By: Bill Bonner & The Daily Reckoning Crew - 13 June, 2008
-Retail sales actually went up last month - how is that even possible?…the Beige Book says the U.S. economy is 'generally weak'… -The sky's the limit for electronic money - but not so for real wealth…America's money is snapping back… -Calling into question the U.S.'s car culture…the next big thing in the search for an energy alternative…and more! Full Story
In other words, blaming evil-eyed Middle Eastern potentates or bloodless speculators is attributing blame in the wrong direction. If you want to hit the right target, start with the fiat currency system which has systematically reduced the purchasing power of the U.S. dollar and all of its similarly unbacked peers to the level of Monopoly money. Full Story
SURELY the 20th CENTURY'S greatest marketing coup – besides making cigarettes taste of freedom and youth rather than the Sandakan death-march – was kidding the world that "inflation" meant rising prices. Full Story
By: Adam Hamilton, Zeal Intelligence LLC - 13 June, 2008
The early summer weeks of June have not been kind to the US stock markets. Across June’s initial 8 trading days, the flagship S&P 500 stock index lost 4.6% of its value. This is not a trivial move for America’s biggest and best elite companies, so stock traders are starting to sweat a bit. Full Story
By: Julian D. W. Phillips, Gold/Silver Forecaster - Global Watch - 13 June, 2008
The oil price rose to $139 on Friday and looked like it was ‘spiking’ to over $150. But is it? That’s a rise of 44% this year. A great deal more than technical chart pointers will be needed to understand where oil, food, gold and silver are headed in this environment. If this is the time when consumer and investor demand will rise beyond supply’s ability to provide enough, then this is not a ‘spike’ but a structural change in the market. Full Story
Unfortunately, a cold-eyed look at various Trends-in-Being does indeed indicate that market and economic conditions are worsening and, yes, they will likely get much worse. Thus it behooves all to consider strategies for protection and profit, as Deepcaster does here, to amplify somewhat on several of our recent writings on the same topic. Full Story
Just a week ago gold and silver were well placed to begin a new uptrend and while they are still are, we have over the past week witnessed severe testing of - and erosion of - support at a critical level that is leading to rapidly increasing downside risk. Full Story
By: Jason Hommel, Silver Stock Report - 13 June, 2008
It's hilarious. The dollar used to be a promise to pay in silver, or gold. Bonds are thus like an old defaulted version of gold futures contracts. Futures contracts in bonds are a third form derivative on bonds which are defaulted gold contract futures, and options on futures on bonds for dollars are like a 4th form derivative on defaulted gold contracts. The bankers have just gone wild! Full Story
I fully expect the summer months to be less than magnificently bullish for the precious metals. On the other hand, I fully expect the overall financial system to provide such huge indications of the complete instability of a monetary system without a rudder, that many astute investors will ponder the merits of anchoring their portfolios with the top-tier commodities of human existence—gold and silver. Full Story
As noted a few posts ago, things are certainly getting interesting lately. Jawbones have been getting a lot of exercise with the Fed, ECB and China falling all over themselves to declare how tough they are on inflation. They are not tough. Jointly, they and other global bankers created this mess. But that is a screed for another time. Full Story
By: Richard Daughty, The MOGAMBO GURU - 13 June, 2008
Suddenly I think, 'Ahhh! I see! Demand is more than supply, meaning price will go up until demand equals supply!', at which point I think, 'Whee! Investing is easy when you know to avoid stocks and bonds and buy gold, silver and oil…' Full Story
Yesterday’s rally on Wall Street faded coming down the stretch, supposedly because oil prices jumped on concerns over Nigerian supply. We saw the news as nearly irrelevant, however. It looked like a purely technical day, with DaBoyz testing the mettle of bears by manipulating a fairly powerful short-squeeze on the opening. With no negative news of significance on the tape, the specialists simply stepped aside and let shorts work their magic. Full Story
By: Gary Dorsch, Editor, Global Money Trends - 12 June, 2008
The Fed’s hands appear to be tied by a weakening economy. The problem is if the central bank is bluffing about a tighter money policy to defend the dollar, it will open a Pandora’s Box to even greater instability and volatility in global markets. Full Story
Some very confusing factors are at work relating to the USTreasury Bond market and the gold market. To assume that gold will rise in kneejerk fashion in response to the gargantuan grotesque growth in monetary inflation (aka US$ money supply) is simply naïve for the public and amateurish for professionals. Never in the US history has more confusion reigned within the body financial. This is to be expected, since the US banking system is insolvent, in parallel to the US housing landscape being increasingly insolvent. Full Story
Interest rates around the globe are rising. India was the latest major country to raise them. Canada did not lower theirs as many expected and Europe has clearly stated that theirs are going up. This leaves Chairman Bernanke is a hard place. The US economy unlike Europe’s or India’s is fragile. Our unemployment rate is soaring and our financial institutions remain under siege. Full Story
By: Bill Bonner & The Daily Reckoning Crew - 12 June, 2008
