Crisis Coming...Dollar collapse by Fall not out of the realm of possibilities-Jim Rogers

Jim Rogers: “I’m Long Dollar, Long Commodities, Short Bonds”

On Bloomberg’s “Surveillance Midday” with Tom Keene, famed Quantum fund co-founder and commodities guru Jim Rogers discusses his up to date investment execution without pushing aside his unwavering thesis for the long run destruction of the US economy if their present course remains. Read the rest of this entry »

Silver Preparing For Another Shock And Awe Move

posted by Eric De Groot at Eric De Groot - 4 hours ago

Money flows reflect a bullish setup despite the negative headlines and growing pessimism towards silver. Open interest continues to decline as the weak hands are flushed (see chart below). This action is c...

Investor Sentiment: Haven't Seen This in a While

Posted by: thetechnicaltake

Post date: 06/12/2011 - 10:00

For the first time since September 10, 2010, the “dumb money” indicator has turned bearish.

Investing In Asian Promising Countries

posted by Admin at Marc Faber Blog - 11 minutes ago

Well there’s no such thing as a favorite investment. But I think I tend to invest in Asia in promising countries, in equities, in real estate, and I own precious metals, obviously. - *in Seeking Alpha* *M...

Guest Post: The Boom And Bust Of China's Rise 

Submitted by Tyler Durden on 06/12/2011 11:12 -0400

These are serious challenges Beijing’s now facing and seems to lack adequate policy tools to tackle...Hedge funds and Fed’s QE2 are not all to blame for all these. The Chinese economy already stands close to the edge. What speculators do is to push it over and profiteer handsomely from the chaos. While the US enjoys the luxury provided by the dollar’s world currency status and diplomatic alliance with many major trade partners to export its liquidity and inflation, China enjoys none of that. They should look at the dollars in their hands with fear and doubt. So called Beijing consensus makes little sense, because the world is fast changing, pegging a country’s growth to a certain set of policy tools or a certain reserve currency(the US dollar) is equally dangerous. The battle between Keynes and Friedman has long proven the only consensus is to adapt and change. Right now China needs to adapt and change fast. Or this will be the best time in history to short China.

In Radical Change To ECB's Tune, Bundesbank Confident Euro Can Withstand Greek Default 

Submitted by Tyler Durden on 06/12/2011 12:02 -0400

In yet another bad omen for Greece, now that Bailout Plan #2 has been demonstrated to be impractical and every question related to it is met at best with silence, it is back to plan B: letting Greece default. And in what is very good news for longs in the Drachma black market (which is already offered on an "when issued" basis by several large financial institutions), the Bundesbank's president Jens Weidmann just announced that “If the [Greek] commitments are not met, that cancels the basis for further funds from the aid package,” Weidmann told the newspaper. “This would be Greece’s decision, and the country then would have to bear the surely dramatic economic consequences of a default. I don’t think this would be sensible, and it would surely put partner countries in a difficult situation. But the euro would even in this case remain stable.” Translation: we now believe our banks are well enough reserved for what comes next. It also means that the rift with the ECB, which will be exposed as near-insolvent courtesy of using Greek collateral for tens of billions of loans that will have to be impaired, is now terminal. As for the far trickier, and now answered, question where the money to withstand this upcoming systemic shock comes from, just read this expose on the Fed's use of QE2 reserves.

Podcasting The Charts That Matter Next Week (With A Focus On The S&P 500 H&S Formation) 

Submitted by Tyler Durden on 06/12/2011 12:59 -0400

This week, instead of presenting John Noyce's FX charts "that matter next week" and providing our own interpretation of what one of the few credible technicians left out there is trying to imply, we will leave it up to him to do so. Below find the full slide pack of key FX charts together with other key observations on the S&P, as noted by Noyce, "The H&S top which completed last Thursday has a target of 1,245, which is very close to the converged 200-dma and interim low from March; 1,251-1,249", as well as his outlook on the EuroStoxx600 and 50, the IBEX, Spanish 10 year yields, the SHCOMP, and most importantly vol, which continues to be held back by resistance. Should the VIX break out over 20, watch out below.

Bet on Gold and Silver, Not U.S. Treasuries

Regular readers know that I often look for inspiration/ideas for my commentaries from readers – via their comments and mail. This is especially true when I see the same theme crop-up in the thoughts of multiple people, as it’s a likely indication of a topic with broad appeal.

So it is with today’s commentary, except that in this case the source of my “inspiration” was not our readers. This subject was first raised in a recent interview I did with “TheStreet’s” Alix Steel, and later in a conversation with a colleague. Clearly there is a considerable amount of consternation over the near-term future of markets – and our economies. However, I would strongly argue that one area where we do not need to suffer doubts or anxieties is with respect to our precious metals holdings.

Both Alix Steel and my colleague were focused on the will-he-or-won't-he game of “chicken” which Federal Reserve Chairman B.S. Bernanke has been playing with markets, the broader American public – and the U.S.’s creditors. What makes this especially tricky for “Helicopter Ben” is that these various entities all have entirely different perspectives and agendas.

The market’s perspective is a simple one, borne entirely of naked greed: it simply wants to see more and more and more money-printing, which it can then use to pump-up valuations even higher. The American public wants to see more jobs, and more purchasing-power in the banker-paper they carry in their wallets (i.e. less erosion in the value of the dollar, which has translated to much higher prices for necessities). Ordinarily, those two desires are opposite in our debt-based economic systems (you can only have one or the other), however Ben Bernanke has accomplished the unique achievement of having mismanaged the U.S. economy to the point where he can (and will) fail in both of the Fed’s legislative mandates.

Of course “failure” is nothing new for the Federal Reserve. Indeed, it is only success which has managed to elude the Fed throughout its entire 98-year existence. Tasked with the twin (conflicting) responsibilities of “promoting” employment and maintaining price stability, it inherited an economy which not only created vast numbers of jobs, but more good-paying jobs than any other economy in history. Along side that, the “strong” U.S. dollar was viewed so favorably by the rest of the world that it was soon to become the global “reserve currency”.

Ninety-eight years later, the anemic U.S. economy can’t even produce enough (net) new jobs to keep up with population growth, long-term (“structural”) unemployment is at its highest level in history, while wages for the average worker (in “real” dollars) have been falling for 40 years.

In terms of “price stability” the dollar has lost roughly 98% of its value in those ninety-eight years, or (put another way) prices have increased by a factor of fifty. Read more: Bet on Gold and Silver, Not U.S. Treasuries 





 

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