Tag Archives: U.S. dollar

The economic outlook for most major economies has deteriorated rapidly meaning we'll almost certainly see more shocks in the financial markets. Given the nature of the current economic crisis — one defined by unsustainable debt — history suggests those shocks [could] come in the form of sovereign debt defaults and currency devaluations. This possibility has increased the specter of risk for every region of the world and dampened investment returns for the entire global economy. [What should we do?] Words: 631

It is an old saying that the “road to hell is paved with good intentions”. Well, in recent years, that road has been changed to a super-highway! America was put on that super-highway a few years ago and right now we are traveling at break-neck speed toward the financial abyss. Words: 1132

While gold has outperformed all other asset classes in the past ten years, an analysis of our current economic and financial environment indicates that the ongoing increase in precious metals has only just begun and should ensure a sustainably positive environment for gold [and silver, gold and silver shares and the warrants associated with gold and silver companies in the years to come]. Words: 2095

The U.S. caused the 1930s deflationary depression and is again the cause of the current contraction. Although similarities exist between the two, the differences between them insure a far more consequential outcome today than in the 1930s. [Indeed, the world] now finds itself on the edge of a growing deflationary sinkhole created by the sequential collapse of two large U.S. bubbles, the dot.com and U.S. real estate bubbles. Words: 1549

Gold and silver, and the stocks that are leveraged to them, have a long, long way to go. It’s not too late to get in on the action. In fact, I have 4 good reasons why the next leg up in gold may still be in its early stages. Words: 775

We are staring at a startling increase in the price of gold and precious metals mining stocks and warrants. Gold will reach mind- boggling levels because the actions of our political leaders and their academic and credentialed enablers are virtually guaranteeing it with their current actions. Words: 996

In a global crisis sovereign debt fears have the ability to be contagious destroying investor confidence in the capital markets of troubled countries and the overall global economy alike and when confidence wanes, capital flees it is a surefire recipe for falling dominoes. That's especially true today in the wake of a deep global recession that has left many countries with bloated deficits and debt loads. Words: 707

Our leaders in Washington are so detached from reality it begs the question, "What are they smoking?" I'm not talking about the insane amounts of spending that's going on in our capital, or even about the patently unpayable debts and promises they're making to all of us and our foreign creditors. Although I think these things, too, result from whatever drugs they're on inside the beltway I am referring the way Washington manipulates its official statistics. Words: 1107

The final phase will be a time of higher savings and flight back to the U.S. dollar, i.e. more aversion to risk. It's also a period that begins the healing of economies and it's driven by austerity. This means higher taxes, higher savings, a stronger dollar and a lower standard of living. In short, it's a period of rebalancing and rebuilding. Words: 555

Ultimately, the Fed’s official inflation containment strategy is to always be able to offer banks a better deal than any private investment alternative. A better deal means the bank taking in more income, which means the banking executives involved get bigger bonuses. The source of funding for this ability to always pay more than the private markets is the ability to directly create a limitless amount of money. At this point it is a very low interest rate, but the rate can go as high as needed, when inflationary pressures build. Words: 2735