Gold World News Flash |
- Harry Dent: Roller Coasters, Megaphones, Addictions and Comas—What Kind of Economy Is This?
- Why Inflation Could Eat Into Stock Gains: Kyle Bass, Kyle Bass Blog
- Trade Silver the same way the Greeks beat the Persians
- Goldilocks Ends and ‘Currency Wars’ Begin
- China's Broken Shock Absorber
- By the Numbers for the Week Ending February 1
- This False Stock Market Bubble Will Burst, Major Banks Will Fail & the Financial System Will Implode! Here's Why
- Harry Dent: Roller Coasters, Megaphones, Addictions and Comas—What Kind of Economy Is This?
- Strategies for Trading the Bond Market | Fox Business Video
- Max Keiser Terrorism as economic stimulus for US – YouTube
- Ruductio Ad Absurdum
- Katchum Comments on Gold, Silver & Recession
- Get Out of the U.S. Dollar and Buy Physical Gold Before It?s Too Late ? Here?s Why
- 5 Gold & Silver Investment Tips
- Polishing silver coins destroys value – YouTube
- Gold Outlook For The Following Months
- Canidates for 2013 Gold Stock of the Year
- Mike Niehuser: Modern-Day Gold Rush Puts Nevada on Top
- Dow Closes Over 14,000 - Highest Close Since October 2007
- Gold Seeker Weekly Wrap-Up: Gold and Silver Gain About 1% and 2% on the Week
- Gold Daily and Silver Weekly Charts - The Failure to Reform
- What’s behind moving Swiss Bank clients from unallocated to ‘allocated’ gold accounts?
- Gold and Silver Disaggregated COT Report (DCOT) for February 1
- Reserve Bank of India devising products for turning gold into paper
- Global Silver-Mining Trends
- COT Gold, Silver and US Dollar Index Report - February 1, 2013
- Kitco cans analyst Nadler; gold rises $5.50
- Bill Gross - Credit Supernova!
- The Daily Market Report
- Goldilocks Ends and 'Currency Wars' Begin
- Follow-Up From Yesterday - Non-Farm Payroll Report
- Roller Coasters, Megaphones, Addictions and Comas—What Kind of Economy Is This?
- Candidates for 2013 Gold Stock of the Year
- Final Bottom in Gold Stocks Coming
- This Is Why Gold Will Vault To New All-Time Highs In 2013
| Harry Dent: Roller Coasters, Megaphones, Addictions and Comas—What Kind of Economy Is This? Posted: 01 Feb 2013 11:00 PM PST by JT Long, The Gold Report:
Harry Dent: Ultimately, yes. Spending by baby boomers hit its peak in countries like the U.S. in 2007. On average, baby boomers will spend less and less in the years ahead as they move toward retirement. Governments and central banks around the world keep stimulating to keep their economies up and to keep their banks from failing, but they are fighting against the largest generation in history. Stimulus works less well with an older population that does not have kids to raise and put through college. Demographics will make stimulus plans more and more difficult, and at some point they will fail. | ||
| Why Inflation Could Eat Into Stock Gains: Kyle Bass, Kyle Bass Blog Posted: 01 Feb 2013 08:46 PM PST Check our website daily at... [[ This is a content summary only. Visit http://www.figanews.com for full Content ]]  | ||
| Trade Silver the same way the Greeks beat the Persians Posted: 01 Feb 2013 08:40 PM PST from silver investor.com: | ||
| Goldilocks Ends and ‘Currency Wars’ Begin Posted: 01 Feb 2013 08:00 PM PST by Gary Tanashian, Gold Seek:
From last week's eLetter: "A Goldilocks atmosphere was expertly created in large part due to the fact that Operation Twist (yes, we are still dealing with its effects) by its very definition held long-term interest rates down (buying long-term T bonds) while sopping up any money supply implications and inflationary signals by sanitizing the process with the sales of equal amounts of short-term bonds." Policy makers have not found a new way to indefinitely manage the economy. Traditional laws of economics have not been repealed. The Federal Reserve used the equivalent of a macro parlor trick to dampen inflation signals and help produce today's Goldilocks atmosphere, which features stocks rising now that the public and its mainstream money managers feel the worst is over with respect to the Fiscal Cliff non-event and the Debt Ceiling noise. | ||
| China's Broken Shock Absorber Posted: 01 Feb 2013 07:32 PM PST Authored by Daniel Cloud, (A review of Mark DeWeaver's Animal Spirits with Chinese Characteristics) Analysts who've only started paying attention to the country in the last decade often seem convinced that China has no real business cycle, or a very mild one, that because its economy is centrally planned, it's free from the fluctuations in investment that cause booms and recessions in countries that lack the scientific guidance of a Leninist single-party state. This convenient belief, however, is mostly an artifact of the period over which they've been observing its economy. In what's generally, since at least the 1950's, been a short, very high-amplitude cycle with a roughly seven year period, the period between 1992 or 1993 and 2007 or 2008 is unique. It has a "soft landing" (or as DeWeaver calls it, a "long landing") in its middle that was unlike any other slowdown China has experienced in its post-World-War II economic history. The boom of the early 1990's wasn't followed by the usual bust. Instead, after a fairly mild slowdown, another boom period began towards the end of the decade, without the usual deep cyclical trough between expansions. DeWeaver's explanation of this anomaly suggests that it is unlikely to be repeated. We're probably living, now, with a China that's back to the sort of violent swings in economic activity, and repeated struggles with inflation, that have been characteristic of most of its recent history. To understand why, it's necessary to understand his explanation of the nature of the cycle itself. In the economy of a country whose political system is some form of liberalism, changes in the level of productive activity are a consequence of changes in the level of investment by private companies, which presumably reflect changing perceptions of risk, and of potential rewards. In the Chinese economy, however, which, as DeWeaver convincingly demonstrates, is still very much dominated by enterprises in which some part of the government has a controlling stake, soft budget constraints and the primarily political motivations of most participants mean that calculations about risk often play little role in economic decision-making. In the pure "prestige projects" he describes in such Kafkaesque detail, even the idea of a reward is conspicuously absent. This state of affairs, DeWeaver tells us, is exacerbated by the Chinese style of economic planning, which emphasizes the achievement of quantitative targets for things like provincial GDP. In effect, the system is a series of tournaments, in which officials are repeatedly, throughout their careers, pitted against each other in a competition to see who can outperform the plan the most in each planning period. Along with this formal system of planning is an informal system of government by "the central legitimation of local elites", in which decisions about how to meet the quantitative targets are left to provincial and lower-level authorities, though the supposedly uniform and transparent targets themselves come down from the top. What must also always come down from the top, DeWeaver tells us, is any impulse at all to rein in or slow the pace of expansion. Since officials at all levels are competing with each other to outperform any target they've been given, their incentives are entirely in favor of investing as much as possible whether it makes any sense to do so or not. Not only is this their best path to promotion – something everyone, after so many rounds of this game, certainly knows, by now – but more building means more opportunities to line your own pockets, by using companies you or your relatives own as contractors. The problem with the sort of frenzied construction of uneconomic steel mills and international airports and amusement parks and solar farms and palatial government buildings and so on that this impulse results in is that there really isn't much about the process that would make it likely that the mix of goods and services the Chinese economy actually needed, to embark on the next stage of modernization, was the one that happened to be produced by it. What is far more likely to be produced is some other mix of goods, perhaps of acceptable quality, if quality was one of the explicit plan targets, but not really the right mix, because its composition is largely the result of short-term gaming of the planning system by the officials responsible for interpreting and implementing the plan, rather than any sort of general market equilibrium. Consequently, booms, in China's post-war economic history, have tended to end in shortages of key commodities, or bouts of severe inflation, as the inappropriate mix of goods produced resulted in excess demand for the under-produced ones. The central planners have had no choice, at this point, but to tighten policy in various drastic and clumsy ways, so these booms almost always ended in busts. (Though not in the middle and late 1990's.) Since the incentives for investment DeWeaver describes are insensitive to risk, however, many projects get carried on despite these contractions in activity and demand, so cyclical troughs have tended to be marked by extreme gluts of particular goods, pig iron or rolled steel or windmill farms or office buildings, often the ones most emphasized by the planners in the previous period. (As China's economic miracle unfolded in the '80's and '90's, the tendency towards gluts seemed to have permanently eclipsed the tendency towards shortages - until, that is, towards the top of the last cycle in '07 or '08, suddenly everyone in the world began to talk about peak oil…) Aside from really spectacular ones like the Great Leap Forward, few of these booms and busts have been heard of by many people outside of China. Certainly few in the West now remember the so-called Great Leap Outward of the late 1970's, though that was the precursor of everything that's happened since. In that event, an economic expansion was prolonged slightly past the point when shortages would normally have forced its termination, by a policy of opening to the outside world, which allowed the import of scarce parts and supplies. Political sponsorship for the trade initiative came partly from the so-called "oil faction", which had both hard currency, and a pressing need for outside help. The problem with this strategy, then, was the country's lack of foreign exchange, and its chronic trade deficit. But if it could follow the same path as its capitalist East Asian neighbors, and use its highly literate and very inexpensive workforce to become an export powerhouse, the imperfections in the mix of goods and services the planning process always resulted in could be redressed in world markets. Under-produced goods could be imported, prolonging booms, and during cyclical troughs, overproduced goods could be exported. Market prices would be supplied to the Chinese economy from outside, giving planners some