Central Banks Have Killed Free Trade

By Charles Hugh Smith This post Central Banks Have Killed Free Trade appeared first on Daily Reckoning. Defenders and critics of “free trade” and globalization tend to present the issue as either/or: It’s inherently good or bad. In the real world, it’s not that simple. The confusion starts with defining free trade (and by extension, globalization). In the classical definition of free trade espoused by 18th century British economist David Ricardo, trade is generally thought of as goods being shipped from one nation to another to take advantage of what Ricardo termed comparative advantage: Nations would benefit by exporting whatever they produced efficiently and importing what they did not produce efficiently. While Ricardo’s concept of free trade is intuitively appealing because it is win-win for importer and exporter, it doesn’t describe the consequences of the mobility of capital. Capital — cash, credit, tools and the intangible capital of expertise — … Continue reading

There is No “Free Trade” — There Is Only the Darwinian Game of Trade

By Charles Hugh Smith This post There is No “Free Trade” — There Is Only the Darwinian Game of Trade appeared first on Daily Reckoning. A more reasonable standard, of course, would recognize that iPhones and iPads do not have a single country of origin. More than a dozen companies from at least five countries supply parts for them. Infineon Technologies, in Germany, makes the wireless chip; Toshiba, in Japan, manufactures the touchscreen; and Broadcom, in the United States, makes the Bluetooth chips that let the devices connect to wireless headsets or keyboards. Analysts differ over how much of the final price of an iPhone or an iPad should be assigned to what country, but no one disputes that the largest slice should go not to China but to the United States. That intellectual property, along with the marketing, is the largest source of the iPhone’s value. Taking these facts … Continue reading

How Currency Appreciation Can Juice Your Returns

By Eric Fry When foreign economies recover from a bust, their stock markets usually boom. But that’s not all… Their currencies also boom. They soar in value against the U.S. dollar. This phenomenon is not simply a curiosity; it can be a big-time moneymaker. The combination of rising stock prices and a rising currency can produce supercharged gains for a dollar-based investor. The past is full of many such examples. This week’s chart shows just a few of the most memorable ones… In each example, a foreign stock market delivered gains of about 500% in U.S. dollar terms. And in each instance, a large percentage of the gains came from the local currency’s appreciation against the value of the dollar. One truly remarkable aspect of this effect is that it does not simply add currency gains to stock market gains; it compounds the combination of the two to produce an … Continue reading

Weekend Show – Sat 24 Mar, 2018

By Cory Gold and Silver Prices With Stock Commentary Download audio file (0324-KE-Report-Full-Weekend-Show.mp3) Another interesting week dominated by volatility and political news on tariffs and potential trade wars. We also had the Fed raise short term rates a quarter point and Chairman Powell outline another 2 for the year. On this week’s show we focus a lot on the metals complex. Stocks that we find of interest are shared along with commentary on silver. Please keep in touch by emailing me at Fleck@kereport.com. I love hearing from all of you regarding stocks you like and guests you would like to see on the show. Segment 1: Adrian Day, CEO of Adrian Day Asset Management shares his thoughts on the overall metals complex. We look at some of the recent M&A activity this week and the stocks Adrian likes. Segment 2: We get some technical insights on the precious metals sector … Continue reading

KER Politics – Fri 23 Mar, 2018

By Big Al Big Al would like your opinions on the appointment of John Bolton SHARE Photo by Ethan Miller/Getty Images President Donald Trump has just ousted his national security adviser, H.R. McMaster, and replaced him with former George W. Bush administration official John Bolton. People who’ve been intently watching the comings and goings of people from the White House might have expected the change. But it would have come as a shock to 2013-era Donald Trump. Bolton stood out for his hawkishness even in the hawkish Bush administration. He was a leading cheerleader for the war in Iraq. And he spent his post-White House career arguing for more military intervention, specifically in Iran (over its nuclear weapons program) and to calm the civil war in Syria. Trump, on the other hand, used to be a pretty staunch opponent of military adventurism in general and the war in Iraq in … Continue reading

