Thoughts on Markets

Tuesday, March 15, 2011

Markets in Crash Mode - Could be Cautious Buying Time - Let's wait and see what God will give us

 As you will see, below, the markets are now in a crash mode. We must seek to discover whether it is the full crash which has been expected or is it just another bump in the road. At this point, it certainly looks dangerous. There are times like these that one must hang onto the real money: gold and silver, and carefully watch as the action unfolds. Maybe even to sit on the sidelines and be a silent observer. It is very difficult to decipher manipulated markets.

We should be very grateful that we have a Sovereign King Jesus at the driver's seat and in absolute control of every person everywhere. He selects every magistrate and can at any time remove any at His will. He sits at the right hand of God, the Father until all nations are His footstool. 

"Be still and know that I am God: I will be exalted among the heathen, I will be exalted in the earth. The Lord of Hosts is with us; The God of Jacob is our refuge." He says in Psalm 4610,11. We can have great peace and assurance since He is in control and nothing can separate His people from His love and care. 

Red Alert: Radiation Rising and Heading South in Japan
The nuclear reactor situation in Japan has deteriorated significantly. Two more explosions occurred at the Fukushima Daiichi nuclear power plant on March 15. I highly recommend Statfor as a source of political insight around the world. Read this scary article HERE.

Mine Web:
Nuclear renaissance will survive despite Japanese crisis - Cameco
As Japan teeters on the brink of a disaster at its Fukushima DaiIchi nuclear power plant, Cameco chief Jerry Grandey suggests the uncertainty may delay, but not end the global nuclear renaissance.  Nuclear power is the best and cheapest we have today, so it will survive until there is a much better technical advance. HERE.

Mine Web:
Uranium stocks take a thrashing
While the jury remains out as to the extent of the damage to Japanese nuclear facilities following a massive earthquake, investors took decisive action on Monday and sold down uranium stocks. An expected result of scare from the disaster in Japan. HERE.

Town Hall:
Thomas Sowell
The 'Redevelopment' Hoax 
Why are so many people who are opposed to development nevertheless in favor of "redevelopment"?
The short answer is that development involves decisions made in the market by large numbers of people in the general population, in their own personal interests, while redevelopment involves taking decisions out of the hands of the population at large and putting the power to make those decisions in the hands of elites.
Developers who build housing to sell to the public are the focus of many denunciations by elites in places like coastal California. But developers would not even exist if there were not vastly larger numbers of people ready to buy or rent what they build. What insight this provides for us. HERE.

iPad price remark gets Fed's Dudley an earful

By Kristina Cooke
NEW YORK, March 11 (Reuters) - Memo to central bankers:
Best not to cite the price of the new iPad as an example of why inflation isn't a problem when you head into a working-class neighborhood.
In Queens, New York, on Friday, New York Fed President William Dudley did just that. He got an earful.
After being bombarded with questions about food inflation, Dudley attempted to reassure his audience by putting rising commodity prices into a broader economic context -- but that only made matters worse.
"When was the last time, sir, that you went grocery shopping?" one audience member asked.
Dudley tried to explain how the Fed sees things: Yes, food and energy prices may be rising, but at the same time, other prices are declining. More double speak from a Fed official. The people in Queens who shop every week for food and spend for energy know the truth. We have inflation! HERE.

Mine Web:
What really affects gold and silver prices - and what does not
Beware what you read! Julian Phillips talks us through what, in his opinion, actually affects gold and silver prices and what, in reality, is of little consequence. Interesting opinion with some real insight.  The media must fill time on broadcasts and print in paper; therefore, they need something to say. One if he is discerning will here jumps in prices one day attributed to the same causes as the drop was in the day or two before. Thus, beware of the general media opinions.  HERE.

Gold below 1400. That could be a danger sign, but I believe it will continue the rebound and close above 1400. If it does not, we could see a correction. It is difficult to tell what will happen in manipulated paper currencies and markets of the world. We should strive for sound money and markets free from government intervention. 
Mine Web:
South Africa's gold output continues to fall
South Africa is slipping further down the global gold production league which it dominated for most of the last Century as lower grades and deeper mines take their toll. There is also the attack on the mine by robbers who loot and kill. This does not bode well for South African mining stocks of which DROOY and HMY are represented in my portfolios. HERE.

Miners from Scottrade:

Currencies from KitCo:

Some Prices: FVITF  4.65 (this is a buy for me); BULM 1.35; OLVRF 1.68; BYDDF 4.03 (this is a buy for me); SENY 1.10 (A wild speculation); DOW off  231+ to 11761.87 and falling; SPX

We very well could be headed for a substantial drop in the general market which will take the miners and likely the precious metals with it for a while. Be very cautious in any purchases. Make your own decisions. BUYER BEWARE!

Best, Doug


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