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Economics: Science or Séance?


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Janet Yellen calls Federal Reserve meeting to order

Jim Cramer is a former hedge fund manager and best-selling author. He’s the host of CNBC’s Mad Money TV show and a co-founder of TheStreet, Inc.

According to CNBC, with oil prices on the rise, Cramer recently used technician Carolyn Boroden’s charts to try to determine,

[W]hether the uptick in crude oil prices is just a one-off [an aberration or anomaly] or if it’s time to get bullish.”

Note that when it comes to investing in crude oil, Cramer apparently sees just two choices:

1) Stand pat since the rising price is a “one-off” and nothing major is really happening; or,

2) Jump in with both feet since the oil market is really changing to become significantly bullish.

However, there’s a third possibility that Cramer has ignored but others who invest in crude oil should consider: while crude oil’s near-term price is volatile and might go up or down, crude oil’s mid- to long-term price might be falling.

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Silver’s Future


CrystalBall1NEWSMAX reports that in A.D. 2012, America’s largest investment bank (JPMorgan Chase & Co.) held 5 million ounces of silver. Today, JPM holds a staggering 91.5 million ounces of silver! In just 5 years, JPM increased their stockpile 1700%.

In the first three months of A.D. 2017, JPM reportedly purchased 9.4 million ounces of silver. That’s an average purchase of over 3 million ounces per month. JPM clearly believes that silver’s price will rise.

Since A.D. 2000, silver has enjoyed an average annual growth of 10%. Plus, we know that silver can go to $48 per ounce, as it did in 1980 and 2011.”

More, since 2000, silver supplies have been in a deficit every single year. That means the supply of silver has not kept up with the growing demand for over 17 years and is unlikely to do so in the foreseeable future. Diminished supplies coupled with growing demand means higher prices.

Financial expert John Rubino believes that silver could exceed $100 per ounce. According to Rubino, the silver market is so small that if even a relatively modest amount of currency (“a few tens of billions of dollars”) flows into the silver market, the price of silver could start jumping by “$5 or $10 per ounce per day”.

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Consumer Confidence Foretells Economic Crash?


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Consumer Confidence

 

Anyone who stops to think about it knows that the fundamental strategy for generating investment profits is to buy an investment when the price is low and sell when that investment’s price is high. The name of that strategy is “buy-low/sell-high”. The difference between the “buy low” price (say, $100) and the “sell high” price (say $300) is the measure of the profit ($200, in this example) made on the investment.

No one seeking investment profits can refute the “buy-low/sell-high” strategy. On considering that strategy, virtually everyone will say, “Well, of course,” or “Obviously” or even “Well, duh”.

However, the buy-low/sell-high” strategy isn’t as simple as it sounds. There’s a problem: investors like to behave like herd animals. We are generally and genetically afraid to act independently. We feel more comfortable believing someone else (especially an “expert”) than we do in trusting our own eyes and ears. Insofar as that tendency is prevalent, investors are prone to ignore the buy-low/sell-high strategy and instead “buy high” (when virtually everyone is buying and says “now’s the time to buy”) and “sell low” (when virtually everyone is selling at a low price). This “sell-low/buy-high” strategy is a sure formula for going broke. I.e., most investors tend to “buy high” (when the investment’s price is $300) and “sell low” (when the price is $100) and thereby suffer a $200 loss.

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Welcome to Monetary “Darnation”


RockHardPlace1Most economists agree that America’s hope of future prosperity has been compromised by America’s debt. The currency we spend paying the principal or even just the interest on the existing National Debt is currency that we can’t spend investing in new factories or technologies that would increase our productivity and therefore our prosperity.

So long as the National Debt remains or, worse, grows—America will continue to slide towards austerity rather than prosperity.

But, it’s not just America that’s overly indebted. The world is awash in debt. That debt is reducing global productivity and prosperity.

If America—and the world—would become prosperous again, something’s got to be done about paying or otherwise eliminating our excessive National (and global) Debt.

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Posted by on March 17, 2017 in Uncategorized

 

Day of the Debt


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March 15th. The Ides of March. Day of the Debt.

Greg Hunter (USAWatchdog.com) recently interviewed Mexican billionaire and retail magnate Hugo Salinas Price.

Salinas Price advocated using silver as money in Mexico:

The idea is not to go back to a silver standard, but to create a parallel currency which would be a monetized silver coin. It would not bear a stamped value. It would be a plain silver coin with a quoted [periodically adjustable] value given to it. This value would be adjusted upward with a fall in the value of the peso or a rise with the price of silver.”

Adjusted” by whom? The Mexican government? And that government would promise (cross-their-hearts-and-hope-to-die) that they would never, ever try to manipulate the silver coin’s value for political gain—right? And the people of Mexico and of the world would believe that the Mexican government would never try to manipulate the value of the silver coins for political purposes—right?

I don’t think so.

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Posted by on March 15, 2017 in Uncategorized

 

The Winter of My Discontent


Burnout

The last time I posted an article on this blog was November 6th.  Up until then, I’d posted about 1,900 articles–about one every day and a half for a number of years.  It’s hard work trying to find something to say that’s (hopefully) new, worthwhile, insightful and still not too long.  I was, to some extent, exhausted.  Burnt out.

It wasn’t just burn-out from the writing.  I love writing.  Not because I love telling my ideas to others.  That’s good, but it’s not my primary motivation.  I love writing because it teaches me.  I don’t seek to teach by writing.  I (mostly) seek to learn by writing.

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Posted by on March 9, 2017 in Personal

 

“Hacksaw Ridge” by Mel Gibson


True story.

I haven’t been to a movie in years, but I’m goin’ to this one.

video     00:04:48

 
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Posted by on November 6, 2016 in Bible, Values, Video, Violence, War

 

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