Darrell

http://www.myblog.com

16 Comments

    • Russia: Beware the Bear [view article]
      Yuri gas made some valid points, but what he did not discuss is the fact that Russia, like the US, started an unjust war; when they allowed Georgia to become an independent country they gave up their rights to impose their will on a free country.

      They should have used diplomacy, not violence, to address the concerns of the minority populations in Georgia.

      Economically, I think Russia will thrive and become an economic power; but it remains to be seen if they will become a moral force in a globilized economy. Over the years Russia has produced some great spiritual leaders, including Father Arseny, and I pray that a new generation of spiritual leadership will take control; it is obvious that the current leadership has not taken up the touch.
      Aug 20 02:00 AM
    • The End of U.S. Financial Domination [view article]
      The question should be: who holds dollars? My understanding is that over 50% of the dollar supply is held by foreign central banks, foreign savers and investors and foreign institutions.

      The dollar is accepted as legal tender is most countries. In this content the dollar has value. I can go to almost any country in the world and use my dollars to buy goods, services and/or assets; the seller in turn will exchange their dollars for their own currency.

      The country’s central bank is left holding the dollar, which they reinvest in incoming producing assets. Sovereign Wealth Funds are simply a national vehicle for investing surplus dollars and other currencies into wealth producing assets. These wealth producing assets will generate goods, services and/or assets that will be exchanged for currencies.

      If one listens to our policy makers one thinks that this is a never ending circle that is raising the standard of living of the poor and downtrodden. The argument that one is exchanging something (goods, services, assets) for nothing (currencies) doesn’t hold water with them.

      They respond that economies are operating in a globalized economic environment and currencies are simply a medium of exchange to make the process work effectively. Currencies are governed by treaties and treaties can be changed to accommodate changing conditions.

      Because globalization is a new economic force, market forces have not yet worked through the system. These market forces will correct and strengthen the globalize economy not ruined it.

      The policy makers say that people of economic doom are simply ignoramus’s who don’t understand how the system works.
      Aug 08 03:09 PM
    • Freddie and Fannie: Nearly Gutted [view article]
      The times are proving to be quite interesting: in Canada, there is no such thing as a 30 year fixed loan. Canadian homeowners have to refinance every five years, and each refinancing, the homeowner has to reapply for the load, and pay much up front fees each time they reapply.

      Freddie Mac and Fannie Mae buys loans from banks and either resell the loans or keep them as an investment; with their demise it will be a matter of time before our banks adopt the Canadian home loan refinancing model.
      Jul 10 07:14 PM
    • McDermott International: Energy Diversified [view article]
      I second Investor88; one can tell that you found your calling in life.
      Thank you for sharing your thoughts.       Jul 08 05:48 PM
    • We Need Economic Stimulus, and We Need It Now [view article]
      Essentially we are getting something for nothing. Central bankers know by accepting the dollar as legal tender in their country, their merchants are exchanging their goods, services and/or assets for nothing.

      I think central bankers are hoping against hope that our next president will set some kind of controls that will prevent the arbitrary issuance of currency; if this does not occur then expect the dollar to be abandoned as legal tender for international transactions.

      Enjoy your vacation.
      Jul 02 12:22 AM
    • BB&T Corp: The Best House in a Bad Neighborhood [view article]
      The question is: how will BB&T assets fare in an inflationary economic environment? With interest rates on saving accounts below asset rate of return, BB&T earns a profit. What if the reverse occurs? Jun 19 06:50 PM
    • Is Aurelian About to Be Sold? [view article]
      China has proven that socialist governments have learned that it is better to tax the profits rather than try to make the profits.

      Expect a large % of Aurelian Gold’s profit to be taxed by the Ecuadorian government in the name of the Ecuadorian people.       Apr 09 06:36 PM
    • Keep EnCana On Your Short List [view article]
      It is a good company, which I have owned when it was 70% owned by Canadian Pacific. However I disagree with management decision to use some of its cash flow to buy back shares. It should use its cash flow to pay down debt or build up its cash flow. Or, better yet, invest in alternative energy. Apr 07 05:56 PM
    • The Troubles in Financials Are Not Over Yet [view article]
      One has to remember that the debt explosion came about because foreign holders of the dollar were seeking a better return on their dollar holdings. They invested their excess dollars into treasury bills and were getting a negative return on their investment. Various types of sales people convinced them to invest their excess dollars in AAA rated debt securities.

      These securities offered an inflation adjusted rate of return. Obviously no one understood these debt securities, as they lost value quickly,

      Asset prices bubbled because of an excess dollar supply. Federal Reserve policy makers think they can deal with the problem by printing more money and making it available at low cost to the very institutions that created the debt problem.

      The problem is that the process for selling this debt has changed and no longer is there buyers eagerly purchasing them. Also, the perception of the dollar’s value is slowly changing: when one exchanges their goods, services and/ or assets for dollars they are accepting a currency that is declining in value daily.

      Investors are now entering into an uncharted financial storm caused by the following events:
      1. dollar’s decline in value;
      2. the potential difficulty in selling new debt securities;
      3. The long unwinding of existing debt securities, with the realization that much of the AAA rated debt may be worthless.

      It remains to be seen what the consequence of creating an excess money supply will have on the global economy, but my thesis is that the global economy will, in the end, demand that we put controls on our money supply. Or else.

      And this is why I am spending May 08 in Ireland.
      Apr 04 04:06 PM
    • Cascade: Great Bank, Overvalued Price (CACB) [view article]
      Hi Geoff:

      I just brought CSAB at $10 a share; I plan to buy more if price goes below $8 a share!       Apr 03 05:18 PM
    • Cascade Bancorp: Attractive Breakout Stock [view article]
      Hi Tate:

      I just brought CACB at $10. And I will buy more if it goes below $8!       Apr 03 05:12 PM
    • Energy, Inflation and Gold [view article]
      Mkreisel evaluation of the US strategy on currency is correct: the world’s central bankers accept the dollar as legal tender for commercial transactions within their country. This means that Americans can go any where in the world and exchange the dollar for goods, services and/or assets.

      Our politicians have developed into moralist and passed laws that prevent oil exploration on offshore California, in the Rockies, and other areas of the country where damage to the environment could occur if exploration activities took place,

      Meanwhile the world central banker’s are stockpiling dollars at a rate not seen since the beginning of currency exchange system. What are they going to do with this currency hoard?

      One thing is for sure our government will not allow the central bankers to use their dollar stockpiles in a way that would damage the US economy. So yes, buy commodities, but be sure that mines are in friendly countries.
      Apr 03 11:07 AM
    • Goldcorp Down as Gold Price Falls [view article]
      The demand for gold to be used as money will continue as long as there is no control over the amount of money that Central Bankers can produce; people will simply convert their cash holdings to gold holdings. Mar 18 05:33 PM
    • Analysts Divided on EnCana's Estimates [view article]
      One must remember that ECA owns most of their own land which is located in Canada and the USA. As demand for oil and gas continue to increase thoughtout the world, I think ECA's assets will only go up in value.
      Feb 15 04:54 PM
    • E*Trade Will Recover [view article]
      Hi Guys:

      Has anyone tried Wells Fargo's platform? I heard that they are very good at customer service, and you can go to a local branch to make deposits to your account. E*Trade does not have branch offices and most communications are done electronically.

      I have most of my accounts with Wells Fargo but my trading account is with TD Ameritrade and I agree that their service is something to be desired.
      Jan 20 01:20 PM
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