Fooled by Stimulus
Fooled By Stimulus
By Eric Sprott & David Franklin
Sprott Asset Management
Despite our firm’s history of investing primarily in equities, we’ve spent much of this past year writing about the government debt market. We’ve chosen to focus on government debt because we fear its impact on the equity markets as a whole. Government debt is an intrinsically important part of the financial landscape. It is the bellwether by which we measure risk, and we believe we have entered a new era where traditional “risk-free” assets are undergoing a tremendous shift in quality.
In studying the government debt market, we have inadvertently been led to question the economic theory that most fervently justified recent government spending programs: that of Keynesian economics. The so called “beautiful theory” of Keynesian economics is arguably the most influential economic theory of the 20th Century, shaping the way Western democracies approached the balance between free market capitalism and government initiatives. Like many beautiful theories, however, Keynesianism has ultimately succumbed to the ugly facts. We firmly believe the Keynesian miracle is dead. The stimulus programs are simply not producing Read more
The Dangers of a Failed Presidency
The Dangers of a Failed Presidency
By Michael Krieger, of KAM LP
I have been calling Barrack Obama’s Presidency a failure for at least six months now and it seems that I now have considerable company in this assessment as it becomes obvious to most. It is not a failure because of the Republicans. It is not a failure because of events beyond his control. It is a failure because this was a man that filled a depressed and downtrodden nation with the audacity of hope. When I voted for the man I knew it was against my personal financial interests. It was clear what he would do with taxes. Nevertheless, I got to the polls and voted for this fifth avenue creation thinking maybe, just maybe he might do some of the things he said. Most important to me were two issues related to Read more
Fed Money Supply Monopoly Being Challenged
In the U.S., frustrations over Washington’s seeming inability to resist fiscal profligacy have found voice in the tea party movement. As national sentiment grows in favor of limited government and constrained powers, legislation has been introduced in nine states to nullify federal legal tender laws; the Fed’s monopoly on supplying the money U.S. citizens must use is being challenged Read more
Gold: The Protector and Creator of Jobs
by Hugo Salinas Price
President, Mexican Civic Association Pro Silver
February 6, 2009
Some readers may ask themselves, “What has gold to do with protecting jobs? Gold hoarders are certainly not creating jobs, and hoarding more gold will not help at all.”
Gold has everything to do with the loss of jobs in the US, and gold has everything to do with recovering jobs for the US economy.
Let me go back to the 60’s. During those years, the US and the world were on a Gold-and-Dollar Standard.
Back in the 60’s, countries were very careful about maintaining a constant monetary balance between their exports and their imports. They all wanted to be in a situation where they would export more than they imported, so that they would have increasing balances of gold or dollars in their Treasuries.
To state this more correctly, they all wanted to export more than they imported, except the United States.
The US didn’t care very much about maintaining Read more
Brave New World Redux
The paranoia is in bloom, the PR,
The transmissions will resume
They’ll try to push drugs
Keep us all dumbed down and hope that
We will never see the truth around
Another promise, another scene,
A package not to keep us trapped in greed
With all the green belts wrapped around our minds
And endless red tape to keep the truth confined
Interchanging mind control
Come let the revolution take its toll if you could
Flick the switch and open your third eye, you’d see that
We should never be afraid to die
Rise up and take the power back, it’s time that
The fat cats had a heart attack, you know that
Their time is coming to an end
We have to unify and watch our flag ascend
They will not force us
They will stop degrading us
They will not control us
We will be victorious
©Muse – Uprising
Gold Breaks 30-year High in Swiss Francs
Gold trading on Wednesday broke the 30-year high against the Swiss Franc, rising to CHF 44,400 per kilo in brisk trading.
Although inflation has not been officially recognized as a problem so far, the National Inflation Assocation pegs inflation between 5.31% and 6.31%.
Clearly the combination of high government debt bond yields, extreme volatility Read more
Austrian Mint says Gold Sales Soaring on Panic Buying
The Austrian Mint today announced that since April 26th the mint has sold 243,500 ounces of gold compared to slightly over 200,000 ounces in the first 3 months of the year. They believe this is panic buying Read more
Fed Posts Terms Of Unlimited Foreign Exchange Swaps With Bank of England, European Central Bank And Swiss National Bank
Late yesterday, the Federal Reserve Bank of New York posted the full terms of the various foreign exchange swaps that it instituted as part of the bailout of the Euro, and of various French and German banks. The specifics Read more
Interesting Developments Afoot
This Sunday the Eurozone in combination with the U.S. Fed agreed to completely monetize all current and upcoming government debt for countries including Greece, Portugal, Italy, Spain, and whoever else in the Eurozone needs cash, to the tune of approximately $1 Trillion USD ($1,000,000,000,000.00). They agreed that the money created to fund this bailout should be sanitized; Read more
Value of the US Dollar
Since the Breton Woods system was brought into place in America, the value of one dollar expressed in terms of grains of gold has steadily declined. If the US Dollar were a corporation, would you invest in it seeing this chart? Read more
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24 Hr Gold Chart (CAD$)
- Gold Money Feed
- Gold Up on Flagging Global Recovery August 20, 2010
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- Gold Rises for 7th Straight Day August 6, 2010
- Gold Falls to 3-Month Low July 30, 2010
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