By: Bill Bonner, The Daily Reckoning Crew - 10 April, 2009
The rally is on! The Dow rose another 246 points yesterday. Enjoy it while it lasts…but keep those trailing stops tight. The “End of the Rally is Nigh,” says Barron’s. Full Story
By: Scott Wright, Zeal Intelligence LLC - 10 April, 2009
Most analysts believe this deep global recession has abruptly ended the powerful secular commodities bull that was born at the turn of the 21st century. And it is certainly hard to argue this point considering the dismal panic-selling-induced performance of nearly all commodities. Full Story
If private markets have learned from past mistakes, they will stay away from these bonds. They will freely tell others not to buy them either. But then what happens, especially as the depression deepens? In the First World War, such people were sent to jail. That tended to have a chilling effect on open discussion of the subject. Full Story
By: David Morgan and Ellis Martin - 10 April, 2009
Can you trust investing in silver the physical metal? The answer is yes, always, and everywhere. The reason that’s the answer is because silver and gold both are sovereign wealth. They’re the only monetary or financial assets that are outside of today’s financial system. Full Story
If we cut through the noise and focus on reality, we’ll see a much different story. And it’s sticking to the facts and the reality which will ensure we survive and thrive regardless of which direction the market takes from here. Full Story
The preceding articles on excessive inflation/hyperinflation allow a student of history to come to several conclusions on the impact or fall out of such inflation on a nation or people. For example, we saw how it wipes out savings and indeed the concept of saving money for a later time in one’s life when he will need some savings. Full Story
By: Richard Daughty, The Mogambo Guru - 10 April, 2009
Patrick J. Buchanan, writing at amconmag.com, asks “Should We Kill the Fed?” which is such a good idea that I herewith volunteer to forthwith do the job as soon as my embarrassingly huge salary and benefit package is finalized. Full Story
By: Bill Bonner, The Daily Reckoning Crew - 9 April, 2009
The Dow rose 47 points yesterday…and is up around 180 points this morning. Not too much…but the rally is still on. More or less. But don’t trust it…keep moving up those stops. The state of the economy can be summed up this way, according to our friend Barry Ritholtz, author of The Big Picture blog and the forthcoming book Bailout Nation. Full Story
By: David Chapman, Union Securities - 9 April, 2009
Sucker rallies (or bull traps) in a bear market are a time-honoured tradition. Bear markets see many rebounds, ranging from feeble rises of maybe 10 per cent over a period of a couple of weeks to ones that last years and recoup anywhere from 50 per cent to even over 100 per cent from the low. Call it from the little sucker to the really big sucker. Full Story
By: Terry Coxon, Editor, The Casey Report - 9 April, 2009
We don’t yet know how many trillions will be swallowed up by the government’s rapidly breeding herd of stimulus-bailout-help!help! measures. But additional bold steps are sure to come, some already in R&D and others to be invented on the fly to answer each new wave of bad news. Expect price tags suitable for proving how serious and determined the authors are. Full Story
The copper price is on a roll having risen roughly 50% over the past three months to $1.95 lb (Fig.1 below). Unfortunately for analysts and specialists, the fundamentals driving copper pricing are opaque at best and therefore subject to a variety of interpretations and predictions. Here’s my take. Full Story
By: Peter Schiff, Euro Pacific Capital, Inc. - 9 April, 2009
Apart from the obvious financial distress that the current economic crisis has inflicted on most Americans, perhaps one of the more irksome byproducts of the meltdown has been the inescapability of clueless economic blather. It's bad enough when so-called economists serve up the same Keynesian nonsense that has led us down the current cul-de-sac in the first place. Full Story
By: Julian D. W. Phillips, Gold/Silver Forecaster - Global Watch - 9 April, 2009
Russia has proposed that the I.M.F. created, synthetic currency [Special Drawing Rights], with changes [Gold backing], be adopted by the world to replace the U.S.$ as the world’s prime reserve currency. Both China and Russia proposed new currencies, not so much in the hope that their proposals will be accepted, but bringing to the attention of the world that the $ is losing credibility and not serving the role is should as the world’s reserve currency. Full Story
