news.goldseek.com >> 15 May 2008
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news.goldseek.com >> 15 May 2008 |
Correction in Gold Near End
By: Jim Willie CB
The springtime corrections are really about done. They have gone on for a couple of months. The extent of the pullbacks have been tested and retested. The long-term trends are just about ready to asset themselves again. Grand deceptions have resumed to attempt to fool the public and the investment community that the worst is over for banks, housing, and mortgage bonds. That is not even remotely true.
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news.goldseek.com >> 7 May 2008 |
Opportunity on a Silver Platter
By: Jim Willie CB
Once every several months, an opportunity is presented on a silver platter to purchase a spectacular investment in a strong uptrend, with loud indications of continued upward trend in price. Gold is heading well past $1200 and silver is heading well past $25 in the next several months, despite the orchestrated annihilation of honest valid reporting.
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news.goldseek.com >> 24 April 2008 |
Gold Drivers: Cheap Money, Rapid Inflation
By: Jim Willie CB
The two primary engines pushing the USDollar down are extraordinarily low borrowing costs and extraordinarily high monetary growth. Money is very cheap to borrow, which encourages speculation for basic reason that many investments are rising in price. That covers the demand side for money. The money supply is growing out of control. It is hard to describe any modern day monetary event as like Weimar German times, but this is becoming close.
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news.goldseek.com >> 16 April 2008 |
Liars, Wall Street & Your Gold
By: Jim Willie CB
Few seem to remember that Wall Street is not a non-profit community driven by altruism or any sense of service. They would gladly cheat you out of your entire life savings if their actions were legal, or at least not prosecuted. In the last two to three years, the lies, deception, misdirection, false reporting, corruption, and grand fraud will be the topic of historical accounts for decades.
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news.goldseek.com >> 9 April 2008 |
Lessons from Japan: Prepare for 0%
By: Jim Willie CB
The prospect of a USFed 0% rate becoming a reality has been on my mind since August when the subprime news hit. In my view, the entire mortgage bond structure would suffer massive losses in a successive of waves, beginning with subprimes, extending to primes, and concluding with commercials.
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news.goldseek.com >> 27 March 2008 |
Bottomless Financial Sector Bottom
By: Jim Willie CB
The prevailing force-fed sentiment is that the US financial sector has bottomed out, the worst is over, the mechanisms for remedy are here, and time to get back in the water for profound bargains again. Let me rebutt! The financial sector is merely taking a breather in a long death march after the great bond bust and horrific unwind of reckless mortgage creation.
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news.goldseek.com >> 20 March 2008 |
Cliff Notes on Financial Maelstrom
By: Jim Willie CB
The smackdown of gold under $950 and of silver under $19 only managed to remove and cleanse these two important metals markets of their overbought situation. The Boyz have cleared the path for gold to reach $1100 and for silver to reach $26. Nothing has been solved yet on most critical battle fronts. The bigger moves up are yet to come!
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news.goldseek.com >> 13 March 2008 |
Separation & Liftoff: 3 Charts
By: Jim Willie CB
The USDollar DX index has hit my 72 target on this latest leg of its breakdown. The news is all wretched. Iran, Nigeria, and even tiny Vietnam are rebelling against the crippled buck. The Persian Gulf Arab nations are trying to find a graceful way to detach from their devastating US$ peg that has wrought horrendous price inflation to the region. The end of the defacto Petro-Dollar standard will be the biggest external event concerning the USDollar this year, while the failure of prime Exploding ARMs will be the biggest internal event.
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news.goldseek.com >> 7 March 2008 |
Dollar-Gold: A Perfect Storm
By: Jim Willie CB
The title should really be “Psychology of 1000-20-100” to give respect to the major signpost price targets. The $1000 gold target is within reach. The $20 silver target has been breached. The $100 crude oil price has been breached. Before long, all three price levels will serve as support.
