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Latest Comments110 Comments
Marc Faber Says Time to Buy Gold Exploration Stocks
Gold miners are making money like never before in 2008. So, why did their stocks tank in half or worse between March 2008 and November 2008?
Why did all US$ stocks tank regardless of business or country tank in half or worse in that period?
Why did crude oil drop 2/3's in price in that period?
Who's driving this wagon?
The Republican oil boys lost the election in November, 2008 and the oil cartel revenues collapsed.
Oil prices collapsed in US$'s from March 2009 and the collapse is still on- going.. Middle eastern wealth measured in US$'s just fell by 2/3'rd's. Ain't that too bad?
The Walmart boys and girls from Arkansas won the election. There's a new sheriff in town.
Thanks to bad interest rate US$ bets make round the world, (ie. paid high US$ prices for asset and borrowed most of the money paid with high US$ interest rates that can not be now refinanced) there is a forced sale of US$ backed assets now underway.
When does falling US$ prices of assets end? How about 2040?
What happens to the US$ price of gold? Only when a lot of foreigh central banks insist on it in place of US$ in balance of payment settlements and sell existing US$ denominated paper for gold. Of course that ends export to the US while it enriches local citizens.
Good luck.
.
.
T
Gold In Backwardation? Not So Fast ..
US stocks now sell for 5% of their prices a year ago. Even if their earnings are good.
US real estate sells below replacement cost and at half of the year ago market value.
To stay in their homes US citizens are selling what they can including gold to raise money to pay the bills.
Foreign investors have been hornswagoled into using their US dollars to buy what are now worthliss derivatives and have lost the dollars.
So, some fools are still selling gold to stay in their houses.
A bad investment is a bod investment. Let the bank have the asetts pledged.
US dollars are scarce .as hens teeth,. US asset holders are wipped out.
This beats the socks off 1932 as a.USA social disaster.
So, yes there is currently a lot of downward pressure on gold prices.
Look beyond the present.
Good luck.
Smart Money Is Starting to Pour into Gold Stocks
1. Bad loans of all kinds on residential real estate, commercial real estate, crediit cards, and business. Non bank lenders like GE are in the same boat.
2. High operating costs due to 3 times the number of employees needed for the business load of the 2008 to 2012 period.
3. Too much competition with 4 banks on every corner of the USA.
Yes, banks are the most powerful cartel in the USA. Their lending practices are exploiting the rest of the participants in the USA economy.
The USA Government and all its participates mindlessly support of all USA cartels and monopolies at the vast expense of all taxpayers.
The new USA national government will protect existing cartels and monopolies as members of the controlling party have in the past.
Government taxes and expenditures depress economies.
The USA will not be able to save its economy form massive job losses, real economic contraction, and inflation. A Chicago lawyer and a collection of special interest groups are not up to the task.
There will be attempts to restart inflation and they will fail. Foreign dollar holders will through in the towel and will switch out of USA stocks and bonds and hard assets into hard assets that hold their value and into non USA company stocks and non USA bonds and currencies. More and more of them will choose gold and gold proxies.
Good Luck
Why Gold Will Decline More than the Markets
"The world has never seen a crisis like this one! "
Asset prices in US$ and other currencies too have fallen in half.
Now everyone owes more than he or she can realize by selling all their assets.
Your governments have stolen your life's work from you and placed you in perpetual debtors prison. Yes, there is really a trol under the bridge who collects the proceeds of your labors.
The sirens of debt called you to fulfill your dreams by borrowing and thus have lured you onto their rocks where they can pick your bones.
Governments defend the sirens to the end. Hunting sirens down and ridding.the world of them is a no no.
After utter destitution rules, the wonders of gold as money are rediscovered..
It does not vanish or explode in quantity as time goes by. It grows in a small amount each each maintaining price stability for other assets as years pass.
Keynes said banish gold and let governments rule everything. Governments grew to infinite size pressing down the living standard of the population and exploding the size of the destitute portion of the citizens. We are winding up the horrible mess left by that religion.
Good luck.
Jeffrey Christian: Gold and Silver Could Spike
The current cartel of oil producers can not hold the price up without a Bush in the White House.
In the late 1960's oil sold for US$ 3.00 per barrel.
Oil consumption per unit output in the US and other economies is collapsing now and will keep on doing so as the 21st century continues. The anti energy freaks are very ignorant pitch persons.
