Speculation In This Sector Will End “Very Badly,” Canada’s Warren Buffett Says

Whether it’s subprime auto lending, Janet Yellen’s ‘stretched’ biotech sector, or corporate credit, bubbles abound in today’s fragile market and like Mark Cuban, Prem Watsa thinks the valuations investors are placing on private tech companies are simply ludicrous. But the insanity isn’t confined to private companies, Canada’s Warren Buffett says. ‘Speculation’ is rampant in publicly traded shares as well.
From Fairfax Financial’s shareholder letter:

This post was published at Zero Hedge on 03/13/2015.

Will Warren Buffett Really Let This Deep Value Slip By?

Right now, even the staunchest gold investors are weary of the years-long drubbing the gold price has taken since its $1,921 peak in August 2011. Whether the frustrating experience is the work of a market-rigging conspiracy, government manipulation of data to hide inflation, those blindingly loyal Keynesians who keep pounding us with messages that gold is nothing but a ‘shiny bitcoin,’ or the gullibility of mainstream investors who tell themselves that, gee, since Warren Buffett is a billionaire, his ‘gold has no utility’ mantra must be right, it hasn’t been fun. The nasty downcycle has offered no respite.
That’s all about to change.
If there’s one constant in the resource sector, it’s the boom-bust-repeat cycle that over the past 40 years has been almost predictable. This is particularly the case with goldstocks.
We charted every major cycle for gold stocks (producers) from 1975 – when gold again became legal to own in the US – to the present. You can easily see that not only do gold stocks cycle up and down repeatedly, but the percentage gains for buyers at a cycle bottom can be downright mouthwatering.
What’s interesting about where we sit today in early 2015 is that gold stocks have now logged the second-deepest bear market since 1975 – rougher even than the selloff following the 1980 mania.

This post was published at GoldSeek on 13 March 2015.

Infographic: Someone please show this to Warren Buffett (Gold vs. the Financial System)

Warren Buffett once famously chided that all the gold in the world would form a cube of 67 feet (20 meters) on each side.
In doing so, he was attempting to argue that there was no point in owning gold since all the gold in the world would be an unproductive, useless hunk of metal.
What’s ironic (and completely lost on the venerable Mr. Buffett) is that you could make the same argument about the paper-based financial system.
It’s estimated that the derivatives market now exceeds $1 QUADRILLION (15 zeros) in notional value. If you were to somehow accumulate and stack up $1 quadrillion, the pile would be thousands of feet high and hundreds of yards long… much bigger than the cube of gold.
It’s a similar story with government debt, which exceeds $56 trillion worldwide.
Now, it may be a cute thought experiment to blast gold as a useless hunk of metal. But the reality is that gold will never require a taxpayer-funded bailout. It won’t crash the financial system. And it won’t enslave future generations to higher taxes and inflation.

This post was published at Sovereign Man on February 26, 2015.

Ted Butler Quote of the Day 02-21-15

Fifteen years ago, talk of a silver shortage and wildly escalating prices were mocked (except by those who looked beneath the surface). By 2011, prices had risen tenfold and silver was closer to a worldwide physical shortage than ever in history. Currently we’re back to the mocking stage, but that is as unlikely to remain permanent as it was before that. The 2011 peak in price and unprecedented physical tightness came as a result of a 65 year consumption deficit and the ongoing COMEX manipulation. Yes, it is true that same manipulation caused prices to then crash and the resultant cooling of investment demand relaxed the physical tightness; but the question is—what now? Can the 10 billion ounce depletion of world silver bullion inventories (1940 thru 2006) be restored any time soon or ever, particularly at the current depressed prices? (No knock on gold, but the yellow metal has never experienced even one year of lower world inventories, to say nothing of silver’s 65 consecutive years of inventory depletion). Can the increasingly blatant COMEX silver manipulation become permanent or self-perpetuating in light of these circumstances?

