HUMOR

McAlvany Weekly Commentary, Oct. 14, 2009

Is it the End of Quantitative Easing or is it QE2?

October 14th, 2009

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Gold Heading to $3000 Unless America Hits the "Reset" Button, Tice Says

Among the cavalcade of gold bulls to recently grace Tech Ticker's stage, David Tice is something of a centrist.

Gold will hit at least $3000 per ounce before the current rally ends says Tice, Federated's chief portfolio strategist for bear markets. The forecast falls roughly in between Peter Schiff's $5000 per ounce call and Jimmy Rogers' forecast of $2000.

With gold hitting yet another new high of $1064 Tuesday and bullish sentiment for the metal soaring, Tice is wary about the potential for a short-term reversal in the dollar down-gold up trend.

"We certainly could have a pullback," he says. "However, we believe this rally in gold is going to on for a long time." (more)

DOW 10,000!!!! Oh Wait, Make That 7,537

Another great representation of the amazing loss of purchasing power by the US public are today's oblivious statements about the Dow at 10,000. While in absolute terms the Dow may cross whatever the Fed thinks is a necessary and sufficient mark before QE begins to taper off (Dow crosses 10k just as Treasury purchases expire), the truth is that over the past 10 years (the first time the DJIA was at 10,000) the dollar has lost 25% of its value. Therefore, we present the Dow over the last decade indexed for the DXY, which has dropped from 100 to about 75. On a real basis (not nominal) the Dow at 10,000 ten years ago is equivalent to 7,537 today! In other words, not only have we had a lost decade for all those who focus on the absolute flatness of the DJIA, but it is also a decade where the US Consumer has lost 25% of purchasing power from the perspective of stocks! You won't hear this fact on the MSM. (more)

'Silver has more possibilities to appreciate than gold'

The Gold Report: We've seen quite a rebound in the markets since we spoke in May, and governments across the world have begun releasing some positive economic news. Are we out of the recession as Bernanke has told us?

Byron King: I don't agree with that all. It's like at the funeral home where they put really good makeup on the corpse and people walk in and say, "Oh, he looks so good." Then you think to yourself, "Wait a minute. If he looks so good, why is he dead?" That's where we are now, I think, with our economy. We're still in the recession, it has been well-masked. (more)

Gerald Celente explains ‘Obamageddon’ forecast amid call for The Great American Renaissance

Gerald Celente, founder of The Trends Research Institute and publisher of the quarterly Trends Journal, is a staple of news and Internet media. Dubbed “The Martial Artist of Trend Forecasting,” Celente is world-renowned for his authoritative forecasts on events in financial markets and socio-political movements. Over the past 30 years, Gerald has been interviewed and extensively quoted around the world; in the US, he has been featured in every major newspaper, and has been a guest on CBS Morning News, Glenn Beck, Good Morning America, NBC Nightly News, and The Oprah Winfrey Show, among other TV shows.

Equally prominent in the blogosphere, Gerald can also be followed on social media networks like Facebook, Twitter and YouTube. I’m of course a fan of Gerald on Facebook – Nouriel Roubini and Peter Schiff, too – but let’s not get off topic. On the Internet, Celente has generated a high level of public interest; his forecasts are commonly discussed at prominent forums, as well as on websites that support conspiracy theories. (more)

A Media Failure Compounds The Financial Failure

We know that Wall Street has not learned much from the crash it helped instigate. We know that our government, whatever its stated desire to clean up the markets and reform the financial behemoths, lacks the willingness and perhaps the clout to rein in the real power centers. We are not sure if they have been “captured” by them, or just lack the guts to take on institutions and individuals that helped fund their rise to power.

But do we know that, even now, much of our media, despite the sheer volume of coverage may be missing the real story? Do we know that if we want to find missing facts and the real context we have to turn away from the failed media system that never really investigated the failed financial system (more)