Gold World News Flash |
- International Forecaster May 2012 (#2) - Gold, Silver, Economy + More
- The intermediate term trend in Gold has changed...
- Land Of The Rising Sun
- There Are 100 Million Working Age Americans That Do Not Have Jobs
- Silver Update 5/05/12 Bull Over?
- MUST READ: Ron Paul Speech May 4, 2012 @ UCSD As Large As Barack Obama May 5, 2012 OSU: The Real 2012 Election
- Schiff: People Are Going To Be Blindsided By What?s About to Happen!
- From Government to ‘Robberment’
- U.S. Dollar and Gold Have Eyes on Europe
- A Whole Lot Of Uncivilized People Out There…
- Stick to Value Investing, Charlie Munger
- Ron Paul Slugs At The Fed One More Time
- The Dollar and Gold Have Eyes on Europe
- Precious Metals and Mining Stocks Approaching a Major Bottom
- Alasdair Macleod: Keynesian vs. Austrian debate hotting up
- GATA Chairman Murphy to address Las Vegas MoneyShow
- Where Should You Put Your Money These Days: Equities, Real Estate or Gold?
- James Dines: America is Racing Towards a Coming Great Depression
- Silver and the Nature of Supply and Demand
- Paralyzed Fed, Economic Recovery Reality, The Emperor is Naked
- A Whole Lot Of Uncivilized People Out There...
- Berkshire Annual Meeting Highlights
- Stick to Value Investing, Charlie Munger
- Serial Bubble Blowers
- This Past Week in Gold
- A Sudden Collapse in Crude Oil
- I Can't Believe Charlie Munger (Buffet) Said This On TV
- Things
- Keynesianism versus Austrianism
- Germany Could Initiate the Collapse of the European Union Within Months ? Here?s Why
| International Forecaster May 2012 (#2) - Gold, Silver, Economy + More Posted: 06 May 2012 03:00 AM PDT It's no April Fool's joke — last month CNN delivered its lowest-rated month in total day in over a decade, since August 2001, the month before the September 11 attacks. The once-dominant cable news network posted decade-lows among both total viewers (357,000) and Adults 25-54 (108,000). Versus April last year, CNN was down 21% in total viewers and 29% in 25-54. In comparison, leader Fox News Channel was up 2% in total viewers (1.1 million) and 1% in 25-54 (273,000) and No.2 MSNBC was flat in total viewers (425,000) and down 5% in 25-54 (139,000).
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| The intermediate term trend in Gold has changed... Posted: 06 May 2012 02:00 AM PDT In my opinion gold has now put behind it the bearish downward sloping "channel". Is this bullish because it is no longer bearish? No. What gold has developed is a solid "Symmetrical Triangle" which is neutral. Symmetrical triangles can be continuation patterns or a reversal patterns.
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| Posted: 05 May 2012 06:00 PM PDT It was an interesting week with US markets looking strong briefly, only to show us failed breakouts and then reverse hard along with many leading stocks. Oil was hit hard and the related equities followed. Many oil stocks had super looking charts and broke out only to reverse, leaving traders either quick, or dead. The gold shares unbelievably dropped en mass as well. It's just hard to imagine how they can get any cheaper, yet they are.
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| There Are 100 Million Working Age Americans That Do Not Have Jobs Posted: 05 May 2012 03:30 PM PDT from The Economic Collapse Blog:
Read More @ TheEconomicCollapseBlog.com
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| Silver Update 5/05/12 Bull Over? Posted: 05 May 2012 02:25 PM PDT |
| Posted: 05 May 2012 02:21 PM PDT from Silver Vigilante:
In San Diego on Friday, Paul covered a number of topics in his 45 minute speech from the Drug Enforcement Agency to the war on terror to the Federal Reserve and bankers. UCSD, as an aware and watching San Diego citizen might notice, is quite cozy with the military establishment hosting conventions of DARPA and perhaps even the CIA. Early in his speech he attacked federal officials, who he suggested should be held liable for their crime, for their handling of a 23 year-old engineering student left in a holding cell sans food or water for five days… Read More @ SilverVigilante.com
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| Schiff: People Are Going To Be Blindsided By What?s About to Happen! Posted: 05 May 2012 01:15 PM PDT We're in a lot of trouble, and the government is going to try to revive the faltering economy with more stimulus. It's never going to work. It's just going to make the problem worse… *So says Peter Schiff*in edited excerpts from an interview with King World News as provided by Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!). This paragraph must be included in its entirety in any re-posting to avoid copyright infringement. Schiff goes on to say, (you can read the full interview here*and listen to it by CLICKING HERE.) in part: We are going to have to deal with a lot of inflation. The problems are ultimately going to be the debt, rising interest rates, a weaker dollar, and this whole phony economy imploding. People… [who] don't understand the fundamentals…are going to be blindsided by what's about to happen. Related Articles: 1. U.S Likely to Hit the Financial Wall by 2017! Here's Why The deficits aren't going to stop anytime soon. The debt...