I know these things are hard to consider objectively in the face of continued deliberate price declines, but, nonetheless, remain at the core of the decision to invest in silver, namely, there is so little of the stuff remaining. As far as the question of why large investors haven’t rushed into silver, I am convinced some will. Certainly, large investors have done so in the past, in the form of the Hunt Brothers and Warren Buffett. The case of Mr. Buffett is particularly instructive and, I believe, should serve as the model for the future.

A small excerpt from Ted Butler’s subscription letter on 02-18-15.

  More precious metals news & information available at
Ed Steer’s Gold & Silver Daily.

Are You a Better Investor Than a Dart-Throwing Chimpanzee?

Lots of Noise US stocks were flat on Tuesday. Gold fell $18 – almost back to the $1,200-an-ounce level.
Noise, noise and more noise.
When we were in So Paulo we were asked to give a brief speech to Brazilian investors. They wanted to know what we considered to be the most important things an investor should know.
What follows is more or less what we said. (Long-suffering Diary readers are invited to skip this, since they will find few new ingredients. On the other hand, you may find the new distillation more agreeable.
Dart-Throwing Chimpanzees Bom dia…
What are the most important lessons for an investor? Well, let’s begin at the beginning. If you’re listening to this speech, it suggests you want to improve… that you want to be a better investor. So let’s start there. Is it possible to be a better investor?
Believe it or not, there was a time when most serious thinkers believed it was not possible. I thought so myself. Professors of finance and economics won Nobel Prizes based on research ‘proving’ that you could earn higher than average returns without taking on higher than average risk. Warren Buffett famously demolished this point of view – known as the Efficient Market Hypothesis (EMH) – in a debate in 1984.
In effect, he said to his opponent, Harvard’s Michael Jensen, ‘If you were right I couldn’t be so rich. And if I had believed what you believe I wouldn’t be rich.’ The idea behind EMH is that a dart-throwing chimpanzee is just as likely to beat the market as you are. In fact, the average investor would be delighted to even keep up with the chimps.

This post was published at Acting-Man on February 19, 2015.

Buffett Ends $3.7 Billion Exxon Investment Amid Oil Plunge

Warren Buffett’s Berkshire Hathaway Inc. exited a $3.7 billion investment in Exxon Mobil Corp. amid a slump in oil prices.
Crude has fallen by about half since June as U.S. production surged and the Organization of Petroleum Exporting Countries resisted output cuts. The decline has ravaged oil company profits and forced major producers and drillers to slash spending and fire thousands of workers.
Berkshire has “not really had the hot hand in energy,” Fadel Gheit, an analyst for Oppenheimer & Co. in New York, said in a phone interview. “The whole energy sector obviously is now traded in completely different circumstances.”
Buffett built Berkshire into the fourth-biggest company in the world through acquisitions and by picking stocks like Coca-Cola Co. and the former Washington Post Co. that multiplied in value in the years after he bought them. Still, he’s had a mixed record when it comes to investing in energy companies.

This post was published at bloomberg

If “Everything Is Awesome”, Why The Alarms Over A Slight Rate Hike?

Imagine you have a serious illness and have been taking medication that was supposed to cure you long ago. After being on the maximum dosage for years you start to feel better, so you ask your doctor if you could roll back the dosage, ever so slightly, to alleviate some of the side effects. He says that would be fine – but then a pharmaceutical rep tells you that doing so would be dangerous. Whose advice would you follow?
This resembles the situation today as the Federal Reserve signals its intent to start raising interest rates, ever so slightly, after six years of near-zero rates. This extraordinarily loose monetary policy was introduced in late 2008 when the global economy was in free fall. U. S. gross domestic product was plunging, the unemployment rate was rising and would soon climb above 10%, and in March 2009 the Dow Jones Industrial Average would fall below 7000.
Although at the time few could argue with the need for such extraordinary Fed action, the U. S. economy today has been growing for several quarters. Unemployment is below 6%, and the Dow recently reached an all-time high above 18000. An outside observer might think that taking some modest steps back toward a normal monetary policy is a no-brainer. Not so. Within and outside the Fed there is a great debate as to when, and sometimes whether, the Fed should start raising rates, even by a trivial amount.
Charles Evans, president of the Chicago Fed and a voting member of the board that determines rate policy, said last month that raising rates too soon would be a ‘catastrophe.’ Former CEO of General Electric Jack Welch , during a Feb.4 interview on CNBC, called a possible spring rate hike ‘ludicrous.’Billionaire investor Warren Buffett tasold Fox Business Network on the same day that he didn’t think a rate increase this year would be ‘feible.’ Catastrophe. Ludicrous. Not feasible. Really?

