All Posts Tagged With: "paper money"

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Gold Outlives Paper Money, Empires and Governments

“Gold is definitely an alternative, but when we buy, the price goes up. We have to do it carefully so as not to stimulate the markets,” he added.

October 22nd, 2009 | | 1 comment | Continued
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Should You Buy Gold Now?

The Trade of the Decade is still buy gold/sell stocks. And the decade isn’t over. If you have US stocks, this is a good time to sell. The Dow went up 63 points yesterday – a weak bounce after several days of losses.

September 7th, 2009 | | 0 comments | Continued
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Is Gold Money?

However, the question I find most interesting is whether gold is a real asset. One of the problems of investment is that there are two variables, reality and liquidity. Land or property are relatively illiquid, but are also real, in that they have a use which does not depend on their value in exchange. Gold is highly liquid, indeed it is more liquid than paper money.

March 12th, 2009 | | 7 comments | Continued
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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 | | 0 comments | Continued
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Stock Market Collapse Can Be Explained By Panicked Forced Selling

Much of the recent stock market collapse can be explained by panicked forced selling, rather than fundamentals. Sure, we’re going to have a long, deep recession – especially in certain sectors of the economy. But you must also keep in mind that stocks are denominated in paper money. Central banks and governments are fighting this credit crunch with the greatest wave of inflation in history…

December 11th, 2008 | | 8 comments | Continued
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Iraq War Could Cost Up to $5 Trillion

The U.S. government, of course, has no extra $5 trillion. It is already broke, by business standards. In effect, it has to borrow the money to continue the Iraq war. From whom? Who has the biggest pile of dollars? The communist Chinese… and the Arab oil exporters. Hmmm…

March 4th, 2008 | | 4 comments | Continued
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