Tag Archive for: sound bites

Trust and Oil

Soggy Dollars First, there’s a word for someone who buys gold in the hope its price will rise. This word is not investor, but speculator. Second, statistical anomalies cannot be asserted as proof of manipulation. Also, the article is giving the reader the blueprint for a no-brainer way to profit by the mistakes of the […]

Pure Gold and Soggy Dollars

We’re going to be introducing some new formats. One of them is quick article links, with the good ones labelled Pure Gold and the bad ones labelled Soggy Dollars. Pure Gold When a Fed-induced boom turns to bust: “In the lynch-mob atmosphere that inevitably follows the bust cycle of Fed-induced business cycles, it was not […]

Interest Rate Roadkill

Yield Curve Arbitrage Does a steepening yield curve help bank profits? It depends on whether a bank has already bought long bonds before the steepening curve makes them cheaper. If the banks already own those bonds, then the more the curve steepens, the more it inflicts losses and then the banks have to sell, which steepens the […]

Silver Rises $0.70 on “Fundamentals” (or something)

      Yes, big red candle followed by two big green candles occur at the same time: 6AM – 9AM PDT. Somewhere, a credit spigot opened…    

Would Gold Bugs Make Sense?

It Wouldn’t Make Sense Not to A gold bug argues it would not make sense for the Fed not to manipulate the gold price: If gold isn’t suppressed, then the Fed would be leaving it to trade in an open and transparent market Banks can short-sell with impunity because if they take losses they can […]

Monetary Facts

 Milton Friedman said that if a country had bad economic policies, its currency would weaken, which would restore balance. Imports would drop and exports would rise. Japan’s insane policy has so far crushed the yen by 22%. The results? As Mish writes, imports +9.4%, exports +3.8%. Their trade deficit fell to the worst level in decades. […]

The Dollar Price Rises 33% in Lumber

      Yesterday, we showed pictures of the price of a dollar in gold, silver, euros, and yen. Here is a picture of the price of a dollar in board-feet of lumber. This is a bit silly, as lumber is not a currency. But it is interesting that it shows the same phenomenon. Also, […]

Gold:Silver Ratio spikes over 66!

Yesterday in the Gold Basis Report, we wrote: “…we reiterate that we are cautious about the price of silver (measured in grams of gold) and think the ratio is more likely to rise than to fall.” Little did we know. As this 5-minute chart shows, the ratio rose to over 66(!) before coming back down […]

Latvian Deflation will Increase their Debt Burden

This article claims that falling prices will increase Latvia’s burden of debt. It is not falling prices, but falling interest rates, that increase the burden of debt (and it is not just Latvia but the whole world, which has falling interest rates). Think of borrowing at the high level as selling a bond. Think of selling […]

Are Japanese Banks on the Verge of Insolvency?

“…holdings in [gold] exchange-traded funds fell to the lowest in over four years…” as this article states. But is this a real relationship? Do holdings at the ETF necessarily fall with a falling gold price and rise with a rising gold price? The same thing has not occurred in SLV–amidst an even larger price drop than that of […]