falling sky Overview • PM • OIL • HUI • XAU • FX • XOI • XNG •
money, it's a hit...the daily blues
 
All the major commodities are looking very strong. Many analysts are using the wrong set of spectacles to view the current situation. Typically at the end of an expansionary phase in the economy there is over-capacity of many commodities due to over investment in production infrastructure which results in price declines. The correct action for investors is to sell the commodities and hold cash. Today all commodities are in short supply and the monetary system is collapsing due to a glut of US Dollars. This expansionary phase resulted in an over-production of the only major US export that is still made in America…US Dollars! The correct action for investors is to dump the cash and buy commodities. For the average investor the most convenient commodities to hold are gold and silver. It is as simple as that. Adrian Douglas
Socialism mandates public ownership of the means of production. Fascism (whose inventor was Mussolini, don't forget) leaves a "title deed" in the hands of the "owner" but imposes rules governing ALL uses which can be made of the "property". Either one fits. Either one leaves no room for political liberty or economic freedom because it removes their foundation. That foundation is property RIGHTS. ©2010 - The Privateer / capt@the-privateer.com / (reproduced with permission)
US wholesale price inflation hit highest increase rate in 34 years, & consumer inflation rose at highest rate in 2yrs. Inflation rising everywhere, but UK is keeping interest rates steady & EU may raise them to fight inflation, whereas Bernanke will cut int/rates to fight recession. This difference is caused by history. EU has lived thru hyper-inflation in 20's. US has lived thru hyper-deflation in 30's. To each his own fear. Cutting rates will increase inflation. Harry Schultz
Thus, it seems to me, the Catch-22. In order to protect dollar hegemony, the US military must be used as enforcer.
Yet, wars are expensive, and given the unwillingness of US politicians to pay as they go, inflationary- consequently destructive to dollar hegemony.
The very act of protecting dollar hegemony reduces the value of the dollar. Dude
"The turn down in US and World business activity is NOT gold bearish, but rather fundamentally gold bullish.
I heard this in the 70s and it was totally wrong. I am hearing it again... nothing has changed." Sinclair’s Formula
"As the price of oil rises, and it will rise, it's going to put pressure on consumers who depend on oil and gas for transportation and heating. As a result, they will be forced to cut back on their spending. On top of that, home prices will probably (at best) level off, and they may decline. With short rates rising, the end of home refinancing has arrived, and this too will mean less money in the hands of consumers. The reduction in consumer spending will cause the Bernanke Fed to fear the onset of deflation. The Fed's deflation worries will set the Fed on it's usual course - offset any deflationary trends with an even greater amounts of liquidity. The Fed will open the liquidity spigots, and this will impact on the dollar. Result, higher gold prices." Richard Russell
"Because the dollar is the reserve currency of the world, hyperinflating the dollar will be fundamentally different in two ways from all hyperinflations in history. On the one hand, there are tens of trillions of dollar-denominated debt and hundreds of trillions of dollar-denominated derivatives. Given that the ratio of currency to debts and derivatives is tiny, the coming hyperinflation must be necessarily of epic proportions. On the other hand, central banks around the world will fight tooth and nail to support the dollar, so that world financial system does not collapse and that their reserves do not evaporate into the nothingness. Many central banks will choose willy-nilly to support the dollar by inflating their own currencies. Thus, these two powerful forces will drive the dollar in opposite directions. Its inevitable demise may be swift and sudden, or it may be protracted and painful." Krassimir Petrov
Sapere aude! I will not go out on one limb to make predictions about timing beyond repeating what I have already said. The indication for the imminent collapse of the international monetary system will be the “last contango in Washington”: the fall of the silver basis. It will be followed by the fall of the gold basis. These events will indicate that the irredeemable dollar has entered its death throes -- regardless what the inflation numbers say. Woe to all fiat currencies whose principal backing is the irredeemable dollar. Controlling their quantity can and will do nothing to save them.
I am fully aware that it is dangerous to question the validity of the prevailing Quantity Theory of Money.
I am willing to stake my professional reputation, as Galilei has staked his when he saw no wisdom in the prevailing geocentric cosmology. A. Fekete
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