Archive - Oct 2014 - Blog entry

While the 0.001% of the world dine together and plan their next moves, here are the main events in the week ahead.  

Not reommended with Kim chee...

In the mid 1970's ,“experts” warned that gold would fall as interest rates rose. The opposite happened and as interest rates rose, gold rose more than 8 times in 3 years and 4 months - from $100/oz in 1976 to $850/oz in January 1980 (see chart). History does not repeat, but it frequently rhymes ...

The Mindful one does not seek to change the world; he seeks to change himself.

Italy is back in recession for the third time since 2008. Germany’s economy contracted in the second quarter of 2014 and will likely be in recession before the first quarter of 2015. France has registered zero growth for six months now.

Yes the US does not practice laissez faire capitalism.  It never did.  It manipulates sets intersest rates.  The fx market is still understandable and the dollar is moving higher.

You show me sustainable growth through monetization and I'll take my bat & ball and go home. Until then, you're blowing hot air up my backside.

Remain Calm...

Those of you who thought volatility was high this past week just wait until the Fed waits to the “Whites of the eyes of inflation” before raising rates.

We Need to Stop PRETENDING We're Prepared ... and Actually GET Prepared

Just my take on the whole Ebola situation which is unfolding at a rapid speed. As we are all well aware by now, Ebola is rapidly spreading across West Africa, and has made it to shore here in the U.S. Government officials are coming out in droves to tell citizens that the situation is under control and contained. They claim that Ebola does not spread easily like the flu or a cold, and that you can only contract the virus from exposure to bodily fluids.

I will tell of the the street...

We continue to be told that the US economy is in recovery and stronger than ever. The press trumpets heavily massaged data (GDP growth and the unemployment number) while ignoring data that clearly indicates the US economy is in the toilet (labor participation rate, median income, etc).

Carmen Segarra said, “I come from the world of legal and compliance, we deal with hard evidence. It’s like, we don’t deal with, you know, perceptions.”

How ironic. Segarra worked at the Fed.

Speculators continue to sell paper and electronic gold while prudent buyers in China, India and elsewhere  continue to accumulate physical bullion.

This dichotomy can only last for so long before the powerful forces of actual physical demand in the small physical gold market lead to higher prices.