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| From Government to ‘Robberment’ Posted: 05 May 2012 12:31 PM PDT FGMR - Free Gold Money Report May 5, 2012 – Back in 2009 when the Greek crisis was just starting to make headlines, I wrote an article concluding that sovereign debt defaults would bring the end of socialism. My premise was straightforward and based on financial reality. I neatly summarized this inevitable outcome with one of my favorite quotes from Margaret Thatcher: “The problem with socialism is that you eventually run out of other people's money.” I then went on to say: “…in the months immediately ahead [socialism] will be put to a rigorous test. The test will be visible to everyone as countries around the globe run out of money and confront overwhelming debts that cannot be repaid as well as other wide-ranging financial promises that can no longer be met. In short, the ideological bankruptcy of socialism will be laid bare by government insolvency.” Here we are three years later with widespread government insolvency. Governmen...
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| U.S. Dollar and Gold Have Eyes on Europe Posted: 05 May 2012 12:04 PM PDT Friday saw heavy selling pressure coming into risk assets, specifically equities and oil. However, the real driving force behind the selling pressure is likely the result of several unrelated economic/geopolitical events. Clearly the unemployment report had an impact on price action, but strangely enough it would appear to those more in tune with reality that market participants want lower prices so that the next quantitative easing program can be initiated.
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| A Whole Lot Of Uncivilized People Out There… Posted: 05 May 2012 11:55 AM PDT from Zero Hedge:
David Einhorn: "I will keep a substantial long exposure to gold — which serves as a Jelly Donut antidote for my portfolio. While I'd love for our leaders to adopt sensible policies that would reduce the tail risks so that I could sell our gold, one nice thing about gold is that it doesn't even have quarterly conference calls Kyle Bass: "Buying Gold Is Just Buying A Put Against The Idiocy Of The Political Cycle. It's That Simple!" and Howard Buffett: "I warn you that politicians of both parties will oppose the restoration of gold, although they may outwardly seemingly favor it. Also those elements here and abroad who are getting rich from the continued American inflation will oppose a return to sound money. There is no more important challenge facing us than the restoration of your freedom to secure gold in exchange for the fruits of your labors." The uncivilized people have spoken, and the winner is…(see chart) Source: WGC And just as importantly, the people have realized that buying ETF-based stock certificate representations of a hard asset held in custody by Cede & Co., which may one day simply vaporize, may not be the most prudent way of insuring against terminal stupidity.
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| Stick to Value Investing, Charlie Munger Posted: 05 May 2012 11:42 AM PDT While I am on strict orders from the doctor to never watch CNBC, for my mental health, I was forwarded a video of Charlie Munger on CNBC today where he stated, "gold is a great thing to sew onto your garments if you're a Jewish family in Vienna in 1939 but civilized people don't buy gold - they invest in productive businesses."
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| Ron Paul Slugs At The Fed One More Time Posted: 05 May 2012 11:41 AM PDT from Testosterone Pit.com:
While his efforts to abolish the Fed have been fruitless, he scored a huge victory—after years of trying, and being shunted aside by members of Congress—when his legislation to slap the Fed with an audit was included in the Dodd-Frank Act. Read More @ TestosteronePit.com
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| The Dollar and Gold Have Eyes on Europe Posted: 05 May 2012 10:42 AM PDT Another key development in equities price action as of late has been selling pressure in Apple (AAPL). A few weeks ago we witnessed a sharp downturn after prices surged higher into a blowoff top. Read More...
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| Precious Metals and Mining Stocks Approaching a Major Bottom Posted: 05 May 2012 10:39 AM PDT There is a pattern finishing in Gold, Silver and the HUI Amex Gold Bugs Index that is bullish, a sideways wave 4 descending triangle that suggests a bottom is fast approaching and a rally that lasts many months is likely to start ... Read More...
