How strange. Stocks are up this morning. Hang on…we’ve just had a look again. They’re down now. Sigh. There’s so much bad news about in the land that stocks moving up in such a climate is noteworthy. It means everyone’s talking about how bad things are, but there aren’t any sellers left. So are there any sellers left?…
February 20th, 2009 | Dan Denning | 1 comment | ContinuedAll Posts Tagged With: "currency"
Obama’s Bailout: Too Little, Too Late?
The combination of falling earnings and falling P/Es does to stock prices approximately what the Romans did to Carthage in the third Punic War. That’s why we have our Crash Alert flag flying. Stock prices delenda est. Typically, depressions come with bear markets. And bear markets come with bounces and rallies. We expected an O! Bama! bounce after the election. We got one…but much less than we expected. Stocks only rallied about 15%…
February 19th, 2009 | Bill Bonner | 0 comments | Continued
Gold Ratios: Bearish for Gold Prices, Bullish for Gold Shares
It is obvious that through this crisis, despite some turbulence, gold prices have held up better than just about any other asset, commodity or currency (other than dollars and yen) we may imagine. From the point of view of a gold miner, this is a very good thing. Even better is that the price of oil, a significant cost input for miners, has fallen a lot relative to gold. This is bullish for margins…
February 4th, 2009 | Ed Bugos | 1 comment | Continued
All Roads Lead to Zimbabwe
How exactly more credit and a cash binge will support asset values escapes us. But it’s possible that Australia is now in lock-step with every other central bank and government in the world, and that all monetary roads lead to Zimbabwe, where a brave but brittle paper currency has gone to its god like a soldier, to paraphrase Rudyard Kipling. Rest in peace, Zimbabwe dollar. Robert Mugabe and Gideon Gono have blown out your brains and gutted the Zimbabwe economy…
January 30th, 2009 | Dan Denning | 2 comments | Continued
Gordon Brown’s Gold Sales, 10 Years On
Almost two decades after gold’s then-record top of $850 an ounce, the Nasdaq index would end the year 80% higher, discounting tech-stock earnings until A.D. 2129. Cue the FT, Economist and BusinessWeek to announce the “death of gold” as a store of value. Because who needed gold when you had Boo.com? But those British investors who saw life in the metal, however, have now tripled their money…
January 12th, 2009 | Adrian Ash | 4 comments | Continued
Gold Price Outlook – the Long and Short of it
Gold prices have been all over the place lately…but Ed Bugos points out, below, that the outlook for both long and short term is bullish, but you will need to have some patience…
January 9th, 2009 | Ed Bugos | 0 comments | Continued
U.S. Dollar Retreating Against Commodities
Both the Aussie and New Zealand dollars were up against the greenback. These two are probably not rising because they are commodity currencies. The strength of commodities versus the U.S. dollar is only relative at the moment. But the interest rate differential might be a factor. The Federal Reserve Open Market Committee meets in America today. Read on…
December 16th, 2008 | Dan Denning | 1 comment | Continued
A Gold Standard, Without Gold
If you understand supply and demand, you can peg a currency to gold even if there are no gold reserves at all. My own idiosyncratic system is the gold standard that involves no gold at all. There are no gold coins, and no government gold reserves. Gold bullion is freely traded on the open market, just as it is today. In my system, the currency manager (governments today) would adjust the supply of currency on a daily basis to maintain its value at the gold peg.
May 7th, 2008 | Nathan Lewis | 8 comments | Continued
An International Currency Not Just on Paper
Once it was clear that Britain’s global position was fatally compromised by its poor finances, it took all of five years for the dollar to become the preferred international currency. It can happen fast when people have a real alternative.
April 14th, 2008 | Dan Denning | 3 comments | Continued
The Bear Stearns of the North Atlantic
“The foreign debts have reached 122pc of GDP in Latvia, 101pc in Estonia and 73pc in Lithuania, mostly in euros. For now the debtors are shielded by fixed exchange rates in Europe’s ERM system, but this could make the shock even worse should the currency pegs start to snap.”
March 31st, 2008 | Bill Bonner | 0 comments | Continued
