The International Monetary Fund (IMF) painted a stark picture of the global economy this week slashing the outlook for world growth while forecasting a damaging recession in Europe that will leave no country, including Canada and the U.S., unscathed. The report stated that financial conditions have deteriorated, growth prospects have dimmed, and downside risks have escalated and, as such, policymakers must immediately move forward together to save the world economy from falling into a 1930s-style death spiral because the longer corrective action is put off the worse it will actually get. Words: 640
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$10,000 Gold Debunked (+3K Views)
$10,000 (U.S.) gold [is] a gold bug’s dream come true [but] investors would be wise to have far have more modest expectations. [Let me explain why.] Words: 1000
Read More »Bank of Canada Report Suggests Economic Situation is Dire and Could Deteriorate Rapidly! (+2K Views)
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
Read More »Buy Gold NOW Ahead of Further QE – Here's Why
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
Read More »When Should You Sell Your Gold?
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
Read More »World Gold Council Report: A Look Back – A Look Forward
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
Read More »True Money Supply Is Already Hyperinflationary! What’s Next? (+3K Views)
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
Read More »These 5 Apocalyptic Engines Causing Hyperbolic Growth in US Money Supply
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
Read More »Goldrunner Called $1,920 Gold High Exactly; Now Expects $3,000 – $3,500 by Mid-Year (+6K Views)
Short-term volatile moves in Gold, as we have seen over the past few months, do not affect our projections for the future price of Gold based on our fractal (pattern) "model" off the late 70's Gold Bull. Just as we correctly projected the $1,920 high in our April article entitled Goldrunner: Gold on track to Reach $1860 to $,920 by Mid-year (gold reached $1,917.20 in late August and $1,923.70 in early September, 2011), our current analysis indicates that Gold will enter a range between $3,000 and $3,500 by mid-year 2012. Words: 975
Read More »Alf Field: Will Derivative Losses Be Black Swan Event Propelling Gold to $4,500? (+2K Views)
To achieve the EW target of $4,500/ozt. on the next upward move [in gold that I laid out in my article Alf Field: Correction in Gold is OVER and on Way to $4,500+!] will require something to trigger substantial new buying of gold. What could that event be? By definition, it will be a surprise to all market participants, a “black swan” event. That doesn’t prevent us from making a guess [and] one likely area from which problems could emerge...[would be] derivatives. [Let me explain why that might well be the case.] Words: 591
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