14 January 2012

The Year of the Central Bank

By: Doug Noland | Fri, Jan 13, 2012

The start of a new market year is, undoubtedly, analytically intriguing. One wouldn't think that the calendar should have such impact. Yet January arrives with a clean performance slate and an opportunity for new, perhaps not as unsullied, market dynamics. What's the new game? The previous year's underperformers can rather abruptly be transformed into darlings of the New Year (especially if those stocks have large short positions). The general market also tends to benefit from strong seasonal inflows. And if stocks can charge out of the blocks briskly, a plethora of bullish news and analysis is sure to follow.

Such a fluid backdrop is conducive to abrupt changes in analytical focus - a new prevailing "analytical regime" in a capricious marketplace. Last year's now stale worries are easily dismissed, as a confluence of more constructive market trading action and news flow supports a major boost to bullish market sentiment. A short squeeze (buying to reverse short positions) - in positions that tended to be consistent with prior market focus/worries - works wonders in bolstering the perception of a more optimistic analytical outlook and diminished risk profile throughout the marketplace.

Jim Rogers: US Govt to ‘Juice Up’ Economy in Election Year

Friday, 13 Jan 2012 09:01 AM

By Forrest Jones

The U.S. government will spend beyond its means and the Federal Reserve will print money to juice up the economy as part of an election-year popularity ploy, says international investor Jim Rogers.

"You have to remember two things — election in America in November, so you are going to see a lot of good news. Of course you have the American government spending staggering amounts of money right now, printing a lot of money and getting ready for the election," Rogers tells The Economic Times, an Indian English-language daily newspaper.

"It happens every four years in America. They do their best to get the economy juiced up so they can win the election."

Gold and Silver Decline as Europe Receives Downgrades

By Eric McWhinnie

January 13, 2012 4:46 PM EST
Wall St. Cheat Sheet

On Friday, gold (NYSEARCA:GLD) futures for February delivery decreased $16.90 to settle at $1,630.80 per ounce, while silver (NYSEARCA:SLV) futures fell 60 cents to settle at $29.52.
Must Read

Euro-zone governments are expecting new debt-crisis commotion following reports ratings agency Standard & Poor’s (NYSE:MHP) plans to downgrade the credit ratings of two of the euro zone’s six AAA-rated nations.

Are The Middle East Wars Really About Forcing the World Into Dollars and Private Central Banking?

Submitted by George Washington on 01/13/2012 19:54 -0500

The Middle Eastern and North African wars – planned 20 years ago – don’t necessarily have much to do with fighting terrorism. See this, this and this.

They are, in reality, about oil.

And protecting Israel (and read the section entitled “Securing the Realm” here).

But as AFP reports today, there is another major motivation for the expanding wars:

The US Government Is Bankrupt

By Doug Casey, Casey Research

Everyone knows that the US government is bankrupt and has been for many years. But I thought it might be instructive to see what its current cash-flow situation actually is. At least insofar as it's possible to get a clear picture.

As you know, the so-called Super Committee recently tried to come up with a plan to cut the deficit by $1.5 trillion and failed completely. To anyone who understands the nature of the political process, the failure was, of course, as predictable as it was shameful. What's even more shameful, though, is that the sought-after $1.5 trillion cut wasn't meant to apply to the annual budget but to the total budget of the next 10 years – a fact that is rarely mentioned.