Financial Sense Blog

QE2 and its Consequences (Part 2)

In the long term, QE2 is obviously not a sustainable course. Nonetheless, QE2 can continue as long as (1) the United States remains politically stable, (2) the U.S. dollar remains the world reserve currency and (3) the value of the U.S. dollar strengthens, remains flat or decays in a controlled manner, i.e., at a relatively stable, gradual rate. Although Bernanke clearly believes that the risks are contained, the Federal Reserve’s policies are, in fact, debasing the U.S. dollar and have already guaranteed the end of the U.S. dollar as the world reserve currency.

Madison: Who is Getting “Badgered” in Wisconsin?

Wisconsin now leads in the battle over public salaries and pensions

I predicted this just four weeks ago in TH*NK*NG (PENSIONS). I just didn't see the first salvos coming from Madison, Wisconsin.

Gold, Silver and Oil Stocks on Fire

Today we're seeing the correct reaction from markets in the face of such widespread insurgency. Oil, gold and silver are exploding to the upside, while stocks are plummeting as investors seek real safety in those commodities, and abandon the U.S. dollar for the beat up piece of spent jet trash that it is. But not all stocks are plummeting.

Why Are Gold & Silver Breaking Out?

We have not completed two months of 2011 and in the year so far we have seen attempted revolutions in Middle Eastern countries, with so far two of them successful. All of them have been unexpected and have caught the world by surprise. We are on the brink of the next successful revolution [Libya] disrupting the oil market and taking prices so high that we are likely to see them negatively impact on growth in the developed world.

A Random Walk Around the Frontlines

We as a nation need to understand that the problems we face are not ones that can be dealt with by business as usual. Keynesian stimulus is precisely the wrong medicine. The problem is one of too much debt. We were promised by Bernanke in 2002 that if the Fed moved out the yield curve, long rates would come down. The opposite has happened. Since the beginning of QE2 mortgage rates have risen by 1%. The yield on the ten-year bond is up over 1% since the announcement of QE2.

S&P 500 Technical Chart Analysis

Powerful Wave 3 Bull Market Rally Not Over Yet

The SPX very long term monthly exponential moving averages will be in full bull market alignment as soon as the 20 moves above the 50, which appears to be imminent.

Prove The Mayan’s Right: Address Structural Economic Problems With Chicanery

PART 1 of 2

Never in history has there been an economy this large with such serious economic structural problems: Unemployment 23%, unmanageable debt north of 128 trillion, the largest & ever-growing money supply that is sparking hyperinflation and causing global unrest in emerging nations whose workers spend up to 50% of their wages on food, massive & unstoppable monetization of governmental debt, an unbalanceable & uncuttable budget. We have an ace up our sleeves, there is an easy way out, but for whatever reason our economic engineers of disaster, many who helped create this unmitigated disaster, are hell bent on proving the Mayan's correct by "fixing" serious structural economic problems with lies.

Abiotic Oil: Science or Politics?

For the past century or so, the biological origin of oil seemed to be the accepted norm. However, there remained a small group of critics who pushed the idea that, instead, oil is generated from inorganic matter within the earth's mantle. The question might have remained within the limits of a specialized debate among geologists, as it has been until not long ago. However, the recent supply problems have pushed crude oil to the center stage of international news.

Silver's Palladium Moment

With silver hitting new highs, it may be hard to characterize the white metal as undervalued. Yet it bears repeating that silver can move higher for other reasons besides investment demand. This article reviews the industrial side of the equation for silver, and explains the possible future role of industrial users in driving the price to new heights.

S&P 500 New Highs

S&P 500 new highs show a negative divergence.

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