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David Urban

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  • Miles Kimball makes the case for a third term for Ben Bernanke: He “has developed an unparalleled skill in explaining and defending controversial monetary policy measures to Congress and to the public. The most important ways in which U.S. monetary policy has fallen short in the last few years are because of the limits Congress has implicitly and explicitly placed on the Fed.” [View news story]
    As a gold and silver investor I wholeheartedly support Ben Bernanke for a third term. The destruction from his War on Savers and Japan-style debt trap will send gold and silver to new highs.

    Just remember, nobody forced the Fed to buy 75% of Treasury issuance or almost $1 trillion in debt securities this year to prop up the economy.

    Ben is doing that all on his own.

    He could have let the recession do what it is supposed to do, purge the economy of its imbalances, so that it can move forward. Instead he is trying to reinflate the debt bubble and create an artificial recovery.
    Mar 23 03:03 PM | 4 Likes Like |Link to Comment
  • Bernanke press conference: "The lack of thresholds come from the complexity of the problem," he says, responding to a question about why the FOMC isn't issuing guidance about what economic indicators it wants to see before altering QE. The Fed is looking for "sustained improvement" in a range of data. [View news story]
    He really has no idea what he is talking about at this point in time does he?
    Mar 20 02:46 PM | 2 Likes Like |Link to Comment
  • Cyprus's parliament is due to convene this afternoon to debate an astonishing eurozone demand that it tax all bank deposits at up to 10% in return for a €10B bailout. While approval is not guaranteed, Cypriots rushed to take as much money as allowed out of ATMs. And although EU Commissioner Olli Rehn ruled out a deposit raid in other eurozone countries, menacingly for savers, eurogroup chief Jeroen Dijsselbloem would not. "We are in a new world," says an economist. Update: The parliamentary debate has been postponed until tomorrow. [View news story]
    I wonder if the US media will even report on this next week?
    Mar 17 04:46 PM | 2 Likes Like |Link to Comment
  • Developments In China Explain The End Of Gold's Rise [View article]
    You misunderstand how gold works with respect to China. All gold is sold to the Central Bank.

    If there was weak demand the Central Bank would be selling through Hong Kong not buying.

    That is how it works in Russia which has a similar program in place.
    Feb 1 03:11 PM | 1 Like Like |Link to Comment
  • Developments In China Explain The End Of Gold's Rise [View article]
    It may pay no dividend but most short to mid term Treasuries pay no interest and are negative when including inflation and currency debasement. What is the difference?
    Feb 1 03:08 PM | Likes Like |Link to Comment
  • Developments In China Explain The End Of Gold's Rise [View article]
    Very good point mcnai002. If one does a small amount of research they would discover that the world is made up of two camps, governments entering a period of monetization and not buying gold (Europe, Japan, US) and those governments that are showing solid growth (SE Asia, China, Brazil, and Mexico) who are gold buyers.

    Very distinct divide between the two camps at the government level.
    Feb 1 03:01 PM | 2 Likes Like |Link to Comment
  • Developments In China Explain The End Of Gold's Rise [View article]
    I have had those same email exchanges Doug and retain those emails for my personal records as well.

    People would be surprised at some of the comments made behind the scenes.

    I think this is just a short-term trade as people are rushing in at a top.

    Sentiment numbers are at extreme levels and the solution from governments is not growth but monetization.
    Feb 1 02:57 PM | 1 Like Like |Link to Comment
  • Barrick Gold (ABX) says life-of-mine costs at its troubled Lumwana copper mine in Zambia appear to be higher than anticipated, adding yet more bad news from a project that has provided little else since its purchase in 2011. CEO Jamie Solasky sees improvements ahead, but analysts speculate a writedown could be coming after ABX "overpaid for it by about 50%." [View news story]
    The whole purchase of Equinox Minerals was more of a push by Canada to keep a major asset out of the hands of the Chinese so this story is a bit more complicated than people realize.

    They may writedown the goodwill from the purchase price but exploration efforts this year have unlocked a major discovery.