rough idea of what a genuine equilibrium would actually look like, and the imperfections in their estimations could be dealt with through trade. So that is what Deng Xiaoping and the rest of the people running things, after the Gang of Four were disposed of, decided to try to do. The move closer to an equilibrium mix of goods and services, and the ability to correct gluts and shortages by using world markets, greatly improved the efficiency with which scarce commodities were allocated, and laid the foundations for the economy's boom years. (I suppose one could call this economic model "parasitic planning", since it is central planning that relies on the existence of undistorted price information from the outside world for its viability, but it might make just as much sense to call it the "Japanese model", given the level of planning MITI engaged in, back when its plans still mattered.) A certain amount of market liberalization, and the partial privatization of, first, agricultural, and then other kinds of land, added momentum to the long expansion. Most Westerners seem to be under the impression that exports were the "engine of growth" for China's economy, in this period, that it's demand from the outside world that has fuelled the rapid growth of the last two decades. The truth is more complicated. China is a large country, with a large economy, and value added to exported goods has never been a large enough fraction of GDP to directly account for very much of its growth. The real role of the export sector seems to have been the more complex one described above – it served as a guide to relative equilibrium prices, and a source and sink for under-produced or over-produced commodities. This role is not too different from that played by the Japanese export sector, during that country's postwar period of rapid economic growth. In its early phases, DeWeaver tells us, there were some difficulties with the implementation of this strategy. Trying to build export industries without doing enough for domestic consumers led to renewed shortages and severe inflation in the late 1980's, culminating in the demonstrations by workers and students in 1989, and their brutal suppression. But by the early 1990's the plan was working. Exposure to the quality discipline of world markets, as well as the information about relative scarcities and marginal rates of substitution encoded in their prices, and the advanced technology of the capitalist world, along with some market liberalization in an economy that nevertheless remained dominated by the State, produced rapid gains in in productivity at the same time. Asset markets overheated in some parts of the decade, but goods markets never really got tight, and in the long slowdown, the almost infinite capacity of the foreign consumer to absorb Chinese goods meant that surplus production could be exported, rather than simply destroyed. In effect, China now seemed to face infinitely elastic supply and demand curves for every tradable good, and didn't need to be anywhere near general equilibrium, in isolation, to experience the very rapid growth its highly educated and very inexpensive labor force made possible. Under these fortuitous but inherently temporary circumstances, the remarkably long expansion that took place between the early '90's and '07 or '08, with a "long landing" in the middle, was possible – once. Why only once? There are two practical problems with the strategy in the longer term. The first is that you may well be building the wrong thing. Becoming a very specialized cog in the global manufacturing system, in this particular way, doesn't quite seem to set you up for the transition to a knowledge society, perhaps because all you've had to do, to get to this point, is solve a bunch of engineering problems. You've got the external trappings of modernity – without a Parliament, or real laws, or a Newton, or independent universities, or genuine newspapers, or a working system for the protection of patents and other kinds of intellectual property, or any of the other vital organs of a real modern society… Because those things take a little longer to develop, and require a somewhat different political system. So there's a transition needed, at this point, to another, rather dissimilar kind of society, and many new opportunities for failure, or very qualified success, along the way. Unfortunately, the sort of planning process DeWeaver is describing isn't likely to ever result in transition even to a consumer economy, let alone a knowledge society, partly because all the incentives are skewed in the other direction, towards investment, not consumption, or the nurturing of individual creativity, towards the more Stalinist or Maoist approach of trying to use the sheer quantity of investment to make up for its poor average quality. The whole mechanism is designed to extract the consumer's surplus, and use it for the goals of the State. In fact, what a consumer-driven economy must do is just exactly what such an economy doesn't do. It doesn't produce the things it consumes, and it doesn't consume the things it produces, because it produces some rather arbitrary mix of goods, an artifact of a politicized planning process that is nowhere near the market clearing basket of goods and services. Perhaps more relevant to readers in the rest of the world, at the moment, however, is the other long-term problem with the strategy. Simply put, it's that the price elasticity of demand and the price elasticity of supply for particular goods in the world economy aren't ever actually infinite. Sooner or later, you will need so much oil, or copper, to continue growing at the same rate, or must export so many personal computers and televisions and phones and other useless little screens, that your own actions start to affect the prices of these commodities. You become so large, relative to the world, that it isn't possible to analyze the world economy without taking your own actions into effect, any more - so the imbalances in your economy simply become imbalances in the economy of the world as a whole. The strategy of letting the outside world absorb your mistakes and correct your deficiencies can't work any more, at that point, because there no longer is an actual "outside" world, there's just the one globalized world you're now the beating heart of. In retrospect, there was at least one unmistakable sign, in the second half of the last decade, that we had already reached this point with China. (Besides the apparently geometric increase in the number of useless little screens per American consumer.) As the impact of the country's expected growth trajectory on global demand and supply became clearer, the price of oil continued to move up and up and up from its low of only a decade earlier, well below twenty dollars, to a price much closer to a hundred and fifty dollars a barrel. China's absolute consumption of crude was still only half that of the United States, but with the Chinese economy growing so much more rapidly than any developed one, a very large fraction of the marginal addition to demand in each period was coming from it. There was no corresponding new source of supply. It was becoming obvious (to everyone but the people who make policy in developed countries, who seem to perceive only what organized interests encourage them to perceive) that things couldn't go on like this indefinitely, that soon there wouldn't be enough oil to go around. In the end, it was the price mechanism that adjusted demand to supply, by triggering a financial crisis that reduced consumers' incomes, in the developed world, to a level consistent with a more stable oil price. Now, four years later, the world economy seems to be able to grow at whatever pace would keep the price of Brent below $110 – but not any faster than that. Each successive bout of monetary stimulus has had to be abandoned once the price gets much over that point. With that price now creeping up over $113 dollars per barrel, again, the Fed is already beginning to make unnerving comments about ending its now supposedly "eternal" commitment to QE a bit early, say later this year. They may have to. If they just blindly persisted in the stimulus, as they've previously threatened to, they'd be likely to simply push the price of oil up to a new all-time high, which would both cause another recession, and make the nature of the underlying problem painfully obvious to the voter, so it seems quite likely they'll flinch, again, this time, in the end, just as they did on the last two occasions. The apparent inability of Western policymakers to even perceive the "super-spike" of oil prices in the summer of 2008, which immediately preceded and very probably precipitated the financial crisis in the United States later that year (by forcing low-income consumers to choose between buying gas and paying their mortgages) as an oil shock is somewhat bizarre, but the inappropriate nature of the policy response, which has mostly consisted of printing money, raises the suspicion that it reflects genuine confusion, and not the disingenuous refusal to engage with reality it looks like from the outside. Since the Fed never seems to have understood that an oil shock was the problem it encountered in 2008, in the first place, the thing that burst the housing bubble it had deliberately inflated, it may never have even occurred to them to worry about the growth of Chinese demand. Oil prices have stayed rather high for most of the period since, rising every time more monetary stimulus is applied, and then falling a bit when the authorities back off. The tightness in supply that has caused these high prices seems to have come as such a surprise to the rest of the world that they still have trouble seeing it as real. But for those of us who were already familiar with China's business cycle, and aware of the growing contribution of Chinese growth to growth in the world economy as a whole, it is more or less what we expected. At this point, it is perfectly natural for the saw-toothed pattern of the normal Chinese business cycle to begin to superimpose itself on the longer, slower cycles of the Greenspan-era, US dominated world economy, because much of the growth in the world economy is now coming from China. In this scenario, shortages of key commodities at the top of the cycle, and gluts of certain other commodities at its bottom (including, sadly, labor) are just exactly what you'd expect to see. What is perhaps a bit more unexpected is the situation we've all seen in the last four years, when we've had both things – a glut of (rather artificially) cheap labor, and manufactured goods, and a simultaneous shortage of oil. It's tempting to call this situation "stagflation", but the official inflation rate, in the developed world, has remained fairly low. Partly this is an artifact of the way inflation is measured – basically all of the "growth" that the US economy has had in the last four years is a product of the hedonic adjustment, an unsatisfactory solution to an