Archive - Nov 3, 2009 - Blog entry

A question for you. Can gold move up against a basket of currencies? If it does what does it mean for Bernanke and the
QE party? Drink up, it's coming to last call. Seven years ago Bernanke said that the Fed would never print money 'willy-nilly'. The gold market thinks he did.

My own views on fundamental indexing is that it has merits but it also has limitations.
Sure, AP2 will not suffer the same drawdowns as other pensions during bad years, but it will also not participate as much on the upside during good years.

The title says it all.....

What we've got ain't workin...

Should we go back to the gold standard? Should the government take over the Fed? Should we have state public banking? Local public banking?

Do you agree or disagree?

Saudi Arabia has been a long time number one supplier of crude oil to the US. But as recent data shows the historical trend hit a reversal and not only have the KSA oil exports to the US fallen, they have fallen so much that the present number represents less than half of the number which denominated the KSA exported US oil from its peak in 2008. The number now denominates a 22-year low.

Over the course of the next two weeks, we at Fibozachi will present a series of analyses that detail both the technical and fundamental landscapes of gold, silver, copper, oil, the CRB (Commodity Index), the US Dollar, the EURO and the remaining major currencies of the G8 (the “Group of Eight”) in relation to one another. After examining Freeport-McMoRan (FCX) yesterday, and to presage the bulk of our upcoming series, today we present an initial look into the technical composition of silver.

These are some of the more important headlines coming from around the World this morning.

Audit the Federal Reserve bill gutted, EU monster rises from abyss, new strain of failflu emerges in Ukraine.

The recent bear rally has driven most of the solvent, semi-solvent and absolutely insolvent CRE stocks up, quite a few approaching 100%, while their macro outlook has deteriorated significantly, along with their fundamentals. Quite a few have actually acted in cahoots with the banks that held their increasingly worthless debt, having issued secondary offerings basically converting the bank holdings of debt that didn't have an icicles chance in the hottest portion of Hell of getting repaid, into worthless toilet paper, heretofore marketed as stock certificates. They have also begun offering this used toilet paper as dividends. If this isn't the sector screaming for me to come back and short it, I don't know what is.

India buys 200 metric tons of IMF gold.

Who's next?

So are problems with pensions only limited to the UK and Ireland? Of course not. There are governance issues plaguing private and public pension plans all around the world. Unless we get serious and address these issues, pension systems will remain vulnerable to flagrant abuses. Do we need a total collapse of pensions to rectify these issues?