Friday, February 24, 2012

Video: Gold Bubble Burst and Implode - Parabolic Plunge Coming Soon?

Are gold prices about to take a huge tumble? From the YouTube description:
Gold completed its 10th consecutive annual gain, the longest winning streak in at least nine decades, on the brink of a bear market. George Soros, the billionaire who two years ago called it the "ultimate asset bubble," cut 99 percent of his holdings in the first quarter. Billionaire Investor Warren Buffet also feels like a Bear Market in Gold is outdated. Forget the PUMPS seen all over the internet. Remember they bought in cheap and want to Pump it up so when you get in, they can pull out at the peak of the fall. Gold Needs to make a correction at around $700, Silver at around $16 an ounce. Currently both trading double and 1/2 of that. This is my opinion only and based on years of trading and personal research. Do your own. Never invest money you cannot afford to lose.

Euro Rebounds Against the Dollar: Biggest Increase in Two Months

Good news for the Greek debt crisis, bad news for your US Dollars.

The euro climbed against the dollar and the yen as a report showed German business confidence rose to the highest level in seven months in February amid progress in taming the region’s debt crisis.

The 17-nation currency increased to the most in more than two months versus dollar as U.S. initial jobless claims held at a four-year low, damping demand for safety. The yen rose against the greenback, snapping a five-day losing streak that was its longest in 10 months. Norway’s krone reached its strongest level against the euro in nine years as a measure of volatility among Group of Seven currencies dropped to a more than a three-year low.

Euro Advances Against Dollar, Yen as German Confidence Jumps - Businessweek

Chart Shows America's Per Capita Government Debt "Worse Than Greece"

The Greeks are just rank amatuers compared to the US when it comes to racking up debt!

The office of Senator Jeff Sessions, ranking member on the Senate Budget Committee, sends along this chart, showing that 'America’s Per Capita Government Debt Worse Than Greece,' as well as Ireland, Italy, France, Portugal, and Spain:

Chart: 'America’s Per Capita Government Debt Worse Than Greece' | The Weekly Standard

Thursday, February 23, 2012

US Dollar Down Against the Euro, Flat Versus the Yen

The downward trend of the dollar continues.

The U.S. dollar slipped against the euro and some other currencies during Asian hours Thursday to give back some of the previous day's gains ahead of a data release on German business conditions. The common currency /quotes/zigman/4867933/sampled EURUSD +0.32% was fetching $1.3260 from $1.3246 in late North American trade Wednesday.

U.S. dollar slips against euro, flat versus yen - MarketWatch

Five Tips for Finding the Lowest Gas Prices

The newest game we're all going to be playing soon: find the cheapest gas in your neighborhood!

Just as the economic recovery begins to accelerate, another roadblock has jumped in the way. In this case it's America's old familiar enemy: Rising prices at the gas pumps. The national average cost for regular unleaded gasoline is already 8% higher this year alone, now at $3.529 a gallon, according to AAA.  This is the highest price point ever seen this early in the year. Seasonally prices rise heading into the Summer driving season, but never has the average price of gasoline topped $3.50 this earlier in the New Year.  Furthermore, gasoline demand has dropped 10%; meaning Americans are driving less but the amount of money we're spending on gasoline is rising.

As individuals we can't do much about price hikes but Gregg Laskoski of GasBuddy.com says there are some things we can do to minimize the damage done to our personal finances every time to fill the tank. In the attached clip Laskoski discusses 5 ways to find cheap gas prices.

5 Tips to Find the Cheapest Gas Prices | Breakout - Yahoo! Finance

Expert: US Middle Class Getting Pushed Out of Banking

Think your bank fees are bad now . . .

Excessive regulation of financial institutions is squeezing out middle-class consumers who soon will find themselves locked out of the banking system, analyst Meredith Whitney said Wednesday. That trend already is beginning to manifest itself in terms of who is driving most consumer spending, Whitney, the president and founder of Meredith Whitney Advisory Group, said in a CNBC interview.  The latest data show retail sales rose 0.4 percent during the post-holiday season, while Macy’s
indicated strong sales growth in the past quarter.

But Whitney said such figures can be misleading in that the spending is being driven mostly by shoppers at opposite ends of the spectrum. The ones in the middle, she said, are finding it harder to be active consumers.

“It’s somewhat of a false indicator looking at consumer spending and saying all consumers are doing so much better,” she said. “You haven’t had substantive wage growth and you see the contraction in available credit for mainstream America take a toll.”

Middle Class Getting Pushed Out of Banking: Whitney - US Business News - CNBC

Monday, February 20, 2012

Oil Prices Highest in 9 Months After Dispute With Iran

Gas prices in the US are also at their highest price point this early in a calendar year. Could we see $5 a gallon by summer time? Hold on to your wallets!

Oil prices jumped to nearly 105 dollars a barrel - a nine-month high - in Asia today, after Iran said it halted crude exports to Britain and France in a dispute over its nuclear programme. Benchmark crude was up 1.75 to 104.99 dollars a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. Earlier in the day it rose to 105.21, the highest since May. The contract rose 93 cents to settle at 103.24 a barrel in New York on Friday.Brent crude was up 1.52 at 121.10 dollars a barrel in London.

Iran's oil ministry said yesterday it stopped crude shipments to British and French companies in an apparent pre-emptive blow against the European Union after the bloc imposed sanctions on Iran's crucial fuel exports. They included a freeze of the country's central bank assets and an oil embargo set to begin in July.

Oil prices at nine month high after Iran dispute - Business News - Business - The Independent

Column: America Can't Compete With China's State-Run Capitalism

Well, duh!

Free Market Capitalism operating in the present “free trade” environment cannot survive in open competition against state-run capitalism. Our free market is unregulated and unprotected. Chinese state-run corporate enterprises are given virtually limitless subsidization from their home governments, as well as from American state and federal incentives, to enter the open American market and break established U.S. industrial titans.

China now has $3.2 trillion (three thousand two hundred billion) of our currency reserves. They can use these resources anytime they want to come here and buy us out. They can buy any of our companies available for sale on our open stock market, which they are now doing and which will very shortly place us as the 21 century American colony of China.

America Cannot Compete with Chinese State-Run Capitalism | Economy In Crisis

The New American Dream? Renting to Get Rich

No, really. Housing is a bad investment. According to this researcher, it's a bad investment 100% of the time. And, according to the neighbor kid who goes to public school, "That's like, more than half."

Rich Arzaga owns a luxury home in San Ramon, California, but he's not betting on it as an investment. The founder and CEO of Cornerstone Wealth Management, who bought the 5,000 sq. ft. property in 2005 for $1.8 million and has spent $500,000 improving it, considers the abode a wonderful place for his family. But ask him to rate his home -- or any home, for that matter -- as a financial investment, and Arzaga balks.

"It's the American Dream to own a home, but whoever said that didn't do the analysis on it," says Arzaga, knowing he's taking a contrarian stance to conventional wisdom.  Examining 250 properties around the U.S., and going through close to 40 client files to project the financial impact of owning real estate versus liquidating it, Arzaga, an adjunct professor in personal finance at the University of California at Berkeley, found that, "100 percent of the time it was better to rent, rather than own."

That's right: 100 percent.

New American Dream is renting to get rich | Reuters

Breaking US Dollar Collapse News

What's Behind the Decline of the US Dollar?

This is one the of the best and simplest explanations we have seen:
The U.S. dollar's downward slide is accelerating as low interest rates, inflation concerns and the massive federal budget deficit undermine the currency. - Wall Street Journal, April 23, 2011
Interestingly, the Federal Reserve is responsible for, or an active participant in all three of these factors.