Supposedly, the White House is about to promise a balanced budget by 2034. I’ve been down that road many times in my 45 years of monitoring federal budgets, and it never happens. Making this promise even more ridiculous is that it is based on a projected GDP growth of 3% for the next 15 years.
Want a reliable indicator of where the economy is headed? Look no further than the chart below.
“If you asked me to look across the commodity landscape and pick what I liked best, it would be gold. Literally, just this morning I saw that central banks are buying lots of gold. Sam Zell is buying lots of gold. You can try to fade this (bet against it) if you want, but it’s
Anthony Ward, famed London commodities trader, closed shop after nearly forty years of trading. His reason: he couldn’t keep up with computer trading. According to Reuters, Ward blamed the rise of computer-driven funds and high-frequency trading. Other well-known commodities investors also threw in the towel. They are now looking for opportunities where machines can’t make
Last week Germany’s central bank pompously announced that it had completed its repatriation of $31 billion in gold from Paris and New York, ridiculing earlier speculation that the gold had somehow been compromised. A widely circulated theory was that Germany’s gold had been borrowed by bullion houses and delivered against futures contracts that were sold
Metals prices surged Wednesday–as they should have–after the Fed announced no rate hike. Gold jumped 1.6%, silver a whopping 3.7%. The Fed decision was a reaffirmation of a continued loose monetary policy. Gold and silver investors need to keep in mind that the world’s monetary and fiscal policy makers have fully embraced loose money and
A great uproar was heard when the US Mint temporarily suspended sales of its 1-oz Silver Eagles, the world’s most popular government-issued 1-oz silver coins. The biggest outcry came from people who could not comprehend why the price of silver went down while the Mint admitted it could not meet demand. It’s not hard to
China has come a long way since the days of Richard Nixon’s and Henry Kissinger’s “Ping Pong Diplomacy.” Its economy has grown to be the world’s second largest economy, and its manufacturing base is home to consumer products used around the globe. Now, China has broken into a nearly century-old financial club, the London Bullion
In The stock market is managing the Fed, I said that the Fed will put off raising interest rate until after September because of stock market action. Now, the IMF is using the same reasoning in arguing that the Fed should wait until 2016 before raising interest rates.
Louise Yamada, who CNBC calls a “legend,” also sees Dow Theory sending ominous signals regarding stock market action. She says the Dow is a “brick wall waiting to collapse.”