Sunday, March 4, 2007

The Bull Market in Things

For those who have expressed an interest in the ongoing and developing bull market in "things" or tangibles, the following information is presented for educational purposes.

Paper represents claims. In the current system, by design, if too many attempt to cash in claims, problems arise as too many head for the exits. This is especially true today as the Federal Reserve Note, private scrip (today erroneously referred to as "the dollar"), is intrinsically worthless as it ultimately represents a claim on nothing.

Not investment advice. Please due your own due diligence!

Interestingly, financial planners and mainstream financial publications rarely address the specter of the falling US dollar for the average American investor. Can investors truly call themselves financially diversified if all their investments are denominated in a currency of a nation which is accumulating staggering debt? This is especially important for those whose retirement is more than a few years away. The enormous trade deficits, war expenditures and unfunded liabilities of the US government (one estimate was over $60 trillion in unfunded liabilities alone), present a dangerous risk that the US dollar may be a museum relic by the time today's middle age investor is ready to retire. Already, the Council on Foreign Relations is discussing a replacement currency, a regional one (to be called the AMERO) and high level G-8 and US Treasury officials have expressed a desire to "allow" the US dollar to fall, (albeit, in a controlled fashion). They are telling us this, point blank. We are witnessing this today as commodities and gold are reacting strongly to the upside as structural deficits will only be worked out by way of a falling dollar. Perhaps it might be prudent to do some personal research about defensive plays to preserve sweat and toil by diversifying in varying degrees suited to each investor, outside of one asset class. Relying solely on an asset which is being multiplied toward infinite quantities is the ultimate in foolishness. A study in the markets is a study in human behaviour and yourself.

*First, if there be any doubt as to past being prologue!
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*"Gold and Economic Freedom," by Alan Greenspan;
from Ayn Rand's "Capitalism, the Unknown Ideal:" Click here

*Successful master commodities trader Jim Sinclair runs a website on his own dime. He has demonstrated his abilities especially during the last gold run of the 1970s. He lives and breathes trading and provides his observations and technical analysis knowledge free of charge. He does provide a wealth of his compilations in CD format at a nominal charge to cover costs. His observations during the past five years have been prophetic. Do well not to dismiss his analyses of the future of the gold market (and commodities, in general).
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*Live Precious Metals prices and education:

*Education on the markets, economics, with a slant toward precious metals:

*Jim Puplava is a macro-economic genius. The wealth of information on his website is astounding. He also hosts weekly shows and posts them in MP3 format for free downloading. His Storm Watch series is especially educational. Check out the button at the top right of his website for updates. Puplava also runs a financial planning business for wealthier clients.
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*"Commodities Bull Portfolio Design," by Adam Hamilton
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Hamilton called it!
"The Great Commodities Bull of the 00's" (April 27, 2001)
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Do yourself a big favor, read this: "The Creature From Jekyll Island."

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