These days any time anyone shorts the yen—or any currency with below average interest rates for that matter—it gets referred to by some strategist or equity investor as ‘the carry trade’ - but it is wrong. Below is a clear description of what a carry trade is - and isn't - and why it is so prevasively misunderstood. Words: 714
Read More »Search Results for: deflation
Debt Ceiling Suspension First Step Towards Eventual Hyperinflation – Here’s Why (3K Views)
Out of control spending by a government is always the cause of hyperinflation. The debt ceiling had been the last remaining roadblock to unlimited federal government spending. By suspending the debt ceiling, the U.S. government has given itself a blank cheque, taking one giant leap down the road leading to the hyperinflation of the US dollar. Words: 632
Read More »Roubini: Falling Commodity Prices are Signs of Weaknesses In…
While falling commodity prices are beneficial to countries that are net energy and commodity importers they actually may be signals of weaknesses in the growth of the global economy and economic weakness across the globe.
Read More »8 Reasons Why Gold Crashed & Will Likely Continue to Decline
In my article of April 5th, posted here, I maintained that in the next year, and particularly for the next three to six months, a liquidation phase in the current cyclical bear market in gold would likely develop,,,[causing gold to] fall sharply. [Below are the 8 reasons I mentioned back then which still remain relevant today.]
Read More »Gold: What Caused the Latest Bloodbath & Why
Right now gold has no friends. Even some of its biggest proponents are declaring the bull market to be over...Let’s kick around a ‘short list’ of potential reasons for what caused the latest bloodbath. Words: 1170
Read More »What We Like & Don’t Like About Gold
Whenever a sharp and unexpected correction occurs after many years of gains, one is forced to take a step back and consider whether the bull market has breathed its last. Frankly, we don't think it has, but the best way to go about this exercise is to consider legitimate bearish arguments. Words: 1853
Read More »Gold Bugs: Look Out Below! Gold Could Drop to $1,000 (+2K Views)
Gold bugs: look out below! I think gold could fall to $1000 or even less as it realigns with other commodity prices. Words: 865; Charts: 4
Read More »Goldrunner: The Fed’s Disinformation Campaign Is a Crock! Here’s Why
I don’t think that KWN is doing the Gold community any good by throwing this guy at us and, unfortunately, I don’t think that JS is helping by not ripping this guy apart.
Read More »What Does the Future Hold for Gold? 3 Determinants
The best way to think of gold is as a non-yielding currency with a special trait: The only way to "print" it is to pull it out of the earth at great cost. As a currency with no yield and limited practical use...gold's investment case largely rests on its ability to insure against currency depreciation. Few people expect to make money by taking out insurance policies. I don't recommend allocating any more than 10% of a portfolio to gold. Words: 610
Read More »Gold $5,000 & Silver $200? Market Reality Is Not Until… (+2K Views)
So many headlines are saying “$5,000 Gold; $10,000 Gold; Silver, The Investment of the Decade,” etc, etc, etc. Will that happen? A history of failed fiat currencies says "yes". When will it happen? That is the question few articles address because they simply have no clue, beyond their sensationalized headlines. Who can best answer that question? It is not "who can", but "what can", and that comes from the market itself - ever the most reliable source. The answers may not always satisfy, but the market is never wrong [and this is what the market is saying]. Words: 590
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