This post was published at Zero Hedge on 02/18/2015.

If Warren Buffett is right about there being no US interest rate rise this summer why is the dollar so high and gold so low?

The Sage of Omaha has spoken. On Fox News yesterday Warren Buffett dismissed the possibility of an interest rate rise in the middle of this year. To paraphrase this multi-billionaire, the global economy is too weak to allow it to happen: money would flow from Europe to the US disrupting the delicate balance of a global economic slowdown.
The signs of the slowdown are only too obvious if you care to look around: the slumping price of oil, iron ore and copper; falling US and Chinese order books; monetary policy easing by 13 central banks; the uneasy sight of the UK as the world’s best performing economy in a deliberating engineered pre-election boom set to end shortly after May 7th; and disappointing Q4 US economic growth.
Global recession
All these indicators are harbingers of the next global economic recession which has probably already started. With these headwinds the US will do well to maintain its present lacklustre momentum in the worst economic recovery in its two-century history. How can the Fed possibly raise rates this summer or anytime this year?
So that probably means that the US dollar is also already past its peak valuation for the year. Twas ever thus. When everybody is on the bullish side of a trade it has nowhere else to go but down. If dollar interest rates are not going higher why would you want greenbacks or US treasuries?

This post was published at GoldSeek on 5 February 2015.

Here’s Why Investors Are Now Facing Another ‘Lost Decade’ In The Stock Market

In my last piece, I wrote that stock market valuations are currently at the same level they were when Warren Buffett, in November 1999, wrote his famous op-ed for Fortune magazine explaining that investors would inevitably be disappointed by returns over the coming decade. The stock market actually declined 30% over the following 10 years. ‘Disappointed’ was actually an understatement as investors were downright despondent (which set up a wonderful opportunity to be greedy).
In fact, when looking at median valuations in today’s market, stocks are even more overvalued than they were at the peak of the internet bubble, some 3 or 4 months after Buffett’s piece was published. Considering valuations are roughly equivalent, or even worse than back then, what are the odds that we see another ‘lost decade’?
This is actually fairly easy to answer. The valuation indicator we looked at in the last post, total stock market capitalization in relation to Gross National Product, has actually been 83% negatively correlated to future 10-year returns dating back to 1950 (high valuations mean low forward returns and vice versa). Based on this correlation, this measurement of valuations, Buffett’s favorite, currently forecasts an annual return over the coming decade of about -0.88%. Yes, that’s losing almost 1% per year over the next decade – the very definition of a lost decade, even if it’s not quite as bad as the 1999-2009 period.

This post was published at Wall Street Examiner by Jesse Felder, Courtesy of The Felder Report ‘ January 26, 2015.