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| Alasdair Macleod: Keynesian vs. Austrian debate hotting up Posted: 05 May 2012 09:42 AM PDT 5:40p ET Saturday, May 5, 2012 Dear Friend of GATA and Gold: Writing at GoldMoney, economist Alasdair Macleod celebrates the grudging attention being given to Austrian economics as the world economy keeps sinking despite -- or because of? -- ever-more Keynesian medicine. Macleod's commentary is headlined "Keynesian vs. Austrian Debate Hotting Up" and it's posted at GoldMoney here: http://www.goldmoney.com/gold-research/alasdair-macleod/keynesian-vs-aus... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Prophecy Platinum (TSXV: NKL) and Ursa Major Minerals Company Press Release VANCOUVER, British Columbia, Canada -- Prophecy Platinum Corp. (TSX-V: NKL, OTC-QX: PNIKF, Frankfurt: P94P) and Ursa Major Minerals Inc. have signed a binding letter of agreement for a business combination through a proposed all-share transaction. In doing so Prophecy and Ursa have acted at arm's length and the transaction has been negotiated at arm's length. Prophecy will issue one common share in exchange for every 25 outstanding common shares of Ursa. Ursa options and warrants will be exchanged for options and warrants of Prophecy on an agreed schedule. Prophecy's offer represents a value of about $0.15 per each common share of Ursa based on Prophecy's share price of $3.70 as at March 1, representing a premium of 130 percent to Ursa's March 1 closing price of $0.065. Prophecy is to subscribe for $1 million common shares of Ursa by way of private placement financing at $0.06 per share, subject to regulatory approval. Upon placement completion, John Lee and Greg Hall, current Prophecy directors, will be appointed to Ursa's board. Prophecy thus will become a mid-tier resource company with a robust and diversified pipeline of platinum nickel projects, including: -- The fully permitted open-pit Shakespeare PGM-Ni-Cu mine close to Sudbury, Ontario, infrastructure with near-term production capabilities. -- The flagship Wellgreen (Yukon) PGM-Ni-Cu project with more than 10 million ounces of Pt-Pd-Au inferred resource. Drilling is under way and a preliminary economic assessment study is pending. -- Manitoba's Lynn Lake Ni-Cu project with more than 262 million pounds Ni and 138 million pounds Cu measured and indicated. For the complete announcement, please visit Prophecy Platinum's Internet site here: http://www.prophecyplat.com/news_2012_mar02_prophecy_platinum_ursa_major... Join GATA here: Las Vegas Money Show Committee for Monetary Research and Education Vancouver World Resource Investment Conference Standard Chartered's Earth Resources Conference Hong Kong Gold Investment Forum Toronto Resource Investment Conference New Orleans Investment Conference * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT Sona Discovers Potential High-Grade Gold Mineralization From a Company Press Release VANCOUVER, British Columbia -- With its latest surface diamond drilling program at its 100-percent-owned, formerly producing Blackdome gold mine in southern British Columbia, Sona Resources Corp. has discovered a potentially high-grade gold-mineralized area, with one hole intersecting 13.6 grams of gold in 1.5 meters of core drilling. "We intersected a promising new mineralized zone, and we feel optimistic about the assay results," says Sona's president and CEO, John P. Thompson. "We have undertaken an aggressive exploration program that has tested a number of target zones. Our discovery of this new gold-bearing structure is significant, and it represents a positive development for the company." Sona aims to bring its permitted Blackdome mill back into production over the next year and a half, at a rate of 200 tonnes per day, with feed from the formerly producing Blackdome mine and the nearby Elizabeth gold deposit property. A positive preliminary economic assessment by Micon International Ltd., based on a gold price of $950 per ounce over eight years, has estimated a cash cost of $208 per tonne milled, or $686 per gold ounce recovered. For the company's complete press release, please visit: http://www.sonaresources.com/_resources/news/SONA_NR18_2011-opt.pdf
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| GATA Chairman Murphy to address Las Vegas MoneyShow Posted: 05 May 2012 09:27 AM PDT 5:26p ET Saturday, May 5, 2012 Dear Friend of GATA and Gold: GATA Chairman Bill Murphy will speak at the Las Vegas MoneyShow, to be held Monday-Thursday, May 14-17, at Caesar's Palace in Las Vegas, in an appearance sponsored by our friends at Liberty Coin and Precious Metals in San Diego. The conference will feature dozens of speakers, including GATA favorites David Morgan of Silver-Investor.com and Gold Newsletter editor Brien Lundin, as well as scores of exhibiting financial companies. Admission is free for those who register in advance, and the conference has arranged a discount rate for attendees staying at the hotel. Murphy's presentation will be given Tuesday, May 15, at 5:30 p.m. in the main speaker hall of the conference and will be titled "What GATA, Silver Investor, and Liberty Coin and Precious Metals Recommend to Protect Your Wealth." His presentation will emphasize exploiting the gold and silver price suppression schemes by avoiding the paper markets and taking delivery of gold and silver purchases. Murphy also will meet conference attendees at the Liberty Coin and Precious Metals booth at 5 p.m. Wednesday, May 16. For more information about Liberty Coin and Precious Metals, please visit: Or telephone 1-800-577-COIN. CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Sona Discovers Potential High-Grade Gold Mineralization From a Company Press Release