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Graceland Updates 4am-7am
Oct 18, 2011
1. How many hours? In October of 2008, Bank of England Governor Merv King said that the financial system came within hours of shutting down.
2. The Dow is trading at around 11,300 now. The marked to model financial system has been hit hard by the accelerating crisis in Europe. There is a debate about whether China has a hard landing, or a soft one. Meantime, America teeters on the edge of a new recession.
3. The question at hand is clearly, “what is the Dow number that sees the financial system ‘hours away’ from closing down, now?”
4. Is it 6500? Maybe it is 7500. Maybe it is 8500. You saw Dexia destroyed soon after supposedly rigorous stress tests “proved” it was in excellent condition. How many other major banks are the next Dexia accidents, lined up, waiting to happen?
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Super Force Signals
A Leading Market Timing Service
We Take Every Trade Ourselves!
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Weekly Market Update Excerpt
Oct. 14, 2011
Morris Hubbartt
Dollar Commentary
- The recent stock market panic is one of the most significant events in the last few months. Note the arrows on the above chart that highlight previous panics.
- When stock investors flee the stock market, they tend to run to dollar-based money funds. Historically, the dollar has tended to fall hard soon after these panics occur.
- Europe is beginning to print euros like the US prints the dollars. Global currency debasement is leading all roads to gold.
- Technically, the dollar is likely completing its topping process, while the gold market is concluding its corrective process. The dollar could chop in the current area for a bit longer, before beginning a significant new leg down.
- My technical work suggests the rally in the dollar and the correction in gold could both end within about ten days. From there, look for a major offensive gold move that should see the price reach $2200-2400.
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The Euro is Dead. Long Live the Euro
October 12, 2011
To ensure the European sovereign debt crisis doesn’t go to waste, the markets have kept policy makers and bankers on their toes. The naysayers of a European turnaround have become so overwhelming that it is stunning Europe hasn’t submerged into the Atlantic Ocean yet. It appears that German Chancellor Angela Merkel, the cautious woman with the checkbook, is about to turn the tide.
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Gold During Times of Turmoil
By Frank Holmes
CEO and Chief Investment Officer
U.S. Global Investors
How does gold perform during times of turmoil?
Jason Toussaint from the World Gold Council (WGC) provided some interesting perspective during our recent Case for Investing in Gold webcast that sheds some light on this question. The WGC looked back at six incidences of market turmoil over the past few decades:
- Black Monday (1987)
- Long-Term Capital Management (LTCM) Crisis (1998)
- Dot-com Bubble (2000)
- 9/11 Terrorist Attacks (2001)
- Slowdown (2002)
- Great Recession (2008)
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Graceland Updates 4am-7am
Oct 11, 2011
1. Gold likely has a 2/3 chance of rising to $2300, and a 1/3 chance of falling to $1100. Click here now to view my gold chart that roughly highlights the current short term range.
2. The pattern is technically an ascending triangle, but there is a tendency to place excess confidence in modest technical price patterns like this one, and that confidence is usually followed by great disappointment.
3. Greed is the cause of 99% of investor pain, and there is far too much greed in the gold community. When the gold price nosedived towards $1530, I got emails from investors who were tremendously weighted in gold stocks, and especially from those over-loaded with gold junior stocks.
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WHO ACTUALLY OWNS THE FEDERAL RESERVE AND WHY THAT MUST END
Global Revolution 1: American Revolution 2: Day 25: Communication 1 11 Oct 2011 (g1a2d0025c1) Few questions of late have been asked more frequently or answered with less transparency than this one:
WHO OWNS THE FED?
The domain name for the official website is FederalReserve.gov, the ".gov" extension of which suggests that the Federal Reserve System (a.k.a. the "Fed") is part of the United States government and therefore owned by the American taxpayers. But that is not the case. As the Fed itself states...
"The Federal Reserve System fulfills its public mission as an independent entity within government. It is not 'owned' by anyone and is not a private, profit-making institution. As the nation's central bank, the Federal Reserve derives its authority from the Congress of the United States. It is considered an independent central bank because its monetary policy decisions do not have to be approved by the President or anyone else in the executive or legislative branches of government, it does not receive funding appropriated by the Congress, and the terms of the members of the Board of Governors span multiple presidential and congressional terms."
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Graceland Updates 4am-7am
Oct 4, 2011
1. “And then there were none”. –Agatha Christie, mystery writer. One by one, all of the supposedly great paper assets of safety are falling by the wayside. Yes, the US dollar is currently rallying against some of them, but the overall picture is the death of a thousand paper cuts, for all paper assets.
2. I’d like you to remember the 1990s, when the stock market was “here to stay”, and depressions were eliminated for all time, according those who almost opened one history book, but failed at the task. Then there was real estate, solid as a credit card on a rock.
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Operation Twist a Primer for QE3?
Axel Merk, Portfolio Manager, Merk Funds
October 4, 2011
Is Operation Twist a failure? The stock market plunged in disappointment when it was announced. Keynesians are tearing their hair out in frustration, as it appears the Fed failed to ramp up the printing press. Free marketers are disgusted by the blatant manipulation of the yield curve. A number of Federal Reserve (Fed) President Bernanke’s colleagues dissented and/or are voicing public opposition. However, as the dust settles, it appears there is a method to the twist: Bernanke may have a plan…
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Super Force Signals
Weekly Market Update Excerpt
Sept. 30, 2011
Morris Hubbartt
US Dollar Chart
Dollar Commentary
- Smart investing is about taking advantage of situations when they arise, and there are plenty of opportunities right now. On the above chart you can see that the dollar has gained 19% against gold in the last month, after falling horribly for many years. This dollar rally is effectively an invitation to increase your gold holdings, and it is what I have done this week. Gold is quickly becoming my personal currency.