Mahant!

The fact that other people agree or disagree with you makes you neither right nor wrong. You will be right if your facts and your reasoning are correct. Benjamin Graham There is something about inside information which seems to paralyse a man's reasoning powers. Bernard Baruch I'm sure a crash like 1929 will happen again. The only thing is that one doesn't know when. All it takes for another collapse is for the memories of the last insanity to dull. The singular feature of the great crash of 1929 was that the worst continued to worsen. What looked one day like the end proved on the next day to have been only the beginning. The fortunate speculator who had funds to answer the first margin call presently got another and equally urgent one, and if he met that there would still be another. In the end all the money he had was extracted from him and lost. The man with the smart money, who was safely out of the market when the first crash came, naturally went back in to pick up ba...

CURRENT SITUATION – The absurd money-creation continues. Slowly yet surely, the “stealth” confiscation of savings is gaining momentum as money loses its value. Central banks claim that they are raising interest-rates to fight inflation. At the same time they are slipping in more rum into the punch bowl, thus creating just what they say they want to fight – inflation! Take a look at the latest year-on-year money supply growth-rates around the world: Australia + 9.1% Britain + 11.7% Canada + 7.7% Denmark + 14.7% US + 8.1% Euro area + 7.3% ..................... So far, the ongoing inflation has been masked by the bogus core inflation figures released by the authorities. According to the official statistics, inflation is tame and under control. But if you take a look around, you will realise that the cost of living is rising much faster than the officials would have you believe. The cost of energy has gone up six times; the cost of housing is at a record-high in most countries; education i...

Comments by Steve Saville "Monetary inflation, despite its popularity as a 'cure-all' during times of economic stress, can't possibly bring about an increase in total wealth. It does, however, cause a re-distribution of wealth because a) some people figure out what's happening well before others, b) it benefits the asset-rich at the expense of the asset-poor, and c) it benefits debtors at the expense of creditors, at least until creditors begin to fully anticipate the effects of the inflation and adjust interest rates accordingly. Ultimately, inflation leads to wealth destruction because it distorts price signals, causing investment to be misdirected. It is this particular effect of inflation -- the misdirection of investment and the resultant booms/busts." So which gang do we belong to ??? :) Falkor

These are the excerpts from the Steve Saville's editorial from Gold Eagle titled "The End Game". "As we've said many times in the past, keeping the inflation going is not the real challenge for the Fed; rather, the real challenge for the Fed is to keep inflation EXPECTATIONS in check. In our opinion, the next time inflation expectations spiral out of control will be the last time because doing what Paul Volcker did at the end of the 1970s (pushing interest rates to astronomical heights) is no longer a viable policy option. This is why the Fed's biggest fear is an uncontrolled rise in inflation expectations." "It is such a basic economic truth that someone with the ability to increase the supply of some 'thing' by an unlimited amount also has the ability to push the price of the thing down by as much as they desire. This is true regardless of whether the thing in question is a dollar or an apple or communications bandwidth. Central banks have...

Greg Silberman at FinancialSense.com - "Silver had a low of $1.50 in 1973 and a high of $40 in 1980. Projecting forwards, Silver has a price target of $675. That’s a 6,600% increase from current prices. Gold had a low of $35 (1971) and a high of $850 (1980). Projecting forward, Gold has a price target of $13,000. That’s a 1,400% increase from current prices." Marc Faber of the Gloom, Boom and Doom Report - "My target is for gold prices to rise to between US$5,000 and US$10,000 in the next 10 years." :) Falkor

An article very much reminiscent of our Rich Man's tale from Peter Schiff A Tale of Two Farmers Farmer Chang only grows oranges. Farmer Jones only grows apples. Each grows only the fruit that he produces most efficiently, trading the surplus for the fruit grown by the other. Both farmers benefit from comparative advantage and free trade. The sole reason that Farmer Chang “exports” oranges is to “import” apples, and vise-versa. Suppose that one year a frost wipes out farmer Jones’ apple crop. Not having any fruit to trade, but hungry nevertheless, he proposes to trade apple IOUs for farmer Chang’s oranges. Since Farmer Chang cannot eat all of the oranges he grew anyway, and since farmer Jones’ IOUs will pay 10% interest (in extra apples of course) he agrees. Farmer Chang only accepts farmer Jones’ offer because of the apples that Farmer Jones’ IOUs promise to pay. By themselves, the IOUs have no intrinsic value. Farmer Chang cannot eat them. It is only the promise to pay apples that...