Chris Whalen interviewed Jim Rickards for his IRA Newsletter. The discussion dealt with the fragility of the US dollar, and the possibility of the creation of a gold backed currency that could topple the US dollar as the world’s reserve currency. Here are some snippets from that interview:
For the whole interview go to the link below
Paper Gold vs the Dollar? Interview with James Rickards
Eric King
12 comments:
thanx for adding the dung heap to your blog list Queenie!
Nice links GAW on the previous post, like the live gold charts!
Looking in the review mirror from AK in Aus:
A few random points from the week:
• The IMF has revised up its global growth forecast from 4.2% to 4.6%.
• Chinese industrial production is booming.
• The Baltic Dry Index has had 31 straight declines, the longest losing streak in nine years.
• Crude oil is up 5.8% for the week.
• US consumer credit has collapsed: data yesterday showed a drop of $US9.1 billion in May, five times consensus forecast.
• OECD leading indicator, out today, shows the weakest gain in nine months.
Yes, it’s all over the place, but here’s my summary: all economies are coming off a low base, but the West has headwinds and the Emerging World (ie, China) has the wind behind it.
"Getting to the bottom of negative gold-leasing rates"
leasing gold
GAW I took another shot at that explanation and I think that anyone that understands it must be some sort of math genius.
China is now flexing its economic muscles; and Australia is sitting pretty, with 4.5% cash rates and near full employment, thanks to a booming terms of trade...
CAN HOUSING COLLAPSE WITH FULL EMPLOYMENT AND A SHORTAGE OF HOMES ( DIRE SHORTAGE, I MIGHT ADD) SO FAR SO WRONG, KEEN PREDICTED A TOTAL COLLAPSE 4 YEARS AGO NOW...HE HAS SINCE MOVED IT OUT TO 15 YEARS! lol
Also from AK:
Australian jobs
Let’s just take a moment to bask in Thursday’s incredible employment report. There were 45,900 new jobs added in June, 18,000 of them in WA. There have now been 353,000 new jobs created since the unemployment rate peaked at 5.8% one year ago in June 2009 – which was itself the reverse of the official predictions (8.5%).
Australia has pretty much reached full employment, and the skew towards part-time work that developed during the GFC, as businesses cut hours rather than retrenching people, has been largely corrected (although there was a pickup in part-time work in WA in the latest report for June, probably caused by the uncertainty around the RSPT).
The Reserve Bank chart pack during the week showed clearly that most of the job creation has been in mining, followed by construction. Manufacturing employment continues to decline.
News stories and economists’ reports about Thursday’s job numbers usually end with a reference to the fact it means rates will probably go up again, playing to the western Sydney heartland. But so what? Full employment is what it’s all about.
Shaza are they hiring Manufacturing Engineers?
"This was a relief rally after a week plus of down days, it was to be expected. But given the way volume is so low, and only seems to spike on down days, I'd say this market is skating on thin ice that is about to break." (GAW)
This is my feeling too ... which probably means that the market will rally far further than we think
Tony Calero's saying that major down wave 2 may have ended and that we're at the beginning of major wave 3. Further strength beyond 1090 on SPX would confirm this. That's a big call. I can't see it the way I look at my charts, but at least the guy tries to be objective, explains his reasoning and maintains measured tone.Time will tell ...
This is a useful page to keep track of bull bear sentiment from investors intelligence (as a contrary indicator). It's broadly neutral at the moment.
http://www.market-harmonics.com/free-charts/sentiment/investors_intelligence.htm
Yeah, when you read a story about "blah-blah-blah-gold leasing rates", you can safely assume the writer probably does not understand the gold leasing market.
You have to be an Einstein to grasp the nuances of that market. Or maybe a rocket scientist, with a building full of super computers.
If any of you have not read (attempted) that link that Queen posted in the comment above, go ahead, see if you can make heads or tails out of it. Do it as a mental exercise.
mugabe - Tony seems to be off in his own special place, I have not found any other EW guys who agree with him, or even close. Either he is the only right one, or he is completely wrong.
Given the fundamentals and my own analysis of charts etc, his thesis that we are in a 'New Bull' market seems suspect, at best. I'm not buying it.
I'd go on his site and argue this with him, but I don't want to sign up for Microsoft 'Live!' just to comment there.
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