For those thinking that the real estate bust is all over with – think again. The residential market has hit the ditch and continues to sink lower, but now the commercial property market is rolling over and will take many lenders down the drain with it. Full Story
Quantitative easing appears to be the new fad among central bankers including the Bank of England, Japan, Switzerland and the Federal Reserve. Quantitative easing is a tool of monetary policy. The effect is an increase in the quantity of currency without regard to maintaining its quality. Full Story
Precious metal fans face a conundrum in choosing to buy silver rather than gold: silver prices are more volatile but have always outperformed gold prices in previous financial crises. So you might sleep better as an investor in gold but ultimately lose out to silver. An equal split asset allocation is one way of hedging sleep and performance. Full Story
To be honest, I would prefer that my shorts on gold and silver do not work out and that gold negates this pattern. That is because I want to see the honest monetary barometer shine a light on the big lie that government and Fed officials can engineer their way out of an absolute, unmitigated and historic mess that their own toxic policy helped create. Full Story
This week in gold we have seen prices drop lower creating a lower low. This is generally not a good sign if we want to see higher prices in bullion and gold stocks. That being said, a lot of traders are now starting to short gold because is has filled its gap lower which occurred Monday at the open due to over night commodity prices. Full Story
Heidi is the proprietor of a bar in Detroit. In order to increase sales, she decides to allow her loyal customers -- most of whom are unemployed alcoholics -- to drink now but pay later. She keeps track of the drinks consumed on a ledger (thereby granting the customers loans). Full Story
There are a host of lessons which can be learned from Weimar Germany’s bout with hyperinflation in the early 1920s. Much of this story has been told in a number of writings over the years. The Goldsmiths, Part LIX, addresses that issue extensively. Without wasting time repeating that material, there is one important issue which is crucial to understand. It was briefly commented upon in the Goldsmiths, Part LIX. Here, that idea will be expanded on and related to the present situation developing in the United States. Full Story
By: Richard Daughty, The MOGAMBO GURU - 9 April, 2009
It ain’t really news that employment is falling along with the economy falling off a cliff because everybody is up to their freaking eyebrows in debt and people and businesses are naturally reluctant to be rushing out to borrow more money will-nilly to spend more, and more, on more and more Cheap Consumer Crap (CCC), and businesses sure don’t need a lot of employees to make or sell less stuff. Full Story
The back-of-the-napkin numbers sketched out below are the handiwork of our good friend Doug B., a stockbroker who not only helped his clients dodge the bullet of recession/depression, but who also brought them some tidy returns on their portfolios last year. Full Story
By: Bill Bonner, The Daily Reckoning - 8 April, 2009
It’s the Great Deception… Not much time to write this morning. In a few minutes, we’re getting on a flight from L.A. to Buenos Aires. Now, in the lounge in Houston, we’re wondering if the bear market rally is over… Full Story
By: Bob Chapman, The International Forecaster - 8 April, 2009
Now, courtesy of our new Treasury Secretary, Kissinger protégé Little Timmy Geithner, who is on loan from the Federal Reserve Bank of New York, and Little Timmy's sidekick, Buck-Busting-Ben, chairman of the privately owned Fed, we are about to experience a hyperinflationary money bubble as Little Timmy and Buck-Busting-Ben create and unleash a money supply mania. That money supply mania will cause many other manias, including gold and silver manias, as tangible asset prices skyrocket. Full Story
By: John Browne, Senior Market Strategist, Euro Pacific Capital - 8 April, 2009
Last week's gathering in London of the leaders of the 20 foremost economic countries in the world had been billed as the most important global financial meeting in more than 60 years. The stage had been set for hotly contested economic policies to be hashed out with the intensity of a Cold War arms negotiation. However, for most observers, the results of the G-20 failed to live up to the billing. Other than a masterful display of haute couture by the new American first lady, there are few results that anyone can really call significant. Full Story
