Blog

May 4, 2009 – On April 15th traders covered at 123-38/64 the Jun’09 T-note sold short at 125-20/64 on March 18th. The profit was 1-46/64. I would like to get short again. The contract has moved lower since we were stopped out, but is I think due for a bounce. The yield on the T-noteRead more

May 4, 2009. Since March 23, 2001, we have been holding goldgrams as our Core Currency Position. The dollar remains within the same trading range that has confined it since last year, but importantly, its bear market rally is rapidly losing momentum. I have been expecting that the dollar will eventually break out of itsRead more

April 14,2009 – An old Chinese saying declares that wisdom begins by calling things by their right name. Truer words could not be spoken about gold. If you call gold by the wrong name, you begin down the wrong road, which is a serious handicap. It can easily prevent you from understanding why you shouldRead more

April 13, 2009 – There is no doubt that I have some amazing subscribers. I received a bunch of emails regarding the new Sound Money Indicator (SMI) that I presented in the last letter, and all of them, quite frankly, are loaded with good ideas and suggestions. They are obviously the product of some veryRead more

Do you still doubt that the US is on the road to hyperinflation? Then consider this news item, released late Friday afternoon on a 3-day weekend in the hope that few will notice. “Reuters – U.S. budget gap soars in first half of fiscal 2009 – The United States posted a record $956.8 billion budgetRead more

March 23, 2009 – The page-1 article in the last letter was “On the Cusp of Hyperinflation”.  If you doubted that the dollar was headed for hyperinflation after reading the last letter, all doubts should have been dispelled after the Fed’s announcement on Wednesday that it would buy $1.2 trillion of government bonds and agencyRead more

March 23, 2009 – The other day at lunch with a friend, we began talking about my Fear Index. He suggested that I give it a new name in order to more accurately convey the important message it offers. Namely, it numerically measures the soundness of the dollar. Others have made similar suggestions for aRead more

March 2, 2009 – It was only two years ago in early 2007 that subprime lenders and homebuilders began suffering under growing defaults as a consequence of a housing market ‘bubble’ that had popped. The global credit crisis had begun. Complicated financial structures thought safe began to unravel quickly after word spread that two highlyRead more

Feb 23, 2009 – I am often asked whether I favor gold or silver as my preferred sound money.  It is a difficult question, and perhaps comparable to asking a parent which child is his or her favorite.  As we parents know, they are all wonderful, but perhaps in different ways because no two childrenRead more

January 26, 2009 – There is a determined grassroots movement in the United States seeking the restoration of sound money. There are many different groups comprising this movement, but all share the same aim. It is to restore gold and silver to its rightful role as the money of the United States, as mandated byRead more