Home » March 31st, 2011
March 2011
Mandatory IRAs as proposed by the Obama Administration is just the 1st step in stealth nationalization and forced investment of our retirement benefits to support the treasury debt market! [As such,] every American with substantial retirement assets must [begin now to] protect themselves from having to become buyers of last resort for US treasury obligations. [Let me explain.] Words: 6349
March 31st, 2011 | Posted in Personal Finance,Retirement Planning | Read More »
The Dow:Gold ratio is defined as the ratio of the price of the Dow Jones Industrial Average divided by the price of gold [or] how many ounces of gold it takes to buy the 30-stock Dow. The current Dow:Gold ratio of 8.5 is up 21.1% from its 17-year March 6, 2009 low of 7.0 and 81% below its 1999 peak of 44.77. [What does the future hold? Higher gold prices, lower stock prices or vice versa?] Words: 400
March 31st, 2011 | Posted in Asset Allocation,Investing | Read More »
Dollar Inflation remains the driver of the pricing environment for almost everything denominated in U.S. Dollars as long as the Fed continues to monetize debt. The debt monetization creates Dollar Inflation that results in Dollar Devaluation. By the time the Fed has ramped up the QE II that they have announced will end in June, I expect Gold, Silver, and the HUI will have risen to $1860 – $1975, $52 – $56 and 940 – 970 respectively. Let me show you why. Words: 1301
March 31st, 2011 | Posted in Gold/Silver,Investing | Read More »
The U.S. dollar is essentially at an all-time low against other currencies on both a real and nominal basis [and such a] weak dollar is a serious problem, but there is no reason yet to abandon all hope… [Let me explain.] Words: 1064
March 31st, 2011 | Posted in Economy,U.S. Dollar | Read More »
A perfect storm of converging criteria is almost perfectly timed and aligned with the 2012 election cycle. When the moment arrives, the financial earthquake will rapidly demolish the existing highly precarious financial system. Government will stand by helpless, unable to shield itself, much less its vulnerable citizens or private financial institutions from the tsunami of debt and currency destruction. Let me explain. Words: 2055
March 31st, 2011 | Posted in Debts/Deficits,Economy | Read More »
In this missive I present a set of principles that have always guided sensible investment that, together, form what I call The Seven Immutable Laws of Investing. [incidentally, immutable means "not subject or susceptible to change or variation in form or quality or nature."] I hope they help you to avoid some of the worst mistakes, which, when made, tend to lead investors down the path of the permanent impairment of capital. Right now, I believe the laws argue for caution. [Let me explain.] Words: 3023
March 31st, 2011 | Posted in Asset Allocation,Investing | Read More »
[Whatever you] call it – a bubble, a frenzy or a mania – there seems to be a large number of voices in the marketplace who just are not fans of gold, whether prices are moving up, down or sideways [but] the reality is that gold doesn’t possess the traits necessary for a financial bubble to form. [In fact, the current worldwide economic and fiscal environment suggests that gold will go MUCH higher. Let me explain.] Words: 2368
March 31st, 2011 | Posted in Gold/Silver | Read More »
In our estimation, the most likely time frame for a full-fledged outbreak of hyperinflation in America is between the years 2013 and 2015 [based on 12 warning signs that are on the horizon.] Americans who wait until 2013 to prepare, will most likely see the majority of their purchasing power wiped out. It is essential that all Americans begin preparing for hyperinflation immediately. Words: 2065
March 31st, 2011 | Posted in Economy,Inflation/Deflation | Read More »
2012 is shaping up to be the blockbuster main event of the ongoing financial crisis. Massive amounts of new debt, vast quantities of additional digital dollars and the spark of higher interest rates will set off version 2.0 of the credit-driven financial implosion. Let me explain. Words: 1954
March 31st, 2011 | Posted in Debts/Deficits,Economy | Read More »
The Cyclically Adjusted Price Earnings Ratio, abbreviated as CAPE, or the more precise P/E10, closely tracks the real (inflation-adjusted) price of the S&P Composite. After dropping to 13.3 in March 2009, the P/E10 has rebounded to 23.0. The historical average is 16.39 raising concerns about the current price level of the S&P Composite. Let me explain. Words: 1298
March 28th, 2011 | Posted in Investing,Stock Indices | Read More »