Thursday, April 28, 2011

Quote Of The Month - From James Turk

The dollar is in trouble and the Federal Reserve has its head buried in the sand. Washington's politicians are spending money they don't have and the federal government's credit rating is being called into question, I could go on, but you get the point. We're at an historic moment. Years from now we will look back and point to 2011 as the moment in time when the flight out of the US dollar accelerated leading to its eventual collapse. A simple and safe way KWN readers can prepare for this catastrophe is to own physical gold and physical silver.   LINK

10 comments:

  1. ECU seems to be following in the path of Silver Dragon is it really your policy to recommend stocks you are selling? If so it's worked.

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  2. Hey Dave,

    Any recommended sites to find information on mining stocks?

    Thanks.

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  3. re: ECU - LOL. Actually increased the position in the fund by 20% two days ago. Quite frankly, I'm probably the most honest and ethical person you'll find in this business. That's why I don't work on Wall Street anymore. I don't appreciate those accusations and it makes you look quite juvenile.

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  4. re: sites to find information on mining stocks: i do my own research and i try to stay away from sites like that. i usually get shown ideas and then I research them myself. working on two right now. you should search this site and take the names and research them yourself. Here's a link: http://www.mineweb.com/mineweb/view/mineweb/en/page72068?oid=117802&sn=Detail&pid=102055

    That site has articles all the time with stock ideas. I completely ignore newsletters because those are typically pump n pump. Don't trust the NIA at all and I know that it pumps and dumps. It's really just a function of immersing yourself completely in the sector and maybe once or twice a year you find a new idea that might pay off.

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  5. Greg said... Hi Dave, Thanks for your willingness to continue to give your insight on all things financially related. Always enjoy your blog...

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  6. Turks's comments miss the mark a bit. The death of the Dollar is inevitable, if not deliberate. There is no Paul Volker in the Fed establishment or in the Federal government to raise rates as required. And even if there were it simply is not possible, as raising rates by even a few percent will bankrupt the U.S. Treasury in a matter of months. The Dollar must die.

    The death of the Euro will keep Dollar on life support for a while, but it will die nonetheless. A new currency regime, at least partially backed by PMs will be installed. PMs under the ground will be nationalized and hefty capital gains taxes will be levied on the exchange of PMs held privately.

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  7. Anonymous, the Fed could and should rates if defending the dollar were the goal. The problem is, in a globalized world, how do you compete with a strong currency and a middle class lifestyle that is substantially higher than most of the goods-producing world? Either that world's lifestyle has to increase substantially or the lifestyle here has to decrease substantially. Water always finds its own level and it's easier to kick the can down the road until the market forces the issue. The dollar would probably have to be closer to 30 (just using that as an example) in order for the various imbalances to balance out. Imagine what life would be like if that actually happens...unfortunately there will be a world war or peasant revolution here before that happens...

    Thanks Greg! Appreciate it.

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  8. The coin shop I go to is normally empty with only one or two cars in the parking lot. Yesterday, the parking lot was packed. People were lined up back to the door, SELLING their jewelry, silverware, 90% coins, etc. When the attendant told one lady what all her jewelry was worth, she started acting like she had just won the lottery. When asked if she wanted to sell all of it, she hesitated and asked if that would be stupid. After a few seconds, she made her decision and sold it all.

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  9. I don't comment here often, but I appreciate Dave's hard work. Running a blog is very time consuming. Anon said "When the attendant told one lady what all her jewelry was worth, she started acting like she had just won the lottery. After a few seconds, she made her decision and sold it all." This is why America is doomed. Ignorance is the norm. Dealers usually pay 10-20% below spot so she is just giving her money away and will go to Walmart and buy Chinese junk with the windfall.

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  10. http://www.youtube.com/watch?v=GTQnarzmTOc

    A great rap video about economics-- I was impressed!

    Justin from Canada

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