Prudent Investor's Comments

The FOMC Statement and Why I'm Recommending Precious Metals Again

Thu, 05 Nov 2009 17:52:20 -0500

@USisCorrupt: Pls check my blog as I have been recommending gold since 2005.

Bundesbank Agrees to Sell Gold

Tue, 29 Sep 2009 14:44:04 -0400

Sorry for multiple post of my comment.

Bundesbank Agrees to Sell Gold

Tue, 29 Sep 2009 14:43:30 -0400

Just to clarify: Germany's Bundesbank sells a few tons every year to the German mint for production of collectors coins.

Bundesbank Agrees to Sell Gold

Tue, 29 Sep 2009 14:42:14 -0400

Just to clarify: Germany sells a few tons of gold every year to the German mint for collector's coins.

Bundesbank Agrees to Sell Gold

Tue, 29 Sep 2009 13:50:46 -0400

Just to clarify: Germany sells a few tons for collectors coins every year.

The Numbers Are Too Big: IMF Research on Euro Policy Without a Single Absolute Figure

Wed, 02 Sep 2009 16:28:21 -0400

just give me some time to come up with evidence

On Sep 01 05:23 PM Dave Wrixon wrote:

> Well, just because the IMF is clueless, you cannot jump to the same
> conclusions about the ECB.
>
> For years the Yanks have accused the ECB of being overly cautious,
> keeping interest rates too high and the money supply too tight.

>
> You cannot have it all ways. Where is your proof?

Seeing Inflation with Your Own Eyes

Wed, 29 Jul 2009 08:53:22 -0400

Sorry for the bad link. Yoiu can download the PDF here:
www.4shared.com/file/1...

Eliot Spitzer Claims the Fed Is a Ponzi Scheme

Mon, 27 Jul 2009 19:17:46 -0400

You only talk about possible charges. Did he get indicted for anyone of those?

On Jul 27 10:21 AM whidbey wrote:

> Your credibility is shot to hell when you have to compare Spitzer
> to Bush to justify your harping on his nonsense attempts to re-enter
> the public scene..
>
> Spitzer resigned for real reasons like possible charges of lying
> to investigators, hiding payments to his lady of the evening and
> possibly defrauding his family business, federal tax fraud, trafficing
> for immoral purposes, the Man Act. Oh yow, questionable moral character
> in public office, and the terrible image of a prosecutor, State Atty
> general violating every law he enforced.
>
> Now the meat does he know anything about the Fed? I think he proved
> he does not. and makes you a real disgrace to SA.

European Credit Rankings: No Up-Trend to Be Found

Mon, 13 Jul 2009 16:05:54 -0400

paer losses? all of them

On Jul 09 11:40 AM wpdragon wrote:

> Eastern Europe - ugh.
>
> Another shoe to drop, and how many big European banks have huge paper
> losses there?

Is China Preparing to Buy Gold?

Sun, 28 Jun 2009 19:51:49 -0400

The bankrupt Western world sells its last true asset to be left over with mountains of paper and the Chinese are happy to get rid of their dollar paper assets in return for the ultimate cash since 6,000 years.
Hey great; we have a functioning free market here where the interest of both buyers and sellers are met. As to the wisdom behind the strategies of both parties involved I tend to see the Chinese winning the race of global redistribution by many horse-lengths.
In order not to clog comments, pls read more at prudentinvestor.blogsp...

Financial Blog Watch: Don't Believe Everything You Read

Sun, 28 Jun 2009 19:45:32 -0400

To your well balanced post on financial blogging I want to add just one thing.
Most commercial media do not permit comments on their sites whereas only a few bloggers like CNBC's Larry Kudlow adhere to the same system in order to avoid justified criticism of factual errors or their sometimes very out-of-date views that have not adapted to such facts like the USA having turned from biggest creditor into biggest debtor since Nixon closed the gold window.
Bloggers are well advised to check for factual errors or potentially 6 billion eye pairs will correct them in their comment sections at an instant. I too learn a lot from comments which I keenly read as they assist in steepening my lifelong learning curve.

Better Listen What China Has to Say

Sun, 28 Jun 2009 19:30:52 -0400

Mr. Lewis,
pls be so kind to include yr alleged lies in China's GDP calculation when alluding to such.
To find out what Yuans look like I modestly advise to do a "Go ogle" picture search.
Pls also provide more background why China is run less to the people's benefit, e.g. in a comparison with the economic governance of the USA which tries to nationalize away its problems.
Your kids will certainly be happy to pay up for the bonuses US bankers and the billions given to carmakers with hopelessly outdated products lagging several years behind European car making quality and fuel.
Pls also be a more specific why Europe is a dragon?
And pls check your last allegation which makes absolutely no logical sense.
Maybe you read your comments a second time before hitting the "publish" button and apply a spell-checker too. "Tenents" (???) could not be found in any of the dictionaries I use.
Thank you very much for your contribution.

