A debate over the future of the U.S. Federal Reserve is taking place in the halls of Congress.
“In a fundamental shift, consumers are saving rather than spending,” notes the Los Angeles Times. This is the shift we’ve been talking about for months. The great credit expansion of 1945-2007 is over. Now cometh the great credit contraction.
One of our favorite underground investors Porter Stansberry of Stansberry & Associates Investment Research has picked up on a chart from the Wall Street Journal that will make your hair stand on end.
Gold pushed steadily higher from the far East through to the New York open on Tuesday, but the $939 peak was the high for the day as it sold off in fits and starts to just after noon, before regaining some lost ground over the final hours to close at $934.80/oz., up $6.80. Overnight, gold has fallen off.
My latest sure-fire, money-maker idea is to sue Yu Yongding, former bigshot with the Chinese central bank, for plagiarism, as he is the guy who said that “If the US can find a way to protect China’s assets, America’s standing here will increase.” My case is built on the fact that he said, repeated so as to make sure it is on the record, that “If the US can find a way to protect China’s assets, America’s standing here will increase.”
What if deflation wins? While we think the odds are strongly stacked against it, particularly given the government’s furious pace of money printing, the prudent investor understands – and respects – the time-tested adage, “Nothing is guaranteed.” So while our chips sit squarely on the spot marked “inflation,” what will happen to gold stocks if we’re wrong?
I thought that as part of the new Mogambo Program To Stop Freaking Out (MPTSFO) and maybe get some sleep that is not disturbed by screaming at nightmares of the horrors of inflation and economic ruin that are the just desserts of an America that has now embraced ignorance, stupidity and sloth as virtues, I had turned off the alarms in the Mogambo Bunker (the MoBu) that were connected to the circuits monitoring the creation of bank credit by the Federal Reserve.
On Friday, my colleague and friend David Fessler provided you with four inflation hedges to consider. Without question, I agree with all of Dave’s recommendations. I just want to add one more inflation hedge to the mix. It’s an under-the-radar one that nobody’s talking about. But they should be. So let me tell you what it is – art investing. But let me stress why it’s imperative you spread the love around and consider investing in all five inflation hedges, not just one.
Euro goes back and forth over 1.43…Eurozone unemployment rises to 9.2%…Australia’s GDP surprises! Is it protectionism? And Now… Today’s Pfennig!
In the currency market, the dollar prolonged its slide against the euro. Late Monday, the euro was trading at $1.417 vs. $1.4126 on Friday.