Falling Rocks in the Promised Land

Yes, traumatic market events (falling rocks) occur, even though markets are “managed,” statistics are manipulated, and politicians pretend to care about something besides their next election. From John P. Hussman, Ph.D.Fair Value and Bubbles: 2017 Edition “Unfortunately, investors seem to have concluded that central bank easing is omnipotent, despite the fact that the Fed eased persistently and aggressively, to no effect, through the entire course of 2000-2002 and 2007-2009 market collapses.” From Bill Gross: Bill Gross Says Market Risk is Highest Since Pre-2008 Crisis “Central bank policies for low-and-negative-interest rates are artificially driving up asset prices while creating little growth […]

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Silver and NASDAQ Strength Will Reverse

Bubbles come and go. Silver and gold – 1980 Japanese Nikkei – 1990 NASDAQ – 2000 Mortgages and Real Estate – 2006 Bonds, Debt, Stocks, Real Estate – 2017 Examine the following graph of monthly data for 32 years of the NASDAQ 100 Index and Silver. We saw the NASDAQ bubble in 1999-2000, a rapid rise for silver in 2010 – 2011 and a large rise in the NASDAQ 100 during 2009 – 2017. Prices for both markets have often risen too far and too fast, and then corrected or crashed. The NASDAQ dropped more than 80% from 2000 to […]

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Mile Markers on the Road to Ruin

We know much is currently wrong with our financial world, as discussed in the James Rickards book “The Road to Ruin” and elsewhere. The official U.S. government debt is nearly $ 20 trillion. Unfunded liabilities are 5 – 10 times larger. Debt has doubled every 8 – 9 years for decades – since the Federal Reserve was put in charge of devaluing the dollar. Debt will continue to grow, obviously out of control. Millions of Americans are out of work, regardless of the official statistics. Prices increase, some rapidly, regardless of the official statistics on consumer price inflation. More government […]

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17 Reasons To Avoid Gold

(Warning: Satire and sarcasm alert!) Central bankers are managing paper currencies for the benefit of the people, not the financial and political elite. Consequently consumer prices are stable and there is no reason to own gold as protection from currency devaluations. Time Magazine confirmed that Greenspan, Rubin and Summers saved the world in 1998. Bernanke did it again after the last crisis. In 2012 he was called “The Hero” by The Atlantic. Our economic world is now stable and secure and central bankers will not need to “save” it again. Because we live in a safe world, there is no […]

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Titanic Parallel to the Federal Reserve

Thinking about the 105th anniversary of the sinking Titanic, the Titanic-sized debt in the world, and the role of central bankers… The RMS Titanic departed Southampton, England at noon on April 10, 1912 and struck an iceberg in the North Atlantic just before midnight on April 14. She sunk less than three hours later. Her maiden voyage lasted about 110 hours. The Federal Reserve, the central bank of the United States, was created by congress late in 1913. Her “maiden voyage” devaluing the dollar has lasted over 103 years. (All quotes and Titanic facts come from Wikipedia. Opinions are my […]

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Russian Roulette, Central Banks, and Gold

Grab your ultra-reliable 357 magnum revolver and load the cylinder with six, not one, rounds of ammunition. Point the gun at your head if you are a member of the struggling middle-class. Imagine pulling the trigger and hoping … Do you feel lucky? The Six Loads of Ammunition for your 357 revolver are: #1: Central banks and commercial banks exert a huge influence over all aspects of our financial lives. Paper currencies issued by central banks, digital currency units, credit card debt, pension funds, retirement accounts, checking accounts, Quantitative Easing, bond monetization, congress, regulators, Presidents, and the list goes on. […]

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Depression, Stagflation, Stag-Depress-Flation

The United States suffered through a deflationary depression in the 1930s. Stock prices crashed, currency in circulation declined, commodity and real estate prices fell hard and human misery prevailed. President Roosevelt revalued gold from $ 20.67 to $ 35.00 per ounce in 1933 – a substantial devaluation of the dollar. Make-work and government spending programs were implemented. War followed the depression. Then the United States suffered through the “stagflation” of the 1970s. The economy stagnated and inflation rose to previously unheard of levels. The Vietnam war, inflation and social protests dominated the news, gold shot upward from $ 42.00 to […]

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Silver Prices for the Year 2017

How low and how high will the price of silver range on the PAPER markets during 2017? Knowing the influence central bankers, politicians, HFT algos, bullion banks and JPMorgan exercise over increasingly managed markets … it is impossible to answer the question, and it is probably the wrong question to ask. Instead, what do we know with a high degree of certainty? The U.S. national debt will substantially increase as it has almost every year since 1913. We can trust politicians and central bankers to act in their best interests to spend in excess of their revenues and increase total […]

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Silver Prices and the Russian Connection

Silver prices nearly reached $ 50.00 in April of 2011. They crashed to a low under $ 14 in December of 2015 and currently (December 2016) sit at about $ 16. Silver prices, in our increasingly unreal debt based fiat currency world, streak higher and subsequently crash to unbelievable lows. Option One: Silver prices are near the end of their correction and will rally substantially higher. Why? Exponential increases in debt and total currency in circulation lift the prices for nearly everything, including college tuition, cigarettes, the S&P, housing, health care, silver and gold. We have heard this before and […]

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A New Dow High?

While the global bond markets have begun to correct their 35 year bull market, the major U.S. stock indices, including the Dow, NASDAQ, Russell and S&P, have rallied nicely. Official U. S. national debt is approximately $ 20 trillion as of December 2016, and has approximately doubled every 8 years at a 9% compounded rate for over a century.        Year         Official Debt 2016          $ 20 trillion 2024          $ 40 trillion 2032          $ 80 trillion 2040        $ 160 trillion […]

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