Akin to Porcupines Mating


By Nick Giambruno   That was how the slow and careful rapprochement between Russia and China has been described by Eric Margolis, one of my favorite geopolitical writers. US shenanigans in Eastern Europe and the East China Sea—fomenting so-called colored revolutions in Ukraine and Georgia (both on Russia’s periphery) and egging on China’s neighbors to make aggressive territorial claims—have pushed the Russian bear and Chinese dragon together. In May, the two uneasy neighbors reached a de facto alliance represented by a 20-year, $400 billion deal for Russia to supply China with natural gas. A Russia/China alliance shifts the Earth’s geopolitical axis. Historians may look back at the energy deal as the moment the post-Cold War era and the US’s singular position came to an end. The Russia/China team is now a consequential economic and military counterweight to the US. It will operate as an attractant for every country and every … Continue reading

$3,000 – $4,500 Gold a Possibility With Continuing Growth of Fed’s Balance Sheet


November 20, 2014 Since 1999 the gold price has moved in concert with the growth in the U.S. Federal Reserve Balance Sheet including the recent correction in both during the past three years.  Accordingly, the following objective analysis forecasts the gold price out to 2016 based solely on historical Central Bank data. The above introductory comments are edited excerpts from an article* by Vronsky (gold-eagle.com) entitled Gold Price Forecast Per US Federal Reserve Balance Sheet. The following article is presented by Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!),  www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) and theFREE Market Intelligence Report newsletter (register here; sample here).  This paragraph must be included in any article re-posting to avoid copyright infringement. Vronsky goes on to say in further edited excerpts: The chart below estimates two balance sheet growth rates from 2012-2016 (when Obama leaves the Presidency): Adding $40 Billion per month…equating to a Compound Annual Growth Rate (CAGR) = 14.8% Adding $85 Billion … Continue reading

The 10th Man: I Had My Cake, Until I Ate It


By Jared Dillian After 30 years of declining interest rates, bond investors are beginning to worry that rates will go higher—especially after the events of May 2013.Back then, 10-year yields went from 2% to 3% on a frozen rope. Things got very dicey in fixed income. Some holders of corporate bonds (like the new Apple bond) were suddenly down 10% just on interest rates alone.So worrying about rising rates is not unreasonable. People learned very quickly how duration works, after having forgotten for decades. If you’ve never taken a bond math class, all you need to know about duration is this: It is the weighted average time to maturity of all coupon and principal payments. It is an approximate measure of interest rate risk. With regard to 2), if the duration of a 10-year Treasury note is 8.5 years, for every 1% change in interest rates, the price of the … Continue reading

Gold price crushed to deter support for Swiss initiative: report


Cecilia Jamasmie | November 20, 2014 British fund manager Ben Davies says that gold prices’ most recent collapse is part of central bank efforts to discourage Swiss voters from supporting the gold initiative to be decided at referendum on November 30. Speaking to King World News, Davies adds that the risk and reward factors are now more favourable for gold than for any other investment: “[Gold] is the only asset class in the world where the risk of a 10 percent loss is probably all you can see, and at the same time the upside is staggering. “Should a ‘No’ vote result, it’s quite possible that we will get another chance to buy this market at lower prices.” Prices recovered Thursday in European trade after a Swiss poll showed weaker support for the “Save Our Gold” initiative, which would force the Swiss National Bank to hold a fifth of its assets in the … Continue reading

Outside the Box: Notes on Russia


By John Mauldin Russia and its redoubtable president, Vladimir Putin, have been much in the news lately. The latest flurry came when Putin was taken out behind the woodshed at the G20 conference in the Philippines last weekend over his recent moves to inject more Russian troops and arms into Ukraine.For today’s Outside the Box we have two pieces that deliver deeper insights into the situation with Russia and Putin. The first is from my good friend Ian Bremmer, President of the Eurasia Group and author of Every Nation for Itself: Winners and Losers in a G-Zero World. You probably caught my mention of Ian’s presentation at the institutional fund manager conference where we both spoke last weekend. He had some unsettling things to say about Russia; and so when he followed up with an email to me on Monday, I asked if he’d let me share the section on Russia with you. Understand, … Continue reading

