USA And The Rest Of The World
Both China and Europe have higher priorities than being America's fall guy. Led by a more self assured Germany, the European states are choosing not to throw themselves on to our funeral pyre of increasing debt and monetary creation but to wisely clean house and reduce spending. Although Geithner has announced China's acquiescence to a 3% revaluation of the Yuan, nothing has happened yet. Besides, does anyone really believe that this will do any good?
Both China and Europe have higher priorities than being America's fall guy. Led by a more self assured Germany, the European states are choosing not to throw themselves on to our funeral pyre of increasing debt and monetary creation but to wisely clean house and reduce spending. Although Geithner has announced China's acquiescence to a 3% revaluation of the Yuan, nothing has happened yet. Besides, does anyone really believe that this will do any good?
Let's examine the evidence: The Yen increased in value from over 300 to the Dollar to below 100; The Canadian Dollar increased in value from a low of $0.60 to almost parity and the Euro increased from $0.85 to over $1.30. In all cases, exports and its resulting increase in the trade deficit to the USA continued to expand by over 50% during those same periods of time. I have been warning you for a long time that there is NO ONE in either the Administration or the Media who understands the first thing about economics, Nobel Prize winners or not.
The entrenched economists will continue to harp for more of the same non-remedies that have failed to avert systemic tribulation. Keynesian abuses have pushed the nation into an untenable policy corner, as bankers with economists at their side press harder for what has always failed to work!!
The Obama Administration like the Bush Administration before it, does not comprehend that liberal money creation actually destroys capital, damages businesses, and reduces real income. The US political leaders and banking leaders have not yet learned the lesson of Natural Economic Law in over 75 years. Tragically, the banking and political leaders are caught in a bind, fashioned from their own ignorance's and outright self deceptions.
As we all should know by now, when it comes to the capital markets, conventional advice is eventually deadly. It identifies trends too late and fails to warn when risk increases exponentially. However, most people would rather feel good for the moment than be a contrarian.
Look at the capital markets today and the trends are clear. With global growth likely to remain low to stagnant for quite some time, stocks and commodities will not help your portfolio. Because of manipulated interest rates, Treasury Bonds are performing well, but the threat of severe inflation and sovereign bankruptcy looms and so is the biggest Bond Bubble bust in History. Precious metals are the only winner, yet the "Herd" doesn't see it that way. To them, the Bull Market in precious metals isn't even a Bull Market - it is an aberration. It is a mistake: And yet It is as near a certainty as there can be, that precious metals will outperform. Why? This is what happens in a major credit contraction. There is a run for real money. It doesn't matter if there is hyperinflation or deflation. Since the crisis began, we've had strengthening deflationary forces. Gold has advanced to a new all time high and even higher against most currencies. Quality Gold stocks have surged to all time highs. Silver has outperformed nearly everything except Gold.
Both China and Europe have higher priorities than being America's fall guy. Led by a more self assured Germany, the European states are choosing not to throw themselves on to our funeral pyre of increasing debt and monetary creation but to wisely clean house and reduce spending. Although Geithner has announced China's acquiescence to a 3% revaluation of the Yuan, nothing has happened yet. Besides, does anyone really believe that this will do any good?
Let's examine the evidence: The Yen increased in value from over 300 to the Dollar to below 100; The Canadian Dollar increased in value from a low of $0.60 to almost parity and the Euro increased from $0.85 to over $1.30. In all cases, exports and its resulting increase in the trade deficit to the USA continued to expand by over 50% during those same periods of time. I have been warning you for a long time that there is NO ONE in either the Administration or the Media who understands the first thing about economics, Nobel Prize winners or not.
The entrenched economists will continue to harp for more of the same non-remedies that have failed to avert systemic tribulation. Keynesian abuses have pushed the nation into an untenable policy corner, as bankers with economists at their side press harder for what has always failed to work!!
The Obama Administration like the Bush Administration before it, does not comprehend that liberal money creation actually destroys capital, damages businesses, and reduces real income. The US political leaders and banking leaders have not yet learned the lesson of Natural Economic Law in over 75 years. Tragically, the banking and political leaders are caught in a bind, fashioned from their own ignorance's and outright self deceptions.
As we all should know by now, when it comes to the capital markets, conventional advice is eventually deadly. It identifies trends too late and fails to warn when risk increases exponentially. However, most people would rather feel good for the moment than be a contrarian.
Look at the capital markets today and the trends are clear. With global growth likely to remain low to stagnant for quite some time, stocks and commodities will not help your portfolio. Because of manipulated interest rates, Treasury Bonds are performing well, but the threat of severe inflation and sovereign bankruptcy looms and so is the biggest Bond Bubble bust in History. Precious metals are the only winner, yet the "Herd" doesn't see it that way. To them, the Bull Market in precious metals isn't even a Bull Market - it is an aberration. It is a mistake: And yet It is as near a certainty as there can be, that precious metals will outperform. Why? This is what happens in a major credit contraction. There is a run for real money. It doesn't matter if there is hyperinflation or deflation. Since the crisis began, we've had strengthening deflationary forces. Gold has advanced to a new all time high and even higher against most currencies. Quality Gold stocks have surged to all time highs. Silver has outperformed nearly everything except Gold.