Financial Sense Blog

Can you visualize a possible scenario that could put a sudden end to the secular rise now underway in gold and silver? In a recent conference call with the research team of The Casey Report, we once again collectively tried to imagine what situation… what scheme… what government manipulation… might finally put a stake through the heart of gold. Setting the stage, I th

For the past 35 years, The Browning Newsletter has maintained a belief that a person is significantly influenced by the climate in which they exist. Therefore, in understanding the past and present conditions of the climate in which they live, they can use the momentum of change to their advantage in forecasting trends related to behavior and commodities.

When everyone is so very certain about what is going to happen, reality gets in the way and thumbs its collective nose at the public. So it seems with the effect of quantitative easing part II (QEII) on the financial markets. Investors got very comfortable with the fact the Fed was going to be the investor of last resort in the bond, equity and ultimately in the foreign markets, keeping all the assets afloat as the Fed bought back huge amounts of treasury securities.

China has recently announced cutbacks in rare earth exports to other nations, which has caused quite a stir in the international markets. This is because China produces 90% of rare earths, and processes most of the rare earths mined into usable compounds by their factories. China is very much the current hub of rare earth production for the world, succeeding the United States which use to hold that crown in the Mountain Pass 'era'.

Investors Wealth, as well as the Health and even Existence, of the U.S. Dollar and Euro are Threatened by Present and Prospective Globalist Moves.

The patient is the United States and the diagnosis is “Asia shock.” It is a psychological disease with physical symptoms and no known cure. However there are therapies, therapies of trade, diplomacy and fiscal restraint at home. As President Barack Obama jetted around Asia, he may have pondered not so much the economic power that waits East of Suez, but why it took so long to emerge. And why the patient is in denial.

The coming European bailout of Ireland and Portugal will have to include some method of quantitative easing (QE), or the printing of new money. The European Central bank will claim they are not using QE, but using newly created money must be a part of the plan. Often, when hiding their bond-buying, governments will use means to disguise their actions. Clearly, very few professional investors have an appetite for Portuguese or Irish bonds unless they are put under some political pressure, so the buyer of last resort will be the governments and European Central Bank.

Now that the G20 ended in nothing accomplished, we notice that Japan will continue to support the USD from falling, China will continue a very gradual rally in the Yuan, the US indicated it will continue heavy monetary easing with QE, Germany stated the US QE policy is crazy…Korea and China very much insulted President Obama on his Asia and G20 tour. Now, how can all that add up to a USD rally?

Generally speaking a congenital pessimist is regarded as being anti-social. The “every silver lining has a dark cloud” attitude to life is not appreciated by people who consider their selves to be mentally healthy. But the flip side of this is that whilst an “every cloud has a silver lining” attitude tends to raise ones profile in the popularity stakes, it is likely to be just as inaccurate in its conclusions.

There have been some major trend changes recently and it looks as though more investments are about to follow. The real question though is… Are You Ready To Take Advantage Of It? It has been an exciting ride to say the least with the equities and metals bull market and the plummeting dollar. But it looks as though their time is up, or at least for a few weeks. Traders and investors will slowly pull money off the table to lock in gains or cut losses and re-evaluate the overall market condition before stepping back up to the plate and taking another swing. Below are a few charts showing some possible money making trade ideas in the weeks ahead.