Thoughts on Markets

Wednesday, March 24, 2010

China Seeks More Influence - Gold & Silver in Correction

There is very suspicious activity in the precious metals markets. They are NOT FREE. Would that the intervention would end. Be sure to listen to the entire McAlvany Weekly Commentary, below.


The debasement of world currency: it is inflation,but not as we know it

by Peter Warburton
April 9, 2001

More than twenty years ago, I was a research officer in a forecasting unit at the London Business School. We called ourselves international monetarists then and we had a model that determined the inflation rate from the growth of money stock per unit of output, with long and variable lags. The value of a currency was determined, in the long run, by its monetary growth per unit of output in relation to that of the rest of the developed world. Being a young man, I was heavily into econometrics – or economic tricks, as some would have it – and our research group published papers showing how well this model fitted the data of that time. Basically, we had it sown up. We knew how to predict inflation; we knew the equilibrium value of currencies and the untidy realities of economic life were mopped up in the balance of payments. We felt sure that if the authorities could regulate the growth of the money supply, all would be well. How wrong we were. Read it HERE.


Comments for the Commission for the Public Hearing on the Metals Markets, March 25, 2010

This is an important article and worth the time it takes to read it thoroughly HERE.

Hear the McAlvany Weekly Commentary HERE. This is a pertinent commentary on the lack of sound economic policy which the Obama White House has replaced with total politics. The US government is losing influence the financial world. Be sure you listen to this in the background as you work on your computer. THIS IS VERY IMPORTANT!

Miners from
Currencies from
Some prices: BYDDF 9.97; FVITF 2.50; TBT 48.25 (This is moving up as the interest rates have been increasing internationally having an adverse effect on the market value of LT Bonds); UUP 23.98 (Dollar is temporarily up.); DOW off 35 to 10854 (By the way, the DOW bounced all around yesterday and then toward the end moved to a triple digit gain.); Gold off 10.10 to 1092.70, and Silver off 0.28 to 16.71.

Folks, I believe we are approaching some buying opportunities in the precious metals and mining stocks, but I would like to see a bottom put in for this correction. It could go on for a while. Timing is everything in investing. It looks as though the DOW may continue upward for a while, so one could consider investing in DIA. Study and make your own decisions.

Cash and precious metals for the long run, but take a look at the general market for now.

Our God is in control and I rest securely in that.

Best to each, Doug


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