On Jun 28 01:11 PM James Lewis wrote:

> I think the author does not understand the basic tenents of the balanace
> of payments. Nor does he understand how gdp is calculated in China.
> In China 6.1% GDP growth (which is around 4.5% after the lies have
> been factored out) is indicative of a recession. In terms of China's
> reserves, the reason why the Chinese Government has so much reserves
> because they run China like a business, not like a non-for-profit
> organisation with the PEOPLE'S best interests at heart. I'm sure
> most countries could build up reserves by holding down the living
> standards of a great majority of its people in order to fully exploit
> and profit from its human resources.
>
> Also do we not think China is getting a little head of itself talking
> about the Yuan being a reserve currency and the need for them to
> buy more gold. Most of the worlds population dont even know what
> the yuan looks it.
>
> And China is not a Dragon..it's hungry Tiger.
> Europe is the Dragon.
>
> Tom E, nice thoughts. Seems to me the speculative stock-piling is
> also a short-term trading hedge against the dollar weakening. Some
> days I feel that China is talking the dollar down to make their speculative
> stock-piles rise in value (in USD terms).
>

Map of the World's Resources: Nothing Under Europe's Soil

Mon, 15 Jun 2009 08:13:33 -0400

The paradigm has changed. Europe looted the rewst of the world of its resources in the past 2000 years. Now we have to pay for them, standing in direct competition with the Chinese who undoubtedly have deeper pockets.
In general I would say that self-moderation will become the buzz word as we cannot maintain the same resource wasting lifestyle 500+ million (whites) in the US and EUrope has been enjoying. Suddenly there are 5 billion non-Westerners demanding their fair share of the world's resources.

Two Charts Imply Current U.S. Recession May Be Longest in History

Sat, 13 Jun 2009 12:11:32 -0400

I did not know the USA has such a long history. Tell me more.

On Jun 13 09:28 AM markincorsicana wrote:

> "Longest in History" ? Longer than the one that started in 410? Certainly
> more global and likely to be painful for more people. And more profitable
> for more people as well.

Monetary Madness in a Single Chart: Hyperinflation's Just Around the Corner

Fri, 12 Jun 2009 10:45:36 -0400

The Fed will not be able to absorb all the fresh money - ahem, "liquidity" - because they bought all kinds of crap paper (CDOs) at mark-to-fantasy prices. Who will bail out the Fed by buying this crap anywhere close to the prices the Fed "paid" (hahaha) with its freshly digitized "money." Quote from JP Morgan, "Gold is money. Everything else is credit."

Expecting Hyper-Inflation: Fed Chooses to Monetize America's Debt

Wed, 10 Jun 2009 18:28:24 -0400

Thank you all very much!!! I am overwhelmed by receiving 50 comments on this post. I have to re-read all your comments and hope to answer your opinions/questions in the future posts to come. Nothing drives me more than such witty responses! Thx again.

EU Politics: Only Rookies Have No Plan 'B'

Tue, 19 May 2009 17:39:40 -0400

valinho, as I do some eu-blogging at thinkaboutit.eu I am most interested in the fact that there is still child labor in Portugal. Any suggestions would be very welcome.

On May 18 11:59 PM valinho wrote:

> the bigest problem with all of those "burrocrats" is that most of
> them have never run a business of their own, being resposible for
> its payroll and cash flow. The population problem in Europe, (I was
> born and raised in Portugal) is derived from obsolet labor, housing
> and education rules. We are educated to be a paper pusher somewhere,
> demand a job that does not exist for which we would not be qualified
> and would not produce enough to pay our own compensation, forget
> about producing a profit to expand the enterprise, and demand that
> that job is guaranteed almost forever working 11 months a year and
> getting paid for 14 months. Then we want to rent a place to live
> in and once you get in the landlord pretty much looses control of
> the property, although still resposible for the taxes and up keep.
> Because those jobs no longer exist and no one is going to invest
> in property under the actual leasing laws, the young people are forced
> to live at home with their parents, where they can not have the freedom
> to develop full relationships leading to mariage. That is my view
> on the problems afecting the european graying population. This
> is a result of two generations accepting the Crap the polititians
> have been feeding us for the last 40 years to keep getting elected.

My Favorite Financial Blogs

Tue, 19 May 2009 01:57:14 -0400

I was suckered into believing it is Marc Faber indeed as a twitterer uses a potrait pic of him and led me to this blog.
Thx for the heads up.
On another note if you write a really a good blog let me know by email. find my address on my blogger profile page.