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news.goldseek.com >> 29 February 2008 |
Recharged Gold & Silver Trend
By: Jim Willie CB
One week ago, my forecast did not come to pass for a euro currency selloff, and for a pound sterling selloff. Even the Aussie Dollar forecast of a selloff failed. In fact, in a convincing fashion, all three forecasts were shattered. What happened? Wrong read of the price pattern with indicators? Not really. Wrong assessment of high priority signals? Surely, yes. By that is meant, during a strong GOLD TREND, and WEAK USDOLLAR TREND, cyclical indicators tend to carry less importance in predictive power.
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news.goldseek.com >> 21 February 2008 |
Gold & Whirlwind of Crises
By: Jim Willie CB
Like a whirlwind, the crisis triggered by the housing crisis and mortgage debacle has extended to almost every phase of the landscape in US economic and financial life. And the rookies running the US Federal Reserve initially said the problem would be contained. My claim made in late June 2007 (see article, click here) was that it involved absolute contagion to the system, which is what we see vividly now.
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news.goldseek.com >> 13 February 2008 |
Gold Rising in All Currencies
By: Jim Willie CB
A profound broad gold rally is underway. It is occurring in almost every single major currency. Unsure about Zimbabwe though. In the last article, two major forecasts were made, both hit squarely. The euro fell, heading toward the 143 stated target forecasted. Talk circulates about the Euro Central Bank eventually cutting interest rates. Pressure will grow enormously.
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news.goldseek.com >> 31 January 2008 |
Backsliding Currencies & Gold
By: Jim Willie CB
Amidst the growing hurricane, centered upon the housing crisis and mortgage debacle, gold will rise far past $1000. By summertime, the new base will be at one thousand bucks. The silver price will surpass the $20 mark before the leaves fall from trees in autumn. The price of gold at the last 1980 peak corresponds to around $3000 after adjusting for price inflation in a realistic manner, apart from corrupt USGovt statistics. Get ready for a very long ride, but not without some surprises for the USDollar in a possible upward bounce.
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news.goldseek.com >> 24 January 2008 |
Gold & Math on a Napkin
By: Jim Willie CB
The ‘AAA’ mortgage bond index has lost a whopping 30%, a fact that continuously eludes the big bankers and their legion of obsequious monitoring mavens. Simple math, within the grasp of a 9-year old kid, results in prime mortgage losses amount to at least $2.1 trillion. The kid might have trouble with all the zeroes though, and even be confused by what a trillion is. A trillion is a million millions.
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news.goldseek.com >> 16 January 2008 |
Threat of Sovereign Wealth Funds
By: Jim Willie CB
The Sovereign Wealth Fund (SWF) movement has begun to expand in a powerful manner, and will not go away. In fact, it will expand on a grand basis since foreign nations have had their fill of USTreasury Bonds, and see grand risks ahead for any US$-based investments. The SWF fund movement is intended to pursue the two prime commodities, GOLD & CRUDE OIL, the premier financial anchor and commercial fuel in the increasingly upside down world.
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news.goldseek.com >> 10 January 2008 |
Unproductive Assets, Wasted Productivity
By: Jim Willie CB
The US system has been the dog led by the financial sector tail, as the tail wags the dog, for over two decades. Systematically, the United States has abandoned manufacturing in favor of financial sector dominance with futile attempts to manage inflation, and money changers pushing to foreign lands the capacity that actually makes things and adds value. Such is the painful costly consequence of chronic monetary inflation.
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news.goldseek.com >> 4 January 2008 |
Enter 2008: The System Breaks
By: Jim Willie CB, Golden Jackass
The year 2008 will be the year that THINGS JUST PLAIN BREAK. It will be a truly deadly year, unavoidably lethal to the US Economy and especially to the US banking sector. Nothing has been repaired.
