Thoughts on Markets

Tuesday, December 07, 2010

Unemployment & Inflation Rates - Stagflation - Stewardship

Folks, I want you to see statistics that are nearer the truth than that which are produced by the Federal Government manipulators. Here we see that the unemployment is much worse than admitted by the general media and the government. In my opinion, there will be little improvement in our economy and that of the world until more people are moved from unemployment and under employment. How can a economy grow with somewhere about 1/4 of the population stuck in under paid and short time jobs or totally unemployed? In spite of rhetoric to the contrary, our economy stinks.

In the graph, above, also from, we see a much more accurate picture of the rate of price inflation. Remember, inflation accurately defined is an unwarranted increase in the amount of unbacked currency in circulation which produces price inflation in the market place. Remember, too, that only central banks and governments can print more money under the laws which they generate to hold on to the monopoly they enjoy over, so-called "money."

As we shop for food and energy, it is clear to the general population that prices are rising. We are experiencing a virtually hidden price inflation which extends to more shopping areas week by week. Thus, we are facing, as I have maintained for months an extended period of Stagflation. That is we are having price inflation while pay checks are decreasing or remaining the same. 

This calls for less spending on the part of savvy individuals and businesses, regardless of whether the governments continue their spending binge. It also calls for us to get out of debt. To do both, we must concentrate upon frugality. This must be the watch word in our lives. To many, this may seem impossible, but it is necessary for financial survival. Under God, we must become good stewards of whatever wealth He has provided. Search the bible daily for His way which is owe no man anything and being a wise shopper who seeks quality at the least price.

God's way of spending, conserving, and warnings about debt abound in Scripture. Search it for your for your eternal security, as well as, financial security. It covers every area of life and prescribes a Christian world and life view.

Thomas Sowell
Rhetoric Rides Again 
Let's face it, politics is largely the art of deception, and political rhetoric is largely the art of misstating issues. A classic example is the current debate over whether to give money to the unemployed by extending how long unemployment benefits will be provided, or instead to give "tax cuts to the rich."
This contains good insight and should be read. HERE.

 U.S. Mint delays America the Beautiful silver bullion coin on launch day
Once again, the U.S. Mint has delayed sales of a silver bullion coin--this time on the day it was supposed to be launched--citing sky-rocketing prices being charged by dealers. Price seems to be the problem. Check it HERE.

$30 silver is it a buy or a sell?
As "poor man's gold" climbs above $30 an ounce, analysts are divided as to its prospects from here but, there is cautious optimism. The article contains pro and con arguments and is a worthwhile read. I am not selling, but am hesitating to buy now. On any strong pull back, I would be a buyer of more silver mining stocks and even silver coins.  HERE.

Miners from

Currencies from

Notice the three currencies which are virtually on par with the dollar. They are holding rather firm at that level. In the not too distant future all three will be above par.
Some Prices: FVITF 4.52; BULM 1.28; OLVRF 1.3404; HHWW 1.95 ( I should have bought this three weeks ago, but did not get in at my price.); DOW up 66+ to 11428+; SPX up 7+ to 1230+; Gold down 11.60 to 1412.10, and Silver down 0.08 to 30. Both of our metals are down today and may be offering us an opportunity to buy, but I am presently waiting and watching. 

Best to each, Doug


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