VANCOUVER, British Columbia -- With its latest surface diamond drilling program at its 100-percent-owned, formerly producing Blackdome gold mine in southern British Columbia, Sona Resources Corp. has discovered a potentially high-grade gold-mineralized area, with one hole intersecting 13.6 grams of gold in 1.5 meters of core drilling. "We intersected a promising new mineralized zone, and we feel optimistic about the assay results," says Sona's president and CEO, John P. Thompson. "We have undertaken an aggressive exploration program that has tested a number of target zones. Our discovery of this new gold-bearing structure is significant, and it represents a positive development for the company." Sona aims to bring its permitted Blackdome mill back into production over the next year and a half, at a rate of 200 tonnes per day, with feed from the formerly producing Blackdome mine and the nearby Elizabeth gold deposit property. A positive preliminary economic assessment by Micon International Ltd., based on a gold price of $950 per ounce over eight years, has estimated a cash cost of $208 per tonne milled, or $686 per gold ounce recovered. For the company's complete press release, please visit: http://www.sonaresources.com/_resources/news/SONA_NR18_2011-opt.pdf Join GATA here: Las Vegas Money Show Committee for Monetary Research and Education Vancouver World Resource Investment Conference Standard Chartered's Earth Resources Conference Hong Kong Gold Investment Forum Toronto Resource Investment Conference New Orleans Investment Conference * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT Prophecy Platinum (TSXV: NKL) and Ursa Major Minerals Company Press Release VANCOUVER, British Columbia, Canada -- Prophecy Platinum Corp. (TSX-V: NKL, OTC-QX: PNIKF, Frankfurt: P94P) and Ursa Major Minerals Inc. have signed a binding letter of agreement for a business combination through a proposed all-share transaction. In doing so Prophecy and Ursa have acted at arm's length and the transaction has been negotiated at arm's length. Prophecy will issue one common share in exchange for every 25 outstanding common shares of Ursa. Ursa options and warrants will be exchanged for options and warrants of Prophecy on an agreed schedule. Prophecy's offer represents a value of about $0.15 per each common share of Ursa based on Prophecy's share price of $3.70 as at March 1, representing a premium of 130 percent to Ursa's March 1 closing price of $0.065. Prophecy is to subscribe for $1 million common shares of Ursa by way of private placement financing at $0.06 per share, subject to regulatory approval. Upon placement completion, John Lee and Greg Hall, current Prophecy directors, will be appointed to Ursa's board. Prophecy thus will become a mid-tier resource company with a robust and diversified pipeline of platinum nickel projects, including: -- The fully permitted open-pit Shakespeare PGM-Ni-Cu mine close to Sudbury, Ontario, infrastructure with near-term production capabilities. -- The flagship Wellgreen (Yukon) PGM-Ni-Cu project with more than 10 million ounces of Pt-Pd-Au inferred resource. Drilling is under way and a preliminary economic assessment study is pending. -- Manitoba's Lynn Lake Ni-Cu project with more than 262 million pounds Ni and 138 million pounds Cu measured and indicated. For the complete announcement, please visit Prophecy Platinum's Internet site here: http://www.prophecyplat.com/news_2012_mar02_prophecy_platinum_ursa_major...
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| Where Should You Put Your Money These Days: Equities, Real Estate or Gold? Posted: 05 May 2012 07:03 AM PDT People don't know where to put their money. [Those from Europe] don't trust the euro system — they think the wheels might come off. They are buying physical gold. They are not buying equities. They are buying real estate and they are buying gold. *So says*Pierre Lassonde*in edited excerpts from an interview with King World News as provided by Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!). This paragraph must be included in its entirety in any re-posting to avoid copyright infringement. Lassonde*concludes the interview (you can read the full interview here) by saying: Personally, I've put some cash into the markets over the last couple of weeks because I think it's just too good to pass. Related Articles: 1. Germany Could Initiate the Collapse of the European Union Within Months – Here's Why As many of you know, my primary forecast regarding Europe is that the EU will be broken up and/or collapse within the coming months. The reasons for this are fi...
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| James Dines: America is Racing Towards a Coming Great Depression Posted: 05 May 2012 07:03 AM PDT America is racing toward a brick wall, while its credit card is maxed out. America's so-called recovery, from the 2008 crash, has been called 'The Great Recession' by apologists [but] we have continued to predict that it's the 'Coming Great Depression.' So says James Dines in edited excerpts from an interview*with King World News*as provided by Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!). This paragraph must be included in its entirety in any re-posting to avoid copyright infringement. Dines*concludes the interview (you can read the full interview here and listen to it by CLICKING HERE) by saying: Meanwhile, gold and silver are in long-term 'Super Major Uptrends.' That's one way to protect yourself, and that's for survival purposes, not for capital gains. Whatever happens next, sooner or later the world must return to wealth in the ground. So, I think that mining stocks deserve a place in all farsighted portfolios. Related Articles: 1. Precious Metals: Do...
