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It is widely known that government authorities across the globe are attempting to pump prime their nations' depression-racked economies by printing vast sums of paper money. Some nations, including the United States, are running trillion dollar deficits and will go deeper into debt in future years in order to finance an expansion that may not materialize as planned.

If we reach that point where the pump priming from the Fed and the fiscal excess of the government fail to keep the economic shell game going, the financial markets may lose greater confidence in our dollar (the dollar index is currently at 79.19 on June 1, 2009), Treasury bonds and stock market {Dow Futures at 8688 {(though the stock market may move higher as it has exceeded its 200 day moving average: a widely watched indicator)}.

Continue reading » Inflation Hedge Strategies and Thoughts for 2010 and Beyond

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The currency markets, like most other financial markets, rise and fall partly based on international confidence in the economies, politics and monetary and taxation policies of the various nations whose paper money is traded through international exchanges.

The U.S. dollar enjoys a current status as a reserve currency.

The Wikipedia Free Encyclopedia defines a reserve currency as "a currency which is held in significant quantities by many governments and institutions as part of their foreign exchange reserves. It also tends to be the international pricing currency for products traded on a global market, such as oil, gold, etc."

Continue reading » The End of the Dollar as We Know It?

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The Obama administration may be doing everything in its power to destroy private industry jobs faster than the government can "create" them. The U.S. government itself may be the best growth industry in the U.S. as the government directs taxpayer money into the industries and pet projects of its choice.

Normally in capitalist economies, recessions clean out businesses and consumers whose risk-taking did not succeed or who accumulated excessive debt and cannot pay it back. A downturn will then lay down the foundation for healthy growth in the future by rewarding both older and new business success stories and punishing businesses that did not adjust to a dynamically changing economy and therefore failed. This is sometimes a painful process.

Continue reading » How to Invest in Barack Obama's "Workers Paradise"

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The gold market in February 2009 is trending up towards its all time high of $1,023 per ounce made on March 18, 2008, after a correction that lasted for seven months. The price of gold in this upward trend may reach as high as $3,700. I conceive that this price move may transpire within the next two years.

As bubbles tend to repeat over history, there are a number of markets that can be instructive in determining the dollar amount and duration of a long cycle.

Continue reading » Why the Gold Bull Market May Begin its Last Leg Sooner Than You Think

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In my article, The Credit/Debt Crisis: A Depression Era Stock Market and America's Financial Failure?, published on my website on October 10, 2008, I posited four possible scenarios regarding the outlook for our general economic future. Of those four scenarios, it may be that we are experiencing the most chaotic and potentially destructive scenario, one that may be difficult for many to envisage:

That is the third outcome posited in the article: "In this case, the deflationary forces would win the battle against Federal Reserve easing and government action, at least temporarily. In response to a deflationary calamity, the Federal Reserve may run the printing presses until an inflationary recovery could take place. Gold may do well under this chaotic scenario."

Continue reading » Will the U.S. Suffer an Inflation or Deflation in 2009-2010, (or Both)?

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What is meant by the terms "real money" or "hard money"? I associate hard money with a gold-backed currency or a consistently well managed paper money standard, both of which can protect the financial system from the many dangers of a fiat, poorly managed paper standard. We know that the main danger of a paper standard is that if too much money is printed, it becomes worth less as the value of the money is inflated away through excess supply.

Continue reading » Why Our Economy Will Not Prosper Until We Have Hard Money and How You Can Profit From It

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The stock market erosion that began in the second half of 2008 when the Dow Jones Average was slightly above 13,000, has built into a sharp and nearly relentless stock market collapse from September 2008 forward. The Dow is now trading above 8,000. A popular pundit declared on his widely viewed show on a major financial television network that long term investing is dead.

Continue reading » Why Long Term Investing in the Stock Market is not Dead

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With the Dow Jones Industrial Average below 9000, we are witnessing an epic battle between the forces of a stock market crash and possible economic deflation, on the one hand, and the might of the Federal Reserve and government, on the other. We face frozen credit markets and a huge debt burden on our citizens and government that has built over decades as both citizens and the federal government have been living beyond their means. The final debt binge led by subprime lending and massive war spending by the government leaves little wiggle room for the consumer and government to bail us out, as happened after the 1987 stock market crash. Deleveraging of the consumer and government debt burden under this scenario may be a painful process.

Continue reading » The Credit/Debt Crisis: A Depression Era Stock Market and America's Financial Failure?

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We have seen the gold price peak at over $1,000 per ounce at the time of the Bear Stearns bailout, and decline into a correction afterwards. I have written on my website in previous articles for many months that I was expecting a temporary pause in the upward progress of the gold and oil markets, and in many other inflation hedge style investments.

Continue reading » Stocks, Gold, Oil, the Dollar, and Inflation: A Potpourri in the Current "Unwinding of Debt" Crisis

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Americans are known for voting according to the health of their pocketbooks, and this year's election may be no exception. While Ronald Reagan's election in 1980 emerged out of the very noticeable dissatisfaction with the economic policies of the Carter years, Senator Obama may capitalize on similar sentiment among voters today in the race for the Presidency.

Continue reading » The Obama Factor: Why His "Change" May Make You Economically Worse Off

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