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news.goldseek.com >> 27 December 2007 |
Exit 2007: Denials and Tontaria
By: Jim Willie CB, Golden Jackass
Wall Street is in deep sneakers. They are busy putting a positive spin on 2007, which in mid-year unleashed the beginning of an unstoppable nightmare. The first cracks were revealed in gory fashion in the form of subprime mortgages blasting fissures through the entire bank and bond system. The next cracks will blossom into a mindboggling series of shocks next year. The US Federal Reserve planted millions of seeds, led by Alan Appleseed Greenspan, during almost two years of ridiculously irresponsible low interest rates so as to assure a doomed outcome.
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news.goldseek.com >> 21 December 2007 |
US$ & Monoline Bond Insurers
By: Jim Willie CB
The hidden bond insurers used by Wall Street firms are in the news, especially ACA Capital and MBIA. Implications are huge, with monumental ripple effects. Financial press reporting of the bond insurers is woefully inadequate. Moodys and Fitch are giving analysis review to nine ‘AAA’ rated bond insurers to see if they have sufficient capital to conduct their insurance operations.
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news.goldseek.com >> 12 December 2007 |
Gold & Mortgage Failure Avalanche
By: Jim Willie CB
An avalanche comes in 2008. Its wreckage will hit both the USEconomy and banking world. The greatest deception in the bank sector this year has been the misrepresentation of the mortgage debacle as a subprime problem. That is akin to calling an iceberg only a problem for what one can see, when 90% of its mass lies below water. Ice is lighter than water. Most mortgage bonds are like acidic stones weighing down bank and investor balance sheets.
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news.goldseek.com >> 7 December 2007 |
Gold & Central Bank Shifts
By: Jim Willie CB
The gold price has stabilized. The flood of additional open interest to short gold contracts kept the gold price in check. It remains within the neighborhood of the critical 3/8-ths retracement area after the September breakout and the November established peak. Absurd pronouncements like that from Goldman Sachs of a gold decline in 2008 betray how gold is eyeing the 1000 level.
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news.goldseek.com >> 29 November 2007 |
USFed Behind the Curve
By: Jim Willie CB
The US Federal Reserve is behind the curve. Great consequences have resulted and are likely to continue to result. Many words can be used to describe this group. What come to mind are inept, compromised, corrupted, distracted, ill-trained, but also clueless, deceptive, myopic, overly cautious, and off the market in their focus. When they remain transfixed on economic growth versus price inflation, they are stuck in the past, in a world that no longer exists.
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news.goldseek.com >> 21 November 2007 |
Gold & Currency Wars
By: Jim Willie CB
The competing currency wars are beginning to escalate. Since 2002 the battles have certainly shown signs of economic damage. But they are really heating up. The winners are difficult to define. The losers are all nations involved. The important viewpoint is to identify which nations and economies will lose relatively less, and how they manage the warfare so as to gain an advantage over rival nations.
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news.goldseek.com >> 15 November 2007 |
On Currencies & Cross Signals
By: Jim Willie CB
In the last several weeks, tremendous movement and change has occurred in foreign currencies. Almost all foreign currencies have made multi-year highs against the crippled USDollar. The United States suffers from wretched finances and a banking system teetering on seizures. In progress is the gradual dismantling of large tinkertoy structures within its vast network of bond risk management.
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news.goldseek.com >> 9 November 2007 |
Deadly Dollar Confluence
By: Jim Willie CB
The public and investment community continues to be bombarded with denials as to the importance of the seemingly endless slide in the USDollar, along with curiously shallow commentary that the US$ slide seems overdone. The US$ exchange rates could justify a 50% decline from here, out of sheer principle, not based upon the relative price of milk cartons or taxi rides. The comprehension of the gold breakout signal seems equally misunderstood and minimized. To be clear, the people have begun to sense with alarm the nature of the energy cost problem, but do not detect its weak currency roots.
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news.goldseek.com >> 2 November 2007 |
Glaring Goldman Omission
By: Jim Willie CB
Gold has shown great resilience, fighting off declines. The most important aspect of the gold market in coming months in my view will be how the gold price will rise independently of the US$ exchange rate. Expect gold to rise when the USDollar falls, the gold price to rise when the USDollar stabilizes, and possibly even the gold price to rise when the USDollar bounces.