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| Silver and the Nature of Supply and Demand Posted: 05 May 2012 07:01 AM PDT Many observers of the silver market have wondered why futures prices for silver seem so low when demand for the physical metal continues to increase in the face of an ever dwindling supply of the precious and industrial metallic commodity. In essence, the economic model of price determination by supply and demand factors would seem to indicate a considerably higher equilibrium price for silver than what is currently prevailing.
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| Paralyzed Fed, Economic Recovery Reality, The Emperor is Naked Posted: 05 May 2012 06:18 AM PDT A "paralyzed" Federal Reserve Bank, in its "final days," held hostage by Wall Street "robots" trading in markets that are "artificially medicated" are just a few of the bleak observations shared by David Stockman, former Republican U.S. Congressman and director of the Office of Management and Budget. He is also a founding partner of Heartland Industrial Partners and the author of The Triumph of Politics: Why Reagan's Revolution Failed and the soon-to-be released The Great Deformation: How Crony Capitalism Corrupts Free Markets and Democracy. The Gold Report caught up with Stockman for this exclusive interview at the recent Recovery Reality Check conference.
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| A Whole Lot Of Uncivilized People Out There... Posted: 05 May 2012 05:20 AM PDT Charlie Munger: "gold is a great thing to sew onto your garments if you're a Jewish family in Vienna in 1939 but civilized people don't buy gold" ...and yet: David Einhorn: "I will keep a substantial long exposure to gold -- which serves as a Jelly Donut antidote for my portfolio. While I'd love for our leaders to adopt sensible policies that would reduce the tail risks so that I could sell our gold, one nice thing about gold is that it doesn't even have quarterly conference calls Kyle Bass: "Buying Gold Is Just Buying A Put Against The Idiocy Of The Political Cycle. It's That Simple!" and Howard Buffett: "I warn you that politicians of both parties will oppose the restoration of gold, although they may outwardly seemingly favor it. Also those elements here and abroad who are getting rich from the continued American inflation will oppose a return to sound money. There is no more important challenge facing us than the restoration of your freedom to secure gold in exchange for the fruits of your labors." The uncivilized people have spoken, and the winner is...
Source: WGC And just as importantly, the people have realized that buying ETF-based stock certificate representations of a hard asset held in custody by Cede & Co., which may one day simply vaporitse, may not be the most prudent way of insuring against terminal stupidiy. h/t WallStreetMane
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| Berkshire Annual Meeting Highlights Posted: 05 May 2012 04:16 AM PDT While Charlie Munger has so far to comment on the 24K content of made in the basement tribalware, he and his partner have made quite a few other statements on items ranging far and wide, during the annual Berkshire Omaha convention, which year after year represents the annual pilgrimage for thousands to a crony capitalist Mecca, and which with the passage of time, has become increasingly more irrelevant. Why? Because with a $58 billion bet (on $37.8 billion in cash and equivalents) that asset prices will go higher, it is rather clear on what side of the 'bail out' argument, and its 'all in' fallback: central planning, Warren Buffett sits. From the just released 10-Q:
To anyone who has sat through one or more of these spectacles in the past, the "less than dynamic duo" will not tell anything they don't already know, and even on the recently sensitive topic of 'succession' expect virtually no additioanl clarity. Below is a summary of some of the key soundbites so far. ON Q1 EARNINGS "In general, all of our companies, with the exception of the ones in the residential construction business which was the case last year and the case this year ... all of the companies except that area have shown good earnings." "Everything good happened at Geico in the first quarter." "Overall, we feel good about the first quarter, we feel good about the year." ON RISK AND SUCCESSION "I do believe that the CEO of any large, particularly financial .... company should be the chief risk officer." "We would not select anyone for that job that we did not think had that ability." "We're not going to have an arts major in charge of Berkshire." ON THE POWER TO MAKE DEAL'S IN BUFFETT'S ABSENCE "Berkshire will possess that subsequent to my departure. I don't think that every deal that I made would necessarily be makeable by a successor, but they'll bring other talents as well." ON SWISS RE "There is ability to reprice that business as we go along, but the degree to which we and Swiss Re might want to reprice that may be a point of controversy" ON SHARE BUYBACKS "If we could have our way we'd have the stock trade once a year and Charlie (vice chairman) and I would try to come up with an intrinsic business value." "The 1.1 (times book value) is a figure we feel very comfortable with, we would probably feel comfortable with a figure somewhat higher than that." ON ENERGY COSTS "If you told Charlie or me five years ago that you'd have a 50-to-1 ratio between oil and natural gas I think we would have asked you what you were drinking." Vice Chairman Charlie Munger on U.S. natural gas reserves: "(The) most precious thing we could leave our descendants." ON GEICO MOVING INTO TELEMATICS LIKE PEERS "I don't see in this new experiment anything that threatens Geico in any way." "Our marketing is working extremely well and our risk selection is working extremely well." ON BUSINESS SCHOOL EDUCATIONS: "I think they've taught students a lot of