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Silver Antidote to Bubble Craziness

Silver times 1 trillion to total debt: ratio

CHARACTERISTICS OF BUBBLE CRAZINESS: U.S. stocks, according to many measures, are the most over-valued in history. We live in a Bubble Zone! Bitcoin and other cryptos are definitely in a bubble, but they could rise even higher. Bonds yield little, and in many European countries, less than zero. Central banks have created this distortion to the detriment of savers, insurance companies and pension funds. Real estate: Some locations, such as New Zealand, Canada and Australia are up a factor of 8 to 20 since 1980. Houses have become unaffordable for many, even with historically low interest rates. Silver and gold: […]

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A Return to Financial Sanity?

Financial sanity and stability may not return, but we can protect our assets and learn from the discussion. The DOW, S&P500, NASDAQ and other markets sell at all-time highs. However, many imbalances exist within our financial world. This is not new – things have been crazy before, are now, and will be again. But to regain financial sanity we need: From “Doug Casey on the New Fed Chair” “In an ideal world there would be some radical changes. The best thing for the US in the (famous) long run is to go “cold turkey.” To abolish the Federal Reserve, fire […]

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Gold, Bubbles, S&P 500, and Currency Wars

From John Rubino: “We’ll Look Back At This And Cringe” “Millions of people out there still bear the psychic scars of buying gold at $ 800/oz in 1980 or a tech stock at 1,000 times earnings in 1999 or a Miami condo for $ 1,000 per square foot in 2006. Today’s bubble will leave some similar marks. But where those previous bubbles were narrowly focused on a single asset class, this one is so broad-based that the hangover is likely to be epic in both scope and cumulative embarrassment.” BUBBLE? WHAT BUBBLE? WARS: CURRENCIES AND NUCLEAR From Timothy Alexander Guzman: […]

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Hotel California and the Federal Reserve

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 Relax, said the night man, We are programmed to receive, You can check out […]

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Eight Days to Destruction

Harvey made landfall as a Category 4 Hurricane on August 25. The wind and flooding caused massive destruction. The news mentioned one hundred billion dollars as a preliminary estimate of the damage. Eight days before on August 17 Harvey became a named storm. There was no apparent cause for alarm on August 17. Two days later it was upgraded to a tropical depression. Harvey reached hurricane strength on August 24. Much can happen in eight days. August 17: Harvey is named August 21: Total eclipse of the sun. The path crossed the contiguous 48 states. August 21: President Trump announces […]

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Debt, Dollars, DOW, War, Silver and Shirts

Yes, they are connected. Dollars are created as debt. More dollars in circulation = more debt. More debt means consumption is “pulled forward” from the future so consumption can occur now. This usually ends badly. Commercial banks and central banks have created trillions of new dollars. Each new dollar devalues every other dollar currently in circulation, in savings, and in pension accounts. Prices rise! Wars are costly, kill people and produce little. Governments like wars because they create demand for production of war materials. More production means a higher GDP (even if the concept means little). Politicians point to higher […]

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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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