Gold is the measure of the worth of a currency. The worth of the USA currency is high and going higher against many assets because massive number of US$ claims held as assets have lost the amount of the dollars they can claim.
Investors in non US$ momey assets are now loosing US dollars and selling non dollar assets to raise US$'s to meet their IOU's in that currency as they come due.
How long will this continue?
There are 4 counter trends.
1 let the creditor have the ass and walk away from the debt.
2 Burn the asset up and let the insurance company pay the creditor.
3 Get newly printed money from the US Government and pay off the creditor.
4 Reduce consumption and new asset purchases and pay your own debts off.
Nothing works quickly or well. As we learned in the 1930 to 1970 period in the USA. Yes, all those wars were just ways to burn up assets and have government debt replace inter private party debt.
Your should have seen this comming. Your should have cut your debt service costs. You should have sold your assets and paid off your debts. You should have studied history and educated yourself.
Good luck.
Blessed are the poor for they shall inherit the earth. Yes really.
Jim Rogers Still Bullish on Commodities, Bearish on the Fed
There will be endless declines in the US$ against those two currencies as long as the USA governments take over all economic business decision making in the USA.
Guess who; just won World War II?
Good Luck.
The Chickens of Irresponsibility Come Home to Roost Under Obama's Reign
I'll take William Sheakspear who gave ansers, not questions, toe the ruling houses of his time.
"Neither a lender nor a borrower be for borrowing dulls the edge of husbandry and loan oft loses self and friend."
"There is a tide in the affairs of man which taken at the flood leads on to victory."
Bring back smaller states and tiny governments. They work toward prosperity and cooperation. 2008 states work toward stealing and war.
Good luck.
Gold's Relative Appeal
The Fidelity Select Funds and the Fidelity foreign market funds are all down 50% to 75% from their 2007 peaks. What does they tell us? All savers and investors are ruined and they have also lost any hope of future success with their investments and they can not pay their bills as they come due. The investors must keep on selling assets and declare bankruptcy.
The lawyers will explode the money supply, explode the government payroll, dnd explode the number of regulations to keep more lawyers busy and rich.
Of course, these actions will drive the vast majority of citizens into poverty.
Non USA countries made big mistakes by holding leveraged US $ denominated investments. In the future, they will stay clear of these and sell US $ investments and dollars too.
Does this screen play hold water? If so, what would be a logical investment program for the next decade?
Good luck.
.
How Low Can This Market Go?
The USA will have lost the reserve world currency status by 2018 and will be a hopelessly indebted nation by 2018
Forecasting a Year End Rally for the FTSE 100
There is now a huge shortage of US $ currency as compared to the US $ IOU's that must be paid by those wishing to avoid bankruptcy, default, and loss of their assets in settlement of debts.
At present, the US $ prices of all assets are falling, and the US $ is rising relative to all assets, even gold.
In the near future decision makers will let their mortgaged assets go at whatever price they fetch. Creditors will take huge losses and the rich will no longer be rich.
Then the US $ price of gold will rise as the US $ will then fall relative to it as investors will look at the huge US Government IOU's relative to assets and the high unemployment rate in the USA and panic.
Good luck.
UBS Lowers Gold Expectations Again
UBS has made an attempt to become a modern international bank. It can not do it for many reasons chief amoung which is the inability of the Swiss nation to pony up the money to keep them solvent in credit crises such as the current one which will last through 2008, 2009, 2010, 2011 and 2012.
Never quote a banker particularly a Swiss one as all bankers are self serving, miss educated, pitch persons who will be long gone with the clients money when the chickens come home to roost.
Why would anyone believe someone who's pitch is "give me your money and I'll make you rich"?
Good luck.
Gold Approaches Record
Lewis Carroll mathmatician and author wrote in Alice in Wonderland.
The US and the world are now in wonderland.
Over night, real estate assets owners have lost all their investments and now owe more than the real estate assets are worth on the market. This is world wide.
In 2008, personal and commercial real estate entity values are collapsing and will keep right on collapsing to 2040.
Around the world, individual incomes are collapsing in 2008 as are corporate incomes and there is no rebound in sight,
Governments around the world are massive drags on economies in 2008 and the forecast is for these drags to worsen.
