Gedankonomist

Copper, Gold and Coal Poised to Break Out

And what might give a "broader view," looking into your crystal ball?

On Nov 18 04:52 PM Fitz919 wrote:

> You read way too much into your charts. It's far too narrow a view
> for anyone looking to invest new money today.

Other Precious Metals ETFs to Watch as Gold Continues to Rise

If you think about it, precious metals have not really increased their worth that much.

Look at a 1964 quarter. This quarter is made of 90% silver so its "junk" value is a little over $3 in FED notes. (See the website coinflation.com.)

In 1964, that quarter could buy you a gallon of gas. Today, it can still buy you a gallon of gas.

So it's not that silver, gold, etc. has gone up, but it is the FED dollar that has gone down. This is what the Keynesians don't want you to know.

That way, they get rich while you remain poor and ignorant. So they use their lapdogs in the media to teach you that you are a "kook" if you think that gold, silver, etc. is a good investment. That in part, drives the price down. Which is fine with me, because it creates a longer buying opportunity; they cannot keep it up for ever. So eventually the price will go to where it should be.

The only risk is that when it finally fails, the scheme will "snap;" i.e. there might be hyperinflation. Then perhaps they might try to pull the same stunt that FDR did in 1933. So hide your stuff.

The Dollar Approaches Critical Levels

It has been said that the "weak" dollar benefits trade for the US.

Yes, in the same way a "weak" currency "benefits" a third-world country.

So the FED-inspired logic is, "let's print more money, let's close the trade gap" never mind the fact that we are turning into a banana democracy.

The Risks and Rewards of Fiat Money

"Central bankers are a powerful lot and so it’s easy to assume that they’re also prescient."

They're "prescient" in the same way the casino you play blackjack in is "prescient."

U.S. Trade Deficit Increases - Alternative Explanations

Perhaps the DC gang can redefine "export" and "import" to "remedy" the problem; similarly to the way they have redefined "manufacturing" to include things like hamburger flipping. Or to define "unemployed" as those who are only seeking a job.

Here are some ideas:

1. We've exported billions of dollars of military hardware and personnel into what, 150 countries around the globe? Perhaps the bean counters should count that as "export?"

2. Every year, we pay billions thru USAID to countries around the world, to essentially bribe their politicians into being our "friend." Since this money is "manufactured" by the FED, shouldn't the money be considered as "export?"

Any other ideas?

Fed Policy Becomes a Bourgeoisie Windfall

A Bourgeois windfall? Look at Karl Marx' Communist Manifesto, Plank #5:

"Centralisation of credit in the hands of the State, by means of a national bank with State capital and an exclusive monopoly."

You think the establishment of our "national bank," i.e. the FED was meant to be a windfall for the "Bourgeoisie?"

The "Bourgeoisie" is the middle class. The FED and every other child of the 10 planks in the Communist Manifesto was meant to eliminate the "Bourgeoisie." NOT create a windfall for it. And they are all working as planned.

Oh, the Communist Manifesto says that it is for the benefit of the "Proletariat." But the only way it benefits the "Proletariat" is to increase it's size. The true benefits go to an extremely wealthy, extremely powerful few. If that group is what you define by "Bourgeoisie," then I agree with you, although you use the wrong word.

Unfortunately, there is no synonym in the communist terminology for the "extremely powerful, extremely wealthy few." This is because the communist does not want you to be aware of them, because the communist himself wants to become extremely wealthy, and extremely powerful, at your expense, and all the while you think the communist is doing something good, he is committing the most vile forms of evil.

Here's a quote from the book "Tragedy & Hope" by Carroll Quigley which I hope, might give you more understanding of the situation you are in:

"There does exist, and has existed for a generation, an international Anglophile network which operates, to some extent, in the way the radical Right believes the Communists act. In fact, this network, which we may identify as the Round Table Groups, has no aversion to cooperating with the Communists, or any other groups, and frequently does so. I know of the operations of this network because I have studied it for twenty years and was permitted for two years, in the early 1960s, to examine its papers and secret records."

Roubini on Unemployment: 'The Worst Is Yet to Come'

"Roubini goes on to call on the Obama Administration to take direct action on jobs."

Roubini is right in his forcast and wrong in his solution. Obama and the rest of the DC gang can take two roads:

1. Follow Hoover/FDR's lead and turn the great recession into a depression.

2. Follow Warren Harding/Calvin Coolidge's lead and leave things alone. Stop trying to cure the market place with the same poison that ails it.

Will a New Gold Standard Make Our Future Brighter?

"These two economists have come to the conclusion that "[d]ropping gold did work" i.e. that abandoning the gold standard has somehow shortened recessions and reduced the inclination to raise as many tariffs."

In a way, these two charlatans are correct. The system has been "very very good to them;" they get nice fat salaries at some over-rated academic institution, they get this and that award, they get to sometimes go on CNBC, etc., and all they have to do is spew establishment propaganda.

So how do you expect them to say otherwise?

Gary Shilling Has Very Different Views on Inflation than Buffett

Here's another example (quoted below) of someone who doesn't understand the scam, and so has no idea what he is talking about. He is just regurgitating the same gibberish he has learned from the managed sources of information he has chosen to limit himself to.

On Nov 16 10:11 AM The Geoffster wrote:

> Conventional monetary theory suggests that the Fed holds the key
> to turning on inflation. This does not seem true in the current environment
> because of the massive debt overhang. We are still in a solvency
> crisis and the Fed's easing to date has merely staunched the blood
> letting. Monetary policy has yet to kick start the economy and fiscal
> stimulus has merely pulled demand forward. Gold and commodity prices
> are reacting to a weak dollar and uncertainty as much as inflation
> fears.

Gary Shilling Has Very Different Views on Inflation than Buffett

The fed wants to inflate asset prices? What is that supposed to mean?

Inflation is the increase in money supply. The FED has been doing that since 1913. The FED has been increasing the money supply (i.e. simply printing money) just for that purpose, so it's owners can have free money.

As a kickback, some of the proceeds go to the politicians, so that they don't have to raise taxes or cut spending.

This reply (below) is a perfect example of why this scam has gone on for so long. The people in the US have no clue! This is because you get all your info from public schools, and the boob tube and other mass media, which are all essentially owned/operated/manipul... by the same people who control this scam, or who at least profit from it.

On Nov 16 07:24 AM test213 wrote:

> The Fed wants to inflate asset prices to make the bank balance sheets
> better. Therefore, they will do whatever it takes to accomplish it.
> Inflation will be the outcome, but deflation has been what we got
> so far and until we get to inflation in a year or two.
>
> test213
> admin at invetrics.com

The Start of the Pound's Reversal

There's a 1 in 40 Chance That The Pound In Your Pocket Is Fake:

tinyurl.com/yd5dsh7

Gold Compared to Silver and Platinum

Nice charts.

Chart of the Day: Gold and the Dow

Awesome chart!

Congress and the Fed: An Epic Game of Chicken

"If the purpose of Fed independence is to keep monetary policy independent from politicians, who always prefer inflationary policies..."

And the shadow government that wants to keep the FED "independent" (read: unaccountable), they want what? What's best for you and me?

Duh!?

Cash-For-Clunkers Reveals Weakness Among Detroit Brands

Not only that but "cash for clunkers" reveals a "weakness" in Congress' knowledge of the Constitution. Nothing in there about Congress being allowed to rob Peter to pay for Paul's "green vehicle."

We could return the USA to greatness, if we only demanded that Congress obey the Constitution. But that will require some effort on your behalf.