Gold gained yet another powerful ally yesterday — hedge fund icon Paul Tudor Jones. The man who famously called Black Monday in 1987 and the Nikkei crash a few years later now thinks “gold appears to be cheap.” In a note to his investors, Tudor said, “I have never been a gold bug. It is just an asset that, like everything else in life, has its time and place. And now is that time… gold’s value should increase as its scarcity relative to printed currencies increases.”

Regulatory crackdown on Goldman begins Zero Hedge

Nobel Prize winner: dollar reserve system is falling apart The Daily Crux

The calm before the financial storm The Daily Reckoning

How China is stealing our future Energy Tribune

The lie about high frequency trading liquidity The Market Ticker

Federal Reserve loses big lawsuit Zero Hedge

Insight: Do not fear falling bond prices FT

How big Swiss bank is protecting its clients against inflation Bloomberg

The prices are so cheap they’re stupid DailyWealth

Government claims that Goldman has stock manipulation software The American Prospect

Chris Weber: don’t bet your retirement on stocks right now DailyWealth

Porter Stansberry explains the forces behind the current rally The Daily Crux

America is running out of rope The Market Ticker

The world financial system’s Achilles’ heel The Daily Reckoning

Roubini on a U shaped recovery Naked Capitalism

Larry Flynt calls for a national strike The Huffington Post

Look for an X shaped recovery Real Clear Markets

The risk of double dip recession rising Financial Times

What the stress tests didn’t predict NYT

This is what it looks like when the shit hits the proverbial fan. In this case, the shit being one subprime meltdown, eight years of a monkey in the White House and and $1 trillion in chaotic government hand outs. The fan being everything just about everything else. Yesterday, the talismanic Dow plunged 514.

Gold prices closed up $70 yesterday – the biggest one-day spike since 1980. This marked a sharp reversal from a two-month correction that shaved over 25% off the price of the precious metal.

David Galland says profit taking by institutional investors has ‘trampled’ metal prices. But the deepening crisis on Wall Street, geopolitical tensions and a traditional September bounce could send gold soaring back towards $1,000 an ounce. David says this could “happen literally almost overnight.”

Here’s a no-brainer long-term investment strategy to stick to: buy and hold resources now.

The Daily Reckoning’s currency expert Chuck Butler says the dollar is being taken to the woodshed. The greenback is losing ground against all major currencies as the credit crisis continues to wreak havoc in the U.S economy. Chuck says disappointing inflation or retail sales data this week will send the dollar to new depths…

American consumers are feeling the pain both at the pump and in the grocery store. Meanwhile with real full-time unemployment rates climbing towards 10%, penny-pinching consumers are wondering just who is to blame.

With commodity prices through the roof, governments and businesses see investing in resource-rich Africa as an increasingly attractive proposition.

Chris Mayer explains in The Daily Reckoning why investing in Africa holds such potential for profit:

Africa increasingly is right in the middle of the global quest for natural resources. It has the highest ratio of light and sweet crude in the world – the best-quality stuff you can find. And most of its oil – some 83% – comes from large fields that produce at least 100 million barrels per day.

This week saw Lehman Brothers replace two of its top executives: CFO Erin Callan and COO Joseph Gregor. The two will remain at the bank in lesser roles.

“As recently as a month ago,” says Justice Litle in Taipan Daily, “Erin Callan was on top of the world.”

The WSJ did a glowing piece on her rise through the ranks. Condé Nast’s Portfolio magazine dubbed her the most powerful woman on Wall Street.

The US inflation rate rose by 0.6% in May — the highest monthly increase since last November.

The core inflation rate, however, which excludes volatile food and energy prices, only rose 0.2%, easing fears that rising commodity prices would feed into more widespread inflation

But can the government’s inflation data be trusted? John Brown in The Daily Reckoning doesn’t think so…