To achieve the EW target of $4,500/ozt. on the next upward move [in gold that I laid out in my article Alf Field: Correction in Gold is OVER and on Way to $4,500+!] will require something to trigger substantial new buying of gold. What could that event be? By definition, it will be a surprise to all market participants, a “black swan” event. That doesn’t prevent us from making a guess [and] one likely area from which problems could emerge…[would be] derivatives. [Let me explain why that might well be the case.] Words: 591
January 12th, 2012 | Posted in Gold/Silver,Investing | Read More »
The term “derivative” has become a dirty, if not evil word. So much of what ails our global financial system has been laid-at-the-feet of this misunderstood, mischaracterized term – derivatives. The purpose of this paper is to outline the origin, growth and ultimately the corruption of the derivatives market – and explain how something originally designed to provide economic utility has morphed into a tool of abusive, manipulative economic tyranny. Words: 3355
January 10th, 2012 | Posted in Debts/Deficits,Economy | Read More »
When the supply of something is increased sharply relative to demand, the value of that commodity will decline. If the supply continues to increase rapidly and indefinitely, then that item will become worth less and less, with the potential to finally become nearly worthless. This is the Developing Disaster facing the US Dollar and the world. This is the factor that could become the single most important criterion in investment allocation decisions and possibly even for individual financial survival…[Let me explain this further by reviewing the 7 major problems facing the U.S. (and thus the world) and how they all will lead to problem #7 - devolution.] Words: 1520
November 29th, 2011 | Posted in Debts/Deficits,Economy,Inflation/Deflation,U.S. Dollar | Read More »
Periodically in history, the expansion of credit creates the illusion of prosperity which, regretfully, ends in the inevitable bust which seems to be the case today. The sheer magnitude of credit destruction occuring right now is depressionary. The return to growth will be a long and painful process. Words: 625
March 12th, 2010 | Posted in Economy | Read More »
The ‘Money Industry’ bought control of America and, as such, bought control of the American political system and, in the process, betrayed America’s trust in them. They are still in control and there is no end in sight. Words: 1611
March 12th, 2010 | Posted in Banking | Read More »
Of the $200+ trillion in derivatives on US banks’ balance sheets, 85% are based on interest rates and for that reason I cannot take any of the Fed’s mumblings about raising interest rates seriously at all. Remember, most if not all, of the bailout money has gone to US banks in order to help them raise capital. So why would the Fed make a move that could potentially destroy these firms’ equity and essentially undoing all of its previous efforts? That being said I still see derivatives as a trillion dollar ticking time bomb with a short fuse. Words: 506
February 24th, 2010 | Posted in Banking,Economic Overview | Read More »
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