Financial Sense Newshour

Jim is pleased to welcome noted technician Louise Yamada CMT, Managing Director of Louise Yamada Technical Research Advisors. Louise sees a short-term consolidation ahead, and thinks the markets are ready for a pause (click here for charts). She sees a 5-10% decline as not out of line. She admits monetary policy by the Fed is a big factor in today’s stock market. On gold, Louise believes the technical factors don’t look good at the present, with distribution taking place. Also in this segment, Ryan Puplava has this week’s Market Wrap-up, Erik Townsend covers commodities, and Jim Puplava has this week’s Fixed Income Report, sitting in for Rob Bernard.

Jim welcomes special guest and independent gold analyst John Kaiser of Kaiser Research Online and Kaiser Bottom-Fish Online. In a wide-ranging discussion on gold and gold equities (click here for charts), John and Jim look at the reasons behind the bear market in gold equities; the fundamentals of the mining business, the rise of the Robo-Traders, and the role (and complicity) of the regulators. They also discuss catalysts for why the gold market can recover and continue higher, and why it won’t take Armageddon. John and Jim also advise what to do as a gold stock investor, and how to not fall prey to the Robo-Traders. Also, Jim answers more of your Q-Calls in this segment.

Jim welcomes Professor Steve Hanke, Professor of Applied Economics at The Johns Hopkins University in Baltimore. Professor Hanke is also a Senior Fellow at the Cato Institute in Washington, D.C. Jim and Professor Hanke discuss his recent article “Hyperinflation? No. Inflation? Yes.” He sees better growth ahead in the second half, perhaps as high as 3%, but also growing inflation as well. Professor Hanke notes that the US has had periods of high inflation in its history, including the Civil War, but never hyperinflation. He does not believe we will see it in the US in the foreseeable future.

Jim welcomes back Axel Merk, founder and portfolio manager at Merk Investments LLC. This week Axel discusses some of the downside of currency wars, including a loss of competitiveness in domestic economies, growing social unrest, and in extreme cases, war. Axel also sees the Eurozone as less capable of debasing its currency than other countries, which will ultimately strengthen the Euro. He sees gold in a transition phase, but believes that the US, Japan and the UK will drive gold prices higher eventually.