Barry Sotoero

It's a Bull Market in Government Intervention

The Gov. has been making money at a rapid pace since 2001 when the World Trade Center were bombed. They have created debt of 1.3 trillion with the war, Fannie, Freddie, AIG and now another 500 billion or more!! It seems to me the Gov has created another 2 trillion on top of the 10 trillion owed in just a matter of a couple years. I did not notice but if anyone did, what did the dollar do in the wake of this announcement of mass gov. intervention? All my gold mining stockes have been soaring up almost 50% in last week with only a 10% move in gold bullion. It seems that maybe the big ,smart money in the system is fleeing for the safe haven of gold and precious metals. I also see oil rising in the face of a possible depression if this mass amount of liquidity does not work( oil has also been used this year as a hedge against deflation) This market rally was a rally in confidence that these financials that have been killed by short sellers can not be short sold anymore (till the ban is lifted) not because of better fundamentals!!! I still believe the demand for gold and other precious metals is the place to be for the long term during this deflationary time. Now that all this stimuluis is being injected into the economy will be seeing inflation of a magnitude much greater than that of the 70's. It almost has to happen, considering this problem is consideribly more dramatic than that of the 70's. Also what needs to be pointed out is that oil is hovering around 95 dollars a barrel and we certainly are in a recession. What do think the price of oil will be when our economy is back to 3% or 4% growth and we spark the BRIC countries by importing at our normal pace. I will tell you let's try 200 a barrel. Everyone has turned their head away from oil because of this financial turmoil. It is poised to soar again. What will the Gov. do stop commodity trading next. I don't think so. Well there is many other places to make money other than the broad market, but I truly believe we will see gold prices spike much higher that that of the seventies as people flee for a safe haven.

The Fed is Deflating: 10 Reasons Why

The people stating that this article are stupid do not understand that the author is just trying to get everyone to think. As I stated above do not worry if we are inflating or deflating both will happen many times over in order to fix this mess. Better yet take all the information given here and use it as ammo in order to make wise investments. What I am saying is don't go out and buy stock in companies that do not have a economic hedge against a falling dollar or rising prices, those will be first to fall. Buy what we should invest in are, precious metals and miners, oil drillers and services, foreign companies or US companies operating aross sea. The debate does not matter it's getting you to think that does!

The Fed is Deflating: 10 Reasons Why

This has to be the best article on Alpha yet. What we do know is that commodities are increasing in price. If it is being caused be a deflating dollar or a inflation speculation we should still do well making foreign investments and investing in gold. Oil will do well for some time before the economy tanks so badly that our oil consumption declines.