silver-bug

Harvest Energy: East vs. West in Terms of Oil

Only time will tell. I believe that the short-sightedness of the west will deal a killing blow to the western economy, especially the US, with it's rapidly inflationary monetary policy. I will wait and see as all these dollars go chasing for the oil that the Koreans and Chinese bought at cheap undervalued prices. China is a Dragon that is waking up, and it's rapidly increasing middle class will drive it's domestic economy forward, as well as consume more and more oil as they buy more and more cars. China will gobble up all the 'extra' oil that the US doesn't consume and then some. Just wait and see, my short-sighted friends. Just wait and see.

Reduced Credit Limits: That's the Good News

While reducing credit limit may be good for the credit card companies, it is bad for the consumers who depend on credit cards. It is like getting the drug addict addicted to drugs and then cutting off the supply immediately.

And how is Obama going to make people spend more money to stimulate the economy when they have no jobs, no credit, and no house to live in?

Sure, it's one thing to forcibly give the credit addicts a lower limit, but what about the government? Does it have a credit limit? How much more can it spend without having the money? Where will the money come from? Who will the government tax? How much? The remaining workforce will have to pay the higher taxes down the road because the government can't tax people who have no income and no jobs. Say "Tax Squeeze!"

Social Security: Bankrupt System Will Impact Markets Sooner than Expected

Social Security is doomed to fail, because of government mismanagement. And don't expect medicare/medicaid to last either - they're in even worse situation since healthcare costs will only end up higher.. Don't expect the government to bail you out.. it won't! All it cares about is the corporations that elected the government officials... Take care of your own finances..

Check out this link from Peter G. Peterson Foundation's "Citizen's Guide".. www.pgpf.org/getinvolv.../

8 Reasons ETF Investors Go for the Gold

Gold is great, but silver is better. For those who say gold "is not money", they say that because they are used to the paper currency (and digital currency) that has replaced gold as "official currency". Governments hate gold because gold uncovers inconvenient truths about deficit spending and wasteful mismanagement of funds. Paper currency can be printed as long as there is cotton, ink, and printing presses (and now, as long as there are computers). Gold is not so easy to create, since it has to be dug out of the ground, refined, and minted.

Sobering Lessons on Hyperinflation from Zimbabwe

Hmm.. good article. Talking about converting paper to coins, that makes a lot of sense in a hyper-inflationary scenerio, although the banks will not be able to honor it. The way China and India (mainly China) are developing infrastructure and building more housing for the increasing city dwelling populations, the commodity boom will catch on momentum and drive up the prices of raw materials used for construction, including metals. I would exchange dollar bills for pennies and nickels since you get the most amount of metal that way.

Backwards Looking Leads to Bottom Blindness

Just because the market hasn't bottomed yet doesn't mean there can't be a temporary bear market rally - which can be mistaken as a bullish signal. Those who get caught up in the illusion will be guillotined when the herd of foolish cattle will stampede off the cliff.

That doesn't mean you can't make money, but it means you have to stay alert.

If Geithner Plan Fails, What's Plan B?

Oops.. they forgot to put Plan B together.. Sorry folks, but you're the Plan B! You guys figure it out!

10 Reasons Why We Still Haven't Hit Bottom

I'm glad we share a common viewpoint. I like your suggestion on point 8... let's cut salary of the mofos that are running this country into the gutter.. or better yet, fire them!

In This Spoon-Fed Rally, Never Underestimate the Herd

Well, 'spoon fed' seems a bit tame.. to me, it feels like this market is being fed intra-venously, with a couple of shots of some super stimulant hormones every other hour.

Marc Faber: 'It Will All End in Disaster'

kelm,
You're right. Human beings adapt, so there's nothing to worry about. Just like frogs in a slowly heated pot, we adapt. But the results are the same: we get boiled and cooked because we stayed too long in the pot because instead of getting out, we tried to cope with slowly increasing heat.

It's not a question of IF we can adapt. It's about how we ought to adapt if we care about our future and our future generations.


On Mar 25 11:22 AM kelm wrote:

> There is always some perspective required. If someone had described
> where we are today three years ago we would have regarded that description
> as economic hell yet we are all sitting commenting on SA and probably
> not sleeping too badly either. Yes, things are bad but you get used
> to it over time. That is the adaptability of human beings. Now if
> we say that the US dollar will be replaced by a new reserve currency
> and the US will see 20 - 30% inflation for a time and lose much of
> its international standing we think that is alarmist and yet another
> form of hell. But, if and when it happens, America will still be
> here and there will still be a bunch of middle age guys commenting
> on SA.
>
> The point being: the predictions sound scarier than the reality is
> when you get there - even if the predictions do come true. You get
> used to the situation as you go.

Gurus Say a Bottom Is in: Do We Listen?

I believe there will be a short 1 year rally (2009-2010) up to DOW 10K-14K before that false bubble pops and we go on a nose-dive again. All that money pumped into the economy has to go somewhere.

Answering My Children: What Comes After a Trillion?

This is a rhetorical question. If you are to follow the govt's example, you should be getting into as much debt as you can possibly afford and pay off these debts with worthless paper down the raod... brilliant!

Obama's following Bush's mantra: spend, spend, spend! It's the patriotic thing to do!

Peter Schiff Answers His Critics

It's funny how some people take things literally. If you are wearing a "bullet-proof" vest, it means the vest will prevent a certain calibre bullet from penetrating it. It doesn't mean that it will prevent an injury, or that it will prevent all types of bullets to penetrate it.

Use your common sense, Robotto. If you are wearing a bullet-proof vest that prevents up to a .38 calibre bullet, but you go ahead like a fool and take a .45 or a .50 calibre bullet, guess what - see you in heaven!

And yes, Fire Proof means it will prevent a fire from destroying contents or injury for up to a certain number of hours. It doesn't mean indefinitely...

Don't take things literally. "Crash Proof" means it is designed to prevent death from certain kinds of crash up to a certain magnitude and time-frame. It doesn't mean it will protect you from any or all kinds of injury.


Don't take things literally. And you can't fix stupid.

On Jan 30 08:38 PM Robotto wrote:

> When we say "fire proof", it means that we don't get burnt. The word
> "proof" is used to mean we are protected from something. Peter Schiff
> did not deliver what he promised. His investors were not protected
> from the crash. So he failed. There are fund managers who performed
> better than he did even though they did not predict the crash. In
> the end, what's more important?
>
> There is a big difference between a book about how to recover from
> your injuries after a car crash and a book about how to avoid a car
> crash. Schiff was claiming that he can protect you from the crash,
> but he clearly failed on that.

Jim Rogers' Recent Portfolio Moves

Thanks for this great article on Jim Roger's portfolio. I'm a follower of Jim, and I am convinced that he will be vindicated in the long term big picture.

Why Aren't Gold and Silver Even Higher?

I am convinced that with a highly inflationary approach of the Fed's recent move, gold and silver will move much higher - not IF, but WHEN, and HOW HIGH. However, it seems to me that the price of gold and silver are being 'managed' by Central Bank sales as well as shorting of paper contracts. So, the enemies of the gold and silver trade will do whatever they can to keep the prices under control (ie, keep them as low as possible) for as long as they can handle.

Once these controls lose their grip or get their hands severed by the explosive forces of the inflation they have created, the price of gold and silver will suddenly and violently shoot upward.