Central bankers have provided liquidity with today’s announcement; it does nothing to address the real problems of solvency in Greece, Italy, Spain, etc. (not to mention the banks). In the last bear market, stocks rallied significantly after similar announcements (numerous times)
Members of Wells Fargo's wealth management team released an article recently entitled, "The Gold Bubble," where it is claimed, in no uncertain terms, that gold is in a bubble. While I would not normally spend time rebutting an entity that would shock me far more if they actually put out a recommendation to buy gold...
Passports are a relatively modern invention. Until about a century ago, entering one country didn't generally require official proof of citizenship or nationality in another one. However, today, governments increasingly use passports as a means of restricting travel for numerous reasons. For instance, U.S. citizens can be denied a passport simply for owing money to the IRS or in child support payments. Even U.S. citizens living abroad must pay tax on their worldwide income. If they fail to do so, the government can decline to renew their passport.
Was it coincidence that wages topped out with domestic oil production? Perhaps not. Yesterday we considered the possibility that it was not coincidence that the U.S. abandoned the gold standard at almost the precise point that domestic oil production topped out, launching a need for vast quantities of imported and increasingly costly oil.
The outlooks of gold analysts are diverse. After reading the latest WGC report, Mineweb is bullish: "Gold demand tops US$100 billion and mine supply remains under threat." John Nadler, however, is bearish, citing the expected "additional 400–500 tonnes per annum" that will result from the exploration boom of the last few years.
Poor Ben Bernanke. The greatest financial train wreck in history is going to happen on his watch, and it will be mostly his predecessor’s doing. But not the work of Alan Greenspan alone.
In 2000 gold stood at just below $300, and when the euro arrived it stood at just over €250. Confidence was nearly absolute in the U.S. dollar at the time and the currency the world’s energy was priced in.
A tsunami doesn’t start with a bang, but with a whimper. The first sign is a little hump in the water way out in the distance that is barely notable. Anyone who catches a glimpse of it simply continues to expect the day to be the same as the last many days - calm and beautiful waters along the shore.
We are going to start with an analog chart comparing the Standard & Poor’s Composite from its high in 1929 to the Standard and Poor’s Composite’s high in 2000. The chart is drawn from weekly high/low data. We have added dates for the longer term swings.
Rick Perry teed this up. I’m amazed at how much traction this has gotten. Clearly both sides of this issue are stirring the pot. I’ve looked up a few definitions of what a Ponzi scheme is. This one is from an excellent source. The Securities and Exchange Commission defines a Ponzi as follows...