201106.29
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Strange Times and Conflicting Data for Silver

It is no understatement to say that silver is currently out of favor. Two concurrent currents are at work: the fear that the May massacre instilled in long side speculators, and the growing recognition that the Federal Reserve will not debase the currency any further (at least not right away). Those two factors are interrelated,…

201106.26
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Weekly Economic and Market Review

“We don’t have a precise read on why this slower pace of growth is persisting.” Ben Bernanke at his press conference last week following the FOMC meeting. That was – by far – the most important statement to come out of the post FOMC press conference last week. Bernanke finally had to admit that he…

201106.24
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Bernanke Admits He Just Does Not Know

Early on in his June 22, 2011, press conference, Federal Reserve Chairman Ben Bernanke was asked about why the Fed had just lowered its growth outlook for 2011 and 2012. After attributing some of the reduction in expected economic growth to temporary factors that he feels should be self-clearing, he finally admitted that: “We don’t…

201106.23
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Collateral Pressures Renew as Interbank Stability Weakens

European turmoil is being revisited within interbank marketplaces. Fears of exposures to Greece, Portugal, Italy, Spain, etc. have forced many banks to rethink their lending policies. The Telegraph reported on June 18 that Standard Chartered and Barclays (BCS) moved billions out of the unsecured interbank lending market, with Standard Chartered cutting its overall exposure by…

201106.21
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You Can’t Handle The Truth!

Jessep: You want answers? Kaffee: I think I’m entitled to them. Jessep: You want answers? Kaffee: I want the truth! Jessep: You can’t handle the truth! Scene from A Few Good Men, written by Aaron Sorkin The context of that quote from A Few Good Men has nothing to do with the current economic problems…

201106.19
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Weekly Economic And Market Review

After six straight weeks of decline, stocks finally managed to post a positive return last week. It wasn’t much and the late week rally resulted from hope that the Europeans would find a way to further the delay the inevitable Greek default that all but the truly delusional know is coming but after six weeks…

201106.17
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Currency is Driving Precious Metals, Not Inflation

There is a fundamental difference between gold and silver. Gold is money and silver is a commodity/money hybrid. It does not always follow that movement in one metal directly affects the other. The rise