"She's listing Captain."
A word to the wise: you can’t really make people wealthy by resorting to “Zimbabwe economics.” A society grows rich by producing things...and saving money. There is no other way. Cheaper credit won’t do it. More consumption won’t help. Printing money – and dumping it from helicopters – is a losing proposition.
But we hope our financial authorities continue. At least it’s fun to watch.
--Bill Bonner The Daily Reckoning
I know I am enjoying watching the prices of Precious Metals rise. The only thing more enjoyable? Seeing dem Rat Bastids on the NY COMEX burning at the stake.
"Shot down in flames. Ain't it a shame to be shot down in flames." --AC/DC
The Dow, the S&P 500 and the Nasdaq have, in the first four weeks of 2008, lost all of their gains from 2007 and then some. They are all well into red ink when compared to their 12/29/06 levels. By contrast, since 12/29/06, spot gold has gained 43.16%, spot silver has gained 26.14%, the XAU has gained 30.43% and the HUI has gained 36.44%.
Now here are your fundamentals: the credit markets are frozen, the real estate markets are virtually dead with record levels of inventory, much of it vacant, continuing to deteriorate, ARM and pick-a-pay mortgage payments on hundreds of billions in mortgages are about to adjust to unaffordable levels for millions of borrowers, defaults on all types of debt are starting to skyrocket including prime customers, consumer spending and confidence are both decreasing rapidly as hyper-stagflation begins its reign of terror, state budgets are running massive deficits and some are near bankruptcy, inflation is over 11% (officially 4.1%), M3 is about 16% (officially unpublished), unemployment is 15% (officially 5%) and growing as free trade, globalization, off-shoring and out-sourcing continue to decimate our better-paying job sectors, banks are writing off or writing down tens of billions soon to become hundreds of billions in subprime losses and bad mortgages and loans, a looming multi-tens-of-trillions mountain of potential derivative losses continues to threaten markets with a nightmarish thermonuclear meltdown,...
...would anyone in their right mind invest in any of the general stock sectors with this kind of data and fundamentals? Does not this scenario sound like a poster advertisement for buying gold and silver? Could the fundamentals for precious metals possibly be more bullish than they are now? Buy gold and silver, or prepare to get reamed!!!
--Bob Chapman, The International Forecaster
Thank you Bob! You are definitely a breath of fresh air. Why do I doubt President Bush will be as honest this evening as he addresses the nation. Can you say hot air? Jeez, who would want this guys job. Many will try and blame him for for the nation's eventual demise, but it is his successor that will field the most pain. Who was it that first said, "Easier said than done?" Good luck Mr. President and good luck America.
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