The financial markets were in distress lately because of Fed Chairman Ben Bernanke's suggestion that the Fed might taper off its quantitative easing programs starting at the end of this year and ending in 2015. Here are five reasons why markets shouldn't worry too much about the Fed leaving the stage:
Read More »Bonds Getting Slaughtered, Interest Rates to Rise Dramatically, Economic Bubbles to Implode
What does it look like when a 30 year bull market ends abruptly? What happens when bond yields start doing things that they haven't done in 50 years? If your answer to those questions involves the word "slaughter", you are probably on the right track. Right now, bonds are being absolutely slaughtered, and this is only just the beginning. So why should the average American care about this?
Read More »Ronald Stoeferle’s “In GOLD We TRUST”: A Summary Review (+2K Views)
Ronald Stoeferle takes an holistic view on the latest developments in the gold market laying out the fundamental arguments why the gold bull market remains intact and concluding, based on conservative assumptions, that the long-term price target for gold is $2,230.
Read More »The Fed Is About to Turn Off the Monetary Spigot! Yeah, Sure (+3K Views)
Fearing that the flow of nourishing mother milk from the Fed could dry up, a resolutely unweaned Wall Street threw a hissy fit and the dummy out of the pram last Thursday. The end of QE is seen as the beginning of the end of super-easy policy and potentially the first towards normalization. There is only one problem: it won’t happen. Here's why.
Read More »What Will Happen When the Fed Finally Ends Its Extreme Easing Efforts?
Last Wednesday, Fed Chairman Ben Bernanke promised to end his bond-buying addiction - cold turkey - in mid-2014. That is, as long as the economy is strong enough. As a result, investor fortitude was pushed to the brink. Stocks sold off hard, sending the S&P 500 Index down 1.4%. Before you head for the exits, too, let's get a little perspective.
Read More »Does Behavior of “We the People” Suggest Central Bankers Have Gone Too Far? (+2K Views)
Central bankers have concluded that the scale of monetary easing they have taken over the past few years should be magnified - that more easing is required to get things rolling - but could it be that central planning has gone too far or, at least, reached its boundaries? Disposable income in real terms per person and savings rate of individuals could be reliable indicators that such is the case. Let me explain.
Read More »Gold Isn’t Going Through the Roof Because of These Economic & Political Realities (+2K Views)
Why isn’t gold going through the roof? This article looks at the common arguments why it should and the realities as to why it isn't.
Read More »Peter Schiff Explains the Pullback in Gold & What the Future Holds
People who are saying there is no reason to buy gold now, never understood the reason people were buying it in the first place. People weren’t buying gold because they were worried about a crisis in the Eurozone or weak US stocks. People were buying gold because central banks were printing too much money. It’s inflation that drives the gold train, not political uncertainty.
Read More »Goldrunner: These Fundamental Charts Say “Gold Is Getting Ready to Run!”
The U.S. Dollar is being very aggressively devalued in a parabolic...[manner] as we enter the final stage in the paper currency cycle. The government needs Gold to go vastly higher so the budget can be balanced after all of the paper promise debts are added to the balance sheet. Interestingly, Michael Belkin, arguably one of the best analysts in the world, expects earnings for companies to plunge this year causing the DJIA to crater about 30%. This fits with the kind of correction in the now high flying DJIA that we have discussed per the late 70’s charts where Gold and the Dow would meet between 10,000 and 12.000. Words: 1022
Read More »The Currency War: Which Country Will End Up With the Fastest Currency in the Race to the Bottom?
We believe that we are in the “competitive devaluation” stage presently [see graph below] as country after country is printing money in order to lower rates and doing whatever possible to devalue their currency - to have the fastest currency in the...race to the bottom - in order to export their goods and services. [The next stage will be protectionism and tariffs. This article gives an update on the race to debase.]
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