Dykes

Want to Own Silver? Forget About SLV

What strikes me from these comments is how parlous a state we are in, when it has been conclusively proven by the current debacle that we cannot trust government, lying government officials, government agencies such as the SEC (think Bernie Maddof), banks, the Federal Reserve, rating agencies, the COMEX etc. Why on earth would we trust SLV or GLD? Common sense and basic knowledge of human nature tells us almost irrefutably that there is something "going on". It is axiomatic that those who have an advantage over others will use it to prey on those who do not, and although there have been some valiant efforts in the past to contain this, in the far gone state towards our demise that we have now reached, with unparalleled levels of government and corporate corruption, I have absolutely no difficulty in accepting Jeff's contention.

There Are No Good Choices for the Fed

Mauldin has been perennially wrong over many years, and has a dismal track record. He is the instigator years ago of the concept of the "muddle through economy." Some muddle! So we can say that he did not foresee the current debacle though it was staring him in the face, unlike a few other less vague commentators such as Peter Schiff, Ron Paul, or Jim Sinclair. How does this now qualify him to prognosticate, which one can see he is wisely deisiting from doing?

Now we have a new vagueness, which is that he doesn't "know" whether there will be inflation or deflation. Brilliant illumination! Still steering the middle course.

John is an establishment man and he doesn't want to rock the boat, as it could hurt his credentials in La La land amongst the status quo.

Why $200 Oil Is Good for US Markets

"The impact of the impacts" is upon us, repent all ye sinners, as the end is nigh, Most exasperating, wouldn't you say?

Why $200 Oil Is Good for US Markets

"The impacts of the impacts" is upon us! It is very exasperating!

Will Gold Break Out?

Gold has usually made its most massive moves with RISING interest rates as it did in 1978-1980 rising from $100 or so to $850 at 17% interest rates at that time.This is because long-term rates start rising with increasing inflation which is what is happening now, and as long as there is still a NEGATIVE real rate of return on money people will turn to gold. Only when the likes of Paul Volcker intervene and raise interest rates to create POSITIVE return can gold be threatened. In 1980 the positive return was more than 7%. To achieve this at the present time you would need to raise interest rates to 15% or more, as inflation is not 4% as reported but more like 10% and I am sure you don't need me to tell you this ( also see shadowstats.com ).

If rates were raised to 15% can you imagine what would happen to the stock market and the housing market? I think not somehow.

At present gold is being manipulated by the authorities through surrogates to make the picture look less terrible than it actually is and prop up the ludicrous dollar, and every time it falls those shorting it come in at lower levels, and well infromed cognoscenti come in to buy physical for long-term protection. This range trading is soldifying gold and it is poised to make an enormous run towards the end of summer.

Intervention will soon become futile as people want gold at any cost, as the banking and derivative crisis unfolds over ensuing months, and it becomes quite evident that nothing can be done to contain it.