Tag Archives: the fed

5 reasons to love the yellow shiny metal

11 May

My mom used to tell me never to talk to strangers. One stranger told us all that inflation was controlled and below expectations, that consumers don’t want to buy gold, that he is not printing money and that his definition of the dollar is what it can buy. I don’t trust strangers, especially those who do not tell the truth.

Without me enduring more cheap analogies at this late hour, I will save you the discomfort so 5 Reasons Gold Will Continue to Shine courtesy of the TheStreet.com. The only caveat is that gold as an investment vehicle needs to be purchased on an incremental basis over time; it is not a momentum trade or for the very short term speculator. The key themes are below:

1. The declining dollar and outlook for rising U.S. inflation

2. Strong emerging market demand

3. Central banks from sellers to buyers

4. Not just a defensive asset

5. Supply has been constrained

Government spending out of control, Hank Greenberg

9 May

Key takeaways:

Dodd-Frank regulation 

“Dodd-Frank was a new law. It was passed before we even had knowledge of what really happened. The investigations were going on and they passed Dodd-Frank.  Now you got to fund Dodd-Frank. Whenever you do something in a hurry, in the middle of a crisis, you do it wrong.”

Government debt out of control

Interest rates are virtually zero… We have too much debt, you know the issues. We have too much debt, we don’t have a budget agreement in our Congress. Our founding fathers never intended to have a Federal government as large as we currently have. We never had the growth that we did have in past when we had huge Federal government and Federal budget.  We’ve gone from a modest debt in our Federal system to a huge debt in our Federal system. Virtually 25% of our GDP now is spent by the government. That’s wrong.”

Vodpod videos no longer available.

%d bloggers like this: