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By Other, on August 30th, 2007
THE CONSUMER PRICE INDEX (CPI) HAS BEEN MANIPULATED TO MINIMIZE THE IMPACT OF INFLATION An article by Robert Hardaway, a law professor who has written fourteen books on law and public policy, (there is a link to the article below) is one of the best that I have seen on the subject. It is especially important because it points out how government agencies manipulate the producer and consumer price indices. Governmental authorities view inflationary psychology as a particularly dangerous opponent, they want to keep it down at whatever cost.
AS CONSUMERS DEMAND MORE GOLD TO PROTECT THEMSELVES FROM INFLATION…CENTRAL . . .
Continue Reading: INFLATION IS NOT CURRENTLY THOUGHT OF AS A PROBLEM IN THE DEVELOPED WORLD…..THAT WILL CHANGE IN THE COMING MONTHS AND YEARS
By Monty Guild & Tony Danaher, on August 28th, 2007
It is always nice to start a letter with some light comment. Although it may not be as easy in turbulent times, we would like to extend our warmest wishes for your present and future health, happiness and prosperity
A recession in the U.S. is the most likely outcome of the current problem in the mortgage and debt markets. We also believe that recession pressure has intensified in Europe, Japan and several other developed nations.
Thus far, it seems that the subprime and “Alt A” mortgages were mainly purchased by the developed countries mentioned above. Therefore, we can expect . . .
Continue Reading: A U.S. ECONOMIC RECESSION HAS BECOME PROBABLE….IN SPITE OF CONTINUED STRENGTH IN ASIA
By Monty Guild & Tony Danaher, on August 22nd, 2007
Somebody forgot to tell the Chinese and Hong Kong stock markets that there was a global liquidity crisis. China has not yet declined as world markets have fallen, and after a short reaction Hong Kong has come back strongly. Why have these two Chinese markets so thoroughly outperformed other markets?
Answer: Uninterrupted liquidity and a lot of confidence.
Liquidity is available because the Chinese economy is booming. The money supply is growing at over 20% per annum, and the impact of inflation is being experienced by the average Chinese citizen. The Chinese want to protect themselves from inflation and . . .
Continue Reading: CHINESE STOCK MARKET CONTINUES TO RISE WITH NO LET UP
By Other, on August 16th, 2007
It is reassuring to know that opportunity is created when investors are forced into liquidating assets, even assets with good fundamentals.
THE FINANCIAL TIMES-Published: August 15 2007 03:00
In a world of overconfidence, fear makes a welcome return – by Martin Wolf
"At particular times a great deal of stupid people have a great deal of stupid money . . . At intervals . . . the money of these people – the blind capital, as we call it, of the country – is particularly large and craving; it seeks for someone to devour it, and there . . .
Continue Reading: IN YESTERDAY’S FINANCIAL TIMES (AUGUST 15, 2007) THERE WAS A VERY GOOD ARTICLE BY MARTIN WOLF THAT DISCUSSES WHAT HAPPENS IN THE MARKET WHEN GREED DRIVEN EXCESS GIVES WAY TO FEAR
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