Investors see silver lining in economic gloom

 

The Complete Cost-Benefit Analysis Of QE2, And How To Best Hedge For Federal Reserve "Fat Tail" Risks

 

We're In a Global Currency War ... But What Does It Mean?

 

The ONLY Countries... that will accept U.S. Postal Service International Money Orders...Paid in Crappy U.S. Dollars...

Think about it...You used to be able to send a regular U.S. Postal Money Order to anywhere in the world...and it was happily accepted...

Countries that will accept an International Money Order

Albania	Anguilla	Antigua & Barbuda	Bahamas
Barbados	Belize	Bolivia	British Virgin Islands
Canada	Cape Verde	Dominica	Dominican Republic
Ecuador	El Salvador ($500 max.)	Grenada	Guinea
Guyana ($500 max.)	Honduras	Jamaica	Japan
Mali	Mexico	Montserrat	Peru
Sierra Leone	St. Christopher	(St. Kitts) & Nevis	St. Lucia
St. Vincent & the Grenadines	Trinidad	Tobago

 

LBMA 2010: Back to the Future, Part II

A Look At Global Events In The Upcoming Week

 

Guest Post: Gold Stocks, SP500 & the Dollar – What’s Next?

 

Gotta keep those electrons somewhere

 

Submitted by cpowell on Sun, 2010-10-03 21:41. Section: Daily Dispatches

JPMorgan Reopens New York Gold Vault
By Jack Farchy
Financial Times, London
Sunday, October 3, 2010
http://www.ft.com/cms/s/0/45911b64-cf17-11df-9be2-00144feab49a.html
JPMorgan has reopened an underground gold vault in New York that was mothballed in the 1990s, in the latest sign of the soaring appetite for bullion.

Fireside Chats In Africa

Posted: Oct 03 2010     By: Jim Sinclair      Post Edited: October 3, 2010 at 6:34 pm
Filed under: General Editorial
Dear CIGAs,
I am nearly home after my meeting with 37 attendees in the remote bush of Africa.
There cannot be a better place, one hour by track off the main road, security provide by a Brigadier General and his highly trained troops, for campfire discussions late into the night concerning markets.
These 37 people made a huge effort travelling to this remote location to attend this meeting in the midst of beautiful, wild Africa. There was no charge for this exclusive seminar. All the attendees paid was their own travel expenses. The camp and meals were free. This is my way.
These people made a huge effort to get together so no question concerning the state of the Western World went unanswered. I remained available to the attendees late into the African night. In the cold early morning I was glad the fire was still burning strong.
This was not only a show and tell in a business sense, but a get together of two groups with markets, thanks to technology, in real time.
The theme of what I wanted to present elicited by the group in question form is the SERIOUSNESS of what has occurred. Many get caught up in the market for gold both by bottom and top callers. The violence of price swings numbs the mind to a point where you start to consider it a game in which a price will at some time reach a top from which it will go lower. That is not the point. That very well may not be in my lifetime. The memories of 1980 have participants in musical chairs mode. They have lost true focus.
The African meeting had a twofold purpose. The primary goal was similar to the meetings that take place in Kodia Kanal, a mountaintop retreat in Southern India. It is discourse learning as a product of questions.
The points that were made were:

1. Many Administrations back to the 70s have kicked the can of political economic prerogative down the road intending to hand it to the next person in charge.

2. The schools of economics propose economics had laws, the violation of which had consequences.

3. The belief in no consequences gave birth to the most destructive financial entity in the history of man, known as OTC derivatives.

4. The absolute majority of the present OTC derivatives are financial skeletons of special performance contracts floating in cyberspace with no funds whatsoever. The manufacturers and distributors of these financial mortal sins finally have done it.

5. No amount of dollars, regardless of how many trillions it may be, injected into the financial system will stimulate anything except the unavoidable result of Currency Induced Cost Push Inflation.

6. The Central Banks of the Western world cannot pursue a hawkish approach to monetary or fiscal stimulation because if they do a black hole of unprecedented economic collapse will occur immediately. The degree of this collapse would make the Great Depression look like a mild hiccup.

7.The conclusion is that it has finally happened. Just like street drugs, the more you take the less effective they become. Fiscal and monetary stimulus is now barren, except for its destruction of currencies.

8. On the other hand Asia is developing into a self-sufficient economic unit capable of trading between themselves as huge numbers of citizens enter into the ability to consume. Simple numbers, akin to the early so-called police action in South Korea, is overcoming the Western world.

9. Because there is no power left in fiscal and monetary stimulation, no matter how intense, the can cannot now be kicked down the road any further.

The fact is that there are tools for the various Western Central Banks to use, but unfortunately they simply do not have any staying power in the direction of the desired result. Years of the politically motivated utilization of monetary and fiscal fiddling have rendered these tools sterile. Simply stated, there is no more fizz in the bottle.
That means now is the real thing. A consequence of the past forty years of politically motivated economic malpractice has come home. The price of gold is only a siren screaming that this analysis is correct.
Your attention must be on the total implications of all of this.

Here is a thought for you while I am on my way home:
A reported decrease in home foreclosures after major brokers and lenders ceased foreclosure actions due to a major paperwork problem had to come. This is MOPE (Management of Perspective Economic) at its silliest. This is something Marie McDonnell and I have been telling you for years.








"A human being should be able to change a diaper, plan an invasion, butcher a hog, conn a ship, design a building, write a sonnet, balance accounts, build a wall, set a bone, comfort the dying, take orders, give orders, cooperate, act alone, solve equations, analyze a new problem, pitch manure, program a computer, cook a tasty meal, fight efficiently, die gallantly. Specialization is for insects." - Robert A. Heinlein


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