"INVESTORS will drive the next leg of this bull market in gold," said Philip Klapwijk, chairman of GFMS, at the London-based research consultancy's Gold Survey launch in Canary Wharf on Tuesday, "setting a new high above $1,000 in 2009 and with a real possibility of $1,100 per ounce." Anyone pitching for $1,100 in short order, however, might have their work cut out for them. And all thanks to MC Hammer. Full Story
Recent GoldSeek Radio interview with GoldMoney.com founder James Turk turned into YouTube videos. From last weekend's show on April 4th, 2009. Full Story
We have not yet seen panic on Main Street. The malls' parking lots are full. Most yuppie restaurant chains are still in business. Their local restaurants may not be as full as they were a year ago, but they are open for business. There are still shoppers at Wal-Mart. Full Story
Today I am offering some information on the hidden world outside the mainstream gold trade and investment scene. There is much ignorance and confusion on the subject – scams, victims, criminals, legitimate business and big money. It is an essential trade for many economies and for people that rely on gold sales for their survival. What a great subject – intrigue, scandal, danger, survival, opportunity and excitement! Full Story
By: Richard Daughty, The MOGAMBO GURU - 8 April, 2009
I’ll bet that if the foreign exchange markets don’t know that the currency of a nation of fiscal and monetary idiots was “a negative for currencies”, then I guess that they also don’t know that gold and silver, when priced in the currencies of fiscal and monetary idiots, will soar as the currency falls in buying power, which is so elementary that I am shocked that they are that stupid! Full Story
Our “Goldman Sachs indicator” got caught in a tug of war yesterday, rising in the early going even though most stocks seemed eager to retreat. Goldman shares eventually fell too -- in the final minutes of the session -- but not before hinting that bulls could have the last word before Good Friday ends this trading week a day early. Full Story
By: The Gold Report and Ronald Wortel - 7 April, 2009
This week, The Gold Report caught up with Ronald J. Wortel, MBA, P.Eng., E.V.P. of mining investments for MineralFields Group, an industry leader in such investments. In this exclusive interview, Ron explains the prospects and profits borne of these mutually beneficial financing arrangements. Full Story
By: The editors of BIG GOLD, Casey Research - 7 April, 2009
Fast forward to April 2009, and Goldfinger Brown is at it again, campaigning for IMF gold sales. What does it mean? Will he prove once again to be a contrarian indicator? We don’t know. But it doesn’t take a two-by-four to get our attention. In the meantime, we’ll keep an eye on the old Alert sock. Full Story
By: Bill Bonner, The Daily Reckoning - 7 April, 2009
Japan says it’s going to announce another $100 billion stimulus program this week. That should do the trick. After 17 years of bailouts and stimulus programs, the Japanese should be getting good at them. But it’s a little like a guy who’s getting good at suicide – if he’s so good at it, you’d think he’d be dead by now. Full Story
One thing you can say about the recent sharp sell-off in silver, at the very least, is that it forces you to think. In fact, my friend and mentor, Izzy Friedman, wrote an article with that title a couple of years ago. http://www.investmentrarities.com/07-03-07.html Nothing focuses an investor’s attention more than a sudden decline in price, especially in an item one thought was undervalued to begin with. This is as it should be. Full Story
By: Brady Willett and Dr. Todd Alway - 7 April, 2009
The Wall Street Journal recently suggested that a ‘culture of greed’ may be to blame for today’s crisis. Billionaire investor Stephen Jarislowsky has said that he thinks ‘extreme’ greed was to blame. And nestled within the mob of protestors ahead of last week’s G20 meeting was a little girl, no more than 5 or 6-years of age, holding a sign saying ‘You Greedy BosTards’. Let us simply say, while acknowledging the views of the Wall Street Journal and Mr. Jarislowsky, that the protesting little girl may have been misled. Full Story
Listen, can you hear it? Yes, it is the sound of printing presses going 24/7 around the world. Can there be any doubt where we are heading with all of these ‘dollars’ being printed? Inflation or hyperinflation is within sight but it will probably take a few more years to get there. And then what? Full Story
While history clearly shows that it is this very government meddling in monetary affairs that leads to financial market booms and the inevitable busts that follow, mainstream economists either deny that financial bubbles can occur or that the "animal spirits" of market participants are to blame. Full Story
