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Monday, March 14, 2016

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Dollar Dips After Draghi Drives Down European Interest Rates

Posted: 14 Mar 2016 01:06 PM PDT

Black Gold - A Very Edible Form

Posted: 14 Mar 2016 01:02 PM PDT

The World’s Next Top Ex-Pat Destination

Posted: 14 Mar 2016 01:01 PM PDT

Every time I come here it's noticeably better– more advanced, more developed, more modern, and more free. And for expats in particular, the country is amazing…     Submitted by Simon Black, Sovereign Man:  Every time I come to Viet Nam, I'm always astounded at the incredible growth and opportunity here. This time around I'm […]

The post The World’s Next Top Ex-Pat Destination appeared first on Silver Doctors.

This 4,000-year Old Financial Indicator Says That a MAJOR Crisis is Looming

Posted: 14 Mar 2016 01:00 PM PDT

Bottom line, if you're a speculator in precious metals, now may be a good time to consider trading in some gold for silver.   Submitted by Simon Black, Sovereign Man: Over 4,000 years ago during Sargon the Great's reign of the Akkadian Empire, it took 8 units of silver to buy one unit of gold. […]

The post This 4,000-year Old Financial Indicator Says That a MAJOR Crisis is Looming appeared first on Silver Doctors.

Near-Term Gold Forecast: The Thrill of Victory and the Agony of Indecision…

Posted: 14 Mar 2016 12:30 PM PDT

Man-oh-man, the heat I am taking over my recent “Caution” stance on the near-term outlook for gold and silver is now verging on the theatre of the absurd, says precious metals expert Michael Ballanger.   Source: Michael Ballanger: Email, tweets, voicemail messages and every other form of indirect confrontation have been used to convince me […]

The post Near-Term Gold Forecast: The Thrill of Victory and the Agony of Indecision… appeared first on Silver Doctors.

Largest Primary Silver Mine Silver Yield Falls To Lowest Ever

Posted: 14 Mar 2016 12:00 PM PDT

This is a substantial decline in productivity from the world's largest mine in Mexico that starting production in 1824.   From the SRSRocco Report: The largest primary silver mine in the world saw its average yield fall to the lowest level ever in 2015.  Matter-a-fact, the primary silver mine's yield fell nearly 16% compared to […]

The post Largest Primary Silver Mine Silver Yield Falls To Lowest Ever appeared first on Silver Doctors.

Superweek in Central Banking and Gold

Posted: 14 Mar 2016 11:35 AM PDT

SunshineProfits

2:00PM Water Cooler 3/114/2016

Posted: 14 Mar 2016 11:00 AM PDT

Today's Water Cooler: TPP politically toxic, Trump panic, those weird polls, Silk Road freight index collapse, climate does affect weather

Avoiding TOTALITARIANISM & Protecting LIBERTY | G. Edward Griffin

Posted: 14 Mar 2016 11:00 AM PDT

Is Global totalitarianism coming? The Creature From Jekyll Island author G. Edward Griffin issues an Urgent Warning: 

The post Avoiding TOTALITARIANISM & Protecting LIBERTY | G. Edward Griffin appeared first on Silver Doctors.

The Rats Keep Pressing The Bar: Two Amazing Stories, One Inevitable Result

Posted: 14 Mar 2016 10:35 AM PDT

Anyone who doubts that the global financial system has run out of (good new) ideas has only to track the recent words and deeds of central bankers and mainstream economists: Slightly-negative interest rates didn’t lead people to borrow more? We’ll go more negative! Buying up all the government bonds didn’t prevent deflation? We’ll start buying corporate bonds and equities!

Still, it’s shocking to see where this endless repetition of the same actions takes us. A recent Bloomberg article, for instance, notes that even though corporate profits are falling and individual investors are dumping equity mutual funds, company share buybacks are surging:

There’s Only One Buyer Keeping S&P 500’s Bull Market Alive

Demand for U.S. shares among companies and individuals is diverging at a rate that may be without precedent, another sign of how crucial buybacks are in propping up the bull market as it enters its eighth year.

