Unemployment
The subject of unemployment is the centerpiece of our modern economy. Let us imagine an economic discussion between a “liberal” and a conservative.
MUCH ADO ABOUT THE EURO
Part of the explanation for the Dec.-Jan. decline in gold is the attack on the euro which is now going on in the media. Indeed, the euro topped out very close to the exact day of the top in gold.
A BIG MOVE
There has been a sense in the gold market through the month of February that gold is going down, a sense of negativity and discouragement. Gold bugs are giving up and pulling out. The U.S. dollar index hit 81 on Friday. The Fed is tightening. “What more,” say the bears, “is there to say?”
SAD
This is the problem with our age. So much data is being shoveled out at us that the human mind cannot comprehend it. The human mind is overwhelmed. Back in the days before the computer the need for understanding the data was much greater than the need for more data.
THE FATEFUL HOUR
Gold’s action was scary last week – for all those who focus only on the short term. But these are precisely the people who cannot see the big picture. And because they cannot see the big picture they cannot predict the big move. And the big money, I remind you, is made in the big move.
THE LONG TERM
When the short term is a puzzle, I take refuge by studying the long term, and so I thought that this week might be a good time to review the long term situation.
KISS
This week the One-handed Economist features a giant double top in the U.S. dollar index, a chart pattern which completed on Aug. 1, 2009 and has been dominating both the currency markets and the commodity markets ever since.
THE SCIENCE OF MARKET SPECULATION
This evidence is good enough to play and the One-handed Economist is back in a bullish position with regard to gold and gold stocks. We will soon know if this is correct because gold will rise and break above the Dec. 3 peak of $1,229.
MY JOURNEY INTO ECONOMICS
Everybody in economics who had some kind of a title was a blithering idiot. None of them had any knowledge at all.
THE OLD ORDER CHANGETH
The change of the old order has important implications for the financial markets in general and for the gold market in particular for the simple reason that politics affects economics.
JUST LIKE THE OLD DAYS
Today we stand on the threshold of one of the great moves in financial history. The signal comes as what is called a pullback to support. It will be my goal in this article to convey to you the immense power of such a formation.
HAPPY DAYS ARE COMING
Gold bugs have been sad for the past few weeks as gold has tumbled from above $1200/oz. Cheer up gold bugs.
THE BIG PICTURE
Right now the financial markets are telling us a story which is so incredible, so fantastic and filled with such opportunities for profit that I am in awe. I can only remember two comparable opportunities in my lifetime, the bottom in gold at $35/oz. in the summer of 1970 and the bottom in stocks in the summer of 1982 at 780 DJI.
THE EIGHTY POINT DROP
Truth is the most valuable commodity in the universe, even more valuable than gold. Just as we had a short squeeze in gold after Thanksgiving, so we have had a short squeeze in truth over the past year. Never have the lies been so thick and fast. All those who were short of truth (such as Paul Krugman) were run in and forced to cover, and they took horrific losses. Now they will hide the truth and pretend that they are making money.
THE SPECULATOR
Can’t anybody see this? Economic goods fluctuate in value. Sometimes they get too low in value, and sometimes they get too high in value. It is a challenge to the good speculator to correctly determine whether the particular good in which he is interested is too low or too high. Therefore, he cannot be either a stock bug or a gold bug all the time.
REPLY TO PAUL KRUGMAN
On Oct. 12, 2009, Paul Krugman, columnist for the New York Times did his column attacking the gold standard and defending the bankers privilege to create money. This was such a perfect exposition of the lies of our age that it bares closer examination. Because the more one digs into this issue the more things are not as they seem.
GOLD IS BUSTING OUT ALL OVER
The gold stocks caught on fire over the past fortnight. They have lagged behind the metal in relative strength, but, since they are more volatile than the metal, bigger profits are the result. For example, gold is well above its early September levels, but the XAU and the HUI have only broken above their corresponding levels just last week.
BIG PROFIT IN GOLD
Is it too late to become a gold bug? Are you one of those who did not listen to the one-handed economist? Worse, did you fly to “safety” in the U.S. dollar? Are you thinking, “Is it too late to buy?”
CONFISCATION OF GOLD
One thing has been bothering many gold bugs. In 1933, the U.S. Government confiscated the people’s gold. The Government even went into safety deposit boxes (in private banks) and took the gold out of them. This was done once. Perhaps it could be done again.
COMMODITIES – ON THE MOVE
Gold is now safely above the $1,000 mark, and there are two aspects to this, one good, one bad. The good aspect is that $1,000 is now a floor (whereas from March 2008 to Sept. 2009 it acted as a ceiling). The bad aspect is that we are now vulnerable t to a pull back to $1,000., and we need to be on guard for this possibility.