-China's tiger economy is burning bright…excitement in the Indonesian coal industry… -Americans get a break from the hard work of consuming…the world's money machine is slowing down… -A list of top performers for the long-term…the four things we do with our loose change…and more! Full Story
The USD has completed a leading diagonal and is currently in a wave (2) correction. The current wave up is close to completion and we should see one more wave down to complete wave (2) down. Once this wave down completes, we should see a strong rally in wave (3) up. Full Story
If Americans feel they are being pick-pocketed by inflation, they should take a look overseas. With the United States pushing its trade deficit and dollars on the rest of the world, many world central banks thought they could grab a “free lunch” by buying US Treasuries to hold the exchange rate of their currencies down, and paying for them by printing up free local currency. This so-called free lunch has turned out to be mighty expensive. Full Story
By: Bob Chapman, The International Forecaster - 12 June, 2008
Commentators cannot yet wrap their minds around what really drives our markets. Not only are our various stock, bond, derivative and commodity markets no longer free due to their 24/7 molestation at the hands of the PPT, they are manipulated in diabolical ways to hide the destruction of our economy, and also to throw people off the trail of cause and effect. Full Story
By: Richard Daughty, The MOGAMBO GURU - 12 June, 2008
To get a hot chick to say, 'Take me and ravish me, you Hot Mogambo Stud (HMS)!', you can't use force like old Jabba there. And that means willful cooperation, and that means you are going to need some serious, serious money. Full Story
Looking ahead, our gut feeling is that the stock market is verging on a spectacular collapse, mainly because the veneer of the supposed bank bailout is starting to warp, crack and peel. In practice, though, we won’t wager the ranch on a Mother of All Tops because no one has made money on that bet in nearly seventy years. Full Story
Since G7 obligations are DENOMINATED in domestic currencies the solution they will take and have taken to date is they will “print the money”. It is as simple as that. They will substitute another IOU (G7 currencies) for the existing ones. Default is unthinkable as they won’t be able borrow anymore, or print money and exchange them for REAL things like imports and energy supplies. It is inflate or die, so they will inflate. Full Story
DO DEFICITS MATTER? Right around the time that English missionaries produced the first Bible in Chinese, the British Empire found itself with a trickier kind of translation problem. Full Story
By: Bill Bonner & The Daily Reckoning Crew - 11 June, 2008
-Worshiping Prince Philip as a god…disappointing the heathens of Wall Street… -The Fed turns its big guns toward inflation front…a series of questions from a Dear Reader… -The beginnings of the Energy Recession…finding good parking before everyone else…and more! Full Story
Due to oversome potential print-scaling issues with your browser, you may choose to save the quality print file to your computer desktop either by dragging the image to an open space on your desktop, or by right-clicking (PC) or control-clicking (Mac) the image file and electing to save the file to your desktop via the resulting dropdown menu. Full Story
I started writing this piece as the sub-prime crisis was unfolding. I wanted to establish the connection between the silver basis and the budding banking crisis caused by phony bond insurance schemes and the lack of hedging irredeemable dollar debt with metal holdings. My original title was Putting Clothes on the Naked Bogeyman. As writing progressed I realized that it would take more than one article to dress up the bogeyman; hence the revised title. Full Story
By: John Browne, Euro Pacific Capital - Senior Market Advisor - 11 June, 2008
As the economic indicators turn down and election year politics heat up, the calls from politicians for more government intervention and enhanced economic stimulus are becoming more strident. Last week, with the onset of the general presidential campaign, and with increased attention on the economy shown by the Bush administration, I could not help but think that something big was in the air. And by big, I mean the kind of massive new Federal spending initiatives that we haven’t seen since the Great Society of the 1960’s. Full Story
I think oil prices recently shot up, just like wheat and cotton did not so long ago, because a number of shorts, at the margin, decided to buy back short positions in a hurry. I know that the short position in silver is held by very few participants, so when they cover, it will not be an event measured at the margin. It will be an event characterized by a change at the core of the market. The short covering in oil, wheat and cotton are just a hint of what’s to come when the shorts cover in silver. Full Story
By: Richard Daughty, The MOGAMBO GURU - 11 June, 2008
This is the Big, Big Reason (BBR) that I am now looking for a cushy job as an oil company CEO, because I would make a lot of money for doing practically nothing and apparently knowing even less. It's perfect for me! Full Story
With the dollar up a relatively fragile 1.8% in the last two days, hope grows that the economy can finally get back on track. At least, that’s the story America’s mainstream news outlets seem to be selling at the moment. Just look at what the greenback’s gravity-defying skew has allowed Helicopter Ben to say without having a rotten tomato tossed at his face. Full Story
By: Bill Bonner & The Daily Reckoning Crew - 10 June, 2008
