Archive for July, 2011

The Economy built on a lie

Tuesday, July 26th, 2011

Recently a friend of mine went to a wedding where he saw an old friend who works in a major bank.  The friend has been with the bank for over thirty years and handles investments for the more conservative customers of the bank.  These customers’ goals include capital preservation with ...

A Graph is worth 100 words

Monday, July 25th, 2011

The above Bloomberg.com graph shows a high correlation of gold to the U.S. debt.  I expect gold to overtake the U.S. debt once the public figures out that we are approaching a tipping point where we cannot pay back the debt without hyper-inflating the U.S. Dollar in order ...

Transition from Denial to Anger

Saturday, July 23rd, 2011

Grief is the emotional suffering we feel after a loss of some kind.  This can be a loss of a loved one, a job, or even a belief system.  The Middle East young people were fed a belief that their current political system would work for them and allow them ...

The Debt Ceiling is not the issue

Friday, July 22nd, 2011

There has been much reporting about the debt ceiling debate, political positioning, and alternatives.  However, the official debt ceiling is not the issue.  The “unofficial” debt is the issue.  Medicare, Medicaid, and Social Security unfunded liabilities require an additional $20 Trillion over the next decade as they are currently defined.  ...

$1,600 Gold has arrived

Monday, July 18th, 2011

I have been projecting this number since April 11th, 2009.  I thought gold might hit this target by 1/11/11 but missed by 188 days.  Oh well…  The unfortunate news is that the U.S. budget deficit, the European crisis, the housing crisis, and other economic events all contributed to this new ...

$5.3 Trillion Injection over the last 3 years

Thursday, July 14th, 2011

9% annual inflation over the last 3 years. True unemployment 16-22% Investment Bank bonuses: Huge The following may provide us a hint to the disconnect:   China, India, and other countries are buying tons of gold.  Why did we ...

Economic Summary of My Road Trip

Wednesday, July 13th, 2011

I recently returned from my annual trek to the beach at the Alabama/Florida border.  It provides me with a “boots on the ground” view of the economy.  I-10 was busy on the July 4th weekend as usual.  On the other hand, the beach traffic thinned out dramatically by Wednesday, a ...

Economic Reality Video

Friday, July 1st, 2011