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  • Surviving And Prospering Over The Next 4 Years Of Economic Darkness [View article]
    The Libertarian-Market Nihilst crowd is doing itself absolutely no favors by behaving like spoiled little brats after these election results.

    In fact, I think it is positively unseemly for the US futures to be having this kind of reaction so far. Let's hope responsible adults on both sides of the aisle - and their supporters in our Markets - turn things around dramatically by the end of the day.

    The hedge fund and money manager community in general need to absorb the fact that it is possible to trade from and make money from the Long side and that if they persist in this "Smart Money Versus the Masses" mindset, they will either get:

    The thinnest possible Markets, with no one but Them playing in the most brutal DOG Eat Other DOGs fashion . . .

    Regulations of Market activity at a level not dreamed of until recently . . .

    Or BOTH!

    And what goes for Hedgies and Money Managers goes double for Financial Media and its Mavens.

    The Politics of BOO! has been soundly rejected by everyone sane.

    No one is "exceptional" in the US, and the US is not "exceptional" among the countries of the world.

    This could be an extraordinarily exciting and dynamic and profitable period for everyone, if we began to embrace Growth in those parts of the World where the Bourgeoisie is rapidly increasing and Re-Growth in those area of the developed world which so badly need it.

    Those who don't care to participate should go and sulk on their private islands or otherwise stop spoiling things for the rest of us.
    Nov 7 08:34 AM | 34 Likes Like |Link to Comment
  • Has Paul Krugman Gone Too Far This Time? [View article]
    Of course, Krugman is crazy. But so are Grover Norquist and the Short-Oriented Hedgies and Daytraders screeching Kill! Kill! Kill! as per usual on Zero Hedge - and even some at Seeking Alpha.

    Compromise in the Market and Compromise in Politics go hand in hand - except there are more purely mechanical things you can do to calm the Market - all of which should be done now.

    The Financial Media, of course, are the most important Sentiment-Skewers, for good or evil. Many major media outlets have been acting primarily as scare-mongers for decades now, helping their advertisers, their owners, and their interests at the expense of simple decency and responsibility.

    I am actually quite hopeful that is coming to an end now, as the spotlight starts to turn on big money gone amok - and how it is not always the "smart money."

    Meanwhile, the most basic problem is what it has always been: Influence too concentrated. A surfeit of hubris and arrogance. And a lack of respect for one's own customers and/or constituencies.
    Nov 12 03:06 PM | 26 Likes Like |Link to Comment
  • Gold Bubble: Final Warning? [View article]
    Yuan just hit highest level against Dollar since 1993. And watch it escalate much faster and further after the G-20.

    Gold's inflation-adjusted price - to make up for being kept under a pile of bricks - and Treasuries - for 30 years - is $2400.

    When we get to $2400, detractors can talk about its being in a "bubble."

    Meanwhile, we are simply in a roaring Bull market, which closely parallels the Bull market in the Yuan and will continue to do so.
    Nov 10 02:14 AM | 26 Likes Like |Link to Comment
  • The Truth About Gold [View article]
    Vuke,

    Of course, we know WHOM!

    The Japanese, plus some finagling with whatever minimum amount of actual Gold is held in the ETFs, especially the newer ones in India and China.

    Word is now OUT that there are spot shortages of actual Gold all over Asia, as even the National, let alone private, Mints cannot get as much as they need to fabricate coins with the extraordinary demand this year for Lunar New Year's.

    So the Finaglers do what they always do - Throw a little bit of Gold out there to sink the nominal price, hoping that it will cause some smaller holders to panic and put more on the market.

    Only it's so transparent this time, it's not working very well.

    And using Gold and Oil to boost Dollah! Dollah! Dollah! at this time - days before the Hu visit - is almost beyond comprehension irresponsible - clearly against the best interests of the United States and its ability to negotiate with the Chinese.

    Who cares about the ridiculous Dollar Index, when it is now pretty much completely irrelevant to real world currency movements.

    They have to scrap it!

    The only money flows which really count are those between all three major Deficit Currencies - Dollar, Yen, and Euro - and the stronger every day Surplus Currencies, not only the Yuan, 40 percent undervalued, but also the Rupee, Real, Ruble, and various Commodity Currencies like the Aussie, Loonie, and NOK.

