By: Elizabeth Kraus

Right now central bankers around the world claim we will not experience another inflationary crisis, but we’ve been here before, and there’s no reason to suspect it can’t happen again. Today our central bankers are as confident in their ability to control inflation (Mr. Bernanke claims 100% confidence) as they were in the soundness of the financial system in 2006. Yet history suggests they shouldn’t be, for inflation goes back almost as far as we do. While we’ve got a pretty straightforward “risk off” day in the works, at least we thought, another catastrophe hit North-east Burma rocked by two 7.0 magnitude earthquakes, close to the borders with Laos and Thailand, the US Geological Survey reports. If that’s not all, after this month’s disaster in Japan and Middle East tensions, there are the most recently signs that Portugal’s government will fall, potentially forcing the country into a European bailout, which has created some uncertainty in markets. Portugal’s debt crisis worsened after Prime Minister Jose Socrates quit– Read More→

By: Elizabeth Kraus

While the situation looks a grimmer than grim as a suspected breach in the core of reactor 3 at the stricken Fukushima nuclear plant could mean more serious radioactive contamination, Japanese officials revealed Friday, that the prime minister called the country’s ongoing fight to stabilize the plant “very grave and serious.” A somber Prime Minister Naoto Kan sounded a pessimistic note at a briefing hours after nuclear safety officials announced what could be a major setback in the urgent mission to stop the plant from leaking radiation, two weeks after a devastating earthquake and tsunami disabled it. The nuclear crisis has compounded the challenges faced by a nation already saddled with a humanitarian disaster. Much of the frigid northeast remains a scene of despair and devastation, with Japan struggling to feed and house hundreds of thousands of homeless survivors, clear away debris and bury the dead. Read More→

By: Elizabeth Kraus

Henry Ford once said, “It is well that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”

While the U.S. and European governments have imposed sanctions and frozen Libyan assets worth billions of dollars, including the central bank, sovereign wealth fund and state oil company, as it turns out, the “long war” threat from Gaddafi may not be such empty words as some might think. The Financial Times on March 21 cited data from the International Monetary Fund (IMF) that the Libya holds 143.8 tonnes of gold, but some say the actual amount could be several tonnes higher. If Gaddafi somehow finds his way to cash in on this pot of gold and make good on his “long war” threat, buying guns, war planes and mercenaries to fight for him, it would only further gold’s upward cause. On some such news, Goldman Sachs had put in a fresh gold price target of $1,480 within three months. Read More→

By: Elizabeth Kraus

With the United Nations military action during the week, while not a big surprise to the market place, add to the overall instability in the Middle East, it was bullish for the gold market. Reports say the military action has severely crippled Gadhaffi’s military. However, the market place is now asking, “What comes next?” That’s the uncertain part of the equation that has boosted the crude oil market and keeps gold a safe-haven demand asset. Between Australian floods, cyclones, bush fires, New Zealand earthquake, North African and Middle Eastern states erupting into civil disorder leading, in some cases, to government overthrows and now the Japanese mega-earthquake, tsunami and possible nuclear disaster and the attack on Libya, the whole global chaos is a bit like the term sometimes used as the Black Swan itself. (Not the Natalie Portman film.) In any case, hardly anyone used the expression (which describes a completely unforeseen circumstance or event) up until a few years ago, now everyone’s talking about them! Obviously a currently over-utilized expression so I’ll try not to mention Black Swans again. Read More→

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By: Elizabeth Kraus

With the UN finally voting for a no-fly zone over Libya, it looks like the U.S. is now committed to getting involved in the conflict in Libya. While storing millions of gold bullion in his banks and calling the world against him as Nazis, Qaddafi refuses to budge defying demands to withdraw his military from Libya. Blatantly issuing warning to President Obama and other leaders to back off from military action against him, in the tone of his letters — one addressed to Obama, a second to French Minister, Sarkozy, another to Prime Minister David Cameron of Britain and finally to Secretary General Ban Ki-moon of the United Nations—had suggested that Colonel Qaddafi was leaving himself little room to back down. “Libya is not yours. Libya is for all Libyans,” he wrote in one letter, and had it read to the news media by a spokesman. “This is injustice, it is clear aggression, and it is uncalculated risk for its consequences on the Mediterranean and Europe. You will regret it if you take a step toward intervening in our internal affairs.” Read More→

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By: Elizabeth Kraus

As the financial crisis continues throughout the world… the gulf oil spill… bloodshed in the Middle East… and now with the disastrous earthquake in Japan…there’s a new wave of panic hitting the super markets of Japan according to the Associated Press—Salt has become the number two necessity to Gold. “Its survival”, says one Japanese—So, it’s the first time in the history of the world, not currency, stocks or other asset crisis are outshining Gold in many Japanese communities: “Salt sold out early this morning everywhere,” according to AP, because the iodine in salt is an antidote to radiation (probably sparked by the use of potassium iodine tablets in Japan to mitigate radiation poisoning.) Read More→

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By: Elizabeth Kraus

Here’s what you need to know right now about Gold & Silver being in the position of cause and effect:

Markets are reeling on the news that Japan is edging closer to a full-scale nuclear disaster. Its nuclear reactors at the Fukushima Daiichi plant that lead to four explosions, had given rise to fear over how much nuclear radiation have escaped. On Wednesday’s Today show, Lester Holt said that screeners found traces of radiation on him. Due to fear of such radioactive leak, gold prices in the international market have temporarily slipped. In the Mideast, while Kadafi is continuing his rampage in Libya, Saudi troops have rescued the Bahrain’s royal family from protesters as demonstrators pressure the nation’s Sunni rulers to offer reforms. But, because Bahrain is being home of the Fifth Fleet of the United States Navy, the US is closely watching the outcome under the adverse composition of nature which has temporarily slammed the global market. Read More→

By: Elizabeth Kraus

“Our deepest sympathy for the people of Japan” – Regal Assets, LLC

While Obama wows to squeeze Kadafi out, the world could only watch spellbound, yet unable to help as Japan tragedy unfolded with the most punishing earthquake on record to plunge the nation into an apocalyptic scene. Thirty foot 30 tsunami waves hit Northern Japan, and crashed into California and the Pacific Northwest with six to eight-floor surges. My first thoughts as I watched the disaster unfold in Natori, was of Hiroshima and Nagasaki at the end of WWII as the powerful 8.9 magnitude temblor forced the shutdown of number of Japan’s oil refining facilities as well as some of its nuclear power plants. The situation continues to evolve, and the full scope of the disaster will not be understood for a long time. One critical aspect is the effect on Japan’s nuclear industry, which provides over 30% of the country’s electricity from 54 reactors. Read More→

By: Elizabeth Kraus

Oil prices chopped around and so did precious metals as worries, that Middle East and North African unrest will choke oil supply and drive prices higher. While Libya is testing China’s foreign policy, and China is evacuating 36,000 of its workers from war-torn Libya, highlighting Beijing’s vulnerabilities in its global quest for oil, in Europe, the wheels continue to come off with no end in sight. Fear and more drama continue with the possibility of change and collapse of currency, the financial system and the bond markets. Read More→