UK attacks family benefits in taxation is starting to really impact the economy. The full broad effect of this tax hike is contributing to the economic decline in Britain. Giving benefits and then taking them back only increases the cost of administering taxation. This fails to reduce the cost of government and only amounts to […]

Question: Can you clarify your statement: “German short-term rates went negative showing people were willing to pay Germany to hold their money. This is part of the whole shift in capital from PUBLIC to PRIVATE” The movement internally within Europe is is showing that capital starts to move from one currency to another as CONFIDENCE […]

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 […]

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 […]

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 […]

The Gold backwardation has been distorted as all sorts of reasons for everything. Normally, this is the market condition wherein the price of a forward or futures contract is trading below the expected spot price at contract maturity. Consequently, the resulting futures or forward curve is “inverted” whereby it is negative because gold is trading […]

The Dow Jones Industrials has rallied in the face of incredible skepticism with a litany of reasons why it shouldn’t be happening, that are of course all domestic oriented. This is fantastic for it shows the market is NOT historically at a high. Bubbles come when the vast majority claim the rally will never end. What is […]

Civil Unrest in Portugal continuing to rise. The big rally to get rid of the government on March 2nd appears to be just the beginning. “Grandola”, the signature tune of the 1974 “Carnation revolution” that overthrew the fascist dictatorship of Antonio Salazar after the army rebelled, reverberated through the crowds. We should see rising civil […]