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Archive of posts published in the tag: gold

In Search of Monetary Discipline

Steve Forbes writes Gold and the Wicked Magicians in the November 19, 2012 issues of Forbes. Excerpts: Despite thousands of years of experience to the contrary, central bankers and countless policymakers and economists believe that money manipulation can stimulate and…

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What A Real Stock Rally Looks Like

Rich Karlgaard puts the Dow rally into perspective in the Wall Street Journal, 2/5/13. Excerpt from The Stock Rally That Isn’t; (may require a paid subscription to read online) In December 1974, the S&P 500 hit a low of 67, having…

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If the Dow is at a record then why does business still suck?

The Dow has broken through 14,000 for the first time since 2007. Yet unemployment is still high and has recently gone higher. The work force participation rate is the lowest it has been since the 1980’s and our prime working…

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The Gold Bubble

Today the world’s gold supply is about 170,000 metric tons.  If all of this gold were melded together, it would form a cube of about 68 feet per side. (Picture it fitting comfortably within a baseball infield.)  At $1,750 per…

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Random Thoughts 05 31 2011

I hear a lot of ads advising investors to put gold in their IRAs or 401ks.  Seems like a terrible idea.  The big benefit if retirement accounts is to defer income. Gold generates no income, and actually incurs storage and…

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The Gold Trap

Gold is high and could be headed higher, but that does not make it a great investment. Gold is priced well above the cost of production, so its value is more determined as an alternative to traditional investments in an…

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The PhD Standard Has Replaced the Gold Standard

“We have moved to the PhD standard from the gold standard.” A very short but very wise assessment from James Grant. Mr. Grant makes a point that explains more than just the Fed and an obvious failure in monetary policy.…

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Gold Risks

With the dollar weakening, debt growing, and the global and domestic economy still sluggish there is pressure driving up the price of gold, silver and industrial commodities.  Forgive me if it just seems too obvious.  Endless ads selling gold, and…

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Explaining Huge Deficits with Low Interest Rates

We are living in interesting times.  While the professional economists are trying to figure out what happened we have all become economists of sorts just to try and understand the events that greet us every day. With huge deficits many…

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Financial Observations 08 20 2010

IBM, Johnson and Johnson,  and McDonalds are issuing debt with rates comparable to US government debt and at lower rates than that offered by many foreign governments. What does this mean?  That bond buyers consider blue chip corporations as safe…

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Avoiding Political Influence in your Investment Decisions.

While I share the great concern about her destructive economic policies of this administration, I am getting a contrarian tick about the dollar and gold. Every right wing talk show and business TV show is flooded with adds selling gold…

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Beltway Mentality

Beverly Gunn writes writes in American Thinker “Fighting the Beltway Mentality.” Excerpt: “This was demonstrated as each person we met immediately gave us their job title, followed by the title of whatever their (significant other) did for a living. It was clear…

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A Sleeping Liquidity Monster

There are a few indisputable changes in our economy. Credit is tightening. Generally this is good because  lending standards, whether to individuals to buy homes, or to real estate developers or other businesses, were way too lax.  Marginal businesses will…

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