Chinese and Russian leaders put an SDR-based reserve currency on the agenda of the G20 summit last week, while Gulf central banks have announced a delay to the 2010 launch of the GCC single currency. Both new currency units could include gold in their currency baskets. Full Story
Copper traded past 150 for 9 days in a row and in the process hit its first upside target of 180 before pulling back. The next objective for copper would be to trade past 180 for 3-5 days in a row and in doing so set up a pattern that would trigger a move up to the 220-240 ranges before a stronger correction takes hold. Full Story
By: Steven Saville, Speculative Investor - 7 April, 2009
The Fed scaled back its money-pumping efforts over the first three months of this year, which is not surprising given that it would have been almost impossible to sustain the frenetic pace achieved during the final four months of last year. But even though the Fed's actions have become less frenzied of late, the Fed-Treasury tag team has made sure that the rate at which new money is borrowed into existence continues to exceed, by a substantial margin, the rate at which money is extinguished via debt repayment. Full Story
“See that field over there…by the ocean? That’s where it will be. These projects are going to bring prosperity to my country my American friend.” That’s what my guide told me. I was in Papua New Guinea at the time looking into an energy boom the whole world seems to have forgotten about. The way things are shaping up though this is the time to start thinking about it again. Full Story
Once this SDR thing becomes reality, there will be gross worldwide inflation. Even the Swiss franc will be in the same boat as all the rest of them. The underlying pin for all of them will be these SDRs which will become the total item of value to settle the accounts of various nations around the world. And, of course, this was the plan from 1969. Well, we haven’t had it so far, but it is ultimately on the way with world government and a one world money system. Full Story
By: Richard Daughty, The Mogambo Guru - 7 April, 2009
My brain went into some kind of weird spasm when Zhou Xiaochaun, head of the People’s Bank of China, went on record as saying that he doesn’t trust the dollar to be the world’s reserve currency anymore, and wants, instead of gold, the International Monetary Fund to expand the supply of Special Drawing Rights (SDRs), which is just another stupid fiat currency, to use as the world’s reserve currency! Gaaahhhh! Full Story
Yesterday’s weakness in stocks was attributed to “concerns” about the banking system. At least, that’s what we heard on the car radio while we were out doing some errands Monday morning. Funny how these supposed concerns can pop up at any hour of the day, often for no apparent reason. Scarcely ten hours earlier one might have thought investors hadn’t a care in the world, let alone grave worries about the health of America’s banking system. Full Story
President Obama has announced a series of programs to create jobs. I can only shake my head. Is it possible that there are people in this country who think that this is a desirable goal? I go back in history and read The Federalist Papers. The Americans of the 1780s were so smart. And here the Americans of the 21st century are so stupid. What happened to progress? Full Story
By: Dr. Ron Paul, U.S. Congressman - 6 April, 2009
Last week the House passed another budget that increases federal power, raises taxes, and increases the national debt. I voted against it, and was pleased to see that not a single Republican representative voted for it. Legislators often see bipartisanship as constructive, but I disagree especially where the destruction of our economy or our liberty is concerned. Full Story
By: Jason Hommel, Silver Stock Report - 6 April, 2009
In the past, I've pointed out various frauds in the silver market such as, the excessive futures contracts on the COMEX, the excessive trading in "London" silver, and the excess silver in the new ishares Silver ETF, SLV. In 10 years of reading and writing and searching, I've never known the numbers of paper silver in the OTC "Over the Counter" market until a reader informed me, just today. Full Story
By: Frank Holmes, U.S. Global Investors - 6 April, 2009
The fastest route to shrinking loans was to tell hedge funds to sell the stocks, bonds and commodities, and this triggered the global liquidation of all asset classes. This was forced panic selling. It is estimated that hedge funds were forced to liquidate more than $1 trillion in assets. Hopefully the worst is behind us now. Full Story
