Archive - Feb 25, 2010 - Blog entry

A yet to be verified story from Rough & Polished, a Moscow based website, reported that China had “confirmed its decision to acquire 191.3 tons of gold auctioned by the International Monetary Fund.” Of course, until official confirmation comes from China, no one will really know if this story is true or not. However, if true, here’s why this story would be hugely significant to the gold market.

Why is it that the data of the current economic reports coming out are "unexpected" by most economists? Today new unemployment claims and durable goods orders came out and were termed "unexpected." There is a reason. You should learn to ignore (most) economists.

"In a 13 month period from May 2003 to June 2004, the Federal Reserve sent nearly $12 billion in cash, mainly in $100 bills from the United States to Iraq. To do that, the Federal Reserve Bank in New York had to pack 281 million individual bills ... onto wooden pallets to be shipped to Iraq. The cash weighed more than 363 tons and was loaded onto C-130 cargo planes to be flown into Baghdad"

Team Obama wants us consumers to spend, spend, spend. Somehow Comptroller of the Currency John Dugan didn't get the message since he supports 'America Saves Week' and wants us to save and feel financially secure. I like this guy.

Since everyone is expecting it, maybe it won't happen?

Add a real unemployment rate of 17% to the 25% who have negative home equity, and who is left to buy houses? Only those who are bribed. Graduating from the negative equity city the negative equity state. Net baby boomer demand for housing is shrinking by tens of millions of square feet per year.