impossible measurement problem, which shows the inherent limits of economic analysis in general. But the Yuan's peg to the dollar means that the Fed is also, in effect, making monetary policy for China, since the Chinese authorities must mirror the Fed's actions to avoid changing the price of a Yuan in dollar terms. In China, the Fed's policies have been much more inflationary. Wages and prices in the US are held down by competition from cheaper workers and lower-cost producers in China – but China itself has no such sink to dump its inflation on, so when Bernanke prints, to prop up the value of assets owned by rich consumers in the developed world, and finance the profligacy of the American State, it's poor migrant workers in Wuhan who go without supper. This inflationary impact has been exacerbated by the response of China's own economic policy-makers to the crisis. By 2008, after a decade and a half of rapid and relatively smooth growth, the institutional memory of the old business cycle had apparently been largely lost, as a result of the natural human tendency to assume that any good thing that lasts longer than originally expected will, therefore, last forever. Consequently, the response to the oil price super-spike of 2008 was not to tighten policy, as it might have been in previous iterations of the cycle. This was China's moment in the sun, and nothing so trivial as brute facts about the scarcity of particular physical things could be allowed to mar it. Instead of tightening, the planners applied massive stimulus, mostly in the form of easier credit for whatever career-advancing (but quite probably uneconomic) projects local government officials wanted to start. The problem was apparently conceived of as one of managing another soft landing, and bringing forward the next leg of the long expansion. If many of the projects would have a very low return, in the end, well, the government could absorb any losses, and pass them on to taxpayers, or to depositors, once a long boom was again underway. (Like the US, China funds its bankers' incompetence by encouraging them to collude in repressing returns to private savers.) Unfortunately, there was no protracted boom this time. There was only a relatively short one, peaking in 2009, which rather swiftly resulted in increased inflation. China's exports were now so large, relative to the economies of its customers, that only increased, and increasingly distorting subsidies would produce any more growth on that front. The resource constraints epitomized by the global oil price (although other vital commodities – clean air, for example – were becoming scarce as well) couldn't be made to go away just by printing money, as they could have been when the price elasticity of supply for the commodities China imports was effectively infinite, back in the '90's. As a result, this last cyclical upswing was unusually short – the authorities had to start tightening again after only a year or two of renewed expansion. That meant that the hope that the eventual losses resulting from the low-quality local-government projects undertaken as stimulus could easily be absorbed by the banks (or rather, their depositors) during another long boom was revealed as a forlorn one. Eager to get rid of these increasingly dangerous white elephants, the banks began securitizing the loans they'd made to these projects in the form of "wealth management products" that would allow individuals to take over the loans, and earn a higher interest rate than they could with a bank account. Local government projects that were on the verge of default could simply sell more bonds to the trusts associated with these WMP's. Of course, they would then have to sell even more bonds, at some later point, to some other WMP trust, to pay off the interest and principal on those bonds, but that was a problem for later… In 2012, loans made by these sorts of trusts, according to UBS, made up almost half of all credit extended in China. Few people outside of the country seem to have quite focused on the inevitable compounding of loans to pay the interest of loans to pay the interest on loans to un-economic projects that this implies, but the problem, considered in terms of the share of the banking system that's involved in it, is obviously much worse than the sub-prime problem ever was in the US. It has all of the features of a classic financial crisis, since the WMP's, in the final analysis, are probably mostly just complex Ponzi schemes. While money was still flowing out of bank accounts and into WMP's, the game could keep going, but now that almost half the bank accounts have been used up in this way, there's nothing left in the cookie jar. A ponzi scheme always collapses once there's no new money left to be sucked into it, and we seem to be close to that point, so the short-term outlook isn't bright. An anomalously long expansion, in the '90's and the first three quarters of the next decade, was followed by an anomalously short one, because of an inappropriate policy response based on expectations built up during the long expansion. The new short cycle may still have another bounce left in it, if we're lucky, but given the rate at which WMP loans are growing, a financial crisis or panic, somewhat analogous to the events in Japan at the beginning of the 1990's, seems equally likely as an immediate outcome. Even if the authorities do find some way to print enough money to get out of this particular trap, though, from a longer-term perspective, the illusion of a smooth and uninterrupted growth trajectory is now over. If the Chinese economy can continue growing rapidly at all, in the face of persistently high oil prices and the incompetence of the country's policy makers, it will now once again begin to do so in a saw-toothed way, with each peak marked by a spike in world oil prices (which will eventually explore new highs) and each trough marked by more exported unemployment, as the country continues to try to dump its mistakes in management onto an already-crumpling world economy. The problem with Deng Xiaoping's plan is that it has succeeded – not in permanently solving the Chinese economy's problem with the wildness of its tutelary animal spirits, but in sharing that problem with the rest of us, so we can all have the pleasure of living with the colorful though inconvenient consequences of Maoist central planning. The remarkable lack of interest in China's business cycle, by analysts outside the country – many China "experts" seem locked into the role of permanent booster or apologist, or else of perennial Sinophobe, and miss such tiny nuances as the violent fluctuations that have typified the post-war history of the world's second largest economy – make Deweaver's book, and its explanation of the nature and causes of those cycles, a very useful one, perhaps the most useful book on the subject to come out since Gavin Peebles' masterful Money in the PRC. The book's only major defect – one it shares with many of the products of publishers like Palgrave – is its price, which puts it out of the reach of the casual reader. But if understanding the cycles and likely future of China's economy is actually an urgent practical problem for you, it may be worth investing in a copy anyway. The book is available from Amazon; the URL is http://www.amazon.com/Animal-Spirits-Chinese-Characteristics-investment/... | ||
| By the Numbers for the Week Ending February 1 Posted: 01 Feb 2013 07:07 PM PST This week's closing table is just below. Vultures, (Got Gold Report Subscribers) please note that updates to our linked technical charts, including our comments about the COT reports and the week's technical changes, should be completed by the usual time on Sunday (by 18:00 ET). To subscribe to Got Gold Report please click on the "Subscribe to GGR" button at top right. Join us today. | ||
| Posted: 01 Feb 2013 06:05 PM PST "Follow the munKNEE" via twitter & Facebook or Register to receive our daily Intelligence Report At some point we are going to see another wave of panic hit the financial So writes Michael (http://theeconomiccollapseblog.com) in edited excerpts from his article entitled Federal Reserve Money Printing Is The Real Reason Why The Stock Market Is Soaring.
Michael goes on to say in further edited excerpts: You can thank the reckless money printing that the Federal Reserve has been doing for the incredible bull market that we have seen in recent months….The Dow and the S&P 500 have both hit levels not seen since 2007 this month, and many analysts are projecting that 2013 will be a banner year for stocks – but is a rising stock market really a sign that the overall economy is rapidly improving as many are suggesting? Of course not. Just because the Federal Reserve has inflated another false stock market bubble with a bunch of funny money does not mean that the U.S. economy is in great shape. In fact, the truth is that things just keep getting worse for average Americans [as the following illustrates]:
[As the above indicates] quantitative easing has definitely not made things better for the middle class but…[it] has worked out wonderfully for Wall Street…Unfortunately, this is how things work in America these days. Our "leaders" seem far more concerned with the welfare of Wall Street than they do about the welfare of the American people. When things get rocky, their first priority always seems to be to do whatever it takes to pump up the financial markets….and who benefits from this? The wealthy do…[because, after all,] 82% of all individually held stocks are owned by the wealthiest 5% of all Americans. Unfortunately, all of this reckless money printing has a very negative impact on all the rest of us. When the Fed floods the financial system with money, that causes inflation. That means that the cost of living…[goes] up even though your paycheck may not…Our food dollars are not stretching nearly as far as they used to, and we can blame the Federal Reserve for that….The system was designed to create inflation. Before the Federal Reserve came into existence, the United States never had an ongoing problem with inflation but since the Fed was created, the United States has endured constant inflation. In fact, we have come to accept it as "normal". Just check out the amazing chart in this video…. At some point we are going to see another wave of panic hit the financial markets like we saw back in 2008. The false stock market bubble will burst, major banks will fail and the financial system will implode. It could unfold something like this:
Summary I believe that our "leaders" will eventually resort to money printing, unlike anything we have ever seen before, in a desperate attempt to resuscitate the system. When that happens, I believe that we will see the kind of rampant inflation that so many people have been warning about. What do you think about all of this? Do you believe that Federal Reserve money printing is the real reason why the stock market is soaring? Please feel free to post a comment with your thoughts below.
