Monday, May 3, 2010

Jay Taylor on BNN: Gold Shines

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Buffett bearish on currencies holding value

Warren Buffett said Saturday that he's bearish about the ability of all currencies to hold their value over time because of massive deficits being run up by governments in the wake of the global financial crisis.

The Berkshire Hathaway Inc. /quotes/comstock/13*!brk.a/quotes/nls/brk.a (BRK.A 115,325, -1,476, -1.26%) /quotes/comstock/13*!brk.b/quotes/nls/brk.b (BRK.B 77.00, -1.09, -1.40%) chairman also warned shareholders attending the company's annual meeting that the Greek debt crisis will produce "high drama" and said it's unclear how it ultimately will be resolved.

The financial crisis was stemmed by massive monetary and fiscal intervention in developed economies like the U.S. and the U.K. That's shifted a private-sector debt mountain on to governments, increasing concern about sovereign risks. (more)

On The Brink Of An Asset Explosion

Let me start off by saying the market should be correcting. Sentiment has reached ridiculous bullish extremes, the kind of extremes that led to the January /February correction.

That correction separated the second leg of the bull from the third. But let's face it, sentiment has been in this condition for several weeks now and the best we could muster was a minor correction of 30 points on the news the SEC was filing charges against Goldman Sachs for fraud.

We've had three opportunities to "sell the news" with the April jobs report and recently with INTC and AAPL earnings. None of them have panned out. The market could use the Greek excuse as a downside catalyst, the same as it did in January. And now Greek short term bonds are tanking as the EU waffles about writing that check in front of the German elections in May. (more)

The great American mortgage casino – How the Goldman case is about the broken down system that allowed massive gambling in America’s housing market fo

The case against Goldman Sachs is the ultimate conclusion to a decade long housing and gambling bubble fueled by easy money, no-documentation loans, and fraud spurred lending. While the investment banks nitpick whether a fraud was actually committed, many Americans are getting their first primetime dosage of how corrupt and absurd the crony banker system has become. To sum up the situation, Goldman helped hedge fund billionaire John Paulson find the ultimate toxic housing bet. Through various parties, it is alleged that Paulson pushed for certain undesirable toxic mortgages to be part of a giant pool of mortgages that unbeknownst to Goldman clients (the issue at hand), Paulson was making the ultimate short bet. Goldman collected fees upfront, Paulson made out like a bandit, and someone got the short end of the stick. (more)

Pension deficits soar in Canada, CGA says

The number of defined benefit pension schemes that are in deficit has doubled over the past five years to stand at 92% of the total, making retirement prospects bleak unless changes are made, an accountancy body said on Friday.

Pension funding deficits have risen from $160 billion in 2003 to an estimated $350 billion in 2008 and continue to grow, the Certified General Accountants Association of Canada said.

"Canadians ability to maintain a financially comfortable and healthy lifestyle is bleak unless the retirement system undergoes a drastic makeover," Rock Lefebvre, Vice-President of Research and Standards at CGA-Canada said in the report. "Pension plans should not operate in a manner that unduly borrows from future generations to pay the present one." (more)

The Hidden Meanings in the New $100 Bill!

First of all, I must admit that I am one of those "Conspiracy Nuts" who loves to read meaning into the back of the US $1 bill like I'm trying to solve a centuries old puzzle. The "All Seeing Eye", the pyramid, "One World Government", Masonic symbols, the implications of the Latin words, even the words "In God We Trust" added in 1955...all of it...I'm a big fan of secret meaning. Just Google "US Dollar Hidden Meaning" and you will find almost EVERY INTERPRETATION you can imagine. Since I don't know which is true...I tend to believe ALL OF THEM. More fun that way. If you think this is all hogwash and there is no meaning to the back of the $1 bill..."Duh, it's just a nice picture"...then this article is not for you.

So, of course, I was more than excited when the new $100 bill was FINALLY announced and IT HAD ALL THAT GOLD ON IT! I admit that I am slightly biased on this. One of the central themes of my work at the Road to Roota Letters is that there is a group of people working to end the fiat money system and return the US back to the Gold Standard. For those unfamiliar with the concept read: (more)

Scandal: Obama, Gore, Goldman, Joyce Foundation CCX partners to fleece USA

Glenn Beck breaks the biggest corruption story of the century yesterday and it doesn’t appear on a Front Page anywhere. Beck points the way to the 15 Trillion dollar scam that has some amazing players.
(See full transcript here)
First Glenn makes and astute point: If Goldman is really the bad guy, why are these people still on the job? The Goldman suit is a put up job!
• William C. Dudley, president of the Federal Reserve Bank of New York; was a partner and managing director at Goldman
• Gary Gensler, chairman of the Commodity Futures Trading Commission; spent 18 years at Goldman
• Mark Patterson, chief of staff to Tim Geithner; former Goldman lobbyist
• Philip Murphy; nominated for ambassador to Germany; former Goldman executive
• Diana Farrell; deputy director of the National Economic Council; formerly with Goldman
• Emil Michael; White House fellow; former investment banker with Goldman (more)