Even Warren Buffett Must Be Getting Concerned At This Market

I’ve recently taken on the challenge to work through various indicators that I believe are part of the giant con that America is still enjoying growing economic prosperity. The basis for doing this is that I have a very difficult time accepting that while real median incomes and real wages are declining that the nations standard of living or economic prosperity is increasing. The coexistence of such realities simply does not foot. Pouring over various datasets it becomes obvious that the ‘bridge’ between rising GDP and a declining economy is debt. Literally every relevant dataset I run over the past 50 years tells exactly the same story. That while demand has struggled due to real flat or declining income, economic ‘growth’ has been merely a function of debt principal, both national and consumer.
And as I’ve discussed in depth lately, GDP is supposed to equate to and thus represent total national income, however, it is being overstated because we are adding total additional debt into our change in GDP each period. The problem with that is for each additional dollar we have taken on since the mid 1970’s we’ve generated less than a dollar of output (i.e. income). And so we are losing money on each dollar requiring ever more debt to cover the losses and lack of natural growth. Further, calculating debt as income seems completely contradictory to what we do at the individual level. Certainly none of us add in the additional debt we take on each year and count that toward our income level. The reason we don’t is because we understand that at some point that has to be paid back with interest. And so we don’t identify additional debt as additional prosperity. It just doesn’t make sense.
In order to get to a GDP figure that more closely represents the nations true economic prosperity I adjust GDP and change in GDP for changes in debt at both the consumer level and at the Federal level. What we find is that we have not had true growth in economic prosperity since the early 1970’s with the exception of a four year period between 1996 and 2000. And we have seen a collapse in economic prosperity over the past 6 years. I find myself debating with people all the time who continue to tout the all time high market valuations are based on an improving economy and it really winds me up. I throw out facts and figures and get just a lot of conjecture in return, like my recent debate with the CIO of BMO.

This post was published at Zero Hedge on 01/12/2015.

Mounting Debt for Oil Drillers

In recent years oil exploration companies have taken on more debt in order to finance their operations. The level of debt in the upstream sector – excluding integrated oil companies like ExxonMobil – hit $199 billion at the end of 2014, a 55 percent increase since 2010, according to the Wall Street Journal.
Loading up on debt made sense when oil prices were high. Fracking new shale wells can be an expensive process, but when oil was averaging over $100 per barrel, the debt load for many firms didn’t seem so burdensome. Now with oil prices falling by more than half in the past six months, the most indebted firms are suddenly in crisis. As Warren Buffet once said, ‘you only find out who is swimming naked when the tide goes out.’
With an ebbing oil tide, the huge financial problems with several oil firms are starting to become clear for all to see. The WSJ report finds that Quicksilver Resources has a net debt to EBITDA ratio of 12.6. This ratio measures debt to cash flows, with a resulting number that reflects the hypothetical number of years needed to pay back debt. Generally, anything above a 4 or 5 starts to raise red flags.

This post was published at FinancialSense on 01/08/2015.

Scenes From a (Suddenly) Nude Beach

Warren Buffett’s classic observation that ‘You only see who’s swimming naked when the tide goes out’ is being tossed around more frequently these days, as the world gets yet another deflation scare. Zero Hedge just published a great piece on this topic, which should be read in its entirety. In the meantime here’s a summary of the story with a few added bits.
Let’s begin with the common sense premise that overly-easy money sends a false-positive signal to market participants, leading them to buy and build things that maybe shouldn’t be bought or built. Then, when money goes back to a more reasonable price, the bad decisions (malinvestment in economist-speak) are revealed and financial turmoil ensues.
Today’s situation has its roots in the 1980s, when the developed world got too lazy to live within its means and started borrowing way too much money. It then tried to inflate away its debts by creating a tidal wave of new currency and pushing interest rates down to unnaturally low levels. Flush with extra cash and cheap credit, consumers (especially in the US) bought huge amounts of imported junk. This in turn led China – the main producer of said junk – to go on an infrastructure/factory building spree of epic proportions, which shifted into hyper-drive after the 2008 crash. Chinese demand for industrial materials like copper, iron ore, and oil soared, pushing their prices far above historical averages.
This in turn led miners and drillers to mine and drill on an unprecedented scale, which caused the supply of industrial materials to surge. The flashiest case in point is the US shale oil boom, which sent domestic oil production back to levels not seen since Texas’ blockbuster oil fields were young.

This post was published at DollarCollapse on December 31, 2014.

