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January 7, 2008 – “We might hope to see the finances of the Union as clear and intelligible as a merchant’s books, so that every member of Congress and every man of any mind in the Union should be able to comprehend them, to investigate abuses, and consequently to control them.”- President Thomas Jefferson toRead more

December 17, 2007 – One year ago in Letter No. 375 I provided my forecasts for 2007.  It’s time to repeat that task.  Hopefully my forecasts for this year will prove as satisfactory as they were for this past year, because overall I think 2007 unfolded pretty much as I expected.  But first, I’ll takeRead more

Dec 12, 2007 – The Federal Reserve today announced a new scheme to inject more liquidity into the money markets. It cobbled together a partnership arrangement, as the Canadian, UK and European central banks also agreed to participate in the scheme. The process of ‘injecting liquidity’ is a euphemistic way of saying ‘creating money outRead more

December 3, 2007 – The outcome from the relentless inflation of a currency is all too predictable. Unfortunately, the inevitable future of currency debasement is generally ignored by most people, with the result that they end up unprepared when the inflation eventually destroys the currency they are using. The dollar has been collapsing, albeit somewhatRead more

November 12, 2007 – Everyone knows that the dollar is losing purchasing power day after day because of inflation. Consequently, the practice of “inflation adjusting” has become well-known. It is a process that attempts to equate in a consistent way the purchasing power of the dollar at some previous point in time to the currentRead more

Nov 7, 2007 – Exactly six months ago I wrote about an indicator that has predicted with 100% accuracy when the price of gold was about to rise. The entire article can be read here: ‘Gold’s Infallible Indicator‘. Over the years, this indicator has been one of my favorites. It has been so good thatRead more

October 22, 2007 – On September 18th former Federal Reserve chairman Alan Greenspan appeared on the Jon Stewart Daily Show, where he made the following comment: “I was telling my colleagues the other day… I’d been dealing with these big mathematical models for forecasting the economy, and I’m looking at what’s going on the lastRead more

October 16, 2007 – I have long suspected that the US Gold Reserve is being used by the gold cartel as a tool to help it try capping the gold price. See for example the April 23, 2001 press release by the Gold Anti-Trust Action Committee [ Press Release ] which refers to my thenRead more

Oct 16, 2007 – Gold and silver have many similarities, but they are also different in many ways. One big difference is their volatility. If owning gold is like flying in a 747, then owning silver is like flying in an F-15. With silver one needs to be prepared for heart-stopping reversals and zigs andRead more

October 1, 2007 – It has been a long-running debate. Most everyone recognizes that the US economy is unsustainable because of too many years of overspending, under-saving and over-borrowing. So when will the piper eventually be paid, and what will be the result? Another deflation like the Great Depression? Or severe inflation, perhaps even hyperinflationRead more