Blog

June 29, 2009 – The Dow Jones Industrials Average is at a very interesting juncture. Please take a close look at the following chart. As the dollar moves toward hyperinflation, I expect stocks to rise. I explained this point in recent letters. The general averages will not do as well as gold, and certain sectorsRead more

The dollar is headed for hyperinflation. The dollar is headed for the fiat currency graveyard. Do not lose sight of this important point. Do not believe the propaganda of government officialdom that they know what they are doing and will take care of your best interests. The fact is, they don’t know what they are doing, and they are not looking after your interests.

My comments remain unchanged from recent letters. With each passing day, December’s top in prices (i.e., low in yields) looks more and more certain.

June 29, 2009 – Continue to accumulate the precious metals. By doing so you are saving money, but it is sound money and not depreciating national currency. Turning to the silver chart above, there is good news and bad news. The bad news is that silver has fallen back below support at $15. I hadRead more

June 29, 2009 – I find the accompanying chart to be very interesting, and it is probably one of the most striking and informative charts on economic activity that I have seen in a while. It was first brought to my attention by Casey’s Charts, a publication of Casey Research (http://www.caseyresearch.com/). The chart presents theRead more

June 25, 2009 – Yesterday the Federal Reserve completed the latest meeting of its Federal Open Market Committee.  It re-affirmed its plan to purchase by the end of the year some $1.8 trillion – yes, $1.8 trillion – of US government paper, comprising of agency debt, agency mortgage-backed securities and US Treasuries.  That’s nearly $6,000Read more

I continue to recommend that investors stay out of the stock market (except for my recommended stocks). Continue to hold ‘gold-cash’, not ‘dollar-cash’, thereby keeping your money safe and sound in bullion until stock prices fall to more reasonable levels when measured in terms of gold. I do not have any trading recommendations at the moment.

This past Tuesday the Dollar Index made a closing low of 78.40, which was a whopping -6.6% drop from our short sale price in only twenty trading days. The dollar literally collapsed, so it is not surprising that the dollar finally bounced somewhat toward the end of the week.

June 8, 2009 – My comments are the same as the last letter. With each passing day, December’s top in prices (i.e., low in yields) looks more and more certain. I don’t recommend that traders chase the T-note lower. I do not though have any specific recommendations at the moment as to when to enterRead more

June 8, 2009 – I’ve lost count of how many trillions of dollars have been created ‘out of thin’ air by the Federal Reserve to bail out the banks. But regardless of the quantity, these newly created dollars along with the dollars created to fund the federal government budget deficits explain why the US dollarRead more