Standard & Poor's 500 Index constituents are poised to repurchase as much as $165 billion of stock this quarter, approaching a record reached in 2007. The buying contrasts with rampant selling by clients of mutual and exchange-traded funds, who after pulling $40 billion since January are on pace for one of the biggest quarterly withdrawals ever.

"Anytime when you're relying solely on one thing to happen to keep the market going is a dangerous situation," said Andrew Hopkins, director of equity research at Wilmington Trust Co., which oversees about $70 billion. "Over time, you come to the realization, 'Look, these companies can't grow. Borrowing money to buy back stocks is going to come to an end."'

Share repurchases March 16

"Corporate buybacks are the sole demand for corporate equities in this market," David Kostin, the chief U.S. equity strategist at Goldman Sachs Group Inc., said in a Feb. 23 Bloomberg Television interview. "It's been a very challenging market this year in terms of some of the macro rotations, concerns about China and oil, which have encouraged fund managers to reduce their exposure."

Should the current pace of withdrawals from mutual funds and ETFs last through the rest of March, outflows would hit $60 billion. That implies a gap with corporate buybacks of $225 billion, the widest in data going back to 1998.

Another recent Bloomberg article highlights the emerging school of economic thought that says governments’ big mistake of the past decade was to borrow and spend too little:

Ignored for Years, a Radical Economic Theory Is Gaining Converts

In an American election season that's turned into a bonfire of the orthodoxies, one taboo survives pretty much intact: Budget deficits are dangerous.

A school of dissident economists wants to toss that one onto the flames, too.
It's a propitious time to make the case, and not just in the U.S. Whether it's negative interest rates, or helicopter money that delivers freshly minted cash direct to consumers, central banks are peering into their toolboxes to see what's left. Despite all their innovations, economic recovery remains below par across the industrial world.

Calls for governments to take over the relief effort are growing louder. Plenty of economists have joined in, and so have top money managers. Bridgewater's Ray Dalio, head of the world's biggest hedge fund, and Janus Capital's Bill Gross say policy makers are cornered and will have to resort to bigger deficits.

"There's an acknowledgment, even in the investor community, that monetary policy is kind of running out of ammo," said Thomas Costerg, economist at Standard Chartered Bank in New York. "The focus is now shifting to fiscal policy."

Currency Monopoly
That's where it should have been all along, according to Modern Money Theory. The 20-something-year-old doctrine, on the fringes of economic thought, is getting a hearing with an unconventional take on government spending in nations with their own currency.

Such countries, the MMTers argue, face no risk of fiscal crisis. They may owe debts in, say, dollars or yen — but they're also the monopoly creators of dollars or yen, so can always meet their obligations. For the same reason, they don't need to finance spending by collecting taxes, or even selling bonds.

In the U.S., one presidential candidate is at least listening to MMT economists. Advisers to Bernie Sanders include some of the school's leading advocates: Stephanie Kelton, a Sanders hire to the Senate Budget Committee, and James K. Galbraith, whose father helped shape President Lyndon Johnson's "Great Society" programs.

The match makes sense. Sanders is promising massive investments in health, education and infrastructure. Economists who see more danger in fiscal austerity than looseness make natural allies.

At first glance, corporate share buybacks and a theoretical debate over fiscal policy might seem like unrelated developments. But in reality they’re both parts of the meta-trend of policy makers becoming lab rats obsessively pressing the bar that used to dispense treats, even though the treats have run out.

Corporations buying back their shares at record prices while their profits are plunging (thus requiring them to buy at the top on margin, a classic dumb-money behavior) are doing something that has failed miserably at the peak of most previous business cycles. Yet corporate treasurers and CEOs, despite being old enough to remember several such cycles, are still compelled to press the bar because they have no other way of quickly goosing the share price — and thus the year-end bonus pool.

Economists who want governments to run bigger deficits financed with newly-created currency seem to miss the fact that today’s policy is already pretty much that. When a central bank buys most of the bonds its government issues, that government is in effect financing itself directly through money printing. So Modern Monetary Theory is being tried on a vast scale as this is written.