The Gold Owner’s Guide to 2015

Looking back – Two surprise transformations at the end of 2014
A year of many surprises, 2014 ended with a couple surprise personal transformations largely passed over by the mainstream media.
– Berkshire Hathaway chairman Warren Buffett startled recipients of his annual shareholder letter by revealing an instruction to the trustee for his wife’s estate that 10% of her inheritance should be invested in government bonds and the other 90% in a low-cost S&P 500 index fund.
– Similarly former Fed chairman shocked the financial world by announcing that his years at the Federal Reserve cemented his long-held view of gold as an important asset allocation for the times given governments’ (note the plural) predilection to print money.
Buffett points to saving fees and the inability of fund managers to beat the indices as the chief reasons for his decision, but one wonders if there might be more to it than that. Since the 2008 meltdown and the subsequent bailouts things have changed considerably on Wall Street and at the Federal Reserve. Interest Rate Observer’s James Grant attempted to define the complicated change in the stock market’s monetary underpinnings in a speech this past November before the Cato Institute. “My generation,” he said, “gave former tenured economics professors discretionary authority to fabricate money and to fix interest rates. We put the cart of asset prices before the horse of enterprise. We entertained the fantasy that high asset prices made for prosperity, rather than the other way around. We actually worked to foster inflation, which we called ‘price stability’ (this was on the eve of the hyperinflation of 2017). We seem to have miscalculated.”
Stocks in this scenario become fungible, an asset class driven as much by monetary policy as it is a solid track record or growing market share. In the end, Buffett is not just saving fees by putting his wife’s inheritance in index funds, he is also betting, like it or not, on the Federal Reserve’s ability to keep stocks as an asset class headed in a northerly direction. Not everyone harbors the same high degree of confidence in the Fed’s grand monetary experiment that Buffett does.
Alan Greenspan, for one, sees it as fraught with danger as does another former Fed chairman, Paul Volcker. Late last year, Greenspan likened the Fed’s over-blown balance sheet to “a tinder box that has not been lit,” characterized the job of Fed chairman as one subject to the heavy dictate of the federal government, and recommended gold ownership as a hedge for private investors. “Gold,” he said, “is a good place to put money these days given its value as a currency outside of the policies conducted by governments.” Stocks, on the other hand, have taken a position at the opposite end of the investment spectrum – an asset class that has become overly reliant on the policies conducted by governrment.

This post was published at GoldSeek on 31 December 2014.

The $330 Billion Global Tax Break

In an October 2008 op-ed in the New York Times, Warren Buffett famously advised: ‘Be fearful when others are greedy, and be greedy when others are fearful.’
Whereas most investors during that time of financial panic were dumping their freefalling U. S. equities, Buffett was snatching them up at such great volume that he imagined his personal, non-Berkshire Hathaway portfolio would soon be composed only of domestic stocks.
‘I haven’t the faintest idea as to whether stocks will be higher or lower a month – or a year – from now,’ he continued. ‘What is likely, however, is that the market will move higher, perhaps substantially so, well before either sentiment or the economy turns up.’
The same is true for oil prices. I can’t say when oil will begin to recover or by how much. What I can say is this: For far too many investors, by the time they gain back the confidence to put money into oil stocks again, the rally might have already taken off, making it challenging to capture the full benefit of the upswing.
Think of it this way. Every Black Friday, merchandise is discounted to such an extent that thousands of bargain shoppers are willing to camp overnight in parking lots to be the first inside. When the doors open, people literally get pushed, shoved, elbowed and trampled on.
But too often, the stock market works in a curiously opposite way. When certain stocks drop in price, investors scramble for the exit instead of picking up the bargains.
Oil Extremely Oversold
Oil tycoon T. Boone Pickens recently told Mad Money’s Jim Cramer that oil would return to $100 within 12 to 18 months. Again, there’s no guarantee that this will happen – and keep in mind that it’s in Pickens’ self-interest that oil reach these figures again – but if it does, the most opportune time to participate in the oil trade could be now when stocks are at a discount.
Pickens’ prediction aside, there are sound reasons to believe that oil prices will be normalizing sooner rather than later.
For one, oil prices are currently below many countries’ breakeven prices. This could finally encourage the Organization of the Petroleum Exporting Countries (OPEC) to cut production, so long as Saudi Arabia gets assurances from fellow members that they would comply with the cuts. Where they are right now, prices simply aren’t sustainable. According to Business Insider, oil rigs in the Permian Basin have fallen by nine; those in Williston by seven; and those in Marcellus by one.