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news.goldseek.com >> 25 October 2007 |
Signals: Next USFed Rate Cut
By: Jim Willie CB
In late summer, my perceived strong signal for the September rate cut proved accurate. It was the dire condition of the Wall Street broker dealer stock index, the XBD. My contention all along has been that the official USFed rate cut was motivated by Wall Street giant banker interests, whereby the actual rescue stimulus was disguised and thoroughly devious. In reality it was a mammoth subsidy for Wall Street firms. They stood first in line at the Discount Window.
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news.goldseek.com >> 11 October 2007 |
Commodity Bull Revives
By: Jim Willie CB
The gold price from here onward will react to global monetary inflation, led by the US, Europe, and Japan, MORE SO than to USDollar weakness. The gold price will rise from an under-current of global banking distress. Capital inflows into the United States are inadequate to meet current account deficit needs. The gold price will rise from monetary inflation in unison, almost coordinated, as global central banks have been converted to monetary doves at the point of a gun.
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news.goldseek.com >> 3 October 2007 |
Dollar Faith & Failed Trinity
By: Jim Willie CB
Faith and confidence in the USDollar, in management of the US banking system, in the viability of the USEconomic structure, in the image of Wall Street honesty, and in the integrity of USGovt federal finances are all at historic lows. Repair seems close to impossible. The US Congress, the current presidential Administration, the USFederal Reserve, and the US Dept of Treasury together appear to be in the center of a grotesque policy failure morass.
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news.goldseek.com >> 26 September 2007 |
Lone Anomaly to Ignite Gold
By: Jim Willie CB
The face of all the world has changed, since first I heard the footsteps of your official rate cut. Sorry, borrowed a front line from a Robert Browning love poem, who wrote about ‘footsteps of your soul’ to Elizabeth Barrett. On September 18th, notes were taken on a host of prices immediately before the US Federal Reserve executed its cut of 50 basis points in both the Fed Funds target and the discount rate. The reaction in the entire price structures for the financial markets generally has been profound in only one week.
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news.goldseek.com >> 21 September 2007 |
Monetary Doves at the Point of a Gun
By: Jim Willie CB
WOW! What an interesting couple weeks. A lousy August Jobs Report, even though it exaggerated job growth the upside! The Birth-Death Modlel actually added 120 thousand mythical jobs, including construction jobs and financial sector jobs, both clearly in retreat, a blatant deception. The US Federal Reserve finally was given the smoking gun they needed on a platter to cut interest rates.
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news.goldseek.com >> 12 September 2007 |
Favorable Gold Disconnect
By: Jim Willie CB
Four charts speak volumes, with only a few words to serve as captions. Ever since the lousy August Jobs Report came out (doctored to look better than the real situation), the gold picture has experienced a sea change. Gold is breaking out, not yet to new highs, but that is next.
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news.goldseek.com >> 7 September 2007 |
Gold & Subprime Dollar Backlash
By: Jim Willie CB
A certain nerve has been struck a few times in recent reading on my part by the description of the USDollar as a subprime currency. How true!!! When a debtor has poor credit history, inadequate income, and shoddy assets, the borrower is deemed to be subprime, which means less than good, not up to snuff, of second rate standard. The entire world is growing in its disgust for having been defrauded.
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news.goldseek.com >> 30 August 2007 |
US/MEX: Failed System and Failed State
By: Jim Willie CB
As an important US holiday approaches (Labor Day), a reflection is in order of the extremely dangerous footing we find our nation in, and the predicament that a nation of laborers finds itself in.
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news.goldseek.com >> 23 August 2007 |
Desperate Measures for USFed
By: Jim Willie CB
The US financial system is experiencing a combination of a heart attack (fibrillation from absent trade recycled surpluses), a massive hairball (subprime debt securities) working through the bank arteries, and a realization (like Wiley Coyote in cartoons) that no terra firma lies beneath the economic feet as the depths below are vividly apparent.
