Market Commentary- Snow-cialism February 26, 2010
- Fear, Gold and the Dollar February 19, 2010
- Global Warming: The ‘Anthropocentric’ Crisis (Part 4) February 16, 2010
- Why Should WE Make Sacrifices to Offset Global Warming? (Part 3) February 16, 2010
- U.S. and Canada are Global Warming Scapegoats (Part 2) February 16, 2010
- Global Warming: A Man-made Crisis (Part 1) February 16, 2010
- The Other Oil Play You Simply Can’t Ignore January 28, 2010
- External Media
- Gold entering period of rising prices as currencies depreciate
- Gold to reach $1,500 by year end, continue decoupling from dollar – Jeff Nichols
- For Big Gold, 2009 was a good year
- BMO’s Melek says supply constraints already evident in copper
- Intraday & Swing Trading Gold and Stocks – How To Use Multiple Time Frames For Setups
- Do we really want $5,000 gold?
- BHP Fertilizer Interest May Hurt Prices, Moody’s Says (Update1)
- Gold: A picture tells a thousand words
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Charts courtesy of MineralSTOX.Com
Market Meltdowns, Inflation, Protecting Capital & Trading Commodities
by Gold Editor on January 15, 2010
Market Meltdowns, Inflation, Protecting Capital & Trading Commodities
The purpose in owning commodities like gold, silver and oil is to protect oneself from the effect of inflation that I believe will begin to assert itself in the coming months.
Unfortunately, the United States has taken a monetary policy of printing massive amounts of money to attempt an escape of deflation. In just the past 16 months, the monetary base has ballooned from $908 billion to $2.0 trillion. Bailout funds in the past 2 years total $8.1 trillion….. That is 78 times more than what they spent to bail out WorldCom…… and 123 times more than they spent on Enron. U.S. debt has risen sharply, from $6.2 trillion in 2002 to $12.1 trillion today. These are scary numbers!
The illusion of economic recovery in the U.S. is simply the function of the FED making billions and trillions of newly printed money available at literally ZERO percent interest to the largest financial institutions. The idea that you really can get something for nothing is fantasy. But that’s what’s happening – Money created out of thin air, instead of created by PRODUCTION.
A painful reality check will appear when these quantitative easing policies create inflation without employment or productivity gains. Commodities – hard assets – will outperform everything in this type of environment. To some people commodity investments may sound like a no-brainer investment, however without a sound money and risk management system in place there really is no such investment.
Market Meltdowns, Inflation, Protecting Capital & Trading Commodities