FIVE Markets Pointing to the Deflationary Outcome As a Result of the Current Problems

• Gold (Charts and Quotes for: Gold & GLD)
• Scam Market (Major World Market Graphs At A Glance)
• US Treasuries (US Treasury Rates at a Glance)

-------- Original Message --------

Subject:	FIVE Markets Pointing to the Deflationary Outcome As a Result of the Current Problems
Date:	Wed, 23 May 2012 15:24:36 -0700
From:	Jas Jain

FIVE Markets Pointing to the Deflationary Outcome As a Result of the Current Problems

1. Commodities
2. Gold (Charts and Quotes for: Gold & GLD)
3. Scam Market (Major World Market Graphs At A Glance)
4. US Dollar
5. US Treasuries (US Treasury Rates at a Glance)

High volatility in all the above markets suggests that we should get further confirmation, or the opposite, of which way things are going to get resolved. Greece is done, one way or another. Things to watch over the next 3-4 months:

• Chinese slowdown
• European recession
• Spain and Italy after Greece is out of the way
• US slowdown – Q2 GDP and Q3 data releases
• US Supreme Court decision on Obama-care

…

In less than 6 months the US election, together with the above, should seal the deal as to which way things are likely to head.

Jas

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May 14, 2012

Three Markets Pointing to the Deflationary Outcome As a Result of the Current Problems

The commodities mkt, the Scam Market, and the US Treasury mkt. Needless to point out that the smartest of these markets is the Treasury bond mkt. Lots of dopes and dope dealers crowd the Scam Market and the commodities mkt.

Jas

• Gold (Charts and Quotes for: Gold & GLD)
• Scam Market (Major World Market Graphs At A Glance)
• US Treasuries (US Treasury Rates at a Glance)

 

Jim Rogers is Short Long Term US Treasuries and Long Silver

This articles titled Jim Rogers says get rid of dollars, buy silver says he expects the actions by governments around the globe to save their economies will cause inflation and crash the US dollar. As such, he is short long-term US Treasuries (US Treasury Rates at a Glance ) and long silver.

INTERNATIONAL. Legendary global investor Jim Rogers believes the recent dollar gains are temporary and are not based on fundamentals.

"The fact that the dollar is gaining rapidly is only temporary," Rogers recently told a group of private bank clients.

"Within a year you'll have to get rid of the dollar," he said.

Rogers has spent a career being one step ahead of mainstream investment thinking. Amongst his many accomplishments, Rogers was co-founder with George Soros of Quantum Fund. During his ten years with the fund, the portfolio gained more than 4,000%, while the S&P rose less than 50%.

All hedge funds were short on the dollar, Rogers said, but because there has been a rapid increase in the dollar's value against other currencies, fund managers want to buy them now.

"This is temporary, Rogers says. "Fundamentally it is a drama."

Rogers also said US government bonds are extremely overvalued. "They are "the world's last bubble."

The current rescue plans, which will force governments to issue more debt, print money and flood the markets with liquidity, will flare up inflation after the crisis is over and will create worse problems.

Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke should resign for keeping alive "zombie banks" that should be allowed to fail, he said

The Japanese government refused to let financial institutions fail in the 1990s. "It's 18 years later and their stock market is 75% or 80% below what it was 18 years ago," he added.

"I know we are going to get aggressive rate cuts everywhere, that's why I'm long short-term government bonds in the US, but shorting long-term government bonds because it's not going to help, it's going to add to inflation."

Rogers admits that silver has been particularly battered down, 35% this year, and perhaps that is why he thinks this precious metal will outperform gold as investors turn to the metal as a hedge against inflation.

“Silver will do better than gold,” Rogers recently said. “It’s been beaten down horribly. If you put a gun to my head and said you have to buy one, I would buy silver rather than gold.”


Gold may drop as central banks and the International Monetary Fund (IMF) sell the metal to raise cash, said Rogers, who correctly predicted in April 2006 that gold would reach US$1,000 an ounce. The IMF in May ratified a plan that included proposals to sell 403.3 metric tons of gold to reduce a budget deficit.

“The IMF has gigantic amounts of gold. Maybe gold is going to go down for a while. If gold does go down, I’m going to buy more,” Rogers said.

For more, see:

• US Treasury Rates at a Glance
  
  
• World Stock Markets at a Glance
  
  
• ECRI WLI Growth Rate Plunge Continues to New Record Low
  
  
• Best 1-Year CD Rates with FDIC
  
  
• I-Bond and Series EE Bond Rates for November 2008

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