John Hathaway talks to Eric King of King World News about the coming Gold (and Silver) demand from the newly opened Pan Asian Gold Exchange....listen here
Sunday, July 10, 2011
John Hathaway on the Pan Asian Gold Exchange
John Hathaway talks to Eric King of King World News about the coming Gold (and Silver) demand from the newly opened Pan Asian Gold Exchange....listen here
Steven Romick on Contrian Investing
I am somewhat miffed by this bloke generating an annualized return of 11%pa for the last 10 years thereby qualifying to be a finalist for Morningstar's Manager of the Decade award. I invested in silver in the AUD$280 - 320/kg range 10 years ago for an annualized return of 14 - 15% and everyone I knew at the time said I was a fool.
From: | Jul 1, 2011
"Great Investor," Steven Romick, finalist for Morningstar's Manager of the Decade award, discusses the contrarian investment approach that makes his go anywhere, invest in anything, FPA Crescent Fund one of the best in the business.From: | Jul 1, 2011
Malaysia cracks down on protesters
Police in Malaysia have fired tear gas and arrested hundreds of protesters in the biggest opposition-backed rally in years.
More than 20,000 demonstrators massed across Malaysia's capital Kuala Lumpur on Saturday, demanding electoral reforms, activists said.
More than 20,000 demonstrators massed across Malaysia's capital Kuala Lumpur on Saturday, demanding electoral reforms, activists said.
Australia announces new tax for Carbon Based life forms
Australian Prime Minister, Julia Gillard has announced a carbon tax of $23 per tonne of CO2 emissions by the top 500 polluters.
From news.com.au:
JULIA Gillard has announced a carbon price of $23 per tonne, which she says will reduce Australia's carbon pollution emissions without costing most households anything.
Announcing the carbon price package this afternoon, Ms Gillard has said there is an "avalanche of science" to tell us the climate is changing.
"Now is the time to get this done. As a nation we need to put a price on carbon and create a clean energy future."
Ms Gillard has said the government will require 500 big polluters to pay a price per tonne for the carbon they release into the air. "At the moment those big polluters can release that pollution into our atmosphere for free."
This will cause the polluters to innovate and change to reduce their bills. "In doing so they will reduce their carbon pollution.
"This all adds up to a reduction in carbon pollution of 160 million tonnes by 2020. That's the equivalent of taking 45 million cars off the road."
The carbon price will force up living costs by almost $10 a week, but nine out of 10 Australian households will be compensated through tax cuts or extra payments.
Read more: http://www.news.com.au/breaking-news/carbon-price-details-how-if-affects-you/story-e6frfku0-1226091673126#ixzz1RfOTh4XP
The following video is meant as light relief to an incredibly tedious debate built on disputed data and dug in positions, and does not represent the views of ABC Bullion.
From news.com.au:
JULIA Gillard has announced a carbon price of $23 per tonne, which she says will reduce Australia's carbon pollution emissions without costing most households anything.
Announcing the carbon price package this afternoon, Ms Gillard has said there is an "avalanche of science" to tell us the climate is changing.
"Now is the time to get this done. As a nation we need to put a price on carbon and create a clean energy future."
Ms Gillard has said the government will require 500 big polluters to pay a price per tonne for the carbon they release into the air. "At the moment those big polluters can release that pollution into our atmosphere for free."
This will cause the polluters to innovate and change to reduce their bills. "In doing so they will reduce their carbon pollution.
"This all adds up to a reduction in carbon pollution of 160 million tonnes by 2020. That's the equivalent of taking 45 million cars off the road."
The carbon price will force up living costs by almost $10 a week, but nine out of 10 Australian households will be compensated through tax cuts or extra payments.
Read more: http://www.news.com.au/breaking-news/carbon-price-details-how-if-affects-you/story-e6frfku0-1226091673126#ixzz1RfOTh4XP
The following video is meant as light relief to an incredibly tedious debate built on disputed data and dug in positions, and does not represent the views of ABC Bullion.
On The Edge - with Steve Keen
I had the pleasure of chatting to Steve Keen last year at the Sydney Gold Symposium conference, a very thoughtful and intelligent bloke.
by PressTVGlobalNews on Jul 9, 2011
by PressTVGlobalNews on Jul 9, 2011
http://www.presstv.com/Program/188261.html\
In this edition of On the Edge, Max Keiser interviews Steve Keen, Australian economist and author of the book Debunking Economics.
He says that debts have spiraled out of control and the reason is shadow banking system. The program touches on the correlation between the US-EU debt crisis and the worsening Greek economy.
Saturday, July 9, 2011
'US wages wars to build empire'
The British defense ministry has confirmed that its unmanned Reaper drone aircraft killed four Afghan civilians and injured two others in an attack in March.
Negative Real Interest Rates Continue to Provide Gold With a Perfect Environment
By Ronald Stoeferle:
Inflation has never been the primary driver of the gold sector on its own. Given that gold, as is well known, does not pay interest, the real interest rates equal the opportunity costs. During the 20 years of the gold bear market in the 1980s and 1990s, real interest rates were about 4%. They were negative in only 6.7% of the months. The situation was completely different in the 1970s. Real interest rates were negative in 54% of the months. Since 2000 real interest rates have been negative in 47% of the months, which constitutes an optimal environment for gold.
Real interest rates vs. gold price since 1970
Sources: Erste Group Research, Datastream
When we break down the real interest rates (in this case 10Y yields minus CPI according to Shadowstats) into quintiles and analyse the performance of gold in the subsequent year, we find that there is a clear link between real interest rates and the development of the gold price. In the first quintile (annual real interest rates < -4.3%) gold increases by 21%. With the real interest rates between -4.3% and -1.7%, gold tends to gain close to 20%. It is only when real interest rates rise above 0.99% that the performance of gold weakens significantly.
Real interest rates vs. subsequent gold price performance 1970-2010
Sources: Erste Group Research, Shadowstats
Negative real interest rates reduce interest expense by default and eat into the existing debt. They therefore constitute a transfer from the savers to the debtors. The following chart illustrates the fact that this form of financial repression seems to be in vogue among the majority of nations these days.
Real interest rates worldwide
Sources: Datastream, Bloomberg, Erste Group Research
“Throughout history, feckless governments have dodged their fiscal responsibility by turning to their monetary authority to devalue the currency, monetize debt and inflate their way out of structural deficits“ Richard Fisher, President of the Federal Reserve Dallas, March 2011
By. Ronald Stoeferle of Erste Group
Erste Group is the leading financial provider in the Eastern EU. More than 50,000 employees serve 17.4 million clients in 3,200 branches in 8 countries (Austria, Czech Republic, Slovakia, Romania, Hungary, Croatia, Serbia, Ukraine). As of 31 December 2010 Erste Group has reached EUR 205.9 billion in total assets, a net profit of EUR 1,015.4 million and cost-income-ratio of 48.9%
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