Monthly September, 2012
A recent research paper by Erb & Harvey, Duke University – Fuqua School of Business; National Bureau of Economic Research (NBER), revised August 3, 2012 is titled The Golden Dilemma In this paper, many of the ‘street’s’ beliefs in gold are examined in a detailed and historical context. The paper is too lengthy for this...
Sept 24, 2012 The Telegraph Beijing hints at a bond attack on Japan A senior adviser to the Chinese government has called for an attack on the Japanese bond market to precipitate a funding crisis and bring the country to its knees, unless Tokyo reverses its decision to nationalize the disputed Senkaku/Diaoyu islands in the...
How Politicians Can Cause Another Great Depression Our last blog referred to Milton Friedman’s caution about what caused the 1933 World Wide depression, and compared it to the debate being carried on now. This is a continuation of those comments. In his classic video from 1977, Milton Friedman delivers a 52-minute lecture at Utah State...
The US Debate over Quantitative Easing We have an interesting debate going on in the US Presidential campaign. On one side are people claiming that government handouts are ruining America and the government must immediately stop incurring debt, and go to a balanced budget. On the other other side are people claiming that the economy...
The Negative Daily News Daily we are bombarded with news of European Debt Crises, of China Slowdowns, of USA housing and job numbers. Everything seems so negative. Yet when one takes a larger view of what is happening around us, it is obvious that the next cycle is starting, and we are pulling out of...
Gold’s Breakout Commentators have filled the news recently commenting on the breakout in the price of gold. Gold broke out of its reducing triangle and following the Ernmor trap, started a strong move to higher levels. Expressions on the part of gold bugs led to predictions by many of $2,000 and $2,500 price levels per...
Gold’s Amazing Run to $1,900 In August 2011, gold broke out to new highs of over $1,900 per ounce. What a ride from November 2008 when gold rose from above $700 to August 2011 with gold at $1,900. Gold remained in an unbroken channel moving ever higher, until near the end of its run, it...
As an observer of the current USA Presidential election, while listening to the rhetoric from the Democratic and Republican camps, certain encompassing observations are inescapable. The Move Towards the Center The rhetoric of the Tea Party has moved the Republicans to the right – seemingly. In fact a fiscal ‘conservative’, U.S. Congressman Paul Ryan, has...