nonsense about investments." Munger: "I think business school education is improving." Buffett: "Is the implication from a low base?" Munger: "Yes." ON THE 'BUFFETT RULE' TAX PROPOSAL "It was more fun to attack something I hadn't said than to try and attack something I had said." ON INSURANCE AND ASIA "We have written in the last few months far more business in Asia -- and by that I mean New Zealand, Australia, Japan and Thailand -- we have written a lot more business than we wrote a year ago, two years ago, three years ago." ON HAVING POLITICAL VIEWS WHILE RUNNING A PUBLIC COMPANY "I don't think that any employee of Berkshire, I don't think that any of the CEOs of the companies we own stock in, should in any way have their citizenship restricted. When Charlie and I took this job we did not decide to put our citizenship in a blind trust." On a shareholder's father who does not like Buffett's public advocacy on tax policy: "It sounds to me like he ought to own Fox." ON A MAJOR ACQUISITION OF MORE THAN $20 BILLION "We considered one here just a month or two ago which I wish we could have made it." "It could happen, I don't think it will happen." "We would have done it if we could have made the deal." .... And those depserately fawning over every word uttered in CenturyLink center can find a real time live chat over at Motley Fool.
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| Stick to Value Investing, Charlie Munger Posted: 05 May 2012 04:15 AM PDT While I am on strict orders from the doctor to never watch CNBC, for my mental health, I was forwarded a video of Charlie Munger on CNBC today where he stated, "gold is a great thing to sew onto your garments if you're a Jewish family ... Read More...
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| Posted: 05 May 2012 04:00 AM PDT The shrinking dollar is a modern problem. The U.S. dollar has been shrinking since the inception of the Federal Reserve — the very crew assigned the task of maintaining its value. Of late, the decline is accelerating at an alarming rate. For many Americans, the suggestion that the dollar is losing value is unthinkable — even unpatriotic. The problem is not simply a lack of understanding about the nature of wealth and investment used to sustain it. Our policy makers and economists make no distinction between wealth created through savings and investment in the real economy versus "wealth" created in the markets through asset bubbles brought about by credit policies. When I tell people this, I feel like I'm addressing a meeting of folks who want to lose weight at the local burger joint. We as individuals — and as a nation — are addicted to cheap, easy credit. What the government gives, we'll take. We spend at a high level, and we want to accumulate wealth on the same fast track. Forget hard work, we'd rather our house go up in value like magic! Traditionally, economists recognized that it took time to build an estate. People and countries could build wealth slowly. Those days are far, far behind us. Now we are at the mercy of what I call serial bubble blowers. All the U.S. economy's so-called improvements stem from one main reason: all economic growth during the "recovery" since 2001 can be traced to a seemingly endless array of asset and borrowing bubbles. First, we saw the stock market bubble, then the bond bubble, then the housing bubble, then the mortgage refinance bubble, then the commodities bubble. Now another bond bubble approaches. In between, we haven't seen a single sign of stable, sustained growth. And that makes sense; consumer spending has been surging in excess of disposable income for years. That's not real growth. Right now, Washington thinks that another round of stimulus will solve the problem. That's like saying that overeating will eventually lead to serious dieting. Consumer spending isn't juicing the economy. Meanwhile, since the government is broke, all the borrowing they do to fund stimulus, tax cuts, and anything else to save the economy puts us at the mercy of foreign investors. If and when they decide to slash their investments in U.S. dollars or Treasury securities, we'll have a crash landing worse than anything we've seen yet. It'll be far worse than Lehman Brothers' collapse, far worse than 2008's aftermath. We depend on foreign investors for everything. Be they private, institutional, or governmental, we need them. If the dollar's fall frightens foreign owners, they will sell from this immense stock of dollar assets. But how big are these foreign holdings? You rarely hear about this on financial news channels, so you probably don't think it's a big deal. In fact, it's a big fat deal. We're sitting on $15.4 trillion in debt. How is it going to get paid? And by whom? Back before 1970, foreigners held a 5 percent slice of U.S. public debt. Today foreigners hold nearly half the pie. And the government owes a bunch of it to itself — $4.6 trillion — including what it's borrowed from the Social Security trust fund. Is Washington at all alarmed? While the end of 2011 did culminate in near-monthly government shutdown threats, we expect the debt ceiling to go on being raised as it was under every presidency since, well, 1917, when we had a World War to finance. At last count, it's been raised 74 times. And lest you believe the crisis came to a head in the Obama administration, we'd like to point out that he's only raised it three times so far. Famed fiscal conservative Ronald Reagan raised it a whopping 18 times. So you see borrowing to spend is everyone's favorite game. Darn all the consequences. Regards, Addison Wiggin and Samantha Buker Serial Bubble Blowers originally appeared in the Daily Reckoning. The Daily Reckoning, published by Agora Financial provides over 400,000 global readers economic news, market analysis, and contrarian investment ideas. Recently Agora Financial released a video titled "What Causes Gas Price to Increase?".
