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Now, as we enter
Phase Two of our years’ long precious metals rally, markets get hotter
and more irrational. More than ever before, trading speeds increase, global
governments flail at their massive failures and ever crazier stuff hits the
news and our markets. To get through this melee without personal disasters,
keep your mind clear and hold firm to your trading and investing plans. Hard
assets and no debts is the right path.
Over the past
decade, gold prices are up an average of 15% per year confirming that the
longer trend remains in place. At a recent Calgary Canada Resource Conference
we heard a top analyst tell us gold is up 34% within the past twelve months.
It is obvious a game-changer is now in progress. Many new questions are being
asked to enable more accurate trading and investing.
We think the key
to most answers can be found in the vacant minds-heads of those global
bankers’ and within the tiny IQ scope of these junior, elementary,
genetic mistakes running our governments, central banks, and the Federal
Reserve.
Our kid president
has jumped into new and very dangerous diplomatic waters by bowing to Russia
on nuclear matters, being wish-washy on Middle Eastern mayhem and denying
Israel a place at the table. This inexperienced child leader is making nice
to our enemies in hopes of persuading them to see his agenda. Foreign
reaction is to laugh in his face and consider the USA a paper tiger taking
full advantage using any methods possible criminal or otherwise.
We suspect the
recent Polish air disaster wiping out that government was not an accident. We
can guess who was behind it but you can figure it out yourself if you
understand who benefits most. Quite obvious isn’t it?
What does this
mean for precious metals, the general markets and international credit?
A clear path is open if we can surmise what these evildoers want and see how
they intend to proceed. Let’s review these keys points:
Russia is on the
prowl for foreign investment cash as they are broke with the exception of
their oil and gas sales, which have been down in the global depression. Answer:
Steal, buy and control more energy to become the global energy king of the world.
He who holds this power is the ultimate winner. If you think your shares in
investments in Russia are safe I’ve got a bridge to sell you.
Iraq is all about
control of oil and the largest energy users want in the game to the best
extent possible. Iraq and Iran with joint borders hold 4 of 6 of the largest
known oil pools-reserves. That is what that fight is all about. The big oil
men and their governments are not leaving and they will fight to get more.
Afghanistan is a
tar-pit of despair. How can any outsider win when both sides on the local
team are into poppy growing, bribes and violence forever?
Some of the best
allies the USA has today, intend to leave these current war
messes-yesterday. Pakistan has a nuclear-ready arsenal complete with
flyable rockets for delivery. Think that naughty stuff is safe for now? We
don’t.
In Europe, Obama
has pulled back the nuclear shield signaling to Europeans “You are on
your own.” Further, these nations are sick and tired of fighting in US
military adventures as allies and partners. They simply cannot afford it and
clearly understand its folly.
As the ugly
reality of economic destruction spreads throughout the world, it’s
every man, woman and nation for themselves. For example, Israel understands
they will get no help from Obama regarding Iran aggression. Now that the news
is out Iran is nuclear ready by August 1, Israel must deal with this problem
by themselves and, they will deal with it.
Imperious idiots
in Washington, New York and within other financial capitals of the world are
intent on keeping the game in play by kicking the can down the road.
We’ve got news for them-the can hit the wall and is coming back at them
with full force in bond markets.
That full force
is a rapidly decaying bond market sinking beneath its own weight throughout
international bond land. It is obvious and clear economic ministers and their
liberal minions are pushing and shoving to dump debts on others but those
others are doing the same. Each is striving to sell their paper to outsiders
while continuing to sell products one neither wants nor can afford. This is
an economic circle of failure.
As the Bernanke
circus continues to print bonds, bills and notes they have suddenly
discovered they must increasingly buy back their own crap at the auctions
where there are fewer takers and suddenly no takers? Who will finance
international debts?
We smell panic in
bond-auction-land and it has become every increasingly more strident and
frightful. The Pimco boyz are shedding US paper and were recently prowling in
Aussie land as they have the good sense to raise interest rates trying to get
a lid on this nonsense. However, their larger dilemma (Pimco’s) is
trying to place multi-billions in a market offering fewer places to go. At
least places that just might return your capital and not dissipate it down
some stupid rat hole.