Monetizing the Debt: Explanation For Non-Economists, Bankers and Other Laymen

Mon, 11 May 2009 11:14:17 -0400

IMO Blogging is about expressing an opinion.

On May 11 09:04 AM Dave Raithel wrote:

> A non-polemical account would have been much appreciated, but I usually
> expect too much from people. About all this "essay" does is demonstrate,
> once again, that "economics" is not a science. Economics is a babble
> of competing claims about reality reflecting the interests of the
> babblers...

Monetizing the Debt: Explanation For Non-Economists, Bankers and Other Laymen

Sun, 10 May 2009 11:59:22 -0400

Prudent Man,
I am impressed and would like to give you a TRILLION thumbs ups. Pls check out my latest post
prudentinvestor.blogsp...
and add to it.

A Must See Movie: 'Zeitgeist Addendum' Explains the Fiat Money System

Sun, 10 May 2009 10:51:25 -0400

Andypandy,
I will follow up this week with some links that explain this fundamental problem - which you sense very correctly - of a fiat money system.
One book I recommend to everybody interested in the subject is "Secrets of the Temple" by William Greider which is by far the best (of the very few) book about the Federal Reserve. Greider is a Washington Post veteran who has moved to the left of the political sphere since he wrote this master piece that is both informative and brilliantly written.

On May 10 09:42 AM andypandy wrote:

> Ok I was wrong, it's a great video so far - first 20 min actually
> helped me understand me something new... Where does the money come
> from to pay interest to the federal reserve if they are the ones
> who make the money? Ha, have I not asked that question before?

The EU's Continuing Political Weakness May Doom the Eurozone

Thu, 26 Mar 2009 03:47:17 -0400

I hope being forgiven for quadrupling the peace period in neutral Switzerland. They are "only" enjoying peace since 1815, excluding recent attacks from the USA and Germany on Swiss banking secrecy. Correction has been made. BTW I am a literate Austrian (no kangaroos here) and please google "flaming" in order to educate yourself a bit in commenting. Or go write your own blog.

Main U.S. Creditors Rub Shoulders

Wed, 17 Dec 2008 11:26:39 -0500

Pls check my archive about my opinion in 2005/6/7 when I did not conform with the bullish crowd either. Macro data signalled it all back then. The debt-to-GDP ratio surpassed its 1929 high in 2002. This mountain of debt will not go away without hitting the whole world.

anyway, I wish all commentators a happy holiday season, who offer their insights and do not let a mistake escape.

On Dec 16 03:44 AM aitvaras wrote:

> When there is a Consensus opinion from a majority of economists,
> the Prudent Investor does the opposite.

The Euro Has Significant Problems - And They're Likely to Worsen

Mon, 20 Oct 2008 10:15:17 -0400

Greenspan's Dog: The ECB is formally independent from the Eurozone members. Its shareholders are the Eurozone central banks. Second, it will not be able to come up quickly with a pan-European solution as the packages of various Euro members show. Thirdly, the ECB's balance sheet has grown some 50% this year alone. Leaning towards the Austrian school this is monetary inflation par excellence for me.

Österreichischer Adler: Thank you very much, the rest of Austria is still asleep and has no idea what may happen in the next weeks.

Equity Markets, Forex and Precious Metals

Thu, 04 Sep 2008 10:15:25 -0400

JP Morgan once said, "gold is money; everything else is credit." He did not mention that credit comes with today's rediscovered danger of counter party risk. Only PMs are a value in itself and not the obligation of another entity.

Why Commodities May Be Nearing a Turning Point

Thu, 04 Sep 2008 08:09:01 -0400

Nice reminder that bull markets like to travel with as little baggage as possible.

Dr. Kudlow’s Prescription? Gold Diagnosis Unclear

Wed, 25 Jun 2008 03:24:56 -0400

I agree, Monday's whacking of gold (and silver) in a matter of minutes and ahead of the FOMC meeting smells fishy.
I conclude the Fed will stand pat and gold may take off as Bernanke will prove again that he does not care about rising prices - and I don't mean the official statistics - at all. His future middle name shall be Ben Inflation Bernanke.
As the Eurozone has escalating inflation figures as well, being long gold will be the best defence against the meltdown of fiat currencies.

If the Silver ETF Does Drive Up the Price of Silver, Who Loses? (TIF, EK, DOW, DD)

Sun, 13 Nov 2005 04:58:40 -0500

One can also include electronics companies in this list as silver is the conductor with the best price-performance relation.

How Times Change the Man -- Alan Greenspan on The Gold Standard

Fri, 28 Oct 2005 07:53:18 -0400

Greenspan drew a blueprint for a return to the gold standard as recent as 1984. Click here