As if it were not strange enough! Microsoft bought a phone company with no phones for $8.5 billion. Then, the public bid up the price of another Internet company, LinkedIn, to the point where buyers were paying more than $20 for every dollar of revenue that came the company’s way. As for profits, they capitalized each one at more than 700 times. At this rate, an investor wouldn’t earn his money back until 2,711AD.
[Read more...]Investment Legends, Part II
April 11, 2011 By Leave a Comment
What will happen to the US economy and the dollar in the near term? Will inflation increase dramatically? What is the outlook for gold, and where should you put your money? BIG GOLD asked a world-class panel of economists, authors, and investment advisors what they expect for the future. Caution: strong opinions ahead…
[Read more...]How Inflation is Preventing a Real Economic Recovery
March 29, 2011 By Leave a Comment
Oh what a wicked twist…
What a nasty turn…
What a bummer!
Now, consumer prices are rising. The feds wanted inflation. Apparently, they’ve got it. The latest figures show consumer prices rising at 0.5% per month. Doesn’t sound like much. But multiply by 12. It’s over 6% per year.
[Read more...]Purchasing Power Buckles Under Government Spending
March 23, 2011 By Leave a Comment
What if I got right up in your face and told you that there is almost $2 trillion in government debt outstanding on which the government pays no interest? Would you think me insane? Would you look at me skeptically and say to me, “I’ve told you a thousand times that you are not allowed to make things up just because you don’t know what you’re talking about, you moron!” or something equally as rude?
[Read more...]Risk You Can Believe In
September 1, 2010 By Leave a Comment
We understand that there is no aspect of life that is risk free. Beyond the obvious personal risks (mountain climbing, sky-diving, drug running, marriage), every human activity carries some degree of risk.
In the extended era of post World War II inflation, money has continually lost purchasing power. Therefore, just staying even involves risk at some level. For business owners and self-employed professionals, the safest and most satisfying investment will be to invest in yourself rather than putting your money in the hands of financial advisors. This means expanding or refining products and services with self-generated revenues rather than by taking on loans and carrying debt.
[Read more...]Why Seeking Refuge in Government Debt Won’t Save You
August 12, 2010 By Leave a Comment
Oh, a storm is threat'ning
My very life today
If I don't get some shelter
(Ooh yeah) I'm gonna fade away.
– Gimme Shelter, The Rolling Stones
Nassim Nicholas Taleb says “every single human being? should bet these assets will decline…
[Read more...]The End of the Nominal Recovery
July 1, 2010 By Leave a Comment
Monetary and fiscal stimulus can halt a deflation spiral, but central banks and governments can't print purchasing power.
In other words, one year after the official end of the recession, the economy shows no signs of booming. Emergency Keynesian policy measures taken to keep the debt crisis from devolving into a 1930s deflationary spiral show signs of losing effectiveness, and the self reinforcing economic growth story is giving way to talk of a “double dip? recession, as trouble in Europe is expected to slow the US economy by the end of the year. Confidence in the resilience of the recovery is waning.
[Read more...]Gold Investing: Protection Against Inflation
May 12, 2010 By Leave a Comment
People dont realize it, but these macro economic issues have real, personal consequences, said our French MoneyWeek editor. Simone calculated that keeping the debt under control, at 2009 levels, would cost the average Greek nearly $2,500 per year. Thats just the cost, per capita, of keeping up with the interest, while holding other expenses even with government revenues.
[Read more...]
Zombie Spending on Things Already Consumed
Yesterday, stocks continued to slide. The 10-year note yield fell to exactly 3%. Oil traded at $99. And gold rose another $4.
Has the post-crisis bounce finally exhausted itself? It’s beginning to look like it. But you wouldn’t be surprised if this turned out be just another feint to the downside, would you? We’ve seen several. We expected the end of the bounce last summer. Instead, the rally has held up for a full year longer than we expected.
[Read more...]