With the Fed decision taking place, and continued volatility in gold and silver, today John Embry complained about kitco’s “gobbledygook” reporting, and he stated that central panners are panicking, which is why Bernanke is leaving the Fed. Embry also spoke with KWN about physical gold demand, what the Chinese are up to, and what to expect from the price of silver going forward.
Yest... read more
Awhile back, I thought it might be interesting to create one of those island economy stories to demonstrate a problem with the Fed’s policy framework. I finally got around to it over the past week, after reading an article on the same policy flaw.
My island story’s relevance won’t be clear right away, but stick with it if you’re wondering what could go wrong with monetary policy (or... read more
Prices in financial markets are determined by psychology, by what people think stocks, bonds and commodities are worth rather than what they actually are worth. Recent sentiment readings for some key commodities, such as copper, gold, sugar, wheat, cattle, etc., were at extreme levels of negativity. From a contrarian aspect of course, that's very bullish.
We see a sim... read more
One of the most basic principles on which the Federal Reserve under Ben Bernanke has been operating is going to be severely tested tomorrow, Eric, when we get the Fed's announcement after this current FOMC meeting concludes.
The Fed believes that its announcements can control and move the markets in whatever direction these central planners desire. So for example, the Fed believe... read more
There have been a number of things that have happened in Brazil over the last year or so that could have sparked some to say that the good times experienced during the Lula years were officially over.
Perhaps it was the way the government handled the Petrobras gas price increase. Perhaps it was the way the government pressured the banks to lower fees. Perhaps it was the... read more
There are gold bears, gold bulls, and gold bugs. And then there's Ron Paul.
The former congressman and presidential candidate is known for favoring gold, and he still believes it will go higher. How much higher?
"Eventually, if we're not carefully, it will go to infinity, because the dolla... read more
Today the man who oversees more than $150 billion warned King World News about the high likelihood of a coming great inflation, or worse yet the possibility of a hyperinflationary collapse. Rob Arnott, who has won an unprecedented six Graham & Dodd Awards and is also Chairman of Research Affiliates, also warned KWN about the dangers of what the Fed and other central planne... read more
I think you have had to experience a collapsing currency first hand in order to truly appreciate the fundamentals of monetary value, and how these things can take on what seems like a force of nature.
I was doing business in Moscow during the 1990's, and saw the slow motion collapse of the rouble. Or at least it seemed like a slow motion collapse at first, until it gained quite a bit of mome... read more
A sense among investors that the global economy is unraveling has injected tremendous volatility into the markets. As Bloomberg's Rich Yamarone notes, if the global equity market decline is not a “Sell in May” event, but the beginning of a great unwinding, then the economy, skating on thin ice, may be even more susceptible to recession. However, most of the US equity disco... read more