*http://theeconomiccollapseblog.com/archives/federal-reserve-money-printing-is-the-real-reason-why-the-stock-market-is-soaring
Related Articles: 1. America's Master Class Has Taken the United States By the Throat! Here's Why Thanks to the endless barrage of feel-good propaganda that daily assaults the American mind, best epitomized…by the everything's-coming-up-roses propaganda touted by Federal Reserve Chairman Bernanke, the citizens have no idea how disastrous the country's fiscal, monetary and economic problems truly are. Nor do they perceive the rapidly increasing risk of a totalitarian nightmare descending upon the American Republic. Below, we outline America's troubling and compounding predicament, and urge you to think about how to protect yourself from its consequences, both financially and personally. Words: 3402 2. What's Happened – and Will Continue to Happen – to the Value of the U.S. Dollar Technically the U.S. left the gold standard in 1971 but, in reality, we abandoned it in 1913 with the creation of the Fed…setting the stage for the collapse of the dollar. [Given that this is] the 100th anniversary of the creation of the Federal Reserve, it seems only fitting that we should present a brief history of the U.S. dollar debasement since then. Words: 1144 3. Peter Schiff: The Federal Reserve is Now 100% Committed to the Destruction of the Dollar In order to generate phony economic growth and to "pay" our country's debts in the most dishonest manner possible, the Federal Reserve is 100% committed to the destruction of the dollar. Anyone with wealth in the U.S. dollar should be concerned that economic leadership is firmly in the hands of irresponsible bureaucrats who are committed to an ivory tower version of reality that bears no resemblance to the world as it really is. By upping the ante once again in its gamble to revive the lethargic economy through monetary action, the Federal Reserve's Open Market Committee is now compelling the rest of us to buy into a game that we may not be able to afford. Words: 1410 [According to the chart in this article,] all currencies are being debauched. The price of gold in each currency approximates a parabola, meaning the use of printing presses is accelerating. Each unit of currency is losing purchasing power at an increasing rate. The trend points to a worldwide currency collapse unless the creation of money stops. [Take a look!]. Words: 282 5. Gov't Debt Will Keep Increasing Until the System Implodes! Are You Ready? Why are so many politicians around the world declaring that the debt crisis is "over" when debt-to-GDP ratios all over the planet continue to skyrocket? The global economy has never seen anything like the sovereign debt bubble that we are experiencing today. This insanity will continue until a day of reckoning arrives and the system implodes. Nobody knows exactly when that moment will be reached, but without a doubt it is coming. Are you ready? Words: 1270 Without economic growth, and real economic growth at that, there can be no meaningful long-term economic recovery in the developed countries. Growth or lack thereof will have to be reflected in the financial markets over time. Currently, I continue to see a disconnect between where the financial markets are pricing things, and where I think they ought to be pricing things. Words: 784 7. Ignore Wall Street Cheerleaders: Market Technicals, Fundamentals & Other Info Says Otherwise! [In spite of what] the typical Wall Street cheerleaders, I mean strategists, are predicting, we see the equity market ever more closer to its cyclical top, miners about to retest a major bottom and hard assets with a new catalyst. [This article analyzes 9 pieces of information, complete with charts, that show what is actually going on in the marketplace at this point in time and what the short-term future holds.] Words: 930; Charts: 8 8. World Economy & Market Forecast: More Sunshine & Less Stormy Weather Ahead It seems clear that there are a number of investors who have gained confidence in the global economy and are seeking to capture the growth opportunities taking place around the world. With the European crisis comfortably in the rear view mirror and global central banks taking the position that they will continue their easing policies, investors have taken their foot off the brake and have begun to accelerate….We see more sunshine and less stormy weather ahead [and explain why that is the case in this article]. Words: 695; Charts: 3 | ||
| Harry Dent: Roller Coasters, Megaphones, Addictions and Comas—What Kind of Economy Is This? Posted: 01 Feb 2013 05:30 PM PST The Gold Report: Harry, you base your economic predictions largely on demographics and demographic cycles. As the baby boomers enter old age and spend less, will that quash any hope of an upward trend in the overall economy? Harry Dent: Ultimately, yes. Spending by baby boomers hit its peak in countries like the U.S. in 2007. On average, baby boomers will spend less and less in the years ahead as they move toward retirement. Governments and central banks around the world keep stimulating to keep their economies up and to keep their banks from failing, but they are fighting against the largest generation in history. Stimulus works less well with an older population that does not have kids to raise and put through college. Demographics will make stimulus plans more and more difficult, and at some point they will fail. TGR: A lot of your thinking is rooted in history. One of your recent articles mapped the trajectory of the 1929, 1968 and 2007 booms and busts, noting that politicians ... | ||
| Strategies for Trading the Bond Market | Fox Business Video Posted: 01 Feb 2013 05:09 PM PST Check our website daily at... [[ This is a content summary only. Visit http://www.figanews.com for full Content ]]  | ||
| Max Keiser Terrorism as economic stimulus for US – YouTube Posted: 01 Feb 2013 04:45 PM PST Check our website daily at... [[ This is a content summary only. Visit http://www.figanews.com for full Content ]]  | ||
| Posted: 01 Feb 2013 03:42 PM PST February 1, 2013
Several years ago, while filming a series of interviews with the venture capitalist Juan Enriquez, we became aware of the cultural difficulty Britons seem to have in properly commercializing important paradigm-shifting discoveries they've made. For amusement, we begin today's episode with a few egregious examples… and a developing investment opportunity: * Penicillin: Alexander Fleming, while working at St. Mary's Hospital in London in 1928, noticed a blue-green mold dissolving bacteria in a petri dish. But on May 25, 1948, American microbiologist Andrew J. Moyer was granted the patent for a method of mass production of penicillin, and the German pharmaceutical company Grunenthal GmbH was the first to hit it big. * The light bulb: Sir Joseph Swan of Newcastle announced on Dec. 18, 1878, he had created a working light bulb. On Jan. 17, 1879, he publicly demonstrated it in Sunderland 10 months before Edison. GE, the American corporation founded by Edison, is now one of the largest corporations in the world. * Heck… even apple pie. The first reference was made to apple pie by the "father of English literature," Geoffrey Chaucer, in 1381: But there's nothing as American as, well, apple pie, right? (A case of reductio ad absurdum, of course… but you get the point.)
Britain is again way behind in research and development. One South Korean company could be set to roll out graphene as soon as this month. According to rumors floating around the webosphere, the flexible smartphones we mentioned in our virtual pages last year are quickly becoming a reality.
In January, at the Consumer Electronics Show in Las Vegas, Samsung showcased their flexible smartphone prototype under the brand name Youm. "This kind of display," Brian Berkeley, Samsung's senior vice president of display, said as he picked up the phone and bent the screen back and forth, "is going to allow our partners to create a whole new ecosystem of devices. Devices with bended, foldable and rollable screens." Despite the rumors, Samsung hasn't given the target date for production of these phones. But just last week, Business Wire released that Samsung has mass-produced over 300 million OLED panels.
In addition, "A U.S. appeals court has denied Apple a rehearing on the rejection of an injunction on sales of Samsung Electronics' Galaxy Nexus," PCWorld reports. That phone already uses a form of OLED technology. Meanwhile, Samsung more than doubled its share of the tablet computer market in the fourth quarter, as total unit shipments jumped 75%. And only two days ago, the company told their followers via Twitter they were going to "launch a device so revolutionary only an ad in America's biggest game can do it justice." Whatever the Super Bowl commercial reveals, this is good news for graphene investors. Without being tied up in court, and rapidly growing their presence in the mobile technology markets, they now have some breathing room to roll out their next creation: the flexible AMOLED, the first graphene phone.
As you know, our own Byron King has been following a company that caught the graphene bug long before the mainstream caught hold. This company is a producer positioned well to supply any new launch, which makes the Samsung rumors slightly more urgent if you haven't already taken advantage of the opportunity. [Ed Note. Byron has updated one special report to reflect these rumors, here.]
An alternative reading by Markit puts the final Purchasing Managers Index at 55.8 in January — a nine-month high.
MarketWatch reported this morning that at that rate, "the U.S. would have to add jobs at double January's pace for an extended period to drive down unemployment back to pre-recession levels of under 5%." The private sector, according to the Bureau of Labor Statistics, added 167,000 jobs, but growth was hampered by a loss of 9,000 government jobs. The unemployment rate ticked up to 7.9%.
Heh. Our friend John Williams at ShadowStats.com still pegs the number of unemployed in excess of 22% of the U.S. population — nearly one in four citizens.
The Nasdaq is up too, 17 points, to 3,159. The S&P slithers behind. Still, it's up 7 points, at 1,505.
"Stocks have been following our market outlook to a T this year — and well before that, as well. I'm not bringing that up to pat myself on the back; I'm bringing it up because a technically predictable market is tradable. That means that we should have some serious opportunities yet to come in 2013…"
"That's right: You want a mutual fund that underperformed because it had the discipline to avoid dangerous, overvalued highfliers. Homebuilding stocks are among the highfliers. After soaring in 2012, homebuilders are priced in anticipation of another U.S. housing bubble. "Mutual fund managers with fierce independent streaks are rare. Even rarer are managers who appreciate how central bank interest rate manipulations can distort the stock and bond markets."
Gold spiked to $1,680 before it met resistance and slid down to $1,668, up $4.50. Silver flew past $32 upon the news, and then limped back down to $31.70, up 23 cents.
The reasons? Some cite the recent FDIC policy changes, and some are citing the massive run for silver as reported by the U.S. Mint… And some are pointing to the expats and a new tax law coming in effect in June called FATCA…
Although that's just a drop in the bucket compared with the estimated 6 million Americans living abroad, Time goes on, "the numbers are growing dramatically — a sevenfold increase since 2008, and that is not counting thousands of applications waiting to be processed in U.S. consulates and embassies around the world. "The U.S. is the world's only industrialized nation that taxes citizens who live overseas, even if their income is generated in a foreign country and they never return to America."
FATCA, or the Foreign Account Tax Compliance Act, goes into effect in July. It will require all foreign banks to report to the IRS information about accounts held by all Americans. Because local banks will now have to shell out the money for expensive new infrastructure in order to comply with the IRS rules, "access to foreign financial institutions is being shut off and Americans abroad are treated like criminals," Bugnon says.
What city? Tegucigalpa, Honduras. And now the service providers are threatening to turn off their police radios, too. Bad timing. The people are revolting. The Honduran government owes its teachers $12.4 million in back pay since 2010. Also, its citizens are in an outrage over a charter city plan just passed in Congress that will create "special development regions" on already inhabited indigenous land.
"This will be one of the most important transformations in the world," MKG Group CEO Michael Strong then proclaimed, "through which Honduras will end poverty by creating thousands of jobs. "The future will remember this day as that day that Honduras began developing." That is, unless the government shut them down, first. Which it did. A five-judge panel in the constitutional chamber of Honduras' Supreme Court pulled the rug out from the plan with a 4-to-1 vote. Last week, though, the Honduran congress had a change of heart. They renamed the project "Special Development Regions," and 110 votes of 128 gave the green light for the cities.
"Teachers have been demonstrating almost every day because they haven't been paid in six months," reports The Associated Press, "while doctors complain about the shortage of essential medicines, gauze, needles and latex gloves." Honduras "has been on the brink of bankruptcy for months," AP goes on, "as lawmakers put off passing a budget necessary to pay for basic government services. Honduras is also grappling with $5 billion in foreign debt, a figure equivalent to last year's entire government budget." We're still intrigued by these free enterprise zones… once we get some on-the-ground investigation under way, we'll let you know.
