The Fact Is, Gold Is Not Money Today

Gold is on a tear this year. The precious metal is up 19%. That’s great! Those holding gold should be happy with their gains. If they take their coins to the grocery store they can buy, well, absolutely nothing. But they can sell their gold to someone else for some printed pieces of cotton (our noble currency) before making their way to the local Whole Foods. To be fair, some gold coins were actual money many years ago, like the $ 20 gold piece. In some states it is legal to use these coins today as money, but only for […]

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Triple Levered ETFs Will Make You Go Broke… Even If You’re Right!

In a previous article we explained why “buying oil” using ETFs comes with an overlooked set of complications. Well, things get even more messy if you want to amplify returns using leveraged ETFs. Investors should completely avoid trading any type of ETF, levered or unlevered, unless they understand exactly what’s going on under the hood. And that means actually taking the time to read the mammoth prospectus of the product in question. We know most amatuer traders never bother to look at a 190-page prospectus. And so, with the recent popularity of oil gambling, we thought it prudent to dissect […]

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Silver: The “Five Year Plan” and the Great Leap Forward

Five years ago paper silver contracts on the COMEX hit a multi-decade high over $ 48 on April 29, 2011. At the end of April 2016 the silver price is bouncing around $ 17, down about 65% from its April 2011 high.  The low occurred at about $ 13.60 in December of last year, when paper silver prices were down about 70% from their April 2011 high. Let’s review significant prices roughly every five years back for 30 years: Date                 Low Price        High Price       Comment Dec 2015        13.60                                        Major low Apr 2011                                  48.58               Multi-decade high May 2006                                 15.20               Multi-decade high […]

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The U.S. Economy Officially Joins The Global Economic Slowdown – 1st Quarter GDP Comes In At 0.5%

Even the government is admitting that the U.S. economy is slowing down.  On Thursday, we learned that U.S. GDP grew at just a 0.5 percent annual rate during the first quarter of 2016.  This was lower than analysts were anticipating, and it marks the third time in a row that the GDP number has declined compared to the previous quarter.  In other words, GDP growth has been declining for close to a year now, and this lines up perfectly with what I have been saying about how the second half of last year was a turning point that plunged us […]

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Earn Money 3 Different Ways From This 1 Investment

$ 150 billion is a lot of money. And due to some planned changes the makers of S&P and MSCI indexes are making, that’s the amount of money that is likely to flow into shares of real estate investment trusts (REITs) over the next few months. You see, up until now, REITs have been considered “financials” for the purposes of sector weighting. Well, that’s just crazy. A landlord that owns a portfolio of rental properties really has little in common with a bank or an insurance company.  Yet that’s where REITs have historically been lumped. But now that the index […]

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The Future Of America? – More Than Half Of All U.S. Adults Under Age 30 Now Reject Capitalism

A shocking new survey has found that support for capitalism is dying in America.  In fact, more than half of all adults in the United States under the age of 30 say that they do not support capitalism at this point.  You might be tempted to dismiss them as “foolish young people”, but the truth is that they are the future of America.  As older generations die off, they will eventually become the leaders of this country.  And of course our nation has not resembled anything close to a capitalist society for quite some time now.  In a recent article, […]

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Hotel California or the Hotel Marriner Eccles

In 1977 the Eagles spoke to us about “Hotel California.”  Lyrics are here. A few lines from the song … “On a dark desert highway, cool wind in my hair… Up ahead in the distance I saw a shimmering light… Then I was thinking to myself this could be Heaven or this could be Hell… Welcome to the Hotel California… Some dance to remember, some dance to forget… They’re living it up at the Hotel California… We are all just prisoners here of our own device… They stab it with their steely knives but they just can’t kill the beast… […]

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Economy In Decline: Apple Reports Massive Revenue Decline As iPhone Sales Plummet Dramatically

Corporate revenues in the United States have been falling for quite some time, but now some of the biggest companies in the entire nation are reporting extremely disappointing results.  On Tuesday, Apple shocked the financial world by reporting that revenue for the first quarter had fallen 7.4 billion dollars compared to the same quarter last year.  That is an astounding plunge, and it represents the very first year-over-year quarterly sales decline that Apple has experienced since 2003.  Analysts were anticipating some sort of drop, but nothing like this.  And of course last week we learned that Google and Microsoft also […]

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What have we learned from history?

Yesterday, at the final of the Kent Schools Public Speaking Competition, a young boy stepped up to the podium. “What have we learned from history?” he asked. “We have learned that no good comes from killing people”. And he went on to speak eloquently, first of World War II: “There has never been another major war,” he said. True, there has not. The uneasy peace of the Cold War did not descend into outright conflict, though it was a near thing: the world very nearly went up in nuclear flames in the Cuban Missile Crisis of 1963. But have we […]

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Horror story

In response to my post about the lessons of history, Claudia Dias sent me this clip from The Times, March 31st, 1939: Four months after Kristallnacht, and two weeks after Hitler’s annexation of Czechoslovakia, the British government was still repatriating Jewish refugees. This group knew they were being sent back to almost certain death. No wonder they were hysterical. Today, refugees in Greece face deportation to Turkey, and from there probable repatriation to their own countries. If they are denied the opportunity to claim asylum, as appears to be the case for some, this would contravene the Geneva convention on refugees. […]

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