Interview: 2018 Likely to Set Off Large Gold Rally

By Jordan Roy-Byrne CMT, MFTA Jordan discusses the latest in the gold market and how it has been quite subdued. He is not predicting an imminent breakout although one should be looking to take advantage of the value out there. Juniors are unlikely to get much cheaper than where they are now, so there is minimal downside risk. The price of gold has been driven by the weak dollar, and the market is anticipating higher interest rates on the long end. Long-term bond yields breaking out will cause a lot of issues with the economy, the government, and corporations. This increase will be bad for the stock market and will likely cause a move from cash into gold. The mining sector has endured the worst bear market in ninety years, and some mining equities are an incredible opportunity. The quantitative easing policies of the Federal Reserve has incentivized companies to … Continue reading

B.C. miners halt exploration program to address community concerns

By analyst By Valentina Ruiz Leotaud Following a community outcry, Aben Resources (TSX-V: ABN) and Eagle Plains Resources (TSX-V: EPL) decided to suspend their planned drill program at the Chico Gold Project, which is located 125 kilometres east of La Ronge, Saskatchewan. The program, which consists of 1,200 to 2,000 metres of drilling in some four or five holes at various locations, had all the required permits and started to be conducted on March 9, 2018. However, according to local media, just a week after the campaign started, technical staff were met at the site by a group of trappers from the N-74 fur block who said they were never consulted about the work. The group’s reaction prompted a meeting between the parties involved, which was held on March 21. At the audience, Aben and Eagle Plains learned that citizens of the community of Pelican Narrows and members of the … Continue reading

Saskatchewan miner launches aggressive exploration program in Ontario

By analyst By Valentina Ruiz Leotaud A month after closing the acquisition of Rapier Gold, GFG Resources (TSX-V:GFG) announced the launching of an aggressive exploration program at the Abitibi greenstone belt, which is located west of Timmins, Ontario. In a press release, the Saskatoon-based company said that the fully funded, C$3 million exploration program will be conducted 30 kilometres west of the Timmins West gold mine and will include airborne and ground geophysics, till sampling, prospecting, mapping, and approximately 8,000 metres of diamond drilling. According to the firm’s President and CEO, Brian Skanderbeg, this is the first ever systematic, district-scale exploration program in the under-explored portion of the Abitibi greenstone belt. “Our 565-square-kilometre land package has all the geological hallmarks that have led to over 70 million ounces of gold production in the Timmins gold district and the recent multi-million-ounce gold discoveries at Borden Lake and Cote Lake. Our goal … Continue reading

Yosemite Sam is Back!

By Pater Tenebrarum Dubious Picks Unless this is part of another cunning negotiation tactic, the Donald’s recent cabinet nominations have to be considered highly dubious, to say the least. First he promoted Mike Pompeo from his CIA post to the position of Secretary of State – removing the eminently reasonable, and as we believe widely underappreciated Rex Tillerson. Pompeo is mainly known for sharing Trump’s irrational dislike of the nuclear deal with Iran, which was pretty much the only laudable policy measure Obama implemented in his otherwise disastrous 8-year reign. “Trump-Whisperer” (h/t Economist magazine) Mike Pompeo. To his hawkishness on Iran we would note the following: invading or bombing the country is pretty much an insane pipe dream (and it would achieve nothing but even more regional chaos); reimposing sanctions only fortifies the regime’s position, which can then blame all economic troubles on foreign enemies – besides, it is well-known … Continue reading

Proof- Gold Price in USD above $10,000.00!!!!

By David Morgan Get Trading Recommendations and Read Analysis on TheMorganReport.com for just $50 per month. | http://www.themorganreport.com/join Proof- Gold Price in USD above $10,000.00!!!! | http://www.themorganreport.com The Morgan Report’s Weekly Perspective is our free e-newsletter. Our free e-newsletter will keep YOU in the top 3% of the Informed, the Awake, and the Aware. Join our Free weekly e-letter…http://www.themorganreport.com/joinfreelist I’ve Been Helping My Subscribers Weather the Current Economic Mess. Now I Invite You to Join My Growing Circle of Successful Investors. The Morgan Report is all about YOU and how you can build and preserve Wealth for generations to come. We know it can sometimes seem a daunting task to protect your assets and preserve or grow your wealth. Over 15 years ago, a small group of us started The Morgan Report and formed an exclusive membership organization to promote personal freedom, an honest money system, free market wealth accumulation … Continue reading