Two men from Alabama aren't helping to remedy the situation: Police in Gwinnett County arrested them after they stole a reported $65,000 in chicken wings from a storage facility. According to incident reports, they "backed up an Enterprise rental truck to one of the bay doors, and loaded 10 pallets of Tyson frozen chicken wings." Here's the kicker: Police still don't know where they've stashed the wings.
"I'm guessing that this was just a spent demo unit — hopefully, somebody got at least 50 bucks for it. Certainly, civilians aren't supposed to have them! "Thanks for all the hard work invested in keeping us informed!"
"Anyone know the significance behind that number?" The 5: We're glad you asked. "In 1794," Byron King writes, "there were 15 states, not the original 13 Colonies. "Vermont joined the union in 1791; Kentucky came onboard in 1792. By 1794, there were 15 states, represented by 15 stars. "And yes, this is a 'beautiful' coin in many ways… artistically and as a statement of the fidelity of the newborn nation to honest money. If you're interested, Byron outlined the history of the $10 million coin in Whiskey & Gunpowder back in 2004:
Enjoy your weekend, Addison Wiggin The 5 Min. Forecast P.S. While we await Samsung's "revolutionary" announcement during the Super Bowl, there's one company that's set to profit from any movements in graphene's evolution. And according to Byron, you could be making money hand over fist from it as soon as Feb. 28, 2013 — a few short weeks from now. Click here for all the details.        | ||
| Katchum Comments on Gold, Silver & Recession Posted: 01 Feb 2013 03:28 PM PST There are literally thousands of economic blogs out there and most don’t have much to offer. One exception is a blog by “Katchum” that is dedicated to monitoring breaking global economic news on a day to day basis and, as such, provides unique insights*into, and analysis of,*various aspects of the financial markets, commodities and the economies of the world. Words: 642; Charts: 6 Below is*the post by Katchum ([url]http://katchum.blogspot.ca[/url]).*If you like it why not Subscribe? [INDENT]This*post is presented compliments of [B]www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) and [COLOR=#ff0000]www.munKNEE.com[/COLOR] (Your Key to Making Money!) and may have been edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.[/B] ... | ||
| Get Out of the U.S. Dollar and Buy Physical Gold Before It?s Too Late ? Here?s Why Posted: 01 Feb 2013 03:28 PM PST [B]Evidence suggests that the “Zero Hour Debt” line has been reached. Get out of the U.S. dollar [U.S. treasuries] and buy physical gold [or equities] before it’s too late. It* is the only way to protect yourself against a massive U.S. dollar devaluation to come in the next few months. [Let me explain why that is the case.] [/B]Words: 719; Charts: 5 So writes Katchum in a recent post* on his blog ([url]http://katchum.blogspot.ca[/url])entitled Zero Hour Debt Has Arrived. [INDENT]This post is presented compliments of [B]www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) and [COLOR=#ff0000]www.munKNEE.com[/COLOR] (Your Key to Making Money!) and may have been edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.[/B] [/INDENT]Ka... | ||
| 5 Gold & Silver Investment Tips Posted: 01 Feb 2013 03:21 PM PST With gold and silver prices range bound for 1.5 year now. After the gold's highs at around $1,920 in September 2011 and silver's highs at $49 in April/May 2011, the prices have been jumping in a fixed trange with support at $1,520 gold and $27 silver. As true gold or silver investments, the mining shares have performed even worse. Since the highs of the miners early 2011, the mining index HUI has moved from 600 points to 370. The junior miners performed much worse: from 38 early 2011 to 16 early 2012, standing now at about 20. We wrote earlier about Rick Rule his expectations for the resource market in 2013. In particular the miners will face the following challenges:
The message was simple and clear: to be successful in the mining sector, you need to be very selective. That message was confirmed by Casey Research today. In their 2013 outlook, they shared five gold and silver investment tips with their subscribers:
Investing in the metal should be the core of each portfolio. Casey Research published today an interesting paper today. In it, they wrote that the last time there was such a good buying opportunity in gold was during the financial crisis of 2008. During that year, gold lost 27.7%, only to shoot up 166% over the next three years (from $712.50/oz to $1,895.50/oz). How high it will rebound this time is anyone's guess, but one thing's for sure – Casey believes people should not wait for $2,000 gold to get as prices will go much higher.
| ||
| Polishing silver coins destroys value – YouTube Posted: 01 Feb 2013 03:05 PM PST Check our website daily at... [[ This is a content summary only. Visit http://www.figanews.com for full Content ]]  | ||
| Gold Outlook For The Following Months Posted: 01 Feb 2013 02:57 PM PST Gold moved sideways for the last six weeks, with each rally and correction sparking either new hopes or new fears about the yellow metal. But focusing on such short-term volatility can rarely bring any good when it comes to long-term ... | ||
| Canidates for 2013 Gold Stock of the Year Posted: 01 Feb 2013 02:44 PM PST Is your precious-metals portfolio ready for 2013? We want to get positioned in the best performers ahead of the industry's next big move to maximize profit while minimizing risk. Some readers may question if gold stocks really have ... | ||
| Mike Niehuser: Modern-Day Gold Rush Puts Nevada on Top Posted: 01 Feb 2013 02:33 PM PST The Gold Report: Now that the election is in the rearview mirror and we are well into the new year, what are your thoughts about gold prices and mining stocks for 2013? Mike Niehuser: In my interviews with The Gold Report over the last couple of years, I have attempted to steer toward moderation but with optimism for higher gold prices, similar to Pierre Lassonde's forecast leading up to the end of the last decade. Early on, Lassonde, the chairman of Franco-Nevada Corp. (FNV:TSX; FNV:NYSE), saw the potential for annual increases of about $100/ounce (oz) in the price of gold through 2010, reaching $1,000/oz. He was surprisingly accurate. I have taken this a step further, believing that gradual increases seem inevitable given government and central bank policies in the U.S. and globally. Because inflation, as well as the gold price, is a monetary phenomenon, price levels of products and services are managed by central bankers to trick investors and consumers, allowing them to function... | ||
| Dow Closes Over 14,000 - Highest Close Since October 2007 Posted: 01 Feb 2013 02:24 PM PST While the close was not exactly bullish (just look at HY credit, volatility, and homebuilders), the only thing that matters is - Dow 14,000. The highest close since 10/12/2007. Since that time, 10Y Treasury yields have dropped from 4.68% to today's 2.03% - the first close above 2.00% since early April 2012. Risk-assets spent the day catching up to equity's early lead and recoupled into the close. Some modest after-hours weakness to the shine off an otherwise exuberant day as Treasuries snapped lower in yield on NFP and spent the rest of the day surging higher in yield to end the week +6 to 8bps. Silver gained 2% on the week - beating stocks, as the USD dropped 0.7% (almost equal to Gold's gain). With stocks unch from Oct 07, perhaps it is worth reflecting on Gas prices being up 58% since then... but that would spoil the party...
A little context for today's exuberance - cross-asset class performance from 10/12/2007...Bonds +28.5%, Stocks Unch.
Since October 2007...'wealth' has changed...
Gold
Gasoline...
and the rest...
and today...
and the sectors...(homebuilders ugly but Utes winning?)
Now that was a crazy day in Treasuries!!!
Stocks led the risk-off move as the rest of risk-assets in general did not play along initially - but mysteriously perfectly recoupled into the close...
Gold and Silver had a good week - outperforming stocks - as the USD lost 0.7%...