Socialism has doomed the vast majority of people to poverty. Socialism has been proven to be a devastating failure in terms if average individual well being.
The US dollar has become an ocean of IOU's that buy more and more as the days go by. If one owns some dollars, one waits for a bigger bargain tomorrow whether it be the purchase of a stock or bond or real estate or any other asset such as gold..
The only question for the next 20 years is would you rather hold a stack of US $ bills or a shack of gold coins.
As of October 2008, the US Government is exploding the number US $'s outstanding and it will continue to do so. In the long run, paper dollars in your hand will not be worth what the pile of gold coins you can now buy with those dollars will be worth.
Don't take any wooden nickles.
Good luck
.
General Discussion on GLD
Elliott Wave graphs are meeting forecasts of a downtrend to 4000or lower on the DJIA by early 1010. The first leg has dropped from 14000 t0 8000 and looks like it will go lower now based on the structure of the down leg so far.
The world is over levered more and more as the collapse progresses. Debtors are going out of business and equity balances are going to zero. The Wall street boys and girls have repeated the Ponzi schemes of the 1920's yet thousands of times bigger.
The end game is a total washout and debtor take over for a fire sale. It takes decades to end the mess and massive loses to all parties.
Governments did not act when they should have and have lost the last shreds of respect from those they govern. Socialism is in collapse.
What about the price of gold in US $ terms? Governments will need a new currency which is respected and allows the repudiation of existing currency denominated debt.
Why not gold at $4000,00 per once. Alas, perhaps another round of confiscation.
Gold: Only Physical Asset That Isn't Deflating
The railroad binge from 1840 to 1870 was followed by a major international financial collapse in asset prices lasting to 1900.
The auto and highway binge from 1905 to 1930 died in the financial collapse ot the 1930's.
The house building binge from 1950 to 2005 is now in its death throws which should last until 2020 at leasts.
Each binge explodes the use of borrowed money during the expansion phase and an inplosion of the money supply in the contraction that follows.
2008 is the first year of current binge cycle's money implosion. The money implosion under way is international and global and in many currencies.
As of October 2008, many countries and currencies are suffering a cedit crisis (you can't get your hands on enough to pay money withdrawals if you are a bank or your bills if you are a citizen). Bank withdrawals are exploding as deposiitors pay bills in excess of their earning or simply withdraw money to put it in a safer use for fear that the bank will fail.
As of October 2008, citizens and banks face a liquidity crisis that is forcing asset prices down in currency terms. The US $ is appreaciation against all other assets like cars, houses, stocks, since they must be sold to get enough money for the mortgage or clothes or food.
Citizens are retrenching as fast as they can and more and more are throwing houses and other assets like stocks and pension funds onto the market to raise money to buy food.
Stock markets are collapsing as are retail sales as are used car prices as are the number of jobs.
Loan defaults increase so that banks keep on loosing the ability to loan becouse cash infowes decline.
The vishouse cycle accelerates.
Elected officials respond to their patron in the cartels and monopolies and not the citizens. They could send money to the public and reduce taxes to help citizens. They do not. Tax proceedes are already falling and the pols want more perks for themselves from the cartels and monopolies they maintain..
What next?
Banks closee branches and lay off employees by the hundreds of thousands. Lack of sales forces non-bank businesses to shut down and lay of more hundreds of thousands. By the time all the defaults are in there is mass economic weckage and complete collapse in living standards.
Good luck
Our Coming Depression
As politicians and their colleges in governmental administrative bureaus and regulatory branches are corrupted by the cartels and monopolies they create. All governments are monopolies and only governments can grant and enforce monopolies in the private sector. The first monopolies created by the US Federal Government were the US Post Office (a government monopoly) and the George Washington's private whiskey monopoly.
The cartels and monopolies (both in governments and public and private) pauperize the great majority of citizens to the advantage of themselves and other government workers (public monopolies) and patronage purchasing private monopolies.
See Wealth of Nations by Adam Smith dated 1750.
The bigger and older the nation state the worse this corruption becomes and the more the living standard falls for the general citizens in the population who are disconnected from government patronage.
In the end all such governed nations implode and collapse permanently as did Egypt, Rome, Greece, China, and England to name a few. The population dies off or moves away and the dwindling big government lovers write books or at least short reports explaining why more government was needed.
Good Luck
The author wants to increase the power and size of US governments which are the problem and not the solution