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| Posted: 05 May 2012 03:56 AM PDT Summary: Long term - on major sell signal. Short term - on mixed signals. We remain cautious and conservative and will only take trading positions if risks are manageable. Read More...
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| A Sudden Collapse in Crude Oil Posted: 05 May 2012 03:48 AM PDT How did our Chart-Cast Pilot subscribers fare amid Friday's collapse in Crude? To answer this we must first go back to our short-term position in the days just prior to Friday's wicked plunge. Read More...
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| I Can't Believe Charlie Munger (Buffet) Said This On TV Posted: 05 May 2012 02:27 AM PDT "gold is a great thing to sew onto your garments if you're a Jewish family in Vienna in 1939 but civilized people don't buy gold" - Charlie Munger on CNBC LINK Is that the first salvo by the elitists to start pointing the finger at the Jews and placing blame for the economic apocalypse brewing on anyone beside themselves? This hauntingly reverberates of Germany circa 1934. He made that remark in response to comments that hedge fund manager David Einhorn - who is obviously Jewish - made with regard to why he keeps a high percentage of gold in his fund If we didn't have a Jelly Donut monetary policy, I would sell gold, sell bonds and buy stocks. But, the Fed is filled with academics who thoughtlessly rely on econometric models that reflexively indicate that repeated Jelly Donut orgies are the best way to get a sugar rush into the economy. And, the Fed Chairman seems to have no trouble rationalizing any policy failure on the basis that 'monetary policy cannot be a panacea,' or 'it's bad luck,' or as proof that he just hasn't force fed us enough Jelly Donuts, yet. As long as this is the case, it seems unlikely the Fed will change course."Here's the link from the HuffPo: LINK I have just two quick comments: 1) Gold is NOT an investment, per se. Gold is the world's oldest currency and you exchange your fiat currency (dollars, euros, yen, yuan) into gold as an insurance policy against catastrophic Central Bank and Government policies which serve to destroy the value of fiat currencies and destroy democracy. Gold can ONLY be considered an investment to the extent that it remains significantly and historically undervalued in relation to the fiat currencies against which its value is measured. 2) I seriously can't believe that Charlie Munger made that comment for public consumption. The Buffet Klan is slowly throwing gasoline on themselves and lighting themselves on fire in the eye of the public. Anyone has the right to be a racist or harbor hate. But for a highly public official or corporate officer - someone considered a business or political leader - to make those remarks on t.v. for public consumption, reveals just how infected our entire system has become with corruption, defamation, deception and overall societal decay. It shows the extent to which our system is sliding in fascism and totalitarianism.... As it has been said..."good luck and good night." 
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| Posted: 05 May 2012 12:52 AM PDT The following is automatically syndicated from Grandich's blog. You can view the original post here. Stay up to date on his model portfolio! May 05, 2012 04:26 AM [LIST] [*]Timmins Gold interview [*]Buying opportunity of a lifetime in juniors [*]Rick Santelli – only reason to turn sound on CNBC [/LIST] [url]http://www.grandich.com/[/url] grandich.com...