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news.goldseek.com >> 10 August 2007 |
MBS Monetization and USDollar
By: Jim Willie CB
The conclusion is that the monetized MBS bond money, if and when redeemed by the US banking authorities, will not directly cause price inflation. The money will be devoted to other things to keep the system running, to protect their own individual interests. However, the entire process will become revealed. What is highly likely, more akin to a dire dark cloud, is that the the international reaction will be to lose confidence in the USFed and Dept of Treasury.
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news.goldseek.com >> 2 August 2007 |
Fed Funds & Other Signals
By: Jim Willie CB
A quick review of signals surely can be both encouraging and confusing. They point to higher physical prices, calmer stock prices, and a continued housing crisis & mortgage debacle. The big banks and Wall Street broker dealers are breaking down very badly. The USDollar bounce is already running out of steam, hampered by a restored expected interest rate cut. Remember: whatever is vigorously and repeatedly denied is almost surely to occur!!!
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news.goldseek.com >> 26 July 2007 |
Optimistic Negative Correlations
By: Jim Willie CB
An unusual chart is presented, since the Broker Dealers sit at the nexus of the massive asset-backed bond ‘con game’ perpetrated upon the nation and the world. The extent of possible fraud will be sure to be unraveled. They sold acidic bonds, over-rated, misrepresented, opaque as a stone in their fundamentals and inner workings. REVENGE IS BEING DOLED OUT TO THIS DEEPLY CORRUPT GROUP, which boldly write in covenants to obstruct lawsuits by limiting legal liability.
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news.goldseek.com >> 12 July 2007 |
Compound Damage Orgy (CDO)
By: Jim Willie CB
The canary in the monetary mine continues to be crude oil, now over $73 with its brother Brent over $76. The Petro-Dollar defacto standard might be the first victim in this unfolding mess. If the USDollar is soon to suffer a crushing blow, the financial meter in gold and the commercial meter in crude oil would reflect it.
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news.goldseek.com >> 6 July 2007 |
Garbage Bonds & Bonfires
By: Jim Willie CB
Gold over $700 by year end seems assured, but one is hard pressed to exude confidence at this point. Take comfort in its resilience. And by the way, watch gold but ride the silver vehicle, which will outperform gold by a 2:1 ration, as usual. Central banks dump gold, but nobody dumps silver. The powers scramble to meet delivery in silver, in fact. Also the very large commercials are in deep trouble on their short silver positions, unable to cover at these lower silver prices.
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news.goldseek.com >> 29 June 2007 |
Absolute Bond Contagion
By: Jim Willie CB
When the contagion (denied no longer) is systemic, pervasive, broad, multi-faceted, and ominous in its lethal potential, perhaps one can calmly conclude that the system is merely adjusting to a total change in the seas. NO WAY!!! Without much doubt whatsoever, Bear Stearns is GROUND ZERO for the bond market firestorm. BS was forced to extend $3.2 billion in loans to its hedge fund clients, who attempted to liquidate but could not. That represents 25% of the BS entire capital. Don’t worry. Both hedge funds will eventually die, but when they do, BS will possibly die with them.
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news.goldseek.com >> 22 June 2007 |
Bond Convexity From Mortgages
By: Jim Willie CB
The cancer that is mortgage bonds does not linger in isolation. Everything in the bond world is connected to almost everything in the bond world, at least within the US sphere of speculative madness. The financial credit market is a confusing jumble of speculation, risk reducing hedges, and leveraged insanity found mainly in the hedge fund arena. Mortgages are causing problems from their bond hedge schemes, both on the loan portfolio side and the bond security side. Always one should consider both, and never are they inseparable.
