had a chance to load it up with even MORE spending, when it was finally inflationary and horrible enough, at $850 billion instead of a mere $700 billion, that it passed – and with a comfortable margin, in spite of constituent calls still coming in overwhelmingly against it. 57 members switched their vote! Full Story
We just had a $700 billion bailout bill that was signed into law and done in defiance of the American people at large. This money is on top of many more billions that have already been spent bailing out Wall Street. We have a runaway government and we will likely experience economic depression or very high inflation, or possibly both, in the near future. Yet, I am smiling about the whole thing. Full Story
As noted yesterday, in late 2002, Dr. Bernanke remarked that the private Federal Reserve Bank might consider “unconventional measures" to stave off deflationary pressures. This morning a new radical measure was announced which invokes depression-era emergency powers to allow the Fed to buy massive amount of short-term debt/commercial paper, a roughly $1.6 to 1.7 trillion market of which around $1.3 trillion worth of commercial paper would qualify*. By buying unsecured debt instruments, we are approaching a more modern day Weimar Republic set-up which will lead to a further demise of the US Dollar by more aggressive monetization of debt. The digital printing presses around the world are injecting incredible liquidity into the system as the financial system continues to crumble. Full Story
As preferable as the credit facilities have been compared to helicopter flights, the Federal Reserve essentially destroyed its own balance sheet during the past two weeks, which is why the Fed reached out to the ultimate lender of last resort, the U.S. government. Yet it might be too late for a cure. We’ll find out in a few weeks whether or not the Fed’s ill condition has deteriorated beyond the point of no return. If so, the U.S. dollar as a Federal Reserve liability will shrivel up and die as more and more people discover the truth. Sooner or later the Treasury will have to provide an acceptable monetary alternative because formally nationalizing the Fed will accomplish nothing if the Fed has already been effectively nationalized as of September 17, 2008. Under the circumstances, there is a good chance that gold and silver in the hands of the public will rise to the occasion. My next essay on this subject will describe the most likely approach that the Treasury will take to move back toward a Market-Based Monetary Standard (hint: I think it will involve gold.) Full Story
By: Board of Governors of the Federal Reserve System - 7 October, 2008
The Federal Reserve Board on Tuesday announced the creation of the Commercial Paper Funding Facility (CPFF), a facility that will complement the Federal Reserve's existing credit facilities to help provide liquidity to term funding markets. The CPFF will provide a liquidity backstop to U.S. issuers of commercial paper through a special purpose vehicle (SPV) that will purchase three-month unsecured and asset-backed commercial paper directly from eligible issuers. Full Story
Gold first: last week investors queued in the streets of London to buy gold. We have a similar rush in the souks of Dubai. Gold coins are selling at the highest premiums to spot gold price in 30 years, and stocks are running out. Full Story
Historically, most financial market investors have operated with a mind-set that the financial markets are essentially controlled/influenced by fundamentals and technicals. On whether an investor should be buying or selling a particular item, some persons would add something called a gut feeling to the mix. But generally, the question of worthiness has depended on the fundamentals and technicals. Full Story
Markets have become more deeply over sold across all time frames amid pervasive fear and volatility. A rally is likely soon. But in my view, safety and risk management never go out of style and can in fact provide a sound platform for investment and speculation. ‘Safety first!’ Full Story
By: Steven Saville, Speculative Investor - 7 October, 2008
In our 3rd October email alert we wrote: "The Fed expanded its balance sheet by $254B during the one-week period ending 1st October, which follows a $204B expansion during the preceding week. As a result, the Fed's balance sheet has grown by almost 50% within the space of just two weeks. This, we believe, is unprecedented." Full Story
When fear and emotion run high, as they presently do, it often creates exceptional profit opportunities. In other words, when everyone is running scared and is concerned about risk, it is precisely the time to look for rewards as well. We are currently positioned the best I have ever witnessed for risk and reward in silver. The downside looks extremely limited and the upside looks explosive. Yes, volatility is great, but everything is lined up perfectly. Full Story
Gold’s ultimate status as a money and a safe haven asset is showing its luster again today as the financial crisis escalates. Fiat money is flowing into gold as uncertainty and fear rocket to new heights. Volatility remains high across all markets and precious metals are not immune. This signals extreme fear across the globe and general sentiment is now quite harmonious in that things are set to get worse. I am expecting more aggressive monetary growth in the coming weeks and months. This will further debase the value and integrity of fiat currencies and capital looking to preserve its purchasing power will find safety in gold and silver. The relative value of currencies are immaterial at this point with only gold as the true barometer of the illness within the global fiat currency system. Full Story
Between Lehman Brothers and the AIG bailout, Western central banks have already printed somewhere in the neighborhood of half a trillion dollars this week, and it’s not over as Washington Mutual, amongst others, are said to be up next. While undoubtedly being a record for such largesse, because these measures are simply monetizing bad debt of insolvent companies, as pointed out previously, the effect on the consumer’s liquidity condition is minimal. In fact, when you add up all the stock market losses, amongst other things, the average investor remains worse off, and deteriorating. Full Story
Rudyard Kipling would probably have made a good gold bug because he certainly called what has been happening in the financial markets over the past two weeks. The media have been full of wild exaggerations and outright lies all designed to create a panic among the people and get them to support the Wall Street bailout bill which passed Congress last week. Full Story
You get a sense that America's chickens have come home to roost. Instead of learning from our past mistakes though, as the idiom above is meant to suggest, the nation appears intent on compounding them. The Great American Bailout of 2008 is simply more of the same -- more debt, more easy money, more moral hazard, more taxpayer responsibility, and more government intervention. Quite literally, the government has once again applied a band aid, papered the problem over and delayed once more what will certainly be an even worse day of reckoning. Yes, the chickens have come home to roost, but for all the roosting all we have gotten is more chickens. Full Story
Conditions in U.S. and global financial markets remain extremely strained. The President's Working Group on Financial Markets (PWG) is working with market participants and regulators globally to address the current challenges and restore confidence and stability to financial markets around the world. Full Story
MSNBC: "Financial 'guru' warns that investments could lose 20 percent of their value"
Please note: GoldSeek.com does not endorse Jim Cramer as a financial guru.
