Home » December 15th, 2010
December 2010
In Europe, they were able to come up with a clever moniker, PIGS, to succinctly represent [and name the countries in dire financial straights - Portugal, Iceland, Ireland, Greece and Spain] the most boorish animals on the farm, and [I have taken it upon myself to call the U.S. state budget crises] the story of CAIN (California, Arizona, Alaska, Illinois, New York and New Jersey), the seven most rotten pillars of our union, and (Un)Abel, the country as a whole, which is (Un)Abel, i.e. unable, to do anything about the impending crises. Given the current political climate and implicit anti-bailout mandate of the new Congress, the Federal government might be powerless to do anything but accept painful state defaults. Before we know it, we could all be ancestors of evil… 2011 could be the year that CAIN starts to face some serious trouble, and may need some serious help to avoid killing his brother (Un)Abel! Words: 1529
December 15th, 2010 | Posted in Debts/Deficits,Economy,Gold/Silver | Read More »
At present, the governors of the Fed are creating massive distortions in the financial markets with little hope of improving real economic growth or employment… Quantitative easing promises to have little effect except to provoke commodity [gold and silver] hoarding, a decline in bond yields to levels that reflect nothing but risk premiums for maturity risk, and an expansion in stock valuations to levels that have rarely been sustained for long (the current Shiller P/E of 22 for the S&P 500 has typically been followed by 5- to 10-year total returns below 5% annually). [Let me explain.] Words: 3066
December 14th, 2010 | Posted in Economy | Read More »
We appear to be at a very interesting juncture in the precious metals sector at this time. As I noted in the last editorial, at this juncture in the 70′s fractal gold made a vertical move that would suggest a rise up into the $1,600s over the coming 4 or 5 weeks. Furthermore, I have a potential target for gold to rise up to $1,800 to $2,100 into May/ June of 2011 with a median target of around $1,950. Words: 610
December 11th, 2010 | Posted in Gold/Silver,Investing | Read More »
Fox News’ Glenn Beck has repeatedly stoked fears that the U.S. would see “massive inflation,” stating, as far back as 2008, that inflation would go “through the roof” in the “next year.” In fact, inflation remained low in 2009 and 2010 and looks to remain the same in 2011. Let’s review Beck’s prognostications one by one and come to our own conclusion. Words: 1764
December 7th, 2010 | Posted in Economy,Inflation/Deflation | Read More »
Since the dawn of this financial crisis, my portfolio has included an allocation to gold. I viewed this as an important element of stability and protection and I believed in a longer-term story taking hold. Last week I kissed the precious metal goodbye for now and this is my explanation as to my reasoning. Words: 1382
December 6th, 2010 | Posted in Gold/Silver,Investing,Stock Indices | Read More »
A major crisis is coming in the first half of 2011 and it could cause a worldwide financial disaster, global market crashes and the destruction of wealth that will make the popping of the dot-com and housing bubbles feel like a mild inconvenience! Why? Because, quite simply, America is playing a dangerous game of “chicken” with its national debt – and the ramifications are extraordinary. Words: 1475
December 6th, 2010 | Posted in Economy | Read More »
My technical analyses of the future direction of the U.S. dollar, the price of gold and the American and Chinese stock markets suggest that the near term should be somewhat choppy but with a favorable upward bias for gold and the markets. Let me illustrate my findings with the following charts and explanations. Words: 965
December 6th, 2010 | Posted in Gold/Silver,Investing,Stock Indices | Read More »
If I was the President right now and could give a fireside chat (FDR-style) to all American citizens here is what I would say. So get warm and cozy and take a healthy dose of the red pills. Words: 1652
December 6th, 2010 | Posted in Economy | Read More »
All indications are that we are at the 3rd wave juncture where the large cap gold and silver producer stocks and intermediate precious metals producer/developer stocks tend to start to move much better, and where the smaller explorer class starts to kick up it’s heels. Let me show you what I mean with a few charts that will give you a clear visual of why you ain’t seen nothing yet when it come to the future performance of the stocks (and warrants) of gold and silver mining and royalty companies. Words: 1036
December 5th, 2010 | Posted in Gold/Silver,Investing | Read More »
I would conclude that to re-establish a new gold exchange standard probably would require a gold price of about $5,000. [That being said,] I wonder if any of those talking about re-establishing a gold standard have thought about the implications of [such a new price level for gold]? If people are scared of the inflationary impact of QE2, [it begs the question:] What would re-establishing a $5,000 gold standard mean for inflation? Words: 712
December 5th, 2010 | Posted in Economy,Gold/Silver,Inflation/Deflation | Read More »
FACEBOOK
TWITTER
