news.goldseek.com >> 13 October 2009

Schmidt's Gold Thoughts
By: Ned W. Schmidt, CFA, CEBS
Our chart this week is of Federal Reserve Bank Credit, the base fuel for U.S. money supply. The blue line, using the left axis, is the total of that monetary base, adjusted. Red line, using the right axis, is the year-to-year change in that monetary base.

news.goldseek.com >> 29 September 2009

Schmidt's Gold Thoughts
By: Ned W. Schmidt, CFA, CEBS
Now, less this analyst sound too negative, the longer term case remains intact. The Federal Reserve will eventually respond to the negative implications of slowing U.S. money supply growth. We can expect near full monetization of the Obama Regime’s massive deficits in the future. Ultimately, the Federal Reserve will be forced to “deliver cash by trucks” to the U.S. Treasury to finance that deficit. That will get us back on the glory road for $Gold to US$1,700+.

news.goldseek.com >> 15 September 2009

Schmidt's Gold Thoughts
By: Ned W. Schmidt, CFA, CEBS
Well, the U.S. has another debt problem in the making. This one has been visited before on a regular basis. The U.S. is running out of the ability to issue new debt. So much debt has been issued that the U.S. is bumping up against the statutory debt limit, which is set by Congress. That limit, now don’t laugh, was intended to keep the U.S. government from being a runaway debt machine.

news.goldseek.com >> 1 September 2009

Schmidt's Gold Thoughts
By: Ned W. Schmidt, CFA, CEBS
Investors should be taking some clues from the thinking of American voters. Their view, as documented by the respected Rasmussen polling organization, is rejection of the growth killing policies of the Obama Regime. Per Rasmussen, a mere 46% of voters approve of Obama Regime while 53% disapprove. The vote is in on the economic prospects for the U.S. due to policies of the failing and fading Obama Regime, and it is in the negative column.

news.goldseek.com >> 18 August 2009

Schmidt's Gold Thoughts
By: Ned W. Schmidt, CFA, CEBS
Given the currently low level of the VIX, optimism among paper asset investors has been converted to outright enthusiasm. The world has been saved, according to many of these enthusiasts, and now unlimited and happy growth awaits us.

news.goldseek.com >> 4 August 2009

Schmidt's Gold Thoughts
By: Ned W. Schmidt, CFA, CEBS
According to the diligent statistical elves of Barron’s Market Lab, the amount of U.S. Treasury Gross Public Debt outstanding is $11.611 trillion. A year ago, according to the same elite statisticians, that value was $9.533 trillion. In one year, the true deficit of the U.S. government was therefore $2.0178 trillion. That, my fellow Gold bugs, is a true accomplishment! How does one spend Two Trillion Dollars more than one receives in a single year?

news.goldseek.com >> 21 July 2009

Schmidt's Gold Thoughts
By: Ned W. Schmidt, CFA, CEBS
Failing economic policies of the Obama Regime are setting the stage for the next significant rally for $Gold as massive debt monetization becomes necessary. Before going into that though, we need to understand the situation with the U.S. economy. That will allow us to understand how coming Federal Reserve actions will push $Gold above $1,000.

news.goldseek.com >> 7 July 2009

Schmidt's Gold Thoughts
By: Ned W. Schmidt, CFA, CEBS
Global condemnation of the Obama Regime’s failing economic policies continues to grow. India is now questioning their investment in U.S. dollar denominated assets. That nation is the latest to join China, Russia, and Brazil in publicly worrying over the consequences of those misguided policies. BRIC has now become the most prominent activist investor group trying to either create an alternative to the U.S. dollar or force sound financial policies on the U.S.

news.goldseek.com >> 23 June 2009

Schmidt's Gold Thoughts
By: Ned W. Schmidt, CFA, CEBS
Perhaps we should establish an official day of mourning for the loss of independent thinking now so widespread among today’s journalists. In the U.S., independent journalism has died. Most of the reporting media has now become the official apparatchik of the Obama Regime. With one national network moving into the White House for daily supervision, all pretense of independence has been lost.

news.goldseek.com >> 9 June 2009

Schmidt's Gold Thoughts
By: Ned W. Schmidt, CFA, CEBS
As the investment community celebrates the first bankruptcy of General Motors, a look around the world reveals the vast financial acumen of governments. We do not have to stop with the financial irresponsibility of the Obama Regime, evident by the two trillion dollar plus deficit. We could just as well turn to the expense account scandal that may bring down the UK government.

news.goldseek.com >> 26 May 2009

Schmidt's Gold Thoughts
By: Ned W. Schmidt, CFA, CEBS
That the U.S. dollar has serious problems should, by now, be obvious to even economists working for the Obama Regime. We probably cannot say the same for those at the Federal Reserve, for they do not seem to consider such matters important. To those economists such matters are exogenous factors, and not worthy of inclusion in the discussion.