-A high stakes financial wager - for charity?…inflation goes global - and in one case, lunar… -When greenback leaves turn brown and blow away…the high cost of fueling suburbia… -Housing has finally run it's course…even mobile homes can't move away from poor stock performance…and more! Full Story
Demand destruction refers to the effect of a rising price on a good, service, or commodity, where a rising price has the increasing effect of curbing demand. Central planners live under the assumption the above condition set applies to commodities within current circumstances, which we categorize as quasi-hyperinflationary times at present. Full Story
By: Steven Saville, Speculative Investor - 10 June, 2008
A few weeks ago Paul van Eeden (PVE) posted an extremely bearish outlook on bonds that he justified, in large part, by the rapid expansion of M3 money supply. We responded that while we are long-term bearish on bonds (we expect bond yields to move much higher over the coming 5 years), we thought that PVE's premise was wrong. Full Story
By: Richard Daughty, The MOGAMBO GURU - 10 June, 2008
To show you how things really work in the real world, Mr. Pento says that nobody is sacrificing profits, as 'In the case of McDonald's, it may be necessary to reduce the quantity or quality of items on the dollar menu in order to maintain the price.'" Full Story
Ever eager to see the sunny side of the “subprime mess,” we bought July 17.50 calls in Citigroup yesterday at what turned out to be their lows. This wasn’t a bargain play, mind you, nor do we even remotely believe the bank is about to turn things around. Rather, we went bottom-fishing simply because we doubt Citi shares are ready to plunge to their next milestone on the road to perdition, $15 a share. Full Story
By: Bill Bonner & The Daily Reckoning Crew - 9 June, 2008
-All of a sudden, the war is on…when celebrities foreclose, you know something must be wrong… -The one job of the European Central Bank…the mother of all bubbles fights the food bubble… -An odd occurrence on a train to Zurich…Central Banking for entertainment purposes only…and more! Full Story
While many commodities appear to have formed tops here in the first half of 2008, crude oil and the rest of the energy group have astonished the world: crude oil – a $16 move in 2 days; unleaded gas – a 34¢ move in 2 days; heating oil – a 41¢ move in 2 days. Full Story
Where to start this week is the big question. There was so much horrible financial news downgrades and other nefarious activities. The smaller stocks are looking up as the CDNX to Gold ratio continues to rise. It is resembling a carnival out there and is great fun to watch. Full Story
1st Hour: Headline news & Market Weatherman Forecast. Spotlight Stock Picks with big dividends. The International Forecaster and Host Chris Waltzek answer listener questions. 2nd Hour: Richard Daughty, The Mogambo Guru! Full Story
By: Jason Hommel, Silver Stock Report - 8 June, 2008
There has been a shortage of silver ever since the world abandoned using silver as money. The reason why we have paper money, is that there was too much paper money being printed, and not enough silver and gold to cover all that was printed. So anyone who denies there is a shortage of silver ought to have their head examined, or they just don't know what the word shortage means, or they just don't know how I'm using it to describe reality, or they have their own pet definition of the word "shortage". Full Story
By: Bob Chapman, The International Forecaster - 8 June, 2008
Yes, our German philosopher was humorously correct. Any time people are prospering like we were just before August 15, 1971, the day that will live in infamy when Nixon took us completely off the gold standard, the sheople will find a way not to prosper anymore. And happily helping them on their way to destruction have been the Illuminati, who wanted to have a monopoly on prosperity. Full Story
The year was 1933. Herbert Hoover was still President. Franklin Delano Roosevelt waited in the wings to be sworn in as the new President of the United States. The following Resolution was written by Eugene Meyers and the New York Bankers. It was given to President Hoover at 10.00 pm. March 3, 1933. Full Story
By: John Mauldin, Millennium Wave Advisors - 8 June, 2008
Today, we have to look at the unemployment numbers, and the connection between the credit crisis and the rise in oil of about $16 dollars a barrel in just two days! If there is still room, the dollar is certainly being pushed and pulled by central bankers, who are also worried about inflation. And I doubt we will have room to cover what is a very important rise in inflation in Asia. It is all connected. (And you HAVE to look at the picture of my daughter and associate Tiffani at the end of the letter. Too much fun!) Full Story
By: Richard Daughty, The MOGAMBO GURU - 8 June, 2008
Luckily, I had been transferring lots of money from the operating account at the bank into cash in the office safe in case of some kind of emergency. And sure enough, here's an emergency! Who says I don't know how to plan ahead? Hahaha! Full Story
Clues abound that Friday’s selloff is unlikely to turn into an avalanche next week. In the first place, if investors had reacted rationally to the day’s horrific unemployment news and soaring oil quotes, the Dow might have fallen 800 points rather than a mere 400. The fact that bulls even attempted to rally stocks about two-thirds into the session attests that they still don’t get it. Full Story
Gold and silver blasted up on the dollar’s demise, being the only real currency on earth. Oil also shot up, as did most of the other commodities. As I have repeatedly said – the commodity bull is not over. What is over is the recent rally in the overall stock market. A new cyclical bear market within a larger secular bear market is now in place. Full Story
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