Gold rose $24 per ounce yesterday. The Dow fell 12 points. The smart money is using this dip to buy gold. Why? Because the world’s major stock markets… currencies… and economies all depend on reckless measures by central banks. In the short run, the central banks can make things appear safe and stable. How? By […]
"The Battle of Vicksburg was the turning point of the war," explained the guide at the Old Court House Museum in Mississippi. "The whole economy of the South west of the Appalachians depended on the Mississippi River. That's how we got our food and cotton to market. We floated it down the river to New Orleans.
The Old South was bigoted, backward and dry. The New South is prosperous, progress oriented and open to suggestion. We can confirm the prosperous part. Everywhere you look, there are new cars on new roads going to new malls and buying new stuff. At least, everywhere within 50 miles of the new Nissan plant in Canton.
Unlike a machine, an economy was neither designed by anyone nor built in a factory. There are no plans... no owner's manual... no guide to troubleshooting problems... and no website where owners go to talk about the problems they've had and the tricks they've used to fix them.
First, stocks hit new highs on Friday. Gold lost $22 per ounce. But believe it or not, our new Trade of the Decade is going well. As you may recall, we began a "Trade of the Decade" back at the start of the 21st century. "Buy Gold. Sell Stocks." That was it.
Even dumbbell economists believe lower deficits are bad news... but for an entirely different reason. They believe lower deficits will reduce GDP and jobs. They think the only reason the economy is doing so well is that the feds have been willing to spend money they didn't have on things they didn't need.
A friend in Washington had promised to introduce us to Neil Barofsky, inspector general of the TARP program. You remember TARP? It was the feds' $700 billion program to rescue the US economy from a correction. Neil Barofsky was in charge of it. So we decided to go down and ask him how it turned out...