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Quantitative Easing To Infinity And Beyond!

Quantitative Easing To Infinity And Beyond!

“Quantitative easing” to infinity and beyond!  Fed Chairman “helicopter” Ben Bernanke, at the prompting of “The Community Organizer in Chief”,  is determined to destroy the dollar in order to restore the economy.  Kind of counter productive, don’t you think? This is Keynesian economic mythology to the power of ten.  “Quantitative easing” to infinity and beyond! With this second round of “quantitative easing”, the Federal Reserve is purchasing U.S. Treasury securities and paying for them by creating billions of dollars out of thin air.  Because the U.S. economy is slowing dramatically, it is unlikely that the “regime” and Fed Chairman Bernanke will curtail “quantitative easing” in the near term.  This policy [...]

Gold’s Next Move

Gold’s Next Move

The summer doldrums are officially here! Gold has come off its $1,260 high and is slogging around in the vicinity of $1,200 per ounce. The question now is what is gold’s next move? It appears that this trading range will hold, at least temporarily, and until we have a change in direction, the bull market in gold is still on. Look for this to change in August and at the very latest in early September. Short term, the upside may be limited, but long term, the bull is still intact. July has been a struggle for gold, but that is quite normal if you follow the “sell in May and [...]

Gold’s Warning Signs are Flashing!

Gold’s Warning Signs are Flashing!

Some times you have to call things as you see them.  Political ideologues are going after your investments.  You can either sit back and get sheared or you can wake up and realize that your feel good politics are threatening your way of life.  Now might be a good time to take off the blinders because gold’s warning signs are flashing!  “Change” is coming and it is going to be here sooner than you think. It is apparent that gold has made a move out of the consolidation pattern that it has been in since mid December 2008.  Are we moving to a new all time high, or is this [...]

Gold And The Big Picture

Gold And The Big Picture

Keep your eye on gold and the big picture.   Attention to the day to day action of prices and stocks can set you up for a kind of tunnel vision that will lead you to buy and sell at the wrong times.  Preservation and accumulation of wealth is the object when considering gold and the big picture! Markets move both up and down and, over time, this movement points to patterns that enable chartists to make reasonable predictions of what direction that they will take in the future. There are no guarantees that come with these predictions, but over the long haul they provide very useful information.  They represent [...]

Gold Is Showing Strength!

March 7, 2010 Market Updates 1 Comment
Gold Is Showing Strength!

Gold is showing strength against the dollar and the government spin.  If you ignore gold, it is at your peril! This is going to be a quick report today because my dance card has been full this weekend.  My apologies, but sometimes that’s the way it goes. Gold had a really good week despite the dollars strong run up of late and the outstanding jobs report, (pun intended).  Harry Reid commented that the  jobs loss of 36,000 is “really good”  What planet is this guy from?  Apparently Comrade Reid has lost all touch with what America is all about! America would be better off if Senator Reid was one of [...]

Is Soros Trying To Collapse The Dollar?

Is Soros Trying To Collapse The Dollar?

Is Soros trying to collapse the dollar?  As usual, we won’t learn all of the story until after the fact, but all signs are pointing in that direction.  The duck is quacking as I look into the question, is Soros trying to break the buck? The  30 year Treasury auction is in trouble! Last week the U.S. Government came very close to having a “failed” auction of 30 year treasuries.  This would be catastrophic for the value of the dollar and would unhinge the “full faith and credit of the U.S. Government” pledge which is the foundation of the dollar. There are two types of buyers that fund the U.S. [...]

Gold Slips On Greece?

Gold Slips On Greece?

Gold slips on Greece may not be the truth behind the story, but it does make a good headline. The Greek meltdown will have long range implications for the world’s financial markets, but gold slips on Greece will be a footnote to the larger story. The old adage is “buy the rumor and sell the news”.  This week it looks like gold has reversed that for the time being.  Everywhere that you look there is another story about how gold is dropping due to the socialist boondoggle that is the Greek financial situation.  Before we look at the chart for gold this week, take a quick look at this example [...]

Is The Gold Correction Over?

Is the gold correction over?  That is the question of the hour.  I will lay out the reasons why I think it may be getting close to the end as I try to answer the question, is the gold correction over? It is important to remember that in just 5 weeks ending in late October 2008, the HUI dropped 57.2% as the metals fell with the market in the wake of the financial crisis.  No one predicted the financial crisis, except Jim Sinclair, and he did not call the date but rather said it was coming sooner rather than later.  I certainly did not predict the meltdown that occurred in [...]

Government Policy Underpins Gold

Government Policy Underpins Gold

Government policy underpins gold for the foreseeable future. There are three choices that the progressives are currently faced with and only two that they will actually consider. Implementation of either of these two choices will prove that government policy underpins gold! This first fact must be read, understood and acknowledged by every serious investor. Government policy affects all investments to some degree or another! The US Treasury is caught between a rock and a hard place. It needs to issue roughly $150 billion of new debt per month while rolling over trillions in existing debt while being faced with investors who are willing to lend to it for shorter durations. [...]