With gold rallying continually since roughly 2002, no matter what happens in the economy, or the world, and oil rallying too, are there price limits both have which if reached, will stall the world economy?
While NFTRH was highlighting risk leading into the initial phase of inflationary blow-ups - and surely Egypt, Libya and other strained global situations are symptomatic of chronic and disenfranchising inflation - it is important to understand that headline events do not move markets, beyond the very short term.
We continue to be very concerned about systemic risk in the global economy. Thus far, the systemic risk that was prevalent in the global credit markets in 2007 and 2008 has not subsided; rather, it has simply been transferred from the private sector to the public sector.
The PDAC conference is in full swing in Toronto. The PDAC is the Prospectors & Developers Association Conference. I can tell you that the feel of this conference is: solid. There is no indication of any mining stocks bubble. Markets tend to display this kind of aura in their middle phase. Mining stocks are in the middle phase of a monster bull market, and poised to enter an epic third phase higher.
The current inflationary trend is likely to be interrupted by a temporary - yet disruptive - period of violent deflation
We have some good news on the hiring front this morning, which aligns with our longer-term bullish outlook. However, we remain concerned short-term.
A belief embraced by nearly everyone is that government is capable of knowing best how to regulate the financial system. The absurdity of this becomes apparent when you look at the government’s own fiscal condition. It also begs the question as to why an entity that has proven itself incapable of managing its own financial affairs should be entrusted with the oversight of the private sector’s finances.
Chinese investors are coming in with suitcases of cash to buy Silver and are leaving with moving vans loaded with the precious metal.
The Silver Price is hitting new recent highs at $36.55 today in a more vigorous performance than even gold. Many in the developed world precious metal markets are amazed at the performance of silver and see this continuing, whereas others feel it is running away with itself.
The economy is doing better, and we will survey some of the highlights. But does this mean the stock market is headed higher? A chart from Louis Gave got me to thinking, and I shot off a few thoughts and questions to Ed Easterling and Vitaliy Katsenelson.