Source: Bloomberg and Capital Context Capital Context (@CapitalContext) LLC is the leader in integrating credit-market data to actively trade equity markets. From our world-renowned intraday 'CONTEXT' and 'SPY Arb' models to the daily long-short equity portfolio, sector-weight updates and tactical asset-allocation strategies, Capital Context offers sophisticated hedge-fund strategies to the active trading community. | ||
| Gold Seeker Weekly Wrap-Up: Gold and Silver Gain About 1% and 2% on the Week Posted: 01 Feb 2013 02:17 PM PST Gold jumped over 1% higher to a new session high of $1681.95 in the hour of trade following this morning's jobs report before it fell back to see a slight loss at $1662.46 at about 10AM EST, but it then rallied back higher midday and ended with a gain of 0.18%. Silver surged to as high as $32.144 and ended with a gain of 1.18%. | ||
| Gold Daily and Silver Weekly Charts - The Failure to Reform Posted: 01 Feb 2013 02:06 PM PST  This posting includes an audio/video/photo media file: Download Now | ||
| What’s behind moving Swiss Bank clients from unallocated to ‘allocated’ gold accounts? Posted: 01 Feb 2013 02:00 PM PST Swiss banks UBS and Credit Suisse have moved to offer 'allocated' gold and silver accounts to their clients, including high net worth individuals, hedge funds, other banks and institutions. The move allows these entities to take direct ownership of their bullion in 'allocated' accounts. In addition, their storage fees have been raised by 20%. | ||
| Gold and Silver Disaggregated COT Report (DCOT) for February 1 Posted: 01 Feb 2013 01:55 PM PST HOUSTON -- This week's Commodity Futures Trading Commission (CFTC) disaggregated commitments of traders (DCOT) report was released at 15:30 ET Friday. Our recap of the changes in weekly positioning by the disaggregated trader classes, as compiled by the CFTC, is just below. (DCOT Table for February 1, 2013, for data as of the close on Tuesday, January 29. Source CFTC for COT data, Cash Market for gold and silver.) (More...) In the DCOT table above a net short position shows as a negative figure in red. A net long position shows in black. In the Change column, a negative number indicates either an increase to an existing net short position or a reduction of a net long position. A black figure in the Change column indicates an increase to an existing long position or a reduction of an existing net short position. The way to think of it is that black figures in the Change column are traders getting "longer" and red figures are traders getting less long or shorter. All of the trader's positions are calculated net of spreading contracts as of the Tuesday disaggregated COT report. If there is one of our DCOT charts that bears special mention it just about has to be the one below. For why this chart rates a special mention (hint: something about it is the lowest since May 29, 2012 with then $1,554 gold), Vultures (Got Gold Report Subscribers) be sure to catch our new chart commentary, embedded directly in our GGR charts, at the password protected Subscriber site. Please log in on Sunday evening (above right, "GGR Login") at the usual time and navigate to the GGR charts section then. We believe there is indeed a "tell" beginning to show in the data as we mentioned last time. To subscribe to Got Gold Report please click on the "Subscribe to GGR" button, also above right, and thank you for doing so. Subscribers help to make GGR possible. | ||
| Reserve Bank of India devising products for turning gold into paper Posted: 01 Feb 2013 01:49 PM PST Alankrita, see how this IOU looks around your neck. * * * India to Take Baby Steps Toward Gold-Linked Products By Suvashree Dey Choudhury and Siddesh Mayenkar http://in.reuters.com/article/2013/02/01/gold-india-idINDEE91009U2013020... MUMBAI -- The Reserve Bank of India plans to introduce three to four gold-linked products in the next few months in an effort to bring 20,000 tonnes of gold held in households into the banking system, but the measure is unlikely to cut bullion imports sharply, a senior official said. India is the largest importer of gold, which is its second biggest import item after oil and contributes around 10 percent to the total import bill. Large gold imports are a worry for the government and the RBI, with the current account deficit shooting to a record high in the September quarter, pressuring the rupee and adding to inflationary pressures. ... Dispatch continues below ... ADVERTISEMENT How to profit in the new year with silver -- Future Money Trends is offering a special 16-page silver report with our forecast for 2013 that includes profiles of nine companies and technical analysis of their stock performance. Six of the companies have market capitalizations of less than $800 million and one company has a market cap of only $30 million. The most exciting of these companies will begin production in a few weeks and has a market cap of just $150 million. Half of all proceeds from the sale of this report will be donated to the Gold Anti-Trust Action Committee to support its efforts exposing manipulation and fraud in the gold and silver markets. To learn about this report, please visit: http://www.futuremoneytrends.com/index.php?option=com_content&id=376&tmp... The RBI plans to mobilise the unused gold by lending it to importers and exporters of the yellow metal, in a move it hopes will bring down the demand for physical gold. It wants banks to encourage products linked to accepting physical gold as deposits and investing public money in gold related products, and extend loans against gold as collateral. Indians own about 20,000 tonnes of gold, or three times the holdings of the U.S. Federal Reserve, in jewellery, bars, and coins. "Overnight there won't be any reduction in imports, but people need to be made curious about new products," the RBI official with direct knowledge said. "The main conduits of gold imports are banks, forming 50-60 percent of the total imports and supplies to jewellers. The way banks are suffering from huge non-performing assets, this is a good product to work on." The RBI is likely to release next week its final report on issues related to gold imports and gold loans, the official said. The RBI is designing products that could replace physical gold demand to yield similar returns, with easy liquidity and documentation. Indian banks' total gold loans are worth 1 trillion rupees. Manappuram Finance and Muthoot Finance, two of the top gold loan financing institutions, together have loan books of 500 billion rupees, the official said, indicating a large business opportunity. "The problem of gold imports can be solved only when the economy enjoys inflationary and macroeconomic stability," the official added. Headline inflation has been above 7 percent in the last three years, prompting savers to invest in gold, stocks, and real estate, which yielded higher returns compared with bank deposits. The RBI estimates gold imports to fall by 25 percent in the current fiscal year ending March to 750 tonnes from a record of 1,079 tonnes in the previous year due to a high import duty, a jump in prices, a slowdown in economic growth, and a month-long jewellers' strike. India's current account deficit would had been lower by $6 billion at 3.9 percent in 2011-12 instead of 4.2 percent, had imports grown by an average of 24 percent instead of 39 percent, the RBI said in a recent report. Join GATA here: California Resource 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 GoldMoney adds Singapore vaulting option In addition to its precious metals storage facilities in Hong Kong, Switzerland, Toronto, and the United Kingdom, now with GoldMoney you can store gold and silver in Singapore in a high-security vault operated by Brink's Singapore Pte Limited. To celebrate the launch of this storage option, GoldMoney is offering a discount on buy and exchange fees at this vault for any orders above US$10,000 (or the equivalent) until January 31, 2013. Tthe gold buy rate is 0.98%, while the silver rate is 1.99%. Metal exchanges into Brink's Singapore will also be discounted for this period and will be charged at 0.78% for gold and 1.75% for silver. Simply place your order online and the above rates apply automatically until January 31, 2013, 15.00 UK time. To find out more about the new vault, please visit: http://www.goldmoney.com/singapore?gmrefcode=gata GoldMoney customers can take delivery of any number of gold, silver, platinum, and palladium bars from any GoldMoney vault, as well as personally collect their bars stored in the Hong Kong, Switzerland, and U.K. vaults. It's easy to open an account, add funds, and liquidate your investment. For more information, visit: http://www.goldmoney.com/?gmrefcode=gata | ||
| Posted: 01 Feb 2013 01:45 PM PST Over the course of silver's secular bull, the miners have steadily increased production in order to meet fast-growing demand. And in 2012 mine production exceeded 24k metric tons (770m+ ounces), an all-time production high and 28% increase over 2001. | ||
| COT Gold, Silver and US Dollar Index Report - February 1, 2013 Posted: 01 Feb 2013 01:34 PM PST COT Gold, Silver and US Dollar Index Report - February 1, 2013 | ||
| Kitco cans analyst Nadler; gold rises $5.50 Posted: 01 Feb 2013 01:20 PM PST Kitco Reshuffles Commentary Lineup By Kitco News, Montreal http://www.kitco.com/reports/KitcoNews20130201.html Kitco.com has added two names to its roster of prominent commentators. Peter Hug, Global Trading Director for Kitco Metals, and Jim Wyckoff, senior analyst for Kitco Media, will be regularly featured under the site's popular commentary section. "The addition of these two names just adds even more of a reason to come to Kitco.com for all precious metals analysis," said John Dourekas, Kitco's Media Director. "Peter is a seasoned trader with more than 30 years' experience in the business, and Jim has spent more than 25 years involved with stock, financial, and commodity markets." Hug and Wyckoff are no strangers to the Kitco Internet site, as both have weekly shows on Kitco's Video News Channel. Hug is the star of "For Pete's Sake," which takes a look inside the mindset of a seasoned trader, and Wyckoff stars in "Technically Speaking," which sheds light on key trading levels for precious metals. Other changes to the site include the departure of Jon Nadler, a long-time consultant and regular contributor. Nadler started his collaboration with the company in 2006 and was a cornerstone of the contributed commentaries section of Kitco.com and a regular on the trades how circuit. "We appreciate Jon's contributions to the company and wish him well," Dourekas said. "We are dedicated to having the best-of-the best expert analysis on Kitco.com, and solidifying our role as the go-to site for all precious metals information. We have the most frequently quoted analysts and that is a reflection of our commitment to content, accuracy, and speed." For media looking to interview Peter Hug and Jim Wyckoff, please contact: media@kitco.com. ADVERTISEMENT Fred Goldstein and Tim Murphy open All Pro Gold All-Pro Gold, run by long-time GATA supporters Fred Goldstein and Tim Murphy, offers its services to GATA supporters and anyone else interested in precious metals. The company brokers a full line of precious metals and numismatic coins. It aims to inform prospective clients about the importance of the monetary metals as part of a diversified financial portfolio and to keep prospective clients current with market trends. All-Pro Gold has competitive pricing and ships promptly to clients so they may have physical possession. Learn more by e-mailing Fred@allprogold.com or Tim@allprogold.com or telephone 1-855-377-4653 or visit www.allprogold.com. Join GATA here: California Resource 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 Opinion Around the World Is Changing When Deutschebank calls gold "good money" and paper "bad money". ... http://www.gata.org/node/11765 When the president of the German central bank, the Bundesbank, pays tribute to gold as "a timeless classic". ... http://www.forbes.com/sites/ralphbenko/2012/09/24/signs-of-the-gold-stan... When a leading member of the policy committee of the People's Bank of China calls the gold standard "an excellent monetary system". ... http://www.forbes.com/sites/ralphbenko/2012/10/01/signs-of-the-gold-stan... When a CNN reporter writes in The China Post that the "gold commission" plank in the 2012 Republican platform will "reverberate around the world". ... http://www.thegoldstandardnow.org/key-blogs/1563-china-post-the-gop-gold... When the Subcommittee on Domestic Monetary Policy of the U.S. House of Representatives twice called on economist, historian, and gold standard advocate Lewis E. Lehrman to testify. ... World opinion is changing in favor of gold. How can you learn why and what it will mean to you? Read the newly updated and expanded edition of Lehrman's book, "The True Gold Standard." Financial journalist James Grant says of "The True Gold Standard": "If you have ever wondered how the world can get from here to there -- from the chaos of depreciating paper to a convertible currency worthy of our children and our grandchildren -- wonder no more. The answer, brilliantly expounded, is between these covers. America has long needed a modern Alexander Hamilton. In Lewis E. Lehrman she has finally found him." To buy a copy of "The True Gold Standard," please visit: http://www.thegoldstandardnow.com/publications/the-true-gold-standard | ||
