INFLATION IS STARTING TO STIR…..AND CENTRAL BANKERS WORLDWIDE ARE RAISING INTEREST RATES
Both India an China are increasing interest rates and reserve requirements to slow down inflation, which is becoming imbedded in their economies, just like it is becoming imbedded in Western economies. One of the biggest mistakes today is the ignoring of inflation, and the use of the absurd “Core” inflation statistics. People consume food and energy, and these areas are where most of the inflation is being felt. To use “Core” inflation instead of actual inflation is a scam.
EUROPEAN COMPANIES ARE LOOKING TO THE EAST…EUROPE GROWING FASTER THAN THE U.S.
European exports are 14% to the U.S. and 30% to the East (China, Russia and Eastern Europe). Europe is growing faster than the U.S. for the first time in many years, and there is a lot of reason to believe that this trend will continue for the foreseeable future.
Even socialist Europe is growing faster than the U.S., due to the U.S.’s unwise spending in the Middle East, unwise political priorities, and unwise management of economic activity. As a result, the U.S. triple deficits are continuing to grow and, as spring follows winter, the U.S. dollar will fall. GOLD, FOREIGN CURRENCIES…ALL THINGS FOREIGN ARE IN DEMAND, AND ALL THINGS U.S. ARE UNDERPERFORMING.
GOLD HEDGES BITE ANOTHER COMPANY
JSMINESET.COM readers can be very grateful that they have had Jim Sinclair’s guidance to avoid the hedged gold companies. Further, Jim has clearly articulated why investors should focus on companies which will earn royalties on gold production.