In order of magnitude, it’s important for those who pay attention to these things to note what is occurring in the economy and financial markets right now is of the highest degree in terms of importance (and movements), because the world’s reserve currency, the US Dollar ($), is in jeopardy of losing this role, which will change everything. Full Story
An economics debate of very great importance is surfacing. Is the government’s economic rationale for bailing out the banks valid? If it is not, then the entire case for the bank bailouts fails. Full Story
The first quarter of the year has passed and it was a volatile one for the markets in general. They plunged into an abyss straight out of the gate. But last month we saw a powerful rebound. Has the bottom for this horrible bear market been set? Full Story
By: David N. Vaughn, Gold Letter, Inc. - 6 April, 2009
China is proposing getting rid of the US dollar to be replaced by a new global currency that would become the new international reserve currency. China wants to see stability in the currency markets and the US dollar is not providing this. Actually, China is very concerned about the new dollars being printed and their future impact on inflation. Full Story
All around the world governments are issuing bonds to raise money to counter the global economic crisis. Yet bonds carry a significant downside in capital risk, if inflation picks up, and pay low interest rates. Full Story
By: Bill Murphy, Le Metropole Cafe, Inc. - 6 April, 2009
GATA (Chris Powell and I) are readying a trip to London in early May, with the details to be worked out this coming week. The feedback and support from legendary supporters in that arena has us very excited about the potential for this trip. We are going there with the following in mind: Full Story
America is in financial crisis but instead of the financial oligarchy being broken up to permit essential reform they are continuing to use their influence to prevent precisely the sorts of reforms that are needed immediately to pull the economy out of its nosedive. Unfortunately, our legislators seem unwilling to act against these powerful financiers opting instead to succumb to their power and influence and continue to give them what they deem to be in their best interest instead of that of the taxpayers’. Full Story
The past week marked an acme in the U.S. government’s Orwellian tactics of fooling the “proletariat” into believing the G-20 meeting was, in Obama’s words, “the turning point in our pursuit of global economic recovery.” How any can believe that a meeting of the very same people that caused this mess, of which the only material conclusion was to print another $1 trillion, was a success is another story. But I digress. Full Story
Gold stocks have been holding up, which is good for the price of gold bullion. The gold sector had a nice pop a couple of weeks ago and the market is still digesting that move. Gold is trying to hold horizontal support and with any luck we will see higher prices this week. The broad market appears to be overbought and if we see the broad market roll over, it should boost gold and gold stocks higher as a safe haven. Full Story
Once the Cabal made its plans, it clearly brought the Chinese on board to make it appear that the whole thing was a Chinese idea. I submit that while the Chinese are clever and crafty, the real agenda of the Rothschild Cabal was the one that prevailed. In other words, the Chinese and the G20 approved the Rothschild SDR plans for the future. Now, the remaining question is what this turn of events will mean for gold. And it may not be good short term. Full Story
A recent story in the Wall Street Journal explained how the newly jobless may be eligible for employer-sponsored health insurance coverage at drastically reduced rates. Sounds like good news, right? Not if you’re an insurance agent. In fact, it’s a kind of reverse stimulus for those who make their living selling health coverage. Full Story
1st Hour: Headline news & Market Weatherman Forecast. Spotlight Stock Picks with big dividends. The International Forecaster and Host Chris Waltzek answer listeners' questions. 2nd Hour: James Turk, GoldMoney.com Full Story
By: Bob Chapman, The International Forecaster - 5 April, 2009
The only way to solve this problem is first to do away with the Fed, which has been a disaster. The whole concept of a privately owned bank, owned in part by non-Americans is insane. We cannot have private banks and Wall Street running Washington and our country as their private fiefdom. We are on the wrong path and we will pay a dear price for our stupidity in allowing these crooks to run our nation for almost 100 years. Full Story
