| Gold May Advance for Eighth Year as ‘Perfect Insurance’ Sought |
| Posted: 01/06/2009 04:34:22 |
| Jan. 6 (Bloomberg) -- Gold, the best-performing metal in 2008, may appreciate for an eighth year as investors seek a refuge from declining interest rates at the same time that central banks inject more cash into the banking system. |
| GoldSilver Link | Original Source Link
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| Willem Buiter warns of massive dollar collapse |
| Posted: 01/05/2009 23:58:09 |
| Americans must prepare themselves for a massive collapse in the dollar as investors around the world dump their US assets, a former Bank of England policymaker has warned. |
| GoldSilver Link | Original Source Link
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| Treasury's Paulson Gets It Wrong |
| Posted: 01/05/2009 23:55:08 |
| In a recent interview with the Financial Times, U.S. Treasury Secretary Hank Paulson blamed the credit crisis on global imbalances. Specifically, he repeated a storyline popularized by Alan Greenspan and Ben Bernanke: that a global savings glut (otherwise known as an imbalance) pushed interest rates down around the world and drove investors toward riskier and more leveraged investment activities. |
| GoldSilver Link | Original Source Link
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| Monetarism enters bankruptcy; by Henry C K Liu , Asia Times |
| Posted: 01/05/2009 19:23:21 |
The Fed under Greenspan and Bernanke violated the basic rules of both monetarism (money supply management) and Keynesianism (demand management). Fed monetary policy created false prosperity with excess money supply to fund debt manipulation and simultaneously to support income disparity as a source for capital formation to exacerbate overcapacity amid demand weakness.
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| GoldSilver Link | Original Source Link
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| Gold/Silver Market Updates; by Clive Maund |
| Posted: 01/05/2009 19:19:10 |
| We've been here before haven't we? Gold has been in a rising trend for some considerable time, taking it to trendline or resistance targets, and then "wham!" it gets whacked back down again. Certainly the long-term outlook for gold is excellent, especially given the strong and increasing demand for physical, but over the short to medium-term it now looks set to get taken down again. |
| GoldSilver Link | Original Source Link
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| The End of a Bad Year; by the The Aden Sisters |
| Posted: 01/05/2009 19:17:27 |
| It'll probably fall into the category of 1974, when the country was in a steep recession and gas lines wrapped around blocks, or like 1979. At that time, inflation was raging and interest rates soared to 20%. Even though the circumstances were very different, those landmark times are well remembered and this year will be similar. |
| GoldSilver Link | Original Source Link
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| There is only one alternative to the dollar |
| Posted: 01/05/2009 19:11:36 |
| As a result of the global scope of the recession, there is no country that wants its exchange rate to appreciate. The clear alternative to the dollar in 2009 is not other currencies but that ancient form of money: gold. Precious metals could emerge as a hedge for investors suspicious of central banks and fearful that inflation will be the simplest solution to the challenge of global deleveraging. |
| GoldSilver Link | Original Source Link
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| New York Fed Begins Purchases of Agency Mortgage Debt |
| Posted: 01/05/2009 18:59:27 |
| Jan. 5 (Bloomberg) -- The Federal Reserve Bank of New York started buying mortgage-backed securities today as part of a $500 billion program to support the U.S. housing market. |
| GoldSilver Link | Original Source Link
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| Get Out Now! |
| Posted: 01/05/2009 01:12:21 |
| THE BIGGEST INVESTMENT BUBBLE TODAY may involve one of the safest asset classes: U.S. Treasuries. Yields have plunged to some of the lowest levels since the 1940s as investors, fearful of a sustained global economic downturn and potential deflation, have rushed to purchase government-issued debt. |
| GoldSilver Link | Original Source Link
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| Evans says Fed needs to mimic below-zero rates |
| Posted: 01/04/2009 20:09:13 |
| SAN FRANCISCO (Reuters) - A grim economic outlook highlights the need for the Federal Reserve to step up quantitative measures to boost growth, with official interest rates already effectively at zero, Charles Evans, president of the Chicago Fed, said on Saturday. |
| GoldSilver Link | Original Source Link
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