News Commentary

Peter Schiff: What Doesn’t Kill Gold Makes It Stronger

"In July, the gold net-short positions reached record highs. When gold began to rebound last month, a massive number of shorts were left exposed and many still remain exposed. Gold shorts are stuck holding the losing bet on an asset that is going to do the opposite of what they anticipated. If the price rally continues, these traders will feel increasing pressure to unwind their shorts before their losses become catastrophic. This 'short squeeze,' as it is known in finance, will reverse the vicious cycle and could send gold dramatically higher than when the correction started." Continue reading →

Continue ReadingPeter Schiff: What Doesn’t Kill Gold Makes It Stronger

Bill Bonner: The Bottom Is Still Ahead for This Bear Market

"The last top in Treasury prices (and a bottom for yields) occurred in 1946. Yields rose for the next 34 years. Now the Treasury market appears to be topping out again… and is headed for a new high in yields… which may not arrive until 2047. It may be a long way off… or right around the corner. Either way, it will be hell getting there. The Detroit pension disaster is just the first of many. Wait until long-term interest rates hit 5%… or 10%. How many companies, cities and pension funds will still be solvent? We’ll see! But wait. You don’t think the Fed will sit on its hands and let the markets take over, do you? Taper off? Forget it." Continue reading →

Continue ReadingBill Bonner: The Bottom Is Still Ahead for This Bear Market

Fast-food worker protests help labor unions, not labor

"Terrance is not your typical minimum wage worker. Most minimum wage workers move on after a couple of years, because turnover in the fast-food industry is rapid. When I asked NPR how to get in touch with Terrance, I was given the name of his publicist. A minimum-wage worker with a publicist? That’s something. Worker centers such as NYCC should stop masquerading as friends of workers and admit they are paid by unions to do work that unions are not allowed to do. Higher minimum wages will price the young and unskilled out of jobs, and add to their difficulties in finding employment." Continue reading →

Continue ReadingFast-food worker protests help labor unions, not labor

Peter Schiff: The Half Full Economy

"The most recent GDP release from Washington has caused many to double down on their belief that the Federal Reserve will begin tapering Quantitative Easing sometime later this year. While I believe that is a fantasy given our economy's extreme dependence on QE, market observers should have learned long ago that the Bureau of Economic Analysis (BEA) initial GDP estimates can't be trusted. A perusal of their subsequent GDP revisions in the last five years reveals a clear trend: They are almost twice as likely to revise initial estimates down rather than up, and the downward adjustments have been much larger on average." Continue reading →

Continue ReadingPeter Schiff: The Half Full Economy

Why “Tapering” Will Not Go Smoothly — and What That Means for Bonds and Stocks

"If you buy the party line that Wall Street and the Federal Reserve is pushing, the process of 'tapering' back on Quantitative Easing (QE) will be relatively painless. All the Fed has to do is gradually, slowly, predictably, and gently ease back on its bond purchases and, they say, it will have minimal market impact. My take? Fuhgeddaboudit … it will be anything but smooth. And this week, I’ll use the Fed’s own comments — and a shocking Fed chart — to show you why." Continue reading →

Continue ReadingWhy “Tapering” Will Not Go Smoothly — and What That Means for Bonds and Stocks

The courage of Bradley Manning will inspire others to seize their moment of truth

"The critical moment in the political trial of the century was on 28 February when Bradley Manning stood and explained why he had risked his life to leak tens of thousands of official files. It was a statement of morality, conscience and truth: the very qualities that distinguish human beings. This was not deemed mainstream news in America; and were it not for Alexa O'Brien, an independent freelance journalist, Manning's voice would have been silenced. Working through the night, she transcribed and released his every word. It is a rare, revealing document." Continue reading →

Continue ReadingThe courage of Bradley Manning will inspire others to seize their moment of truth

Do We Really Want a Cold War II?

"In three years, the USSR gave up an empire, a third of its territory, and half its people. And it extended to us a hand of friendship. How did we respond? We pushed NATO right up to Russia's borders, bringing in Poland, Czechoslovakia, Hungary, Rumania, Bulgaria, even former Soviet republics Lithuania, Latvia and Estonia. To cut Moscow out of the Caspian Sea oil, we helped build a pipeline through two former Soviet republics. In the Boris Yeltsin decade, the 1990s, U.S. hustlers colluded with local oligarchs in looting Russia of her natural resources. When columnist Tony Blankley visited Russia, he was astounded at the hostility he encountered." Continue reading →

Continue ReadingDo We Really Want a Cold War II?

Massive jump in people who renounced US citizenship last quarter

"We come to view our nationalities rather ironically as a big piece of our core individuality. I am an American. I am a Canadian. I am an Austrian. Instead of– I am a human being. It has taken decades… centuries even… to reach this point. So the fact that more and more people are making the gut-wrenching decision to ditch their US passports is truly a powerful trend. So what’s driving it? Taxes… and the search for liberty. For many, their tax bills constitute a financial breaking point. Particularly for people who spend most of their time outside of the United States and are constantly hamstrung by worldwide taxation and information disclosures." Continue reading →

Continue ReadingMassive jump in people who renounced US citizenship last quarter

Short Circuiting The Market

"One of the hallmarks of the Soviet System was top-down central planning – with 'incentives' provided by the government. Natural market mechanisms were crippled. You got what the government decided you needed – at whatever price the government decided was appropriate. The result – back then – was the Trabant and Lada. Today, the result is electric lemons like the Tesla and Chevy Volt and Honda Fit EV. GM just announced it will drop the price of the 2014 Volt by $5,000 – to $34,995. This is before GM’s partner – the government – cuts the price down by another $7,500 via a taxpayer-funded individual subsidy." Continue reading →

Continue ReadingShort Circuiting The Market