Archive for June, 2013
Jewellers hesitant to invest in gold despite Rs7,000/tola drop
According to statistics import of gold rose by 95 per cent in terms of quantity and value and during July-May 2012-2013 gold import stood at 5,752 kg worth $306 million as compared to 2,949 kg amounting to $157 million in the corresponding period last …
Not wise to invest in gold at current level
No it is not wise to invest in gold for investment purpose at this level. You must adopt wait and watch policy. Following the hint of exit from quantitative easing by the US Federal Reserve and expectations of a better US economy, gold prices will …
Gold's Worst Quarter Ever Is Finally Over: Where Do Gold Prices Go From Here?International Business Times
These 4 Miners Can Still Thrive With Gold At $1200Motley Fool
Why Is Price Of Gold Dropping?RadioFreeEurope/RadioLiberty
Investment U –WXOW.com
all 286 news articles »
Today's Digest is something totally different… I believe it's time to prepare for a crisis – to really prepare. And I think you'll find my advice on how to prosper over the next few years to be unlike anything you've read from me before in these pages…
This is it… The 10-year U.S. Treasury market is beginning to collapse. The debt crisis that began in 2007 is now set to continue. Individuals, nations, and corporations don't become wealthy and powerful by going into debt. Everyone knows this… But this reality has been warped by drastic efforts to manipulate our system of money and banking.
Even so, these facts remain: Americans owe more money, collectively, than ever before in our history – far, far, far more. We owe at every level: $17 trillion at the federal level; $13 trillion in mortgages; another trillion in student loans; nearly $3 trillion in state and local government debt. Put all of these numbers together and you end up with a $60 trillion pile of obligations. That's nearly four years' worth of our entire country's total production.
To make sense of the numbers, just take a bunch of the zeroes away. Put these facts into a storyline that's become all too common in America. Our economy is like a tattooed thug living in Detroit. In between burning broken-down cars and selling crack, he makes $16,000 a year working "security" at a local nightclub. Outside of busting heads, he has no real skills.
And why would he want to work hard to acquire them? Thanks to his public school education, he is convinced other people have a moral obligation to provide for him… especially rich people. They will give him health care, a clean apartment, a phone, etc. In his worldview, that's what's fair.
And if they won't? He's got no qualms about firing first and taking what he needs. After all, they owe him. For now though, he's doing great.
The Korean grocer up the street gave him a credit account. In only a few short years, he's run up a $60,000 tab. What are the chances he's going to drastically cut his expenses, work hard to get a promotion, and find a way to repay these debts? Zero. What are the chances he ends up knocking over the Korean grocer and teaching him something about life in America?
You may object to my metaphor. But believe me, it's far more accurate than most people are comfortable talking about. We live in a country that's coming apart at the seams – financially, culturally, morally, and spiritually. The reason is simple. We have collectively become addicted to living way, way beyond our means.
My favorite example about how absurd our debts have become? The state of New Jersey still owes $110 million for a football stadium (Giants Stadium) that was demolished in 2010. It won't retire this debt until 2025.
Similar debts exist on defunct or torn-down stadiums in Houston, Kansas City, Memphis, Seattle, and Pittsburgh. These stadiums are physical reminders of the absurd promises the government has made to its citizens.
On top of the debt it now owes, our federal government has promised its citizens $124 trillion of additional benefits. That's more than $1 million per citizen. That's not only more money than we could ever finance with tax revenues, it's considerably more money than all of the privately owned assets in the United States (roughly $99 trillion).
Keeping this lie alive… the lie that we can afford our debts (or even our defunct stadiums)… has become the most important national goal. That's why everything stops when Federal Reserve Chairman Ben Bernanke speaks. Our obsession with Fed policy statements is the best proof I have that we're far more concerned with maintaining "The Great Lie" than we are at actually building a better real economy.
Have you ever told a big lie? Did you ever exaggerate something to hide a weakness or insecurity? Or maybe you lied to cover a big mistake you'd made. Did you get away with it? Or did maintaining the lie suddenly consume all of your attention and energy?
Seemingly forgotten in our obsession to maintain the fiction of our solvency are the huge costs of lying, running our country on Asian loans, and keeping the printing press churning. Nobody notices that the purchasing power of the dollar is down by almost 50% in the last 10 years… or that real wages have been falling since the early 1970s… or that almost half of the able-bodied men in our country no longer work. Nobody mentions that most of the students at most of the urban schools in our country either don't graduate or can't achieve test scores above minimum standards. Sooner or later, the consequences of our lies will fall upon us.
I've long warned that when the "End of America" comes – when our ability to maintain the lie I describe above collapses – you'd see the U.S. bond market crash… And the telltale sign – the most important indicator – would be the rate of the U.S. 10-year Treasury.
I've been warning people for years that this crash was inevitable. And for many years, I've been made to look like a fool. The Fed has used its awesome power to manipulate the 10-year Treasury yield lower and lower, creating yet another massive financial bubble. But…
I knew it could not last for a very simple reason: With every new dollar it created, the Fed further undermined confidence in the financial system itself. The 10-year U.S. Treasury yield not only represents the borrowing costs of the U.S. government, it represents faith and trust in the world's system of fiat money and sovereign debts. By cheating that system, the Fed is destroying it.