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| Keynesianism versus Austrianism Posted: 04 May 2012 09:48 PM PDT The following article has been posted at GoldMoney, here. Keynesian vs Austrian debate hotting up2012-MAY-05
 It is not so much a question of who wins the debate: rather it is that the minority Austrian view is being noted by a few economists at the Fed, and that Krugman, who last year turned down an opportunity to debate economics with Robert Murphy of the Ludwig von Mises Institute in America, presumably felt more comfortable defending his interventionist beliefs against a politician than a trained economist. Whatever your opinion, the fact that some establishment economists are at least curious about Austrian economics and that Ron Paul is getting air-time for his views is a good thing, if only because it makes people aware there is an alternative to establishment economics. It seems that Wenzel’s invitation was in part because he had successfully forecast the housing crash, while the Fed’s economists had been unable to foresee it. In the Q&A that followed, one economist stated that before the Fed, there had been worse economic crashes. Putting aside the impossibility of ever establishing whether or not this is actually true, such crises as there were originated in either natural disasters, such as crop failures in an agricultural-based economy, or the expansion of bank credit fuelling speculative bubbles. Today crop failures do not have the same impact, but fluctuating levels of bank credit certainly do and are a key factor behind the accumulation of debt. Ron Paul’s debate with Krugman received more attention than Wenzel’s speech, given that it was televised. Their debating techniques differed, with Paul sticking to facts, emphasising the unproductive cost of big government and the Fed’s destruction of savings through monetary expansion. Krugman put forward his beliefs, based on his version of history, which we were required to accept without question. The problem with history is that analysis of it is always subjective. Canute apparently sat on his throne on the beach, and commanded the tide to recede. Did he do this because he believed he was a demi-god who could command the elements, of did he wish to show his admiring subjects that he wasn’t all-powerful? Both views are valid depending on the position the historian takes, and that is the weakness of any historical analysis. There is nothing new in this. Carl Menger – the founder of the Austrian School – came up against the German Historical School, which relied on a subjective interpretation of Prussian history for economic policy. It was this school that derisively termed Menger’s school as provincial, or Austrian. Not much has changed in economic debating techniques. But please note that Austrian economics, which argues from a strong and well-reasoned theoretical analysis of human action, still endues and is enjoying a revival. The Historical School is now a footnote in history, as surely as Keynesianism will be one day. Tags: debt crisis, economics, Fed, Ron Paul Author: Alasdair Macleod Alasdair Macleod 
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| Germany Could Initiate the Collapse of the European Union Within Months ? Here?s Why Posted: 04 May 2012 06:48 PM PDT As many of you know, my primary forecast regarding Europe is that the EU will be broken up and/or collapse within the coming months. The reasons for this are financial, monetary and political in nature [with much of the latter dependant on what happens in Germany. Let me explain.] Words: 516 So says Graham Summers ([url]www.gainspainscapital.com[/url]) in edited excerpts from his original article*. [INDENT] Lorimer Wilson, editor of [B][COLOR=#0000ff]www.munKNEE.com (Your Key to Making Money!), has edited the article below for length and clarity – see Editor's Note at the bottom of the page. This paragraph must be included in any article re-posting to avoid copyright infringement.[/COLOR][/B] [/INDENT] * Summers*goes on to say, in part: Those financial, monetary and political reasons…are: 1) France is about to elect a hard core Socialist. This will greatly alter political dynamics in the EU and will weaken Germany’s push for austerity. [Read: D-Day is Coming: A ...
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The unemployment crisis in America is much worse than you are being told. Did you know that there are 100 million working age Americans that do not get up in the morning and go to work? No wonder why it seems like there are so many people that do not have jobs! According to the federal government, there are 12.6 million working age Americans that are considered to be "officially" unemployed, but there are another 87.8 million working age Americans that are not working either. The federal government considers those Americans to be "not in the labor force" so they are not included in the unemployment rate. In fact, this is one of the key ways that the government manipulates the unemployment numbers. The Obama administration would have us believe that the unemployment rate is going down and that that since the start of the last recession about as many Americans have left the labor force as we saw during the entire decades of the 1980s and 1990s combined. Of course that is a bunch of nonsense, but that is what the Obama administration would have us believe. 
On Friday night, as Ron Paul spoke to a crowd of thousands on the University of California, San Diego campus, the coastal sky turned a blue-gray to purple as the week faded into memory. Just after 7pm PST presidential candidate Ron Paul began his speech. In it, the three time candidate for President of the United States highlighted hallmark topics of his lauded career over which he laid out the reasons for the future. From Special Drawing Rights to coerced liquidity by the citizen to corporations friendly to government. Here is Ron Paul discussing the American Power Elite in a four part series at the end of the eighties, as he ran for president.
Charlie Munger: "gold is a great thing to sew onto your garments if you're a Jewish family in Vienna in 1939 but civilized people don't buy gold"… and yet:
You just have to admire Ron Paul for his tenacity and non-flip-flopping straightforwardness—a breath of fresh air in the putrid morass of Washington—even if you disagree with his policies. And while he still can, before retiring from Congress, he is slugging at the Fed again. This time, as Chairman of the House Financial Services Subcommittee on Domestic Monetary Policy and Technology. The committee, which has oversight authority over the Fed, will convene on Tuesday to weigh six bills to "Reform or Abolish" the Federal Reserve, including his Federal Reserve Board Abolition Act. From the
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