Financial Sense Blog

Rudyard Kipling’s epic Poem "If" begins with, “If you can keep your head when all about you are losing theirs and blaming it on you”. Those words can come in handy for those trying to deal with the increasingly whippy market. The pullback I have talked about in my last two pieces accelerated last week. We started last week with the S&P 500 at the 1199 level...

The foundation for one of the biggest short squeezes in history is well underway seen through this week’s COT report. The short covering by the commercial banks looks like it’s well underway with a dramatic reduction in the net short position of 4,831 contracts (24.155m ounces). Even more exciting is the huge decrease in adjusted net open interest, falling by 5,005 contracts. It is now apparent something has startled all of the commercial’s as we see a decrease of 1,861 in the net short position of the 4 largest and a decrease of 1,220 in the net short position of the 8 largest.

Despite the economic difficulties we face, still Americans have much to be thankful for.

In case you are trying to put two and two together about what’s going on out there to make gold, silver, everything that’s not nailed down soar in price these days, let me clear things up for you. It’s our hollowed out economy, and the money that needs to be pumped into it so that it doesn’t implode. And make no mistake about it, it’s bad out there despite what you will hear in the mainstream media, with Friday’s Employment Report a glaring example of this, featuring deliberately misleading propaganda set against an increasingly dismal reality.

An understanding of the current economic realities and trends suggest that investing in natural resources (i.e. energy, agriculture and minerals – and especially gold and/or silver) - is virtually guaranteed to be the most investor-friendly sector. Below we outline the economic storm we are about to experience, how best to prepare to withstand the expected hurricane winds, high seas and torrential downpours and which safe haven investment alternatives to invest in to ride out the storm of the century and prosper in the years ahead.

In the United States, if a policeman stops you for a traffic violation, and you offer him a $20 bill to forget about the whole thing, you’ll likely end up in jail. But if you leave your Federal government job and go work as a consultant to the very industry you used to regulate, you won’t go to jail—you’ll grow rich.Very rich.

The conversations and updates will be stimulating, enlightening, and fun. We will cover the gamut --- religion, sex, politics, economics, banking, the dollar, foreign policy, the deficits, trade… you name it. There will be debate and disagreement, but that is what keeps things interesting!

This piece encourages a kind of 12 step intervention for the many academics involved in the "management" of our monetary system. It also reflects upon the supposed usefulness of the discipline of economics versus other approaches to thinking about money and markets.

On March 25, fifteen individuals selected by the US Commodity Futures Trading Commission (CFTC) testified to that body on proposed position limits for the precious metals markets.

The Fed completed the first full week of its pumping campaign under QE2. That campaign is running into some "issues."