Gone Broke

The Intrinsic Value of Nothing, Part 2

The intrinsic value of this article is nothing.

Gold Price Forecast: Market-Long-Wave Analysis 2009-2012

Good point. Are there not also production costs for houses?


On Apr 22 11:29 AM Zoltan L. Kovacs wrote:

> There is (at least) one missing variable: production costs for gold.
> This and the gold price determine the price for the mines and not
> the other way round.

China Concerns, Crashing Currencies and the Future of Gold Purchases

Since when is:

"I think it is fair to assume ..."

a basis for anything?

New Mark-to-Market Rules: Playing Pretend

Can someone please explain how $500tr anything can be created if that is less than many times the world's assets? Isn't there some fundamental law of money that is similar to the first law of thermodynamics?


On Apr 05 09:20 AM Jonponwon wrote:

> It is difficult to know why the only rational option is not being
> followed. The derivatives out there may exceed $500tr, which is many
> times the total value of world assets. They are not financial assets
> or documents, they are gambling debts, and they should be treated
> as gambling debts are in the western world - unenforceable. By legislation
> they should be made unenforceable by any American Court, and foreign
> judgements arising out of such debts should be barred. Only when
> these toxic assets are out of the way can any fiscal action be meaningful.
> What is the point of a quantitative easing of $1tr if the debt out
> there is actually $500tr. NOTHING but this logical solution can end
> the crisis

Sorry Gold Bugs, It's Time to Sell

Why didn't this genius sell before when gold was over $1000???

In Defense of Peter Schiff: A Response to Mish

I followed Schiff's strategy and ate it big time. I sure hope he's right about being early rather than wrong.

What bother's me most is Schiff's inability to admit he made a mistake. Makes me want to run as far away from this guy as possible. Anyone can make a mistake, but not everyone sticks to it like super glue.

The math is simple. If the currency of a country is down 35% and the stocks of that country are down 35%, you are down 70%. You don't have to be a financial genius to know that hurts.

The Law of Unintended Consequences: 20th Century and Beyond

Overall a good article. But there were a few guys out there that saw what was about to happen. LIke Schiff in Crash Proof even tho he was wrong about how it would all play out, he did see and predict that things would fall apart. Others include Leeb, Arnold, Turk, and Rubio. One, I forget which, nailed it perfectly about what would happen and how to play it (invest in TIPS and get out of stocks till they fell 73%).

The real question is ... why is it no one pays any attention to these guys? Perhaps Robert Ringer (Looking Out for Number One) was right ... "we don't love the truth but want to make true what we love."

Good Luck in 2009.

President of Euro Pacific Capital on Gold and the Dollar

I've been following Peter Schiff for some time now and while he has been ever so right about how things are going to fall apart, he has not been so right about how it will all play out. Anyone following his advice before things fell apart is in a lot of pain. For those that do not know, Peter's advice was to get out of dollar assets and invest in foreign stocks. Somehow, Peter missed the pattern that when USA stocks go down, so do all other stocks. So ... you would take a hit on the currency (because the dollar went up, not down) and then also a hit on the stocks going down, so you take a double hit (like 70%). I just wish Schiff would admit that he missed something and move on instead of insisting he was right (when he was not and it hurt people) and that all he needs is more time. Perhaps with time things will turn around, but if and when they do, those that followed Peter will at best get back to where they were before things fell apart. And at the moment, even that seems unlikely. I know, as I followed his advice. Happy New Year Everyone!

The U.S. Debt Quandary

The above article could have been written by Peter Shiff. He;s been saying exactly that for several years now. Shiff is author of "Crash Proof." But Peter's been wrong too. He's been right about the "what will happen" but wrong about how it "will play out." Per Peter, the dollar should be collapsing now and foreign currencies and foreign stocks rising. But just the opposite is happening. The dollar is strengthening and foreign stocks are tanking just like ours.