This post was published at GoldSeek on 22 December 2014.

Massive Volume “Panic Selling” Cuts Warren Buffett’s Chinese Car Maker BYD In Half Overnight

For the second time in 2 days, a Chinese car maker’s stock has been utterly devastated overnight – on absolutely no news. Shares in BYD – the Chinese electric car maker part-owned by Warren Buffett – crashed 47% in a bout of total panic selling (before recovering modestly), just a day after Geely – another car maker – crashed 22% on an earnings warning. The reason – perhaps unsurprising – given by some is worries over Mainland China IPOs “caused a liquidity squeeze,” as the recent rally in mainland shares is led by leverage financing leading to major margin-calls on modest drops. Is it any wonder the PBOC is trying to tamp down the speculation.
As The FT reports,
Shares in BYD, the Chinese electric car company part-owned by Warren Buffett, fell as much as 47 per cent during a bout of panic selling.
BYD’s Hong Kong-traded shares rebounded partially in late trading to close down 29 per cent, at HK$25.05, on Thursday. Trading volumes were very heavy, at 40 times the previous day’s 15-day moving average, according to Bloomberg data.
In a statement issued after the market closed, the company’s board said it was not aware of any reason for the sharp sell-off.

This post was published at Zero Hedge on 12/18/2014.

This Is Probably The Second Worst Time In History to Own Stocks

This is a syndicated repost courtesy of The Felder Report.
This stock market is now the second most overbought, the second most overvalued and most most over-leveraged market in history.
Overbought: My friend, Dana Lyons, recently posted the chart below which shows the S&P 500 in relation to its exponential regression trend line. The only other time in history stocks were this ‘overbought’ (traded more than 90% above the long-term trend) was back at the height of the internet bubble.
Overvalued: A glance at the chart below, of Warren Buffett’s favorite valuation metric (total market capitalization-to-GDP), clearly shows that there was also only one other time in history when stocks were priced so dearly as they are today: 1999.

This post was published at Wall Street Examiner on November 25, 2014.

Why Tony Robbins Is Asking The Wrong Questions

First off let me make this statement plain and simple before one reads any further. This is not a hit piece, nor an effort to take swipes at Tony Robbins or worse, some feeble attempt at click-baiting.
I have been a true fan since he first hit the motivational stage decades ago. However, just as I am what many would call an Apple ‘fan-boy’ (which I am) it doesn’t stop me from pointing out issues where I see a compelling reason to do so.
As I’ve stated before, I mean it in a manner the same way one would criticize a family member when they are either doing something that doesn’t make sense, or something other. Nothing more, nothing less.
I don’t know Mr. Robbins personally, but for this discussion please excuse the liberty I take with using ‘Tony.’ It just makes the writing easier.
Like many I was intrigued to see Tony has a new book. His first in over 20 years. When I read the title, ‘MONEY Master the Game: 7 Simple Steps to Financial Freedom,’ (2014 Simon & Shuster) I was both intrigued as well as apprehensive. Why?
It’s basically this: I’m also in the same field (e.g. entrepreneur, motivational speaker, coach, et al) as Tony. And my writings and thoughts on money or markets sometimes appear in some of the same arenas. e.g., Business Insider, MarketWatch, et al. Which is precisely where I read his thoughts as well as a few questions he was asking some of today’s Wall Street titans. e.g., Warren Buffet, Paul Tudor Jones, Carl Icahn and others.

This post was published at Zero Hedge on 11/22/2014.