    But these Surplus Currencies use these little bouts of Baby Games among the Dollar, Yen, and Euro as times for excuses, exempting them from acting responsibly and letting their currencies escalate as they need to do for the good of the world. (Ergo, recent comments from Brazil.)

    In turn, this struggle will never be over as long as "Emperor Dollar" is permitted to be the Pricing Currency for commodities worldwide.

    This is the crux of the matter, and it is why the new currency alliance between Russia and China is so important. These two commodity powerhouses will now trade and price not only resources, but also manufactured goods, in their own currencies, without the unnecessary middleman of the US Dollar.

    Now, Russia and China are bringing South Africa, another resource powerhouse, into this arrangement, and many other countries will follow suit.

    Gold, as the ultimate Stateless Currency, reacts to these important changes almost immediately.

    Larry Kudlow and others who are stuck in the past can scream Gold Versus Dollar from here to eternity, and it's not going to fool anyone who understands the sector.

    Gold is now not even involved with the petty Baby Games among Dollar, Yen, and Euro. Other than for Propaganda purposes, that is!

    Gold should trade with the Yuan as it inexorably strengthens over the next few years, during which time it will continue to act as a transitional medium towards the New World Currency Regime which is already in place and growing more and more apparent.

    Very soon, ALL commodities will be traded and priced against Fair and Neutral Currency Baskets, not against Emperor Dollar. They will trade on supply and demand in a much more "free and open" market than the contrived and finagled market we have now.

    This will help some commodities and hurt others.

    But it will inexorably boost Gold, not only because world demand is beginning to outstrip new supply by a country mile, but also because as soon as it is freed from the more and more idiotic Propaganda constraints of the "Emperor Dollar" crowd, it will have to escalate very quickly towards what pretty much everyone - certainly every world bullion banker - knows is its proper inflation-adjusted price of about 2400.

    In any case, this latest bout of Dollah! Dollah! Dollah! Baby Gaming has been especially disturbing because it's been so transparently contrived. Listen to any of the Gold Baiters and Haters as they mouth their scripts right now. They can hardly read them without flushing bright red, stammering, and having their voices go up two octaves. They're like abject amateurs in a high-school play. Or - as we've said before - yapping little Chihuahuas.
    Jan 8 03:44 AM | 23 Likes Like |Link to Comment
  • Chinese Demand: Which Is a Better Short, Gold or the Miners? [View article]
    I honestly thought this might be a joke headline, from something like Mad Magazine.

    Barrick should blow away all estimates tomorrow, IMO, beginning a stellar run of earnings reports by the North American XAU/TSX Gold components.

    On the other hand, the biggest gainer the next few weeks should continue to be GG, which moves up in the sector Index rebalancings because of its very high growth rate over the next five years.

    Several key Canadian analysts - the people who best understand this sector - have one-year targets for Barrick in the high 60s, but one year targets for GG in the mid 70s.

    Both should do very well, however.
    Feb 16 01:18 PM | 22 Likes Like |Link to Comment
  • Is Gold's Golden Era Over? [View article]
    It is INCREDIBLY irresponsible of Seeking Alpha to keep up the stream of these Gold Short-protection articles in the face of what's going on now.

    They must change course immediately and start featuring Gold Bullish articles.

    For the good of World Markets, Gold must be allowed to make another new high within the week.
    Jan 30 04:48 PM | 22 Likes Like |Link to Comment
  • Why the Sun Is Setting on Gold [View article]
    Keep 'em coming, SA!

    We just sit here and laugh and laugh.
    Feb 22 04:31 PM | 20 Likes Like |Link to Comment
  • What to Expect From Gold Prices in 2011 [View article]
    Gold is only considered a Fear Trade by those who don't like and don't understand the sector.

    The rest of us know that Gold is a long-term secular Growth Trade.

    It is the Stateless Currency, which represents the Central Banks of the world diversifying away from Emperor Dollar and its domination of world trade.

    And even more importantly, it represents the fast emergence of a true bourgeoisie - a consuming middle class - in those parts of the world which are in the early stages of the world's Second Industrial Revolution - China, India, the rest of Asia, the Middle East, Africa, and Latin America.