    In the end it balances itself out.
    Jan 30 11:59 AM | 3 Likes Like |Link to Comment
  • Developments In China Explain The End Of Gold's Rise [View article]
    The editors are anti-gold and I will leave it at that.
    Jan 30 11:42 AM | 6 Likes Like |Link to Comment
  • As expected, President Obama will nominate White House Chief of Staff Jack Lew as Treasury Secretary at 1:30 pm ET today to replace Timothy Geithner. While Obama doesn't expect a difficult confirmation process, Lew's candidature has already received opposition from Republican Jeff Sessions, who's a ranking member of the Senate Budget Committee. [View news story]
    So let me get this straight. Obama never passed a budget in his first term and we are nominating the person in charge of that office to run the Treasury?

    No wonder gold and silver are up.
    Jan 10 09:20 AM | Likes Like |Link to Comment
  • FOMC Minutes: Everyone is clearly not on board. Fed officials are "evenly divided" between ending QE around mid-year or continuing until year's end. Several FOMC members thought it appropriate to slow or stop QE well before the end of 2013. [View news story]
    The first quarter of the year is historically bullish for PM's and stocks. I would be looking for quality in the sector at every level from producers down to juniors and keep stops on my positions.

    I personally raised my average exposure and will ease it back when I see that we have become overbought technically.
    Jan 4 11:10 AM | Likes Like |Link to Comment
  • FOMC Minutes: Everyone is clearly not on board. Fed officials are "evenly divided" between ending QE around mid-year or continuing until year's end. Several FOMC members thought it appropriate to slow or stop QE well before the end of 2013. [View news story]
    That would depend on GDP growth. If we had strong underlying growth I would say yes but there are other factors to consider.

    The Fed is still propping up European banks through their swap programs. An unwinding there would be a huge negative and that is not happening anytime soon.

    We have massive structural problems which are not being addressed worldwide. Spain and Greece have unemployment rates over 20% and youth unemployment rates over 50%. We are staring at a lost generation as GDP growth grinds to a halt.

    In this country not enough jobs are being created on a monthly basis to outpace the new entrants into the workforce and people are leaving unemployment for disability not because they are disabled but because they cannot find a job.

    We have to address the structural problems and we have the Fed buying almost $1 trillion dollars in debt in 2013. The game they are playing is not sustainable.

    If the pedal was pulled back there would have to be a change in the problems I listed above, swaps, unemployment, and debt monetization by Central Banks, for gold to crash. .Otherwise gold would spike lower only to rush higher when everyone figures out that the structural problems are still in place and the Fed has pulled the net away.
    Jan 4 12:29 AM | 2 Likes Like |Link to Comment
  • FOMC Minutes: Everyone is clearly not on board. Fed officials are "evenly divided" between ending QE around mid-year or continuing until year's end. Several FOMC members thought it appropriate to slow or stop QE well before the end of 2013. [View news story]
    Very true and Bernanke has backed himself into a corner with regard to monetary policy.

    If he pulls QE yields shoot higher, deficit explodes, and the dollar rises causing growth to slow.

    If he maintains QE we continue falling towards Japan 2.0 where our debt load grows to the point that we cannot use interest rates to effect proper monetary policy.
    Jan 3 04:27 PM | Likes Like |Link to Comment
  • FOMC Minutes: Everyone is clearly not on board. Fed officials are "evenly divided" between ending QE around mid-year or continuing until year's end. Several FOMC members thought it appropriate to slow or stop QE well before the end of 2013. [View news story]
    Depends on the holders of the Treasuries.
    Jan 3 03:47 PM | Likes Like |Link to Comment
  • FOMC Minutes: Everyone is clearly not on board. Fed officials are "evenly divided" between ending QE around mid-year or continuing until year's end. Several FOMC members thought it appropriate to slow or stop QE well before the end of 2013. [View news story]
    Loading up on juniors and have a few up 20% this year. The real value is at the junior sector if you know what to look for.
    Jan 3 03:41 PM | Likes Like |Link to Comment
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