So as far as GDP goes, Government Spending is all that is running the show right now. The question that investors need to ask themselves is, “How long can this last?” Of course the key to everything is the purchasing power of those things we get paid in called dollars.
Read More0Sep
15
2009
In my continual efforts to challenge investment advisors and journalists about the need to diversify with gold, a pleasant surprise developed today…..an advisor responded!
Even though the title of his article is misleading, Larry Swedroe, principal and the director of research for Buckingham Asset Management and BAM Advisor Services, did respond to my comments about his CBS Money Watch article; “Don’t Believe the Hype About Gold.”
Read More0Sep
12
2009
Chris Farrell from Marketplace Money, a column written for American Public Media, wrote an article that promoted misleading information about buying gold. The article in its entirety follows and you’ll find my response pointing out Farrell’s unsound advice about buying gold below that.
People need to know the truth when it comes to buying gold and I will continue to challenge financial advisors and the media journalists who continue to misinform the public about gold.
Read More0Sep
10
2009
Sep
2
2009
Aug
25
2009
The U.S. is the Debt Engine to the World
Take a look at the map of the world below. It shows in the purple color the countries in the deepest debt as a percentage of GDP. Interesting how most of the other countries in the world can manage their finances better than the U.S. can. Could it be because these countries are actually producing something?
Read More0Aug
21
2009
Aug
19
2009
How Gold Would Be Used In Hyperinflation
By: Doug Eberhardt
Category: Gold
Tags: Deflation, Dollar, Gold, Hyperinflation, Inflation, Money, silver
Gold, during the time of a hyperinflation scenario, unlike paper money, would be “perceived” as having value as it has for centuries. The U.S. dollar however, wouldn’t have any perceived value under this scenario. So a better question to answer would be, what would you use as a medium of exchange sans gold since no one will want U.S. dollars?
Read More0Aug
17
2009
The Banking Crisis is Far From Over
By: Doug Eberhardt
Category: Gold
Tags: bank failures, banking crisis, Economy, FDIC, Federal Reserve, fractional reserve banking, housing bubble
“Failed banks are weighing on FDIC” is the headline in tomorrow’s Wall Street Journal. Banks are being taken over at an alarming rate thus far in 2009. Banks aren’t lending so it is difficult for them to make a profit while at the same time they are trying to resolve their past lending decisions. Individuals are finding it difficult to secure loans with the more stringent FICO requirements. Increasing unemployment is making it difficult for many more to maintain their home ownership. As people who are now or soon to owe more than their house is worth decide to bail on home ownership, the bank will be left holding an unwanted, depreciating asset. This is occurring all at a time when banks may be forced to mark to market their assets, showing their real estate holdings value based on today’s depressed prices thus revealing balance sheets that are becoming ever more weaker.
Read More0Aug
7
2009