    All of these fastest-growing regions are also the most historically Gold-centric.

    The only two Gold-averse countries in the world are the US and UK. Even Japan, which pretends to be Gold-averse, isn't.
    Dec 21 02:24 PM | 20 Likes Like |Link to Comment
  • Suiting Up for a Post-Dollar World [View article]
    The move towards more diversified world currency reserves is not only good for the world, it's good for the US.

    Like all Empires, the Dollah Empire has benefited a tiny group of Oligarchs at the expense of the rest of the population.

    It has allowed this Aristocracy of Wealth Alone to pervert American ideals and values and divert capital from where it is needed and where it can benefit the economy towards essentially stagnant uses of game-playing and preserving the status quo.

    Our manufacturing sectors have been gutted. Our resources sectors have been gutted. Small business has been gutted. And along with this economic destruction and debasement, our culture and our hope has been gutted, too.

    Wealth has not trickled down. It's trickled up or trickled away.

    We've essentially permitted the Shorting of America - and this is where it's gotten us.

    Maybe it's time to go Long on this country again.
    Jun 27 08:18 AM | 20 Likes Like |Link to Comment
  • Watch Out for the Silver Bubble [View article]
    Not only myriad reports of spot shortages, but big premiums throughout Asia as Commercials scramble to get enough for Lunar New Year's.

    Fundamentals DO count, you know.
    Jan 12 06:45 AM | 19 Likes Like |Link to Comment
  • What's Happening With Gold? [View article]
    Simon,

    Yesterday was an anomaly in Gold for various reasons. I posted this last night, and already several items on the list have proven true:

    1. Big Polyus deal today.

    2. Coming strike at Eskom in South Africa.

    3. Major terror incident late in day in Pakistan.

    4. Reports of forced liquidations in Europe, although these are often false.

    But here are the Biggies! (although Gold should have rallied hard on the terror incident under normal circumstances)

    5. Australian miners and government have reached important compromise. With any luck, we should see a nice rally in the All Ordinaries tonight and it will possibly extend to Australia's trading partners in Asia.

    But the Biggest Biggie: TSX closed for Canada Day. Historically, the US Gold short contingent absolutely loves to pull nasty, malicious moves like this when the US is open and Canada is closed.

    HOWEVER: On Monday, we will be closed, and Canada will be open. Which often leads to the opposite kind of UPside revenge by the Gold longs.

    Let's see if it holds true this time as well.

    Remember, the Canadian miners are announcing earnings early this quarter. In fact, very early.

    And looking at the average Gold price way up virtually the entire quarter, coupled with the Canadian dollar DOWN, there could be some nice upside surprises across the group. Also, new mines just opened for AEM, IAG, and CDE (not Canadian), which inked a very nice deal with the Chinese last week.

    That was light night's post.

    Australian rollback now should be in the market, as should Eskom. Canadians are back and while initially, they have to move their stocks down to conform to US changes yesterday, they will then reverse them up by mid-afternoon.

    And remember, they are open on Monday, while the US is closed, meaning they will have the jump moving the Gold - and possibly other commodity - sectors UP ahead of US traders.

    Re Energy sectors: It's what Candidate McCain got so, so wrong in 2008 and what the Obama-ites will hopefully not get wrong this time around.

    The market is way more important to consumer confidence than energy prices are. Way, way, way more important!

    Let the entire commodity complex LED by energy go up - not spike, just make up for all the lost ground - and retail and industrials and everything else will follow suit.

    Stop squelching Gold, because you can't now, anyway, and it's important to let the Tea Partiers have a win, if their Dollah, Dollah, Dollah play is going Bye-bye, which it IS.

    IMO, 80-90 percent of those who are Gold bulls are NOT Tea Party extremists. They may get the air time and the headlines. But most Gold bulls look on the sector as a growth sector, a positive sector, not a negative one.

    That growth is predicated on the explosive rise of a new bourgeoisie in the most traditionally gold-centric parts of the planet - gold-centric since the beginning of recorded history.

    These areas include most of Asia, Africa, the Middle East, and even Latin America. Both Russia and Europe, in fact, are far more gold-centric than is the US.