“Whatever money you may need for the next five years, please take it out of the stock market right now, this week. I do not believe that you should risk those assets in the stock market right now." Full Story
Soon we will consider the likely impact of all this on gold and silver prices, both on the paper prices and on the prices for real physical gold and silver that you can hold in your hand, and consider the merits of gold and silver versus gold and silver stocks. Another subject we will turn our attention to is measures to improve security in conditions of anarchy or near anarchy. Full Story
By: Jason Hommel, Silver Stock Report - 6 October, 2008
Over 100 years ago, nations began stopping using silver as money, creating excess, cheap, silver. That trend ended between 1964, the last year the U.S. minted silver coinage, and around 2000, when the U.S. government ran out of silver. A new trend started around 1945, as silver was used in electronics and 10,000 other industrial uses, including photography. Of the 43 billion oz. of silver mined throughout human history, over half has been consumed and lost, and 95% of the rest is in forms inconvenient to recover, such as jewelry and tableware. Of the 1 billion ounces of silver remaining, most is held by long term investors, leaving nothing left for new investors, as industry continues to consume more than is mined each year. The long term price trend will now reverse, as people discover that silver has use as money, as silver will now prove to be an excellent store of value, and later, as a medium of exchange. Full Story
The greatest heist in history took place on Friday when congress was CONNED into signing away $700 billion accompanied by SOME $120 billion of pork. Full Story
I believe future historians will allocate Monday, September 29, 2008 as the start of the second Great Depression. That is not to say we may yet see exciting corrections and even occasionally a stronger US dollar. Still, the ultimate trend is down, down, down. Full Story
In this market, the producers are quite cheap. With the producers’ cash building up on their balance sheets and their stock prices depressed, you may see some share buybacks. Another thing I think they will do in a market like this is use cash and cash flow to add projects into the mix in their pipelines. Full Story
* Headline news & Market Weatherman Forecast. * Spotlight Stock Picks with big dividends. * The International Forecaster and Host Chris Waltzek answer listener questions.
2nd Hour: - John Perkins Economic Hit Man - Full Story
By: Bob Chapman, The International Forecaster - 5 October, 2008
If you were wondering why all the healthier financial institutions, and of course we say that with tongue-in-cheek because we know they are all eventually slated for destruction by the explosive blast of a Quadrillion Dollar Derivative Death-Star, were buying all the gargantuan commercial and investment banks that are laden with toxic waste, you now have your answer. This is why all the shareholders in these zombie-acquisition deals are getting vaporized. Their assets were more valuable than they thought, because unbeknownst to them, the US government was about to pay far more for these assets than they were worth. Full Story
This series of articles on the Goldsmiths has already presented a mountain of evidence pointing out the work of the plutocratic masters to manipulate and control the various financial markets in order to rip-off, plunder and steal as much as possible from all of us suckers who try to play on their field. Sometimes, it seems that nothing further could be said in support of that reality, as stated by me and several other market watchers. Full Story
I think the investing public has finally figured out that the stock market is not going to go back up above what it was in March 2000, plus 20% to compensate for higher consumer prices. The number of people on tout TV who talk about a new boom in the stock market being just around the corner, with highs in the range of 20,000 or 30,000 on the Dow, is zero. "Dow 36,000" is a matter of ancient history. Full Story
There will be no Great Depression II if the people gain monetary freedom, for entrepreneurs can rapidly construct alternatives to the existing and failed money and banking system. Full Story
The magnification factor at work, on the down side. Gold drops less than 5% while gold stocks drop more than 15%. It worked on the up side, now we see it working on the down side. Although a long term bear market in gold bullion may be argued it sure is a bear for stocks with the average stock down 52% since their highs only a few months back. Full Story
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