U.S. Hegemony, Oil, and Precious Metals
The Underground Investor has an interesting interview concerning the Federal Reserve and the banks that own it, and how they have been controlling the world economy since 1913 using leveraged futures contracts on the oil, silver, and gold commodities markets in New York and London. The interview goes on to discuss how Europe, in concert with Russia and China could break Read more
Northern Abitibi’s Thor Trend at Viking Property
NORTHERN ABITIBI ANNOUNCES INITIAL INDEPENDENT GOLD RESOURCE ESTIMATE FOR VIKING
Northern Abitibi Mining Corp. (“Northern Abitibi”) is pleased to announce the results of the first resource estimate for the Thor Trend Deposit on the company’s 100% owned Viking gold property in Newfoundland. The independent mineral resource estimate study was conducted by Mercator Geological Services Limited (“Mercator”) and was completed in accordance with Canadian Securities Administrators National Instrument 43-101 (“NI 43-101”) and the CIM Standards on Mineral Resources and Reserves. Read more
Ambrose Evans-Pritchard’s Plato Apology
Shut Down the Fed (Part II)
By Ambrose Evans-Pritchard
I apologise to readers around the world for having defended the emergency stimulus policies of the US Federal Reserve, and for arguing like an imbecile naif that the Fed would not succumb to drug addiction, political abuse, and mad intoxicated debauchery, once it began taking its first shots of quantitative easing.
My pathetic assumption was that Ben Bernanke would deploy further QE only to stave off DEFLATION, not to create INFLATION. If the Federal Open Market Committee cannot see the difference, God help America.
We now learn from last week’s minutes that the Fed is willing “to provide additional accommodation if needed to … return inflation, over time, to levels consistent with its mandate.”
NO, NO, NO, this cannot possibly be true. Read more
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
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
Zero Hedge Feed- Guest Post: The Loan: An Exchange Of Wealth For Income January 25, 2012
- Brevan Howard Made Money In 2011 Betting On Market Stupidity, Sees "Substantial Dislocation" In 2012 January 25, 2012
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- Full Text And Word Cloud Of Obama's State Of The Union January 25, 2012
- The Game Of The State Of The Union January 25, 2012
- 24hr Gold Feed
- In An Epic Crisis Strong Beats Smart January 25, 2012
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24 Hr Gold Chart (CAD$)
- Gold Money Feed
- Fear Index shows that gold is undervalued January 24, 2012
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- Juan Ramón Rallo and Alasdair Macleod talk about the Spanish economy, gold and silver January 23, 2012
- Gold and silver prices regaining altitude on stimulus rumours January 23, 2012
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- OANDA Forex Blog
- Japan Expected to Post First Trade Deficit in 30 Years January 24, 2012Japan is expected to post its first trade deficit in more than 30 years due largely to the disruption of last year’s earthquake and tsunami. The country’s automotive industry was particularly hard-hit and production lines were forced to shut down and global inventory fell to record lows. The resulting meltdown at the Fukishima nuclear reactors continues to d […]
- EUR on Supplements? January 24, 2012Still no Greek deal, but optimism remains that debt laden Euro-zone members will avoid a messy default. However, worries over Portugal needing fresh help has managed to temper some of this outright enthusiasm. FX price action has lacked some of that “depth” as Asia has been mostly on hiatus for a second day because of the Chinese New Year. Even the US 2-year […]
- US Debt Prices on the Back Foot January 23, 2012Weekend discussions between Greece and its private lenders did not result in agreement as many had anticipated. At the same time, it has not been able to derail global equities entirely. It seems that investors have shunned the safety of US treasuries for a fourth straight session on hopes that a ‘Hail Mary’ deal by the Greek government is imminent. With the […]
- EUR/USD Squeezed Above $1.30 January 23, 2012By Sam Mattera Benzinga Guest Writer On Monday morning, the EUR/USD pair continued to rally, breaking above the $1.30 level for the first time in weeks. The euro moved higher, possibly on the speculation that the Greek crisis was coming closer to a resolution. Talks have been ongoing between Greece and its creditors to come a deal that would definitively res […]
- BoC Governor Carney Says US Never to Fully Recover January 23, 2012In an interview with a Canadian newscaster, Bank of Canada Governor Mark Carney said it will take several years for the U.S. economy to recover and even then, it is unlikely the American economy can ever return to its pre-recession level. “It’s going to take a number of years before they get back to the U.S. that we used to know — in fact, they are not, in o […]
- Are EUR Bears Losing the Fight? January 23, 2012What ever happened to the Greek haircuts? Market perception saw it as a done deal, where further details were supposedly forthcoming over the past weekend. According to the IIF, negotiations are ongoing and elements of an unprecedented voluntary PSI are coming into place. However, reports suggest bondholders have drawn “a line in the sand” regarding their ma […]
- Inflation Moderating Around The World January 20, 2012By Sam Mattera Benzinga Guest Writer On Friday, the Canadian consumer price index printed at less than expected, coming in at negative 0.6% against an anticipated drop of 0.1%. The prior month’s CPI reading was an increase of 0.1%. Canada’s drop in inflation echoes trends seen around the globe. Although headline inflation in the US continues to increase at a […]
- Week in FX Europe Jan 15-20 January 20, 2012It’s been a difficult week for the Euro ‘bears’; you get downgraded, receive some suspect economic data and fail to agree on a ‘haircut’ in stone just yet (details over the w/d), yet the currency appreciates +150pts from this years lows and in danger of edging even higher. What’s with that? Many analysts seemed to have factored in a record single currency lo […]
- EUR Shorts Suffer with Bond Bears January 20, 2012US data is beginning to highlight the disconnect between the US and the Euro-zone. As FX traders hone their Fixed Income (FI) skills with the Euro sovereign debt issues, even they must sympathize with the frustration of the US bond bears. The benchmark 10-year Treasury yield has defied improving US data, and straddles the +2% yield for most of this year. It’ […]
- China Feels the EURO Heat January 20, 2012Can we shout “soft landing” loud enough? That is what Europe et al. are praying for from the “Red Rocket,” China. As their economy slows and key export partners struggle more than ever, the government must ensure a soft landing. The call must be fiscal stimulus driven with one priority, improve domestic consumption. Policy makers seem to agree and are determ […]
- Japan Expected to Post First Trade Deficit in 30 Years January 24, 2012
