Dr. Mark Skousen: I’ve Been Fighting a Battle Against these Ideas – the ‘Paradox of Thrift’ is a Myth (Sprott`s Thoughts)Submitted by Sprott Money on 03/18/2015 04:47 -0400
According to Austrian economists like Dr. Skousen, consumption and consumer spending are not the main drivers of economic growth. What really drives an economy are investments and innovation from businesses.
The luxury of paying your government to hold your money, once thought as absurd, hilarious and downright preposterous is now a reality.
- Silly gold ‘bug’ name calling shows bias against gold and towards stocks - “Gold bugs” and “stock roaches” can peacefully coexist - Maybe a rational debate would be enlightening ...
One of the “mysteries” of our modern (i.e. fraudulent) precious metals markets is explaining the face-value of our gold and silver minted coins, meaning relating their nominal price to their actual value. The face-value on U.S./Canadian silver 1-oz coins is $1 and $5, and the face-value for our 1-oz gold coins is $50. For those investors (including this analyst) who began using precious metals as a vehicle for wealth-protection at a relatively late date; the face-value of these coins seems totally arbitrary.
First she tried to take over the credit derivatives world which she first had to create, and succeeded. Then, after Enron failed, she tried to take over the California electricity market and also failed. And all through this time she made sure the prices of the world's precious metals were right where she wanted them. Now, a year after an embarrassing attempt to become head of her former regulator ended in humiliation, she is back and has her sights set on the final financial frontier: Bitcoin.
Greenspan believes that in five years gold will be “measurably higher” than current levels because of the excess liquidity that will eventually be released into the open market. Such an event will undoubtedly lead to riots across America as the general public, woefully unprepared for rapidly rising prices when the pin finally pops the dollar bubble, loses access to affordable critical supplies like food, gas and other resources. The collapse of the dollar, an inevitability suggested by Alan Greenspan, will be a game changer that results in the quadrupling of the cost of living for the average American.
It was not all smiles and jokes as Mario Draghi's European QE officially launched in Europe, with Greece leaving the proverbial turd in the monetary punch bowl.
"Commodity pricing is vastly more important than most people actually realize," explains former CFTC Commissioner Bart Chilton, warning that "beginning around 2007 the rise of computer driven trading algorithms changed the rules, and the markets have not been the same since." Chilton is sympathetic to the perception many frustrated and bruised investors have about the manipulation of the precious metals markets - on record saying that the large short position concentrations have been outrageous. Why not the CFTC directly? Sadly, the former CFTC boss notes, "regulators by and large aren't listening to average people."
To some, gold is merely a tradition; to others, such as the first secretary of the North Korean embassy in the capital of Bangladesh, it is one of the easiest ways to smuggle $1.7 million. Or at least should have been on paper. Instead, what happened on Thursday night when Son Young-nam landed in Dhaka on a flight from Singapore, carrying a ridiculous amount of physical gold and hoping to get through customs without a glitch due his diplomatic status, things went downhill fast after Young-nam's baggage was searched and almost 27 kilos, or 59 pounds, of gold bars and ornaments were recovered.
Chris Mayer: No Big Theme in US Stocks, Just “Special Situations and Quirky Opportunities” (Sprott’s Thoughts)Submitted by Sprott Money on 03/07/2015 07:16 -0400
There’s a big macro theme playing out in Europe – a once soft economic environment that allowed lots of inefficiency is becoming tougher and forcing companies to restructure, says Chris Mayer, author of Capital & Crisis and Mayer’s Special Situations.
"...everybody knows there's something seriously wrong but they don’t know what is really happening."
This 'world order' may be coming to an end, he believes: "It's the collapse of that structure that was built in the 1940s that is behind all of these problems that are popping up in financial markets and economies around the world."
The question stands: how much longer will the Fed allow the ECB to export its recession to the US on the back of the soaring dollar, and how much longer will the market be deluded that "decoupling" is still possible despite a dramatic bout of weakness in recent US data. Look for the answer in today's BLS report, which - if the Fed is getting secound thoughts about its rate hike strategy in just 3 months - has to print well below 200,000 to send a very important message to the market about just how much weaker the US economy is than generally perceived. For now, however, the ECB is getting its way, and the question of just how much European QE is priced in, remains open, with peripheral bond yields dropping to new all time lows for yet another day, while the EURUSD has plunged to fresh 11 year lows, sliding below 1.094, and making every US corporation with European operations scream in terror. Looking at markets, US equities are just barely in the red, coiled to move either way when the seasonally-adjusted jobs data hits.
- “Bail-in is now the rule” - EU Finance Minister Noonan - Austrian bondholders today … international depositors tomorrow ... We urge readers to diversify deposit holdings and acquire allocated gold to protect their wealth during the next phase of the banking crisis.
The best performing asset overall in 2015? Well, just tell Putin "spasibo"...