I have been talking for a time about the US Gov buying its own debt. I do not think they will stop with the QE. They cant. They cant because they will not be able to keep the lights on for one, but also because they cant allow a major financial institution to fail or we have global dominoes and a collapse of the financial system. What does that mean? Hyperinflation at some point. I sure hope you have taken measures to protect yourself. I have and sleep well at night. Hedge manager Sprott sees trouble when easing ends US government is new “dead man walking”, investor says By Alistair Barr, MarketWatch NEW YORK (MarketWatch) – When so-called quantitative easing by central banks ends, the world economy may slip back into trouble, Canadian hedge fund manager Eric Sprott ...

By Natasha Brereton LONDON -(Dow Jones)- Bank of England Governor Mervyn King said Tuesday that heightened regulation can’t prevent the financial speculation that results in bank failures, and called for a serious review of the structure of the banking sector whose goal would be to eliminate institutions that are too important to fail. In a speech to business people in Scotland, King championed the idea of separating banks’ utility functions as a means of minimizing the government’s effective subsidy of risky activities and reducing the U.K.’s reliance on a small number of very big banks. Turning briefly to the economy, he noted that there was likely to be “significant” fiscal tightening in the years ahead, and stressed the need to boost broad money growth, but gave no clear indication on whether he would favor extending the bank’s bond buying policy. “The sheer creative imagination ...

Ut-oh#8230;this cant be good. (Unless you own something that does well when to dollar goes down) Russia ready to abandon dollar in oil, gas trade with China BEIJING, October 14 (RIA Novosti) #8211; Russia is ready to consider using the Russian and Chinese national currencies instead of the dollar in bilateral oil and gas dealings, Prime Minister [...]div class="feedflare" a href="http://feeds.feedburner.com/~ff/YourFinancialFuture?a=-Tc4rs-lzuA:PIH_NHSDpIM:yIl2AUoC8zA"img src="http://feeds.feedburner.com/~ff/YourFinancialFuture?d=yIl2AUoC8zA" border="0"/img/a a href="http://feeds.feedburner.com/~ff/YourFinancialFuture?a=-Tc4rs-lzuA:PIH_NHSDpIM:F7zBnMyn0Lo"img src="http://feeds.feedburner.com/~ff/YourFinancialFuture?i=-Tc4rs-lzuA:PIH_NHSDpIM:F7zBnMyn0Lo" border="0"/img/a a href="http://feeds.feedburner.com/~ff/YourFinancialFuture?a=-Tc4rs-lzuA:PIH_NHSDpIM:7Q72WNTAKBA"img src="http://feeds.feedburner.com/~ff/YourFinancialFuture?d=7Q72WNTAKBA" border="0"/img/a a href="http://feeds.feedburner.com/~ff/YourFinancialFuture?a=-Tc4rs-lzuA:PIH_NHSDpIM:V_sGLiPBpWU"img src="http://feeds.feedburner.com/~ff/YourFinancialFuture?i=-Tc4rs-lzuA:PIH_NHSDpIM:V_sGLiPBpWU" border="0"/img/a a href="http://feeds.feedburner.com/~ff/YourFinancialFuture?a=-Tc4rs-lzuA:PIH_NHSDpIM:qj6IDK7rITs"img src="http://feeds.feedburner.com/~ff/YourFinancialFuture?d=qj6IDK7rITs" border="0"/img/a a href="http://feeds.feedburner.com/~ff/YourFinancialFuture?a=-Tc4rs-lzuA:PIH_NHSDpIM:l6gmwiTKsz0"img src="http://feeds.feedburner.com/~ff/YourFinancialFuture?d=l6gmwiTKsz0" border="0"/img/a a href="http://feeds.feedburner.com/~ff/YourFinancialFuture?a=-Tc4rs-lzuA:PIH_NHSDpIM:gIN9vFwOqvQ"img src="http://feeds.feedburner.com/~ff/YourFinancialFuture?i=-Tc4rs-lzuA:PIH_NHSDpIM:gIN9vFwOqvQ" border="0"/img/a /div

Its almost comical to see the big banks coming out of the woodwork with their opinions on how high gold is going to go now. If you are a trader (I am not) maybe that means its time for a little pullback. Certainly is alot of confidence oozing from this article. Gold, ‘Off The Charts’, May Target $1,500: Technical Analysis By Glenys Sim Oct. 7 (Bloomberg) — Investors should hold onto long positions in gold as bullion has “significant upside potential” to reach as high as $1,500 an ounce, Barclays Capital said, citing trading patterns. “Having rallied ‘off the charts’, we are left to resort to projections and extrapolated trendlines to forecast where the move might stop,” Jordan Kotick, global head of technical analysis at Barclays Capital, wrote in a note e-mailed today. So-called trendlines are used to determine momentum and are found ...

