Several very important currency effects are at work. Most economists are either silent on the factors or wrong footed on the dynamic. That is not surprising since they have been incorrectly analyzing, interpreting, and forecasting the financial crisis as it built up in 2005 and 2006, and as it exploded in 2007 and 2008 to surprise almost all of them, even as it has failed to recover in 2009 and 2010 in contrary fashion to their deceptive rosy positions. The major currencies must be examined for some key paradoxes. As the monetary system crumbles into its final phase, the foundation under which the major currencies stand, trade, and change is breaking down.
The S&P/Case Shiller Home Price Indices reported Tuesday are, as usual, so far behind the curve that not only did they miss the “double dip” that has come and gone, it will be at least July or August before it reports an apparent upturn in prices in March and April. S&P’s view of the data was dour. “There is very little, if any, good news about housing. Prices continue to weaken, trends in sales and construction are disappointing, ” said S&P’s David Blitzer. “The 20-City Composite is within a hair’s breadth of a double dip.”
The price of silver is meeting some resistance as it heads up towards $50 an ounce - a high it hasn't touched since 1980. So does that mean it's time for investors to sell? Dominic Frisby looks at what the future might hold for this most volatile of precious metals.
Silver is finally getting some attention in the 10th year of its bull market run - mostly top callers who are calling the recent move to nearly $50 an ounce a sign that it has already peaked. Interestingly, these same analysts were nowhere to be found when we made the logical argument that it would reach $50 an ounce this year.
In the last few weeks, I’ve become particularly “attentive” to the intentions of Fed policy makers following the scheduled June end date for QE2. This is no small matter; an actual shift in Fed policy – as opposed to the smoke and mirrors sort – could temporarily play havoc on equities and commodities markets alike. How could it be otherwise, when under QE2 the Fed has been writing checks to the Treasury in amounts of upwards of $100 billion a month since last November?
In recent discussions I’ve highlighted the fact that for the average US consumer, the cost of living is clearly rising. Without question, we know the Fed has been hell bent on “reflating” the US economy. In the globalized financial markets of today, Federal Reserve actions no longer primarily influence the US alone, but rather have consequences across worldwide asset markets.
Silver is making the move many of us have been waiting for. Rather than sell out of positions, a smarter investor or trader should be looking at using options such as protective puts as insurance and hedging strategies to protect against the downside while still maintaining unlimited upside.
The U.S. country index of the Billion Prices Project, a real-time inflation index published by the Massachusetts Institute of Technology, is back after mysteriously disappearing last week.
Last week the financial markets were roiled by Standard & Poor’s announcement that they will change their outlook on the fiscal health of the United States over the next two years from “stable” to “negative”. The administration decried this decision as political.
The Latest Conference Board Consumer Confidence Index was released this morning based on data collected through April 14. The 65.4 reading is a point above the consensus estimate of 64.4, reported by Briefing.com and a modest improvement over the March slight upward revision to 63.8 (from 63.4). I call this a "modest" improvement because this index is a fairly volatile series. It has an average month-over-month change of 5.5%, which is double the 2.5% rise from last month.