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  • Trouble Ahead For The Gold Bears  [View article]
    Good comment. I agree with you. I am basically on a fixed salary and if there's deflation my purchase power goes up. With inflation/CB shenanigans my purchase power goes down. To hedge against inflation I keep about 10% in metals. These PM dips have provided an excellent buying opportunity for my metal holdings to catch up to my equity gains over the past few years. I'm positioned so that if the economy roars I'll do ok, if the economy stagnates I'll still do ok. I'm expecting stagflation and am long precious metals short the US economy by the way.
    Apr 12, 2013. 09:47 PM | Likes Like |Link to Comment
  • World Currency War II?  [View article]
    Is it a currency war vis a via competitive devaluation? Or is it a coordinated fleecing of these nation's citizens in an attempt to mitigate debt and preserve the political status quo?
    Apr 12, 2013. 09:09 PM | 1 Like Like |Link to Comment
  • The Ripple Effect Of 'Abenomics'  [View article]
    Japan is a good litmus test for the Eurozone and US, they are about a decade ahead of us in the global printing/fiat experiment.
    Apr 11, 2013. 08:27 PM | Likes Like |Link to Comment
  • Stars Continue To Align Against Gold, Goldman Sachs Targets $1,270 Per Ounce In 2014  [View article]
    I hope you're right and gold goes down to 1270, I'll buy like there's no tomorrow! I just don't see the dollar gaining purchase power from here: with our demographics, entitlements, spending, trade imbalance, Obamacare, and debt.
    Apr 11, 2013. 11:32 AM | 4 Likes Like |Link to Comment
  • The Futility Of Expanding The Monetary Base  [View article]
    The expansion of MB is in response to credit contraction and decreasing M2 velocity with the result being an offset in CPI to result in tepid 2% inflation. The Primary Dealers are hoarding excess reserves, not for the meager 25 basis points, but for fear; fear of another violent contraction of credit and run on deposits. The negative money multiplier has already threatened their solvency before (2007-8). This author is absolutely right, we find ourselves trapped. The Fed can't unwind, they can't stop printing, they can't reduce liquidity, so the money printing will go on and on vis a via Japan until the point of hyperinflation.
    Apr 9, 2013. 09:55 AM | 1 Like Like |Link to Comment
  • Here's What Happened The Last Time The Fed Owned All Outstanding Treasuries  [View article]
    It's hard to extrapolate trends from a pre Gold standard era to todays fiat madness. In the 1940s the FED couldn't monetize, they had to unwind. Not so today. We won't see any unwinding from this FED, we will see monetization instead.
    Apr 4, 2013. 05:19 PM | 25 Likes Like |Link to Comment
  • The True Cost To Mine Silver - Complete 2012 Figures  [View article]
    Most silver mined is a byproduct of other metal gathering. If silver goes above $50/oz then the miners will get better at mining it! It won't cost as much per oz to get when the miners start to specialize.
    Mar 27, 2013. 11:49 AM | 1 Like Like |Link to Comment
  • Inflation Will Not Take Off Until This Happens  [View article]
    Maybe demand side economics works better when you inject from the bottom rather than hoping to trickle money down from the banks through cheap loans?
    Mar 27, 2013. 11:45 AM | 1 Like Like |Link to Comment
  • Top Line Sales And Profit Growth Falter As The Dow Approaches All Time Highs  [View article]
    Thank you for the reply. That is really disconcerting, I wouldn't believe it...kind of like LIBOR.
    Mar 3, 2013. 02:45 AM | Likes Like |Link to Comment
  • Incomes Fall $505.5 Billion, Expenses Rise - Can You Say Stagflation?  [View article]
    Good Pont King Jefferson, I guess it depends on how successful the FED is at increasing the money multiplier, so far not very. Maybe the US is headed for stag deflation? It seems our monetary policy is pushing on a string. Look at Japan, credit contraction and decreased money velocity are making it very difficult for BOJ to create 2% targeted inflation. Similarly, the FED ZIRP crowds out private lending by decreasing available high quality collateral that can be repoed by shadow banks. The FED in essence has cartelized lending and banks are, so far, not playing the game the way they're supposed to. Politicians have to address the production side of the equation. Why don't producers want to borrow money and grow the economy?
    Mar 3, 2013. 02:15 AM | Likes Like |Link to Comment
  • Incomes Fall $505.5 Billion, Expenses Rise - Can You Say Stagflation?  [View article]
    The FED got us into this mess in the first place with all of these artificially low interest rates through the 1990s, now they can't raise interest rates without crashing the whole economy. Central banks were supposed to suppress volatility but, since 1917 we've had more volatility than before. The central planners can't get the money supply right. I say, gold standard, competitive currencies, no central bank, Austrian all the way!
    I'm young, I'm not a baby boomer. I don't care about my portfolio, and my nominal retirement gains, I want my country to exist for my daughter to have the potential to succeed. Scrap Medicare turn it into a voucher program, make social security optional, cut defense by 50% (close 450 of our 900 military bases), congressional term limits, flat tax, and then you would see growth my friend! In the long run ZIRP isn't gonna help us much, just prolong the agony (look at Japan).
    Mar 2, 2013. 06:52 AM | 5 Likes Like |Link to Comment
  • Incomes Fall $505.5 Billion, Expenses Rise - Can You Say Stagflation?  [View article]
    Datadave, LOL! Thank you for the constructive feedback, I will try to be more tactful in my criticism of our government. By the way you are too married to your liberal ideology, try to open your mind a little bit. Republicans = bad, Democrats = good, is so.... 1990s.
    Mar 2, 2013. 05:30 AM | 4 Likes Like |Link to Comment
  • Valuing The Yen  [View article]
    Jeremy, i really enjoyed your article, it has given me something to really think about and try to learn better. I always wondered how the Japenese system has avoided collapse for so long. How does a country remain solvent when interest on debt becomes greater than revenue? Isn't that a recipe for hyperinflation or default? If the BOJ stopped or slowed it's purchases of Japenese treasuries today and yields on the 10 year went from 0.7 to say 2%, then you'd see 85-90% of all govt revenue going to just service the debt. This in light of a demographic collapse, a new budget deficit, and the population starting to desave. It seems to me the Japenese fiat experiment is coming to an abrupt end.
    Mar 2, 2013. 04:27 AM | 1 Like Like |Link to Comment
  • Valuing The Yen  [View article]
    I thought yields increased as an issuers debt becomes less attractive.
    Mar 2, 2013. 04:16 AM | Likes Like |Link to Comment
  • Why The Price Of Gold Is Falling  [View article]
    My concern is that central banks have gotten it wrong so many times before (Greenspan in 2000 leading up to the dot com bubble and then again in 2007 with the housing bubble). CPI can remain tepid while the economy expands/contracts so the FED can inadvertently cause asset bubbles by keeping rates too low for too long. IMO distorting price discovery mechanisms for credit and causing moral hazard!
    Mar 1, 2013. 11:59 PM | 4 Likes Like |Link to Comment