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news.goldseek.com >> 14 June 2007 |
Bond Upheaval & Confusion
By: Jim Willie CB
In late March, an article pointed out the massive powerful cross currents in the USTreasury bond world. We are seeing the forces described finally at work. The aftermath has generated more questions than answers. In “Cross Currents for USTBonds” (click here), several bullish factors were cited for bonds, but also several bearish factors were cited also.
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news.goldseek.com >> 7 June 2007 |
Dollar & Gold & Four Sheets
By: Jim Willie CB
Well, the USDollar and gold have four sheets which are now heavily torn by the wind. Before identifying the sheets, a preliminary glance at some critical events to bear heavily on world finance. These topics are more fully developed in the upcoming June Hat Trick Letter due out in mid-month.
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news.goldseek.com >> 23 May 2007 |
Dont Cry for the USDollar
By: Jim Willie CB
The Bretton Woods II principal propaganda plank has been buried, with no fanfare, no eulogy on a moronic indefensible myth chapter. Asia no longer supplies credit to the United States debt monster. That mantle has been accepted by a combination of the Persian Gulf oil producers and the counterfeit press, each showing strain. The transition is truly deadly. Increasingly feisty, if not hostile, sheiks in the hotbed of the Middle East have become the last remaining pillar of USDollar support.
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news.goldseek.com >> 17 May 2007 |
False Housing: Gold Headwind
By: Jim Willie CB
The newest deceptions are with jobs and housing. Each is much worse than reported. The housing decline might be as much as 15% worse than reported, which leads to much bigger job loss than is reported. Most of the home construction job loss is under the table, to people not on state jobless insurance programs, and to immigrant workers paid in cash. Both fall through the statistical cracks in those home frames and plywood floors underlayments.
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news.goldseek.com >> 11 May 2007 |
Bear, Dragon & USDollar
By: Jim Willie CB
Russia and China have become a major problem. Everywhere one turns, there is Russia & China at odds with the United States. We have the Great Bear in a conflict over energy, Iran, military installations, and central bank policy. We have the Great Dragon in a conflict over currency reform, banking reform, copyright enforcement, trade matters, human rights, and central bank policy. Armed with a combined account of almost $1600 billion, these two giants are in a Battle of Titans with the United States for geopolitical control.
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news.goldseek.com >> 4 May 2007 |
Gold Breakout Delayed
By: Jim Willie CB
All the conditions were there, a euro currency breakout, a British sterling currency breakout, and pronounced USDollar weakness. The sterling exchange rate even hit $2.00 to capture a tremendous amount of attention. The denials streamed in on how the weaker USDollar is not such a big deal, which always serves as a confirmation of a dire situation.
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news.goldseek.com >> 27 April 2007 |
Death of Bretton Woods II Myth
By: Jim Willie CB
Throughout the entire 2004 and 2005 years, the global financial markets were subjected to utter nonsense and propaganda about a new Macro Economy. Its main pillar was the recycle of vast Asian trade surplus into USTreasurys. The chief carnival barker for the concept was Alan Greenspan, even as its proponents labeled the crutch the name “Bretton Woods II” in pure heretical fashion. The Bretton Woods Accord, linking the USDollar to gold, was real and valid and enforced. It is about as far in function, meaning, and validity as gold (real & tangible) is from the USDollar (paper & counterfeit).
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news.goldseek.com >> 19 April 2007 |
PetroDollar & Iran & Iraq
By: Jim Willie CB
The focus on gold and the USDollar alone lacks a crucial factor in maintaining the world currency reserve on its fragile pedestal. The PetroDollar is a term used to describe the close relationship between the USDollar and the crude oil export business dominated by Saudi Arabia, manifested in the superstructure of the global banking system. So one could say the oil world provides the pool from which the US$ exchange rate valuation is applied and enforced.