The solution to a destruction of the currency is the return to sound money – free-market money – as outlined by Mises and further developed by Murray N. Rothbard. It would presumably, at least in the initial stage, result in gold-backed money under 100% reserves. The edging up of the gold price seems to support the view that people consider gold as the ultimate means of payment – a status that will become increasingly obvious once people fear that the exchange value of fiat money will be eroded substantially. Full Story
Banks typically have 3% of their assets in cash in order to meet customer needs. Since 1960, banks have been allowed to use this “vault cash” to satisfy their reserve requirements. Today, bank reserve requirements have fallen to the point where they are now exceeded by vault cash, which means lowering reserve requirements to zero would have virtually no impact on the banking system. US banks are already operating free of any reserve constraints. The graph below shows reserve requirements falling to zero over the last fifty years. Full Story
By: Jason Hommel, Silver Stock Report - 5 April, 2009
For a while, I did not know how important and influential Burt was to the freedom movement. Part of that must have been due to his wry humor that was lost on me. I once suggested to him that he should write, and he quipped, "Who has time for writing?" when I knew so little about who he was, and so much that he has written. I thought he was serious. I was clueless. Full Story
By: John Mauldin, Millennium Wave Advisors - 5 April, 2009
Tonight (Saturday) some 450 people will come together in San Diego to honor Richard Russell, who has been writing the Dow Theory Letter for over 50 years. In that spirit, in today's letter we are going to look deep inside the Dow, back to its very roots. The Dow is a price-weighted index as opposed to a cap-weighted index. Does that make a difference in performance? Specifically, does it affect how the Dow has performed since it was expanded to 30 names in 1928? There are some real surprises we have found, and I think you will find this letter very interesting. Full Story
It’s the question on every investors’ mind…when will this rally end? There’s no easy answer here. There is a way to tell though. But you probably won’t find it in the mainstream media. Full Story
Since the market bottomed and the new cyclical recovery bull market began, retail investors have gone on a collective buyer’s strike. Call it a “hunger strike” if you will. The retail crowd is effectively starving itself by missing out on some remarkable recoveries in recent weeks and will most likely continue to miss out on these opportunity until they simply can’t take it anymore. In other words, a classic repetition of the idealized market cycle is setting up perfectly. Full Story
There is no painless “escape from the crisis”. It's going to hurt and will hurt some more than others. As Mike “Mish” Shedlock points out at www.globaleconomicanalysis.blogspot.com, the main thrust of Secretary Geithner's plan to revive the American economy and get it back on the wagon is to make the crisis painless to the great big banks and their bondholders above all other considerations. Full Story
Sadly the multi-trillion dollar bailouts will make this a longer and more expensive process than it needs to be, and cause a great inflation. Stock markets are not going to like any of this at all. Gold and silver will be the only places to hide. Full Story
By: The Gold Report and Leonard Melman - 5 April, 2009
Leonard Melman, prodigious writer (The Melman Report) and leading authority in the metals and mining arenas, sees opportunity for some "really good moves" and "fabulous returns" on the horizon, citing vibrant charts on random juniors whose values have multiplied during the last six months. Full Story
In any discussion or analysis of the inflation/hyperinflation problem, it is inevitable that most of us quickly gravitate to the hyperinflationary blow out in the Weimar Republic of Germany in the early 1920s. But, in fact, this catastrophe was only one of many the world has faced over the years. Full Story
By: Richard Daughty, The Mogambo Guru - 5 April, 2009
Over at Whiskey & Gunpowder, an essay by Don Stott of coloradogold.com reveals that we are more alike than we thought, in that he, too, is “astonished at the credulity and unabashed total economic illiteracy of the American and even the world’s public. We’re headed for hyperinflation, with prices of everything going through the roof, and America is buying stocks rather than gold and silver?” Full Story
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