I've spent much of the last several years warning people about what is about to happen and trying to convince them to take precautions before it was too late.
But let's face it… my work is mostly for wealthy people who mainly want to continue to be wealthy. So I've focused on how to prepare for these changes from the perspective of an investor – someone whose primary goal is to earn a return on his capital. I had precious little to offer regular wage-earners.
But the real danger right now is mostly to the middle class in America. Your taxes are going up. The number of people you will be forced to support (those on disability, food stamps, or Medicare… retirees… people living in war-torn countries…) is soaring. And your ability to pay for these benefits is being destroyed by global competition and the decline of the dollar. America is promising everyone more. And you're the person who will have to pay.
Make no mistake… Every time the president says only the rich will pay taxes, just imagine he's saying "you." That's far closer to the truth.
So far this year, almost 700 Americans have handed in their passports and given up their citizenship. They're doing so knowing that the U.S. Senate plans to pass a law that will permanently bar them from the country. They won't be allowed to return, not even to visit family. Even this draconian measure isn't slowing the pace of people emigrating from America. The numbers are up about 50% from last year. The rich are leaving. And with them will go their capital and our standard of living.
So… what can you do if you're already struggling to maintain your standard of living? How can you hope to maintain your lifestyle as your wages collapse and the rate of economic growth slows or even reverses?
I believe your best alternative is to find a way to build your own business. I decided to build my own business out of necessity. I was fired from the only job I'd ever gotten in finance in 1999.
I still feel a sense of necessity. If I'm right about the coming financial disaster in America, the odds that my financial research company will continue to prosper are not good. So I'm in the midst of starting another company – a consumer-products firm.
The core idea is simple: Everyone wants and can afford a little bit of luxury in his life. I'm working to improve the quality of a basic task, something most of us do every day. I've gotten a substantial amount of interest from several top executives at major companies, whom I'm recruiting to join me. This isn't a lark. I have a great idea – something that could create a substantial amount of wealth and something I could feel very proud to have built.
I don't want to reveal more right now. And yes, I know, the odds that I'll succeed are low. The point is, I'm not going to sit still and watch my standard of living decline. I'm going to take every possible step to safeguard my income and way of life. I am not going to be the guy who tells his wife we can't afford that anymore. That's going to be someone else. I guarantee it.
Nothing good is going to happen for you in your life unless you make it happen. This is a harsh, but important reality…
As an entrepreneur, I've gotten used to this fact. But for most people, it is an impossible hurdle. Most people can contrive an infinite number of reasons why they can't do something for themselves. I used to think it was impossible to coach people past this inertia. But…
I'm reading a book that has changed my mind. It's called Choose Yourself, by James Altucher. I believe this book will become a true classic. Anyone who reads it and follows its advice will become vastly more successful. It is, without a doubt, the best book I've ever read on how to build a new business.
I'm using it as my guidebook. The book covers the basics – including how to brainstorm for new business ideas, how to partner, and how to sell your business. It includes contrarian ideas that I know from experience are real secrets to success – like why you should never negotiate.
But the best part of the book – and the part I'm sure you won't find anywhere else – is James' ideas about how to manage your health and spirit while you're going through the rigors of entrepreneurship. I can tell you that I discovered the same valuable keys – how important it is to exercise, sleep, and be grateful. And I can tell you that when my life gets out of whack, I return to the same kind of daily practice James describes.
Even if you never start your own business, I believe this book can serve as a guide to maintaining your happiness in the face of what's likely to become a tough economy. It might sound strange to say this, but I wish I'd written the book. I think it will be as useful over the next few years as what I publish. James can teach you how to handle pressure, stress, failure, and success. Without these skills, all of the best financial advice in the world won't make much of a difference.
P.S. I appreciate James' idea so much, I worked with him to put together a special offer for my readers… For about $24, you can get a copy of Choose Yourself… plus three more of James' books… plus a report he wrote on retirement investing that you can't get anywhere else. You'll find all the details – including how to get immediate electronic access – right here.
This week's EIA report identifies the problem with the Oil market…
That is much less than the 74 cents on the dollar that the states now report, suggesting the states are short by some $980 billion, with many local governments, like school districts, on the hook for…
"A new period of uncertainty and volatility has begun, and it seems likely to lead to choppy economies and choppy markets," Roubini, an economics professor at New York University, writes in an article for Project Syndicate. "Indeed, a broader de-risking cycle for financial markets could be at hand."
Until the recent financial market turbulence, risky assets had rallying since last summer even while economic growth remained slow, he says.
"Now the global economy’s chickens may be coming home to roost."
Roubini provides a worldwide economic view befitting his nickname of "Dr. Doom."
Japan had to turn to Abenomics after decades of stagnation, the United Kingdom is flirting with a triple-dip recession and recession in the eurozone periphery is spreading to…
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