Warren Buffett Is Dumping Stocks out the Backdoor

Maybe Warren Buffet’s impeccable sense of timing kicked in. Or maybe he got shook up a little when IBM reported another revenue and earnings debacle in October, and in the subsequent swoon of its shares, he lost $1.3 billion. Followed a day later by a $1 billion hit on his position in Coca-Cola when it reported earnings. And all year, he has been getting hammered on his investment in British grocery chain Tesco which has lost nearly half its value, costing him around $750 million.
All this, even while stock markets have been bouncing around record highs.
‘I like buying it as it goes down, and the more it goes down, the more I like to buy,’ said the master manipulator during one of his hype interviews on his favorite and always helpful promo platform, CNBC, in early October. And true to form, filings revealed on Friday that he bought a few things here and there, such as increasing his stake in GM, and that he sold a few things too. But those were smallish amounts by his standards.
Meanwhile, he is dumping some of his big, highly profitable positions in publicly traded stocks – but not out the front door.
It was skillfully obscured by the ruckus over the tax aspects of these deals: that one of the richest guys in the world, or rather his company, Berkshire Hathaway, would be able to take advantage of a specially created tax loophole that regular folks don’t have access to, a loophole that would save the company billions in taxes.
Last week, it was Berkshire’s complex acquisition of Procter & Gamble’s Duracell unit. Everyone dutifully fell in line, laid out by Buffett, and called it an ‘acquisition,’ though the other and more important half of the transaction was the sale of a huge position of P&G shares.

This post was published at Wolf Street on November 17, 2014.

Gold: The One Commodity Buffett and Bernanke Just Don’t Understand

The Royal Mint gets it.
Because I see such deep value in gold today, I was exploring various national mints last week, looking to buy some bullion – maybe some Austrian Philharmonics, some Canadian Maple Leafs or a few Britannia’s from the U. K.
And while reading through the bullion site for Britain’s Royal Mint, I came across some highly unexpected commentary.
While the likes of Ben Bernanke, Warren Buffett and others here in the States offer inane commentary on the uselessness of gold, the 1,100-year-old Royal Mint had this to say:
Gold is the ultimate store of value.
Gold is the original and still the most far-reaching global currency.
Gold is perhaps the ultimate form of insurance.
And, yes, the Royal Mint put those words in boldface.
That should tell you something – namely that gold bullion, at today’s lower prices, is an asset you should be adding to your portfolio.
What They’re Saying About Gold Warren Buffett once famously said that gold ‘has no utility. Anyone watching from Mars would be scratching their head’ over the Earthlings and their fascination with a metallic element. Meanwhile, former Fed-head Ben Bernanke once told Congress that gold is not money and it is just a precious metal – the price for which ‘no one really understands.’

This post was published at GoldSeek on 12 November 2014.

Youth Should Work For Free – Bank of Canada Recommends

What is seriously being overlooked here around the world politically is we are dealing with a revolution of the youth as a consequence of the collapse in Marxism. Pictured above is Bank of Canada Governor Stephen Poloz who has amazingly stated that the rising unemployment among the youth who are living in their parent’s basements, should just consider working for free. That’s right! Adult children stuck in their parents’ basements should take unpaid work to bolster resumes as they wait for the recovery to take hold, which does not appear to be until about 2020.
The Bank of Canada estimates about 200,000 young people want to work or work more in Canada, but this seems to be an under-estimation. Poloz actually said that they may be scarred by prolonged unemployment that prevents them from moving out on their own.
Here in lies the crisis and it is the product of Marxist-Socialism and raising the taxes on the hated ‘rich’ who create the jobs, yet the average person pictures Warren Buffet not the owner of the local store selling bread and milk. Small business creates 70% of the work force – not the big corporations that banks and politicians cater toward these days. They keep raising taxes on small business preventing people from trying to expand or start a business and the tax revenues go only in the pockets of politicians – they do not lower taxes for the middle class. Great slogans that the rich should give back, but the problem is it goes nowhere but to fund the pensions of government workers – nothing to lower the taxes on the lower classes.

This post was published at Armstrong Economics on November 6, 2014.