In intra-day trading yesterday gold smashed through the last all time high in nominal USD terms. A colleague of mine asked me yesterday “So what do you think of the price action?” My response “Not much”…which elicited a chuckle. The truth is, these numbers in reality are purely psychological, and from a fundamental point of view, just another number in a series of numbers in a secular bull market. The interesting thing to remember about this is that the unit of measurement that gold is being measured in (the USD) is continually devaluing. It has in fact lost over 96% of its purchasing power since the creation of the Federal Reserve System (coincidence?) Dollar Collapse - Loss of ...

Interesting read. I happen to agree with what Robert says here, and so do my colleagues. Essentially, financial foundations must be built in assets that will retain value and cannot be taken from you against your will. On TOP of these foundations it makes sense to construct the walls and roof of your house, which equals vehicles [...]div class="feedflare" a href="http://feeds.feedburner.com/~ff/YourFinancialFuture?a=ycDvqg3Q8eQ:Xw87CpusB1E:yIl2AUoC8zA"img src="http://feeds.feedburner.com/~ff/YourFinancialFuture?d=yIl2AUoC8zA" border="0"/img/a a href="http://feeds.feedburner.com/~ff/YourFinancialFuture?a=ycDvqg3Q8eQ:Xw87CpusB1E:F7zBnMyn0Lo"img src="http://feeds.feedburner.com/~ff/YourFinancialFuture?i=ycDvqg3Q8eQ:Xw87CpusB1E:F7zBnMyn0Lo" border="0"/img/a a href="http://feeds.feedburner.com/~ff/YourFinancialFuture?a=ycDvqg3Q8eQ:Xw87CpusB1E:7Q72WNTAKBA"img src="http://feeds.feedburner.com/~ff/YourFinancialFuture?d=7Q72WNTAKBA" border="0"/img/a a href="http://feeds.feedburner.com/~ff/YourFinancialFuture?a=ycDvqg3Q8eQ:Xw87CpusB1E:V_sGLiPBpWU"img src="http://feeds.feedburner.com/~ff/YourFinancialFuture?i=ycDvqg3Q8eQ:Xw87CpusB1E:V_sGLiPBpWU" border="0"/img/a a href="http://feeds.feedburner.com/~ff/YourFinancialFuture?a=ycDvqg3Q8eQ:Xw87CpusB1E:qj6IDK7rITs"img src="http://feeds.feedburner.com/~ff/YourFinancialFuture?d=qj6IDK7rITs" border="0"/img/a a href="http://feeds.feedburner.com/~ff/YourFinancialFuture?a=ycDvqg3Q8eQ:Xw87CpusB1E:l6gmwiTKsz0"img src="http://feeds.feedburner.com/~ff/YourFinancialFuture?d=l6gmwiTKsz0" border="0"/img/a a href="http://feeds.feedburner.com/~ff/YourFinancialFuture?a=ycDvqg3Q8eQ:Xw87CpusB1E:gIN9vFwOqvQ"img src="http://feeds.feedburner.com/~ff/YourFinancialFuture?i=ycDvqg3Q8eQ:Xw87CpusB1E:gIN9vFwOqvQ" border="0"/img/a /div

A few years ago I started commenting on the hyperinflation of Zimbabwe. Back in February, Zimbabwe started using US Dollars as the common transactional currency. This reminds me of how markets have over time usually picked a currency to use, in history the choice was usually gold and or silver. Interestingly, the Zimbabwe economy is on its way back to recovery with items on store shelves once again as you will see in this video. What the market place of Zimbabwe seems to have missed, is that the US is doing to its dollar exactly what the Reserve Bank of Zimbabwe did to its own currency. http://themessthatgreenspanmade.blogspot.com/2009/09/shopping-in-zimbabwe.html

Woman uses currency to heat house during german hyper-inflation Many do not know what triggers hyper-inflation. It is a monetary event. The thing that history shows leads up to it, is the rampant printing of money, often buying or paying off the governments own debt (instead of another country or central bank buying it). This is known in economics parlance as “Quantitative Easing” From wikipedia: The term quantitative easing describes an extreme form of monetary policy used to stimulate an economy where interest rates are either at, or close to, zero. Normally, a central bank stimulates the economy indirectly by lowering interest rates but when it cannot lower them any further it can attempt to seed the financial system with new money through quantitative easing. In practical ...

I just read a mind blowing article. This is one of the most intense rants I have ever seen. Yet the sad part is the author is not exaggerating. Hat tip to Stewart Dougherty, this piece is an eye opener. I have excerpted the best part: There is accumulating evidence that the Washington – Wall Street moral hazard experiment has gone disastrously wrong, and that just like any other accidental discharge of a deadly virus, the moral hazard virus is now loose and swiftly propagating throughout society. By so blatantly colluding with Wall Street, Washington has lost all moral authority, and the people now have only one place to turn: themselves. An ethic of, “If they can do it, so can I,” is spreading, as people realize that fabric of American society has been shredded and replaced by a free-for-all mentality whereby everyone must fend for oneself in ...

If American politicians were subject to this kind of public lashing, they might be a bit more accountable. The eloquence of this tongue lashing is epic.