While another strong earthquake measuring a preliminary Richter Scale reading of Magnitude 6.3 struck Tokyo, Japan, shaking buildings in the metropolitan on the night of April 21, 2011 (Thursday,) there is that raising the debt ceiling issue with the Feds, that is not going away. On CNN’s “State of the Union,” Rep. Anthony Weiner (D-N.Y.) seemed willing to explore attaching provisions to a debt ceiling hike. When asked by host Candy Crowley whether he would consider some spending cuts, he replied, “Of course. I think that we need to have conversations about how we reduce spending. We also need to have a conversation about how we get some equality into our tax code again.” Read More→

By: Elizabeth Kraus

While President Obama criticized Standard & Poors’ decision to lower the US credit rating outlook, arguing that the US is not in danger of a downgrade and that a deficit reduction deal in Congress is within reach. It was reported that the White House got a heads up last Friday that the US debt outlook would be lowered by S&P. As it turns out, back and forth pleading went on for weeks before the decision, according to Zachary Goldfarb at The Washington Post. The administration’s line: “Yes, we can come together to solve the debt problem”. S&P’s line: “No, you can’t.” Read More→

By: Elizabeth Kraus

We’ve got a whole ocean of storms brewing globally, not to mention how it’s flaring the shores of mighty Mother of exiles, while she watches with silent lips, as America proposes to diminish her significance as well. Just as the US government tries to pull out of its debt hole, to fix the government’s spiraling federal budget deficit, a fight on Capitol Hill has become—not about money, but political power.

When President Obama was Senator Obama in 2006 and had addressed Congress with the following: “The fact that we are here today to debate raising America’s debt limit is a sign of leadership failure. It is a sign that the US Government can’t pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Governments reckless fiscal policies. Increasing America’s debt weakens us domestically and internationally. Leadership means that the buck stops here. Instead, Washington is shifting the burden of bad choices today on to the backs of our children and grandchildren. America has a debt problem and a failure of leadership. American’s deserve better.” Well, America, may we suggest the leader of this country read his own words again! Read More→

By: Elizabeth Kraus

Against all odds, gold is back, with a striking distance of its all-time high at 1447.40, underpinned by fresh 38-year highs in silver, and driven primarily by ongoing tensions in the Middle East and North Africa, and the marked rise in energy prices that’s putting upward pressure on inflation expectations, which in turn is putting pressure on central banks to tighten policy, which is creating the value of all time high in the metals. It is there once again, avoiding our pockets from being completely picked, so that a portion of our wealth is saved in something other than the dollar. The traditional alternative has been to fiat currency based savings now is turning back to physical gold—breaking the barriers of all time highs. Read More→

By: Elizabeth Kraus

While silver continues its meteoric rise, investors often wonder what exactly drives the movement of such an important and financially sensitive commodity, and how bullion trade impacts the mid-term outlook for the U.S. dollar. As gold prices respond to inflation expectations, and central banks being the largest holders of gold, the biggest players in the market impacting gold, a correspondent on Bill Murphy’s LeMetropleCafe site snarled: “The Gold Cartel showed up, and punished both gold and silver in the past four days, and gold was bombed going into an option expiry on Monday … same tricks (tactics) time and time again.” (It is a fact that CME gold-option expiries seem to attract heavy selling pressure.) Read More→

By: Elizabeth Kraus

It is being reported by the International Monetary Fund that Gaddafi has amassed one of the largest gold positions in the world. Libya’s gold reserves are estimated to be worth over $6 billion, and the gold can be used to buy paid fighters. At a time when international sanctions have been increased, gold has been Gaddafi’s store of wealth; he appears to have been ready for this day because Libya’s holdings are much larger when compared to countries with similar demographics. Egypt (Market Vectors Egypt Index ETF (EGPT) tried to reopen their markets but had to shut them immediately as investors are liquidating Middle Eastern assets (SPDR S&P Emerging Middle East & Africa (GAF) for the safe haven of gold (ProShares Ultra Gold (UGL) and silver (ProShares Ultra Silver (AGQ). Egypt’s shares have tumbled to new lows, while silver is exploding and gold is just ready to make its next move into record-high territory. Middle East crisis fears should put pressure on fiat currencies as investors flee to the safe havens of gold and silver which are regarded as an alternative form of authentic value. Read More→

By: Elizabeth Kraus

If true prosperity is the result of acting on confused information, as the old adage goes, “a fool and his money are soon parted,” the behavioral research data tells us that the bankers, the politicians and Wall Street are more likely to represent the perfect opportunity to do just that. But the brutal reality is, that with all the turmoil within the Middle East, disasters in Japan, the massive infusion of newly-printed currencies, the devaluation of the US dollar, while were to swallow how great the US income data is, and that “Gold pares loss after U.S. spending income data,” it’s a great opportunity to purchase gold and silver as a safe haven and protection hedge before it hits new heights as early as this summer! Read More→

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→