Base

One typically doesn’t look to government bureaucracies to receive hard-nosed, objective discussions on the economy so you can magine my surprise when the latest Financial System Review, published semi-annually by the Bank of Canada, landed in my inbox and I discovered that it contained a very sobering look at Canada’s economy and the many systemic risks the country is facing! It’s not surprising that this report was not picked up by the main stream news, because if they did the popular opinion of Canada’s invincible, recession-proof economy might begin to crumble. [Let me explain.] Words: 2400

Due to high unemployment and a weak recovery world central bankers are focused on weakening their currencies to boost exports. [As such,] I think [even more] quantitative easing and other currency intervention is in our future...[and this will further increase]...both inflation and the price of gold. Let me explain with a few charts.] Words: 350

Canada has the lowest total debt-to-GDP ratio of the world's 10 largest economies (Australia is 2nd best, Germany 3rd and the U.S 4th) while the U.K. and Japan are 9th and 10th but when such debt is broken down by sectors the findings are quite different. Let's take a look. Words: 800

The question most often asked of gold bulls is, “At what price will you take your profits?” It is a question that betrays a lack of understanding about why anyone should [want to] own gold [in the first place]. Nevertheless, the simple answer must be, “When paper money stops losing its value”. This response should alert anyone who asks this question to the idea that owning fiat cash is the speculative position, not ownership of precious metals. [Let me explain.] Words: 1184

U.S. stocks are trading at their cheapest levels since at least 1990, according to such commonly used valuations as price-to-earnings and price-to-book ratios as well as dividend yield...but [we ask,] cheaper than what? Different "investments" are valued differently at different times during the artificial central-banking business cycle that we must function under. In this case, we would argue, stocks are more likely reflecting potential chaos to come than a buying opportunity. Sure, there may be rallies during this fiat bear market but they should be considered within the context of the larger trends.

What a year for gold in 2011! It was up 9% in US dollar price terms and even more so in most other currencies; outperformed a large number of asset classes reinforcing its role as a foundation asset in portfolio construction; provided liquidity when investors needed it the most, acting as a risk management vehicle [and] served as a currency hedge throughout the year, in particular against the US dollar;...[and] gold fundamentals of supply and demand were robust [ which should remain so in 2112]. Words: 1530

[While] some investors are frustrated,, and a few are worried that gold seems stuck in a rut [such a] stall in price has happened before...[but has] always eventually powered to a new high...[Let's] examine the size and length of past corrections and how long it took gold to reach new highs afterward. Words: 740

Economists are telling central banks to accelerate monetary growth even faster...to avoid a bank balance sheet implosion with all the deflationary consequences that implies. [As such,] the prospects for 2012, and thereafter, are for Total Money Supply to continue its hyperbolic trend - and when such a trend becomes established it becomes almost impossible to stop because the whole debt-based economy and the banking system would collapse. [Let me explain further.] Words: 550

Out of the 7,500 separate mutual funds available, and with 22,000 shares classes to choose from, only 1 fund - just ONE fund - actually managed to achieve a greater percentage return than gold bullion since the alarm bells rang out at the turn of 2007! [That being said, are you still one of the 99% of investors who, for whatever reason (are you foolishly listening to the "advice" provided by your stock broker/securities salesman going under the guise of a financial "advisor"), is still without any physical gold or silver?] Words: 395

I recently wrote an article showing how US True Money Supply (TMS) appeared to be growing at a hyperbolic rate [see here], and that gold was also on a hyperbolic course...Hyperbolic growth in the quantity of money ends with hyperinflation... [and] both TMS and the dollar price of gold are pointing to a hyperinflationary outcome. This article explains why this might be so. Words: 764