And so far, this combination of massive deficits and multi-trillion-dollar bond purchases isn’t working. Inflation is negative in huge sections of the world and growth is anemic at best pretty much everywhere. But here again, that bar is just so tempting because back in the 1950s or 1980s or whenever it yielded such tasty treats. So we get the spectacle of the BoJ and ECB running out of government bonds to buy and turning to corporate bonds and equities, thus directly financing even more than their governments’ deficits.

The implication is that these ideas will be taken farther than ever in coming years. And their inevitable failure will be commensurately epic.

Central Banks Are About To Leave Fiat Addicted Stock Markets In Agony: “The Most Unstable Economic Conditions Possible”

Posted: 14 Mar 2016 10:00 AM PDT

Stop buying into the day-to-day hype and hopes of false recovery, and prepare accordingly.     Brandon Smith at Alt-Market.com via SHTFPlan: Many investors today are not very familiar with market history and tend to live only in the day-to-day mainstream narrative while watching little red and green graphs move up and down. This is not […]

The post Central Banks Are About To Leave Fiat Addicted Stock Markets In Agony: "The Most Unstable Economic Conditions Possible" appeared first on Silver Doctors.

Kiss the Bear Goodbye (But Wear a Helmet)

Posted: 14 Mar 2016 09:00 AM PDT

Friday’s action in gold has been at once both terrific and frothy, wonderful and scary, and redemptive and soothing, says precious metals expert Michael Ballanger.   From Michael J. Ballanger, The Gold Report: My hedges are all getting blown to smithereens with the miniscule damage to my net worth being vastly outdone by the gargantuan damage to my […]

The post Kiss the Bear Goodbye (But Wear a Helmet) appeared first on Silver Doctors.

Jim Willie Issues Weekend Alert: “Systemic Lehman Event Is In Progress”

Posted: 14 Mar 2016 08:15 AM PDT

A systemic Lehman event is in progress, as the global financial structure is collapsing. The only remedy is the Gold Standard installation… The Gold price will find its true value and price over $10,000 per ounce. Submitted by Jim Willie, GoldenJackass:  The current monetary policy is stuck in place. It is highly destructive to banking […]

The post Jim Willie Issues Weekend Alert: “Systemic Lehman Event Is In Progress” appeared first on Silver Doctors.

Koos Jansen is Back In the Saddle!

Posted: 14 Mar 2016 07:00 AM PDT

I've received written confirmation by the Shanghai Gold Exchange (SGE) delivery department that the Chinese Market Data Monthly Reports disclose the volume of physical gold withdrawn from SGE designated vaults. I'm thrilled to resume reporting these numbers and everything related to the Chinese gold market!    Submitted by Koos Jansen: It's advised to have read The Chinese Gold Market Essentials […]

The post Koos Jansen is Back In the Saddle! appeared first on Silver Doctors.

Gold price driven by a buying frenzy – how long will it last?

Posted: 14 Mar 2016 05:51 AM PDT

Looking at the investor flows in gold in recent weeks, a staggering 28 million ounces (Moz) has entered the market. In the futures market, you can see the scale and changes of the long and short...

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Harvey Organ Issues COT Warning: HUGE Increase in Commercials Gold Shorts

Posted: 14 Mar 2016 05:00 AM PDT

MASSIVE INCREASE IN GOLD COT SHORTS BY THE COMMERCIALS AND ALSO IN SILVER…   ANOTHER RAID ON GOLD AND A MINOR ATTACK ON SILVER/THE BIG NEWS A HUGE INCREASE IN FAILURES TO DELIVER IN THE BOND MARKET/ALSO RECORD LEVELS FOR THE 10 YR REPO AT 3.00% AND EVEN THE 30 YR BOND AT -2.64%/MASSIVE INCREASE […]

The post Harvey Organ Issues COT Warning: HUGE Increase in Commercials Gold Shorts appeared first on Silver Doctors.

Gold and Silver COT Update - Get 30,000 Coffins Ready...

Posted: 13 Mar 2016 09:19 PM PDT

Clive Maund

Kiss the Bear Goodbye (But Wear a Helmet). . .

Posted: 04 Mar 2016 12:00 AM PST

Friday's morning action in gold has been at once both terrific and frothy, wonderful and scary, and redemptive and soothing, says precious metals expert Michael Ballanger.

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