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news.goldseek.com >> 13 April 2007 |
Hi Ho Euro
By: Jim Willie CB
Hardly a dull moment in the currency market these days. Much attention centers upon central bank actions. The Bank of Japan held steady, as world speculators thank heavens. The Euro Central Bank held steady, as the US bankers thank heavens. But the ECB aint done hiking. The Bank of England held steady, just like the ECB, but earlier. The Reserve Bank of Australia held steady, from Down Undah. The Bank of Canada held steady, but now markets think they could hike soon. We live in a bond driven world, totally divorced from economic fundamentals, trade deficits, mismanaged economies, and bankrupt policies.
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news.goldseek.com >> 5 April 2007 |
Key Charts & Major Clues
By: Jim Willie CB
Some extremely important charts follow, each with an equally important message. The story can be told from a series of painted pictures. The USEconomy is in deep trouble. The US Federal Reserve is caught in a box. Bankers are one step from being snared in a quagmire, with vivid memories of the insolvent bank system endured by Japan for over a full decade. The US bank problems seem worse by comparison, when factoring in mortgages, huge spread trades sure to go bad, a mountain of credit derivatives growing at 80% annually in size, and a raft of collateralized debt obligations sitting like an ominous cloud.
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news.goldseek.com >> 30 March 2007 |
Cross Currents for USTBonds
By: Jim Willie CB
Volatility for US Treasury Bonds has risen markedly in the last several months. A rise in such bond yields creates a favorable background for gold prices. A fall in such bond yields leads to strong competition for gold as safe haven, in a manner which actually supports the USDollar. Gold takes great advantage of rising bond yields. Cross currents point to both higher yields and lower yields, thus more volatility. Uncertainty abounds.
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news.goldseek.com >> 23 March 2007 |
War, Energy, Banks & USDollar
By: Jim Willie CB
On the eve of the next war front to explode in the Persian Gulf region, some thoughts on the energy sector seem appropriate which attempt to tie some factors together. In the last two to three years, the biggest challenge to analysts is not so much identification of certain relevant effects, as it is integration of analysis on a several simultaneous patently clear crucial factors for correlation. To friends an assessment has been often used by me, “This is five dimensional chess, and at any one time, three dimensions are dominant. All are linked increasingly and with more complexity. The challenge is to finger the most important pairs of factors.” That covers it in my opinion.
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news.goldseek.com >> 15 March 2007 |
Bank Bust & Sea Change: 3 Views
By: Jim Willie CB
A preface is in order, to honor Sir Alan Greenspan. The housing bust and the mortgage finance debacle have his signature on them. So far he is still revered, for some odd reason, probably basic ignorance. Some called Clinton the “Teflon Man” which more deservedly belongs to Greenspan. Heck, they both earned the title; they can wear it with the ignominy it so justly is associated with.
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news.goldseek.com >> 9 March 2007 |
Gold Sniffs Rate Cut
By: Jim Willie CB
In a series of public messages, the US Federal Reserve has issued some statements recently which telegraph an increasingly likely official interest rate cut. These guys will cut rates, but only when kicking and screaming, since they have displayed extreme reluctance at every opportunity. They know the damage to the USDollar certain to follow. They speak through their usual mouthpieces, but this time with the added impact of Sir Alan Greenspan, serial bubble engineer extraordinaire.
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news.goldseek.com >> 2 March 2007 |
Shocks, Web, Liquidity, USDollar
By: Jim Willie CB
Events in the last week have certainly caused a stir. Just what precipitated the broad global selloff. Was it the unwind of the Yen Carry Trade, a week delayed? Was it only attributable to the Chinese and their more stern stance against adolescent credit abuses in the Middle Kingdom? Was it Al Greenspan's comments on an economic recession looming near on the horizon? Was it caution on risk pricing in view of the insane Iran vs USA posturing in the Persian Gulf? Was it Goldman Sachs orchestration with collusion from Beijing, after massive short positions were put in place? Were the GSax powers motivated by the alarms going off in the gold and silver markets, as gold neared $700 and silver passed $14? Methinks all the above, never just one factor in an increasingly complex financial world. The global markets have become a tangled web.
