The Short Case for Dumping Gold Here

I just love the Mae West quote above. Funny thing is that many gold bugs cling to the belief (any many marketers who should know better validate said belief) that someday we may return to a gold standard. Until politicians are willing to give back the power that flows to them from spending money created out of thin air, it is highly unlikely we will ever see a gold standard. Going out on a limb, odds of that happening are slim to none.

The STATE of the DOLLAR and the Black Swan Response

Our Federal Reserve has chosen to leave interest rates unchanged again as the path to US recovery is still dependent (perhaps psychologically) on cheap money. But yesterday’s monetary policy announcement reveals that there is now a lone dissenter who’s not happy with the current rate policy.

Deflation Rising: Making the Case for a Lasting Deflationary Environment

Jim, thank you for that most insightful view that is taking place in the real world, out of the reaches of most economists who seem to spend their days toiling in “theory land.” Below is my response, it is a 21-page special report on the prospects of deflation that John Ross and I wrote back in September 2009. We are on the same page as you Jim, for sure.

Dollar, Debt and Dominance

Last week when I touched upon the US dollar’s technical pattern, and the near-term potential for it to roll over a bit, I made mention of the lingering debt problem in the US. Especially when it comes to the US dollar, US debts are a growing concern that keep many analysts US dollar-bearish.

Most all reasonable analysts can accept the fact that, as we believe, the US dollar can rally based on money flow as its driven by risk – capital leaving risky assets in search of safety, i.e. the US dollar. We resurrect an article from the September/October 2009 volume of Foreign Affairs for (now common) reasoning behind this dynamic: