April 29, 2011

Precious Metals vs. the USD

Disturbing bit of news. I unfortunately hold many of the same beliefs. 

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Precious Metals vs. the USD

An interview with Karen Roche of The Gold Report  


One sure upshot of the quantitative easing money flooding the stock market will be further distortions, chaos and unpredictability that make the value-investing proposition difficult, if not impossible, according to Casey Research Chairman Doug Casey. On the eve of a sold-out Casey Research Summit in Boca Raton, Florida, Doug returns to The Gold Report. In this exclusive interview, he warns, "Like it or not, you're going to be forced to be a speculator."



The Gold Report: When the average investor turns on the news, even on financial channels, they hear that the U.S. economy is in the best shape it's been in for three or four years. While the experts say the recovery is slower than anticipated, they expect its slow recovery will equate to a long, slow growth cycle similar to that after World War II. You have a contrary view.

Doug Casey: The only things that are doing well are the stock and bond markets. But the markets and the economy are totally different things – except, over a very long period of time, there's no necessary correlation between the economy doing well and the market doing well. My view is that the market is as high as it is right now – with the Dow over 12,000 – solely and entirely because the Federal Reserve has created trillions of dollars, as other central banks around the world have created trillions of their currency units. Those currency units have to go somewhere, and a lot of them have gone into the stock market.

As a general rule, I don't believe in conspiracy theories, and I don't believe anything's big enough to manipulate the market successfully over a long period. At the same time, the government recognizes that most people conflate the Dow with the economy, so it is directing money toward the market to keep it up. Of course, the government wants to keep it up for other reasons – not just because it thinks the economy rests on the psychology of the people, which is complete nonsense. Psychology is just about the most ephemeral thing on which you could possibly base an economy. It can blow away like a pile of feathers in a hurricane.

TGR: So, you're saying we're confusing the market's performance with the economy's performance?

DC: Yes. The fact is that the economy itself is doing very badly. The numbers are phonied up. I spend a lot of time in Argentina. Anybody with any sense knows you can't believe the numbers coming out of the Argentinean Governme...



Thanks Billy Bayne

April 11, 2011

Japanese Nuclear Crisis Upgraded to Chernobyl Level [Disasters]

This strikes me as not good. 

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Japanese Nuclear Crisis Upgraded to Chernobyl Level [Disasters]


The badly-damaged Fukushima Dai-ichi nuclear power plant has been upgraded from 5 to 7 on the International Nuclear and Radiological Event Scale. That's, in case you were wondering, out of seven. The only other nuclear crisis to reach the same level is Chernobyl, and though authorities believe "the cumulative amount [of radiation] from the Fukushima plant is less than that from Chernobyl," another aftershock—6.6 magnitude—forced workers to evacuate on Monday, and Reactor No. 4 is apparently on fire. [NHK; image via AP] More »










Thanks Billy Bayne

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Interesting Article about US Debt and the likely increase of interest rates



Pimco manager bets against US debt

By Dan McCrum

Published: April 11 2011 19:46 | Last updated: April 11 2011 19:46

Bill Gross, manager of the world's largest bond fund, is now actively betting against the value of debt issued by the US government.

Pimco's $236bn Total Return Fund held minus 3 per cent of its assets in government related securities at the end of March, down from zero the month before, according to a report issued by the company on Monday.

This article can be found at:

http://www.ft.com/cms/s/0/c72d28b4-6465-11e0-a69a-00144feab49a,_i_email=y.html


 

"FT" and "Financial Times" are trademarks of the Financial Times. Privacy policy | Terms
© Copyright The Financial Times Ltd 2011.

william.bayne@gmail.com has sent you a message.

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The following email has been sent to you by william.bayne@gmail.com

Interesting Article about US Debt and the likely increase of interest rates



Pimco manager bets against US debt

By Dan McCrum

Published: April 11 2011 19:46 | Last updated: April 11 2011 19:46

Bill Gross, manager of the world's largest bond fund, is now actively betting against the value of debt issued by the US government.

Pimco's $236bn Total Return Fund held minus 3 per cent of its assets in government related securities at the end of March, down from zero the month before, according to a report issued by the company on Monday.

This article can be found at:

http://www.ft.com/cms/s/0/c72d28b4-6465-11e0-a69a-00144feab49a,_i_email=y.html


 

"FT" and "Financial Times" are trademarks of the Financial Times. Privacy policy | Terms
© Copyright The Financial Times Ltd 2011.

Former Google CEO Issues Dire Warning About China

Concerning article. The double edge of globalization. Guns and butter can be so complicated.  Former Google CEO Issues Dire Warning About Ch...