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news.goldseek.com >> 23 February 2007 |
Summits, Trade War, Gold
By: Jim Willie CB
Numerous international events took place within the last month. The Economic Summit was held in Davos Switzerland. It convened a large collection of world renown economists, corporate chieftains, and some financial market kingpins. The G8 Meeting of finance ministers was held in Germany. Back home, USFed Chairman Bernanke issued a grave warning to the US Congress on the shattered US financial balance sheets. My commentary on money supply explosion comes next. Lastly, the Chinese trade disputes have taken a big step toward outright trade war and protectionism. Few see how the trade war will affect gold yet. They will soon enough. Restricted trade flow always results in higher prices. It is always accompanied by a scramble for resources in today’s context. This trade war will include a massive bidding war and staggering battles to build stockpiles of all critical commodities.
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news.goldseek.com >> 16 February 2007 |
Gold & Silver Stealth
By: Jim Willie CB
Gold is quietly on the verge of breaking out in all major currencys, after the all-out assault on the oil price left gold unscathed. Gold is the strongest performing among all the commodity items. Critical factors for the rise in the gold price are:
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news.goldseek.com >> 8 February 2007 |
Zero Degrees of US$ Separation
By: Jim Willie CB
The last several months have provided a keen lesson in currency defense by a nation which has been written off in many circles as owning a dead and hopeless currency. Some key inter-related feedback loops have been on my radar, each vitally important and changing, which underscore in my viewpoint how major markets are inseparable, each inter-connected, and integrally important if the USDollar is to avoid a much deserved crash.
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news.goldseek.com >> 1 February 2007 |
Ultra-Slow Motion Gold Bull
By: Jim Willie CB
The USDollar is offered futile support in the grand scheme by large government related entities possessing titanic vested interests, even as the world reserve currency benefits from the lack of organization of world currency alternatives. They hold the USDollar aloft, but their endeavor can only succeed in buying time, then buying even more time, in a hopeless pursuit to save the doomed greenbuck.
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news.goldseek.com >> 26 January 2007 |
Gold Brushes Off Oil
By: Jim Willie CB
Take the energy story away, and the copper story away, and one might suspect we have witnessed a sleepy precious metals market this autumn and winter. Gold did lose its momentum seen from the autumn high just over $650. Silver did lose its momentum seen from the autumn high just over $14. The strong gold season did not arrive, to the surprise of some analysts.
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news.goldseek.com >> 18 January 2007 |
Housing Cracks Extend to Banks
By: Jim Willie CB
The next couple years should deliver a shock to the economically and financially comatose US citizenry toward the deteriorating condition. The form of delivery might be a combination of a USDollar currency crisis and a profoundly stagnant USEconomy. The pressure is building, the resistance is formidable, but the forces are profound, since the potential for resolution from the imbalance is strong. Add the mortgage finance shock wave to the banking sector as the newest element. In fact, the sheer number of risk factors has grown to alarming levels.
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news.goldseek.com >> 11 January 2007 |
Gold Impetus & Risks
By: Jim Willie CB
The gold and silver prices will zoom when desperation sets in for the US Federal Reserve. That desperation is written in stone from my vantage point, inevitable, inexorable, unavoidable, a certainty. We are witnessing Weimar-like days and behavior in the financial sphere and elsewhere. If the USFed is always late and always goes too far, they invite the corresponding extreme situation which fosters actual desperation. With it comes, a gradual further erosion in the USDollar will be endured at a time when leaders in the USGovt have lost most of the respect for the nation on the geopolitical stage.
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news.goldseek.com >> 5 January 2007 |
Euro Key to US$ Decline
By: Jim Willie CB
The USDollar decline remains in progress, the one which began when the United States citizenry and its Wall Street aristocrats observed the great eating orgy known as Thanksgiving. Nothing can stop a holiday where Americans make eating the order of the day. All else sits still, even markets. The USDollar began its breakdown then, and it continues. The past week only served to provide a correction to the breakout.