news.goldseek.com >> 12 May 2009

Schmidt's Gold Thoughts
By: Ned W. Schmidt, CFA, CEBS
Will the wealth destroying policies of the Obama Regime make the People’s Bank of China full-fledged Gold Bugs? Chinese officials announced their purchases of Gold, and continue to raise concerns about U.S. economic policy and the associated implications for the value of the U.S. dollar. One might think they have indeed become Gold Bugs.

news.goldseek.com >> 28 April 2009

Schmidt's Gold Thoughts
By: Ned W. Schmidt, CFA, CEBS
How many gallons of water can one pump into a one gallon balloon? How high can one build a house of cards? In all such activities the laws of physics ultimately take control and dominate all else. Just as mankind can not repeal the laws of physics, it can not repeal the “Laws of Money.” The Federal Reserve is aggressively attempting to defy the “Laws of Money,” believing that it can stuff the money genie back in the bottle anytime it desires to do so.

news.goldseek.com >> 14 April 2009

Schmidt's Gold Thoughts
By: Ned W. Schmidt, CFA, CEBS
The grand and glorious global housing bubble came to an end not because it had caused so much money to be borrowed. It came to an end because no more money could be borrowed. Debt bubbles come to traumatic conclusions not because so much credit had been created. Debt bubbles implode when no more credit is available. Lack of credit, the fuel for a mania, is what comes to be the problem.

news.goldseek.com >> 31 March 2009

Schmidt's Gold Thoughts
By: Ned W. Schmidt, CFA, CEBS
The world does not need a New World Money backed by government IOUs. We already have an ideal One World Money in the form of Gold. It satisfies fully all the requirements of money. And most important, it has clearly demonstrated durability as a store of value.

news.goldseek.com >> 17 March 2009

Schmidt's Gold Thoughts
By: Ned W. Schmidt, CFA, CEBS
Should the U.S. trade deficit continue to shrink, the amount of U.S. debt to be bought by foreign central banks will fall. Unless the U.S. trade deficit rises, the amount of U.S. debt that can be bought by foreign institutions will be capped. In short, the supply of money for the U.S. government from gullible foreign official institutions is being capped at a new, lower level.

news.goldseek.com >> 3 March 2009

Schmidt's Gold Thoughts
By: Ned W. Schmidt, CFA, CEBS
Two things happened in the 1960s. Most importantly, that decade ended. Second, consumers and investors began learning to not be fooled by governmental policies and actions. That learning experienced was reinforced by the many policy errors of the 1970s.

news.goldseek.com >> 17 February 2009

Schmidt's Gold Thoughts
By: Ned W. Schmidt, CFA, CEBS
The Great Obama Depression is coming because the recently approved Congressional Pork Plan takes economic oats from the healthy part of economy and gives them to the infirm part. That might sound like wonderful social policy, but it is bad economic policy. Little effort exists in the Pork Plan to stimulate economic momentum.

news.goldseek.com >> 3 February 2009

Schmidt's Gold Thoughts
By: Ned W. Schmidt, CFA, CEBS
Last week the U.S. Congress did us all a favor. $Gold rose by about $40 due to their efforts. What did they do? Well, the U.S. Congress voted to risk another depression by including a “Buy American” clause in what is mistakenly referred to as an economic stimulus plan. That clause bars the purchase of imported iron and steel.

news.goldseek.com >> 20 January 2009

Schmidt's Gold Thoughts
By: Ned W. Schmidt, CFA, CEBS
The 1930s was the birth of Keynesianism. Economists needed a simple answer as to why they had been so wrong. Since then, the U.S., and much of the rest of the world, has endured 70 years of economic concepts that have generated a continuous lack of success in economic matters. Most professions would seriously review their methodology when faced with as many repeated failures. Not so for the economics community. They just keep coming with more of the same failed policies.

news.goldseek.com >> 6 January 2009

Schmidt's Gold Thoughts
By: Ned W. Schmidt, CFA, CEBS
The Era of Simple Solutions continues to unfold. For every complex problem, as the wise man once said, there is a simple solution, that is wrong. Into the abyss of collapsing financial institutions rode the Federal Reserve, with a check book in each hand. The crowd went wild over this simple solution. And in response to the fundamental failure of U.S. auto companies, welfare checks were mailed to them.

news.goldseek.com >> 19 December 2008

Schmidt’s Gold Thoughts
By: Ned W. Schmidt, CFA, CEBS
Measurement is perhaps second greatest problem in establishing satisfactory economic policies for a nation. That matters because those economic policies influence the value of the nation’s money on foreign exchange markets. In the case of the U.S. dollar, that $Gold has risen in value by more than 150% in the past ten years is unquestionably a failing grade for U.S. economic policy makers. Inflation measurement may be part of that inadequacy as it was used as a rationale for easy money.