| Bill Gross - Credit Supernova! Posted: 01 Feb 2013 12:48 PM PST A rare "Must Read" piece by the Bond King.Pimco Managing Director Bill Gross writes in his February letter: They say that time is money.* What they don't say is that money may be running out of time. ***  *** There may be a natural evolution to our fractionally reserved credit system which characterizes modern global finance. Much like the universe, which began with a big bang nearly 14 billion years ago, but is expanding so rapidly that scientists predict it will all end in a "big freeze" trillions of years from now, our current monetary system seems to require perpetual expansion to maintain its existence. And too, the advancing entropy in the physical universe may in fact portend a similar decline of "energy" and "heat" within the credit markets. If so, then the legitimate response of creditors, debtors and investors inextricably intertwined within it, should logically be to ask about the economic and investment implications of its ongoing transition. (More...) *** But before mimicking T.S. Eliot on the way our monetary system might evolve, let me first describe the "big bang" beginning of credit markets, so that you can more closely recognize its transition. The creation of credit in our modern day fractional reserve banking system began with a deposit and the profitable expansion of that deposit via leverage. Banks and other lenders don't always keep 100% of their deposits in the "vault" at any one time – in fact they keep very little – thus the term "fractional reserves." That first deposit then, and the explosion outward of 10x and more of levered lending, is modern day finance's equivalent of the big bang. When it began is actually harder to determine than the birth of the physical universe but it certainly accelerated with the invention of central banking – the U.S. in 1913 – and with it the increased confidence that these newly licensed lenders of last resort would provide support to financial and real economies. Banking and central banks were and remain essential elements of a productive global economy. *** But they carried within them an inherent instability that required the perpetual creation of more and more credit to stay alive. Those initial loans from that first deposit? They were made most certainly at yields close to the rate of real growth and creation of real wealth in the economy. Lenders demanded that yield because of their risk, and borrowers were speculating that the profit on their fledgling enterprises would exceed the interest expense on those loans. In many cases, they succeeded. But the economy as a whole could not logically grow faster than the real interest rates required to pay creditors, in combination with the near double-digit returns that equity holders demanded to support the initial leverage – unless – unless – it was supplied with additional credit to pay the tab. In a sense this was a "Sixteen Tons" metaphor: Another day older and deeper in debt, except few within the credit system itself understood the implications. *** Economist Hyman Minsky did. With credit now expanding, the sophisticated economic model provided by Minsky was working its way towards what he called Ponzi finance. First, he claimed the system would borrow in low amounts and be relatively self-sustaining – what he termed "Hedge" finance. Then the system would gain courage, lever more into a "Speculative" finance mode which required more credit to pay back previous borrowings at maturity. Finally, the end phase of "Ponzi" finance would appear when additional credit would be required just to cover increasingly burdensome interest payments, with accelerating inflation the end result. *** Minsky's concept, developed nearly a half century ago shortly after the explosive decoupling of the dollar from gold in 1971, was primarily a cyclically contained model which acknowledged recession and then rejuvenation once the system's leverage had been reduced. That was then. He perhaps could not have imagined the hyperbolic, as opposed to linear, secular rise in U.S. credit creation that has occurred since as shown in Chart 1. (Patterns for other developed economies are similar.) While there has been cyclical delevering, it has always been mild – even during the Volcker era of 1979-81. When Minsky formulated his theory in the early 70s, credit outstanding in the U.S. totaled $3 trillion.† Today, at $56 trillion and counting, it is a monster that requires perpetually increasing amounts of fuel, a supernova star that expands and expands, yet, in the process begins to consume itself. Each additional dollar of credit seems to create less and less heat. In the 1980s, it took four dollars of new credit to generate $1 of real GDP. Over the last decade, it has taken $10, and since 2006, $20 to produce the same result. Minsky's Ponzi finance at the 2013 stage goes more and more to creditors and market speculators and less and less to the real economy. This "Credit New Normal" is entropic much like the physical universe and the "heat" or real growth that new credit now generates becomes less and less each year: 2% real growth now instead of an historical 3.5% over the past 50 years; likely even less as the future unfolds. ***  *** Not only is more and more anemic credit created by lenders as its "sixteen tons" becomes "thirty-two," then "sixty-four," but in the process, today's near zero bound interest rates cripple savers and business models previously constructed on the basis of positive real yields and wider margins for loans. Net interest margins at banks compress; liabilities at insurance companies threaten their levered equity; and underfunded pension plans require greater contributions from their corporate funders unless regulatory agencies intervene. What has followed has been a gradual erosion of real growth as layoffs, bank branch closings and business consolidations create less of a need for labor and physical plant expansion. In effect, the initial magic of credit creation turns less magical, in some cases even destructive and begins to consume credit markets at the margin as well as portions of the real economy it has created. For readers demanding a more model-driven, historical example of the negative impact of zero based interest rates, they have only to witness the modern day example of Japan. With interest rates close to zero for the last decade or more, a sharply declining rate of investment in productive plants and equipment, shown in Chart 2, is the best evidence. A Japanese credit market supernova, exploding and then contracting onto itself. Money and credit may be losing heat and running out of time in other developed economies as well, including the U.S. ***  *** Investment Strategy If so then the legitimate question is: how much time does money/credit have left and what are the investment consequences between now and then? Well, first I will admit that my supernova metaphor is more instructive than literal. The end of the global monetary system is not nigh. But the entropic characterization is most illustrative. Credit is now funneled increasingly into market speculation as opposed to productive innovation. Asset price appreciation as opposed to simple yield or "carry" is now critical to maintain the system's momentum and longevity. Investment banking, which only a decade ago promoted small business development and transition to public markets, now is dominated by leveraged speculation and the Ponzi finance Minsky once warned against. *** So our credit-based financial markets and the economy it supports are levered, fragile and increasingly entropic – it is running out of energy and time. When does money run out of time? The countdown begins when investable assets pose too much risk for too little return; when lenders desert credit markets for other alternatives such as cash or real assets. *** REPEAT: THE COUNTDOWN BEGINS WHEN INVESTABLE ASSETS POSE TOO MUCH RISK FOR TOO LITTLE RETURN. *** Visible first signs for creditors would logically be 1) long-term bond yields too low relative to duration risk, 2) credit spreads too tight relative to default risk and 3) PE ratios too high relative to growth risks. Not immediately, but over time, credit is exchanged figuratively or sometimes literally for cash in a mattress or conversely for real assets (gold, diamonds) in a vault. It also may move to other credit markets denominated in alternative currencies. As it does, domestic systems delever as credit and its supernova heat is abandoned for alternative assets. Unless central banks and credit extending private banks can generate real or at second best, nominal growth with their trillions of dollars, euros, and yen, then the risk of credit market entropy will increase. The element of time is critical because investors and speculators that support the system may not necessarily fully participate in it for perpetuity. We ask ourselves frequently at PIMCO, what else could we do, what else could we invest in to avoid the consequences of financial repression and negative real interest rates approaching minus 2%? The choices are varied: cash to help protect against an inflationary expansion or just the opposite – long Treasuries to take advantage of a deflationary bust; real assets; emerging market equities, etc. One of our Investment Committee members swears he would buy land in New Zealand and set sail. Most of us can't do that, nor can you. The fact is that PIMCO and almost all professional investors are in many cases index constrained, and thus duration and risk constrained. We operate in a world that is primarily credit based and as credit loses energy we and our clients should acknowledge its entropy, which means accepting lower returns on bonds, stocks, real estate and derivative strategies that likely will produce less than double-digit returns. Still, investors cannot simply surrender to their entropic destiny. Time may be running out, but time is still money as the original saying goes. How can you make some? (1) Position for eventual inflation: the end stage of a supernova credit explosion is likely to produce more inflation than growth, and more chances of inflation as opposed to deflation. In bonds, buy inflation protection via TIPS; shorten maturities and durations; don't fight central banks – anticipate them by buying what they buy first; look as well for offshore sovereign bonds with positive real interest rates (Mexico, Italy, Brazil, for example). (2) Get used to slower real growth: QEs and zero-based interest rates have negative consequences. Move money to currencies and asset markets in countries with less debt and less hyperbolic credit systems. Australia, Brazil, Mexico and Canada are candidates. (3) Invest in global equities with stable cash flows that should provide historically lower but relatively attractive returns. (4) Transition from financial to real assets if possible at the margin: buy something you can sink your teeth into – gold, other commodities, anything that can't be reproduced as fast as credit. Think of PIMCO in this transition. We hope to be "Your Global Investment Authority." We have a product menu to assist. (5) Be cognizant of property rights and confiscatory policies in all governments. (6) Appreciate the supernova characterization of our current credit system. At some point it will transition to something else. We may be running out of time, but time will always be money. Speed Read for Credit Supernova 1) Why is our credit market running out of heat or fuel?