Asia is beginning
to the feel the international pain as their customers are going broke or are
already broke. The lifeblood of China, Japan and Korea along with their
neighbors is to make stuff and sell it overseas. Problem now is the overseas
countries are out of buyers and out of credit. Oh Oh.
Inflation in
China is running hot at 15%. Hong Kong real estate prices are up 23% so far
in 2010 and the year is not even half over. To their credit, new China rules
demand less leverage, higher down payments and face new curtailment on usable
building land. Despite these new controls, the horse is out the inflation
barn and he is running full tilt.
Japanese
companies are losing customers, have too may retirees and not enough children
coming along to take their places on employment rolls to become productive.
Since Japan does not finance their government overseas, most all of their
bonds are sold internally to the heavier savers within that nation. Now,
however, their paper pile is out of control and is reported to be 2.5 times
larger (adjusted for size) than a busted USA. Wow!
This simply cannot last and a truly religious experience is to be the end
result. It will not be pretty.
Korea has grown
considerably but also rose on the backs of credit and paper piles. They too
are losing foreign customers and things are slowing down.
In Europe, the
situation is not just worse it has turned dire. Germany is the last man
standing and all their Euroland neighbors want handouts from Berlin. Greece
is first in line and they were initially refused. However, it was reported
this week that Germany’s Mrs. Merkle caved into immense Euro-banker
pressure and will go along with the Greek-IMF bailout. This major mistake
opens the money door for other busted Eurolanders like Spain (24 times the
monetary damage of Greece), along with Portugal, Italy and a few others.
Ireland fell down
so hard they went negative -12% GDP and taxpayers are on the hook for
multiple billions they do not have.
In the U.K. Mr.
Gordon Brown, the world’s champion liberal giveaway artist after Obama,
who is the International King by far, has wasted $5 Billion in British gold
holdings and continues to prop Zombie companies and banks. Brownie intends to
exaggerate the situation with more of the same. His solution for being in the
hole is to keep digging. The U.K. appears to be committing economic suicide
just as in Obama-land.
None of these
fools have the courage to stop it and make central bankers behave. The can
kicking syndrome remains on page one and its going to be a global disaster.
In South America,
Hugo Chavez has literally destroyed his country and is partnering with Putin
and other commies to arm all the rebels within the southern hemisphere. He is
particularly encouraging the really Bad Boyz, engaged in Mexican
pharmaceutical sales, to take over that government and spread disaster into
the southern USA. He is winning.
Meanwhile, our
kid prez is planning to open the Mexican border to all comers and hand over
USA citizenship to 12 million Mexican illegals, now in the US to garner votes
using his welfare powers.
Our point in this
discussion encourages the purchase of hard assets for personal protection
including gold and silver coins, cash investment into the best remaining
currencies (temporarily for the intermediate term) and steps to protect your
wealth by debt elimination and a drastic reduction in spending. Savers and
those with a maintained depression income will be winners. We are entering a
lost decade.
Those living on
credit cards, and a house of debts, and in danger of losing employment, will
pay the price.
Now, more than
ever, it is important to take the immediate necessary precautions to protect
yourself and your families and friends.
Traders and
investors should be buying precious metals and shares right now. In our
newsletter we have a great list of trading and investing ideas for you.
Meanwhile, you can never go wrong buying physical precious metals and holding
them for security. We’ve had a constant run of nearly ten years in gold
rising 15% per year so this remains a good trade.
It’s not
going to stop any time soon. In fact, we predict those annual percentages
will rise even more and this offers a chance, arriving only once in 25 years
on the cycles. Good
trading! -Traderrog
Roger Wiegand
www.webeatthestreet.com
Roger
Wiegand is Editor of Trader
Tracks Newsletter and of
the Rog Blog at www.webeatthestreet.com.
Roger provides recommendations for short and longer term trading using
stocks, futures and commodities with specifics.
Contact Claudio Bassi, at Trader
Track’s New York City publishing offices for a trial subscription. Call 718-457-1426 Monday
through Friday,
9:30am to 5pm or, e-mail cbassi@miningstocks.com
Recommendations
made in “Trader Tracks” are exclusively those of Roger Wiegand
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