Revisiting the Goldman Sachs $1050/oz gold forecast


November 20, 2014 By Steve Saville   http://Speculative-Investor.com At the beginning of this year, banking behemoth Goldman Sachs (GS) called for gold to end the year at around $1050/oz. We didn’t agree with this forecast at the time and still believe it to be an unlikely outcome (although less unlikely than it was a few months ago), but earlier this year we gave Goldman Sachs credit for at least looking in the right direction for clues as to what would happen to the gold price. In this respect the GS analysis was/is vastly superior to the analysis coming from many gold-bullish commentators.Here’s what we wrote when dealing with this topic back in April*:“GS’s analysis is superior to that of many gold bulls because it is focused on a genuine fundamental driver. While many gold-bullish analysts kid themselves that they can measure changes in demand and predict prices by adding up … Continue reading

Breakfast with a Lord of War


By David Galland, Partner, Casey Research For reasons that will become apparent as you read the following article, I was quite reluctant to write it. Yet, in the end, I decided to do so for a couple of reasons. The first is that it ties into Marin Katusa’s best-selling new book, The Colder War, which I read cover to cover over two days and can recommend warmly and without hesitation. I know that Casey Research has been promoting the book aggressively (in my view, a bit too aggressively), but I exaggerate not at all when I tell you that the book sucked me in from the very beginning and kept me reading right to the end. The second reason, however, is that I have a story to tell. It’s a true story and one, I believe, which needs to be told. It has to do with a breakfast I had four … Continue reading

Connecting the Dots: Correction? What Correction?


By Tony Sagami The textbook definition of a correction is a drop of 10% or more. The stock market came close to hitting that correction benchmark and has mounted a furious rally since mid-October. The S&P 500 has staged a remarkable rally, jumping by 12% from its October lows in just four weeks.There’s something in our DNA that pushes humans to follow the herd, and investors have been herding into the stock market in almost unprecedented enthusiasm. I mean really herd.Get this: the S&P 500 has closed above its five-day moving average for 20 consecutive days. A five-day moving average is an extremely short-term indicator that can rapidly change, so the feat of staying above this hypersensitive indicator for almost a month is rare.How rare? It has happened just three times before in the last two decades. And each time when the market rallied so vigorously, the winning streak ended within four … Continue reading

Will You Light $180,000 on Fire by Taking Social Security at Age 62?


By Dennis Miller   On the television series Dragnet, Sgt. Joe Friday was known for his calm demeanor while questioning witnesses. When they began to ramble, he would corral them with comments like, “Just the facts, ma’am.” Sound advice for the witness stand, but when it comes to retirement planning, Sgt. Friday was giving the wrong instructions. Instead of asking for “just the facts” we should ask for “all the facts.” A recent article for Bankrate featured a frightening graphic quoting Social Security Solutions founder William Meyer: “Two-thirds of Americans take Social Security at age 62, giving up $180,000 if single, $323,000 if married.” With those statistics in mind, holding off until age 70 can seem like a no-brainer. Let’s take a closer look, though, with “all the facts” in plain sight. The Social Security Administration’s website offers a handy tool for estimating benefits. We used it to run through a few hypotheticals for … Continue reading

Canadian Mining Focuses on Becoming Canada’s Leading Zeolite Supplier


November 18, 2014 By Dudley Pierce Baker Disclosure: I personally own shares in Canadian Mining Company TSXV:CNG, OTC:CNGCF I have not been paid to disseminate this press release but I like the story and encourage investors to take a serious look at CNG as a way to diversify outside of the metals markets via Zeolite and its many uses. It is your money and your responsibility to perform your own research and/or consult with your investment advisor before making and decisions. PRESS RELEASE Canadian Mining Focuses on Becoming Canada’s Leading Zeolite Supplier Vancouver, British Columbia, Canadian Mining Company Inc. (the “Company”) (TSX.V:CNG) Ray Paquette President and CEO reports: It is with great pleasure that I update you on the developments of Canadian Mining in 2014. We made significant progress in establishing the Company’s zeolite initiatives and completed several key objectives. 2014 Highlights Established relationship with large highly-respected Canadian company for … Continue reading