2) What options should an investor consider?
William H. Gross Managing Director * The terms "money" and "credit" are used interchangeably in this IO. Purists would dispute the usage and I would agree with them, arguing for the usage for simplicity's sake and the evolving homogeneity of the two. † Outstanding credit includes all government debt as well as corporate, household and personal debt. Does not include "shadow" debt estimated at $20-30 trillion.
Past performance is not a guarantee or a reliable indicator of future results. All investments contain risk and may lose value. Investing in the bond market is subject to certain risks, including market, interest rate, issuer, credit and inflation risk. Equities may decline in value due to both real and perceived general market, economic and industry conditions. Investing in foreign-denominated and/or -domiciled securities may involve heightened risk due to currency fluctuations, and economic and political risks, which may be enhanced in emerging markets. Currency rates may fluctuate significantly over short periods of time and may reduce the returns of a portfolio. Sovereign securities are generally backed by the issuing government. Obligations of U.S. government agencies and authorities are supported by varying degrees, but are generally not backed by the full faith of the U.S. government; portfolios that invest in such securities are not guaranteed and will fluctuate in value. Inflation-linked bonds (ILBs) issued by a government are fixed income securities whose principal value is periodically adjusted according to the rate of inflation; ILBs decline in value when real interest rates rise. Treasury Inflation-Protected Securities (TIPS) are ILBs issued by the U.S. government. Commodities contain heightened risk including market, political, regulatory and natural conditions, and may not be suitable for all investors. The views and strategies described herein are for illustrative purposes only and may not be suitable for all investors. The information is not based on any particularized financial situation, or need, and is not intended to be, and should not be construed as investment advice or a recommendation for any specific PIMCO or other strategy, product or service. Investors should consult their financial advisor prior to making an investment decision. There is no guarantee that these investment strategies will work under all market conditions and each investor should evaluate their ability to invest long-term, especially during periods of downturn in the market. This material contains the current opinions of the author but not necessarily those of PIMCO and such opinions are subject to change without notice. This material is distributed for informational purposes only. Forecasts, estimates, and certain information contained herein are based upon proprietary research and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. No part of this article may be reproduced in any form, or referred to in any other publication, without express written permission. PIMCO and YOUR GLOBAL INVESTMENT AUTHORITY are trademarks or registered trademarks of Allianz Asset Management of America L.P. and Pacific Investment Management Company LLC, respectively, in the United States and throughout the world. ©2013, PIMCO. *** ***(Is a formatting artifact. Please disregard.) Source: Pimco Thanks to Graeme Irvine for the link. | ||
| Posted: 01 Feb 2013 12:06 PM PST Gold Jumps With Jobless Rate
Better than expected construction spending, manufacturing ISM and consumer confidence numbers tempered the rally in gold somewhat, as did the significant upward revisions to November and December nonfarm payrolls. While this is all generally reflective of improving economic conditions, it all doesn't quite jibe with the 0.1% contraction in Q4 GDP that was reported earlier in the week. The Fed reiterated their über-accommodative policy stance this week, noting that economic activity had "paused in recent months." However, BoJ policy continues to steal the show, driving the yen to new 2 1/2 year lows against the US and Canadian dollars and the euro, as well as new 3-year lows against sterling. Meanwhile gold has established new 32-year highs against the yen. When these other countries start experiencing some pain as the yen is devalued against their currency, some retaliation is not out of the question. For instance, the US auto industry already has its hackles up in opposition to the debasement of the yen, which makes Japanese made automobiles less expensive on international markets. If this situation deteriorates into a full fledged currency or trade war, things could get really interesting in the gold market. | ||
| Goldilocks Ends and 'Currency Wars' Begin Posted: 01 Feb 2013 11:50 AM PST Amid continuing inflationary policy, the US Dollar is at a critical juncture by both daily and weekly charts. Euro targets 142+ and the Yen approaches our target. Currency war kicks off; gold just sits there biding time. | ||
| Follow-Up From Yesterday - Non-Farm Payroll Report Posted: 01 Feb 2013 11:50 AM PST Take the "L" out of BLS (Bureaus of Labor Statistics) and you get pure BS I'm not going to focus on the enormous revisions the BLS made to the past monthly employment reports. If anything, it shows just how unreliable are the BLS' monthly preliminary guesstimates, as well as its follow-up revision the next month. As most of you have read by now, the non-farm employment report released this morning came in at 157,000 LINK vs the consensus expectation of 175,000. As absurd as it is to discuss and debate this number, as it will change over time and no one really understands how those changes come about, the report contained some of the inconsistencies with reality that I noted we might see yesterday. First, the BLS is claiming that the retail trade added 32,600 (Table B-1 in the link above) jobs in January, with 15,000 of those added by electronics and clothing retailers. And yet, I linked an article yesterday which listed the top-5 retailers in terms of store closings planned. Three of the top 5 were Best Buy, JC Penny and Sears. In fact, I would argue that - given the reports I've been reading and hearing regarding retail sales on either coast - it is highly probable that the retail industry experienced a significant decline in jobs. This would be especially true since the last of the seasonal workers hired for the holiday season would have been dumped in January. In addition to this, a couple of factors make the underlying substance of the employment report appear quite weak. If you look at Table A of the Household data, the number of people unemployed in January actually increased by 126,000 over December. Also, the number of people unemployed for 27 weeks or longer increased in January over December by 146,000 (not seasonally-adjusted). If you go to Table B-8, you'll see the average weekly earnings of production and non-supervisory employees declined from December to January. This is the heart of our middle class economy and taxable base of W-2 earnings. Not good. The precious metals spiked on the release of the unemployment report then did a u-turn lower when one of the Federal Reserve governors made the comment that QE could end even if the unemployment rate was in the low 7%. After the market figured out that this was just another case of a trapped policy-maker trying to jawbone the dollar higher and metals lower, the metals bounced back toward their highs of the day and the mining stocks staged a nice rally. The ability of the bullion banks to keep a lid on metals prices using fiat paper surrogates like Comex contracts and LBMA forwards is starting to decline at these price levels. Enormous physical appetite out of India and China is occurring at these price levels. In fact, a report to which we subscribe reported that 31 tonnes of gold were delivered on the Shanghai gold exchange last night. Clearly the eastern hemisphere physical metal buyers are taking advantage of this price level. Unfortunately, based on a lot of the non-mainstream media economic reports that I peruse on a daily basis, it would appear that the grassroots economy is stalling and will likely start to plunge pretty hard. We are seeing more signals of impending troubles in the global financial system with the recent bank blow-ups in Italy. These banks are going insolvent on derivatives positions. I guarantee that derivatives are a growing problem for Euro/U.S. big banks in general. What this means is more QE, more debt accumulation by Governments and consumers and - most important - higher gold/silver/mining stock prices. | ||
| Roller Coasters, Megaphones, Addictions and Comas—What Kind of Economy Is This? Posted: 01 Feb 2013 11:45 AM PST Booms and busts in the economy are based on predictable demographic cycles such as those studied by Harry Dent, founder of HS Dent, chairman of SaveDaily.com and author of "The Great Crash Ahead: Strategies for a World Turned Upside Down." In this Gold Report interview, Dent predicts a global crash between mid-2013 and early 2015, in an ongoing decade of economic coma. | ||
| Candidates for 2013 Gold Stock of the Year Posted: 01 Feb 2013 11:39 AM PST Is your precious-metals portfolio ready for 2013? We want to get positioned in the best performers ahead of the industry's next big move to maximize profit while minimizing risk. Some readers may question if gold stocks really have snapped out of their funk. We could discuss this topic for many pages, but the bottom line for us at Casey Research is simple: if you believe gold and silver prices are going higher, then equity prices will follow. | ||
| Final Bottom in Gold Stocks Coming Posted: 01 Feb 2013 11:23 AM PST In my articles you've heard me talk about accumulating on weakness, buying support, being patient and waiting for better opportunities. Folks, this next week is one of those opportunities. The mining stocks have been a disaster ... | ||
| This Is Why Gold Will Vault To New All-Time Highs In 2013 Posted: 01 Feb 2013 11:06 AM PST  On the heels of yesterday's interview with the man who counsels prominent hedge funds, investment banks, institutional money managers, mutual funds, pension funds, and high net worth individuals across the globe, predicting a coming 1987 style meltdown in stocks and eventual hyperinflation, today we have Gabelli & Company saying gold will smash to new all-time highs in 2013. Here is the exclusive Gabelli & Company piece for KWN where they are forecasting significantly higher prices for gold: "Near the start of 2013 we find that many financial commentators expect gold to underperform most asset classes citing the duration and scope of its performance over the past decade and the feeling that economic and financial normalcy is just around the corner." This posting includes an audio/video/photo media file: Download Now |
The Gold Report: Harry, you base your economic predictions largely on demographics and demographic cycles. As the baby boomers enter old age and spend less, will that quash any hope of an upward trend in the overall economy?
Amid continuing inflationary policy, the US Dollar is at a critical juncture by both daily and weekly charts. Euro targets 142+ and the Yen approaches our target. Currency war kicks off; gold just sits there biding time.
"It's the classic problem," we reiterate David Willetts, Britain's science minister, from yesterday's 
The big Super Bowl announcement?
| You are subscribed to email updates from Save Your ASSets First To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google Inc., 20 West Kinzie, Chicago IL USA 60610 | |
No comments:
Post a Comment