Question: I understand that inflation is really the reduction in purchasing power of the $. Can you expand on your statement “Our computer is bullish long-term because gold will play catch up as all commodities tend to do. It will blast off like a rocket ONLY when everything is set.” Specifically, “when everything is SET”.  What does […]

http://tv.msnbc.com/2013/02/04/exclusive-justice-department-memo-reveals-legal-case-for-drone-strikes-on-americans/ John McCain is a disgrace and should leave the floor of the Senate. Where was he demanding a clear answer? He is part of the problem. He has been on the Hill way too long to even understand what the issue is about. Including the WSJ. Nobody is bothering to ask what it took […]

http://www.reuters.com/article/2013/03/07/us-japan-economy-nishimura-idUSBRE9260AX20130307 The deputy governor of the Bank of Japan admitted that if yields rise 1 percentage point and they will lose 2.3 trillion yen. This is just the tip of the iceberg. We face a tremendous nightmare. Interest rates have been brought down artificially so low to bailout the bankers, that they have really screwed […]

The Libor Fixing Scandal of interest rates has shown precisely what I wrote about in Behind The curtain. I have personally witnessed the trading mentality of the commodities trader from the ’70s consume Wall Street when it began with the PhiBro takeover of the bond trading house Solomon Brothers – the mentor of so much […]

Question: Yet, in the meantime, should inflation surface, say in the latter part of the decade, (before a total collapse), wouldn’t gold be the place to be?  Or perhaps I should phrase the question “will inflation precede a total collapse?” Inflation is typically defined as the rise in prices of goods and services. This is […]

I have received a lot of inquiries about the jobless recovery. Some questions ranging from what is going on to others asking advice to give children for a career. The economy is evolving like a child. People do not understand the evolutionary process nor does government. The economy is never stagnant albeit unions have tried […]

One reader asks: I found fascinating your understanding of the correlation between interest rates and real estate.  By your definition the slashing of interest rates by the Fed to all time low mortgage rates did not put a floor to real estate prices but exacerbated the low in real estate.  Essentially you are saying that if the […]

The Republican-controlled House today approved legislation that will prevent a government shutdown on March 27 and blunt the impact of newly imposed spending cuts on the Defense Department. The vote was 267-151 and the Senate Democrats now hope to give additional Cabinet agencies similar flexibility in implementing their shares of the $85 billion in spending cuts […]

Senator Rand Paul, Republican of Kentucky, began a truly old-school filibuster, speak-until-you-drop on Wednesday just before noon. This truly a historic day when only ONE Senator will stand up for the Constitution. Remember prosecuting American soldiers for shooting civilians in Vietnam? It was called a massacre. To think that nobody else in Washington will stand […]

We have to keep in mind that the world economy has not fully recovered. Trading volume on a global scale is about half of what it was in 2007. The Dow is ONLY making new highs in dollar yet. The low volume is actually bullish from the standpoint it is not OVERBOUGHT. We will see […]