    The US and the UK are probably the only gold-averse countries in the world right now. And maybe even we will come on board eventually.
    Jul 2 01:29 PM | 19 Likes Like |Link to Comment
  • Gold Looks Expensive [View article]
    Why is this an Editor's Pick?
    Nov 27 07:13 AM | 18 Likes Like |Link to Comment
  • The Great Hedge Fund De-Levering Event Has Arrived [View article]
    I wanted to post this as a comment at Market Watch. But for the first time EVER that I can remember, I am not being allowed to post there. And it seems most of their Comments threads have been erased or hidden. In other words, Market Watch tonight is 100 percent in-house propaganda, with no other views allowed. VERY unusual.

    But here's what I wanted to post there - for bigger readership - and will instead post here:

    My view hasn't really changed in fifteen years

    The Meritocracy which made the US great has been turned on its head.

    The Best and Brightest are no longer in charge - no longer even influential.

    Instead, we have simply allowed the Nastiest and Most Bullying to take over. A reversion to the worst of the Wild West, except this time played out, not on the Great Plains, but on a completely unregulated Internet, the New American Frontier.

    As in that period, Outlaws - Organized Crime - have been allowed to run rampant. They pretty much control every inch of the Media and way too much of Political Power on every level.

    The Markets are at the center of this maelstrom, because they were once the Great Leveler, a source of Wealth Creation for ordinary Americans and other bourgeois citizens throughout the world.

    I truly thought we had learned the hard lessons in 2008 - all of us - and would simply not allow Markets to turn into vehicles of massive Wealth Destruction ever again.

    Maybe I am still right.

    If not, this is certainly not a case of Me versus the Evil Bots.

    This is a case of decency and fairness and optimism and hope versus those forces which would destroy every vestige of them.
    Aug 4 05:18 PM | 18 Likes Like |Link to Comment
  • Why The Stock Market Is Rooting For Obama [View article]
    Obama by 7 points and Dems pick up 12-15 House seats, with several prominent Tea Partiers losing.

    Polls have become extremely biased towards the very few willing to answer them, which means whatever Fringe people are the most adamant.

    Most adamant Fringe people are clearly now on the Right - actually NOT the Real Right, the Pretend Libertarian Right. They are answering polls. Fringe Leftists are mostly bored. People in the Middle refuse to participate in polls to the extent we are unplugging our phones and threatening to sic our Yorkshire terriers on anyone who dares to knock on our doors.

    Moreover, Pollsters don't reach anyone without a land line who uses cell only, which means many Millennials and many in the highly educated, Coastal brackets which all skew at least somewhat towards Left or Left-Centrist.

    Moreover beyond moreover: I think - you can tell by watching Fox News or CNBC - the Extreme Supply Siders are just sooooooo crazy this election, they are not above tweaking poll data in various ways that makes it dishonest. I believe such tweaking - and No, this is not always the case - has been going on mostly on the Ryan side - excuse me, the Romney side - he's so forgettable - this time.
    Nov 2 03:08 PM | 16 Likes Like |Link to Comment
  • How Gold, Silver And Platinum Will Respond To ECB's Money Printing [View article]
    Mark,

    I agree. Gold trading will move to Asia, where there is - you may have heard - a teensy little bit of real demand?

    (That was sarcasm.)

    For those who have been fast asleep: The Year of the Dragon begins in three weeks, early this year.

    During the Year of the Dragon - 2.5 billion Asians, give or take a dozen, traditionally consider it a tenet of good luck for the next 12 year cycle to buy at least a little Gold for themselves, their children, their elderly parents, their friends, their colleagues, their dentists, their garbagemen, their Internet friends . . . .

    The Year of the Dragon is also a propitious time to get married, have children, start businesses, and all those other happy events for which one generally gives or receives presents.

    Oh , I forgot! Also a propitious time to start a new Asian exchange to replace the Crimex. And for China to vault to the top of the heap as not only Number One in Gold Production, but also in Gold Wholesale and Gold Retail.

    All at a time when the Chinese are repatriating and stengthening their currency to support their own people instead of just Americans, who continue to insult them and diss their markets.
    Dec 22 04:47 PM | 16 Likes Like |Link to Comment
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