Bob Chapman Discussion On Oil, Gold - Must listen
Discusses Iran, Lybia, Saudi MENA. Addresses investment vehicles:
' oil and gas. If you buy oil and gas stocks...if oil is $150 and the oil stocks had run up 30% .... if the market goes down 500 points, you're going to loose that 30% because oil and gas stocks go down with the market, and don't forget it.'
That is certainly my experience from '02 and '08. Left huge paper profits on the table. Maybe this time (if there is a crash coming which Mr Chapman suggests and I agree) I will pull a Snagglepuss and exit stage right before the SHTF.
Broad talk on global debt, social instability, global government. Gets a bit into conspiracy theories. I tend to think he has some valuable insights. Also......
'Inflation will be at 14% by the end of the year....'
'As the world economies degenerate and they will.....'
'If they stop stimulus and raise interest rates, we go into a great dark pit...'
contraryinvestorscafe.com
Can also read his blog:
theinternationalforecaster.com
Fed Ponders Actions While Global Economy Reels
By Bob Chapman, March 26th, 2011.
The US dollar continues under acute pressure, as the world seeks an alternative reserve currency. The days and years of manipulation, fraud and criminal behavior are fast coming to an end. New alliances are evolving, as are outspoken advocates of a new world reserve currency. As a result more and more foreigners are bypassing Treasury and Agency bonds, as well as other US dollar denominated investments. We watch as other major nations accumulate gold and cannot help but think that the new world reserve currency will be gold backed.
Over the past 11 years the Fed and other central banks have increased money and credit by several devices and in the last three years more aggressively by purchasing bonds and via using swaps. QE1’s monetary creation has now begun to affect costs and the entire price structure. As wages lay stagnant the resultant inflation will eventually destroy the middle class, the structure that holds American society together. As the taxpayer saves the financial institutions the middle class is being destroyed. They are funding their own demise. We believe inflation is currently 8% and should be 14% by yearend. That is the result of QE1 and stimulus 1. Next year the US economy will be impacted by QE2 and stimulus 2. If we get QE3 and stimulus 3, 2013 will be impacted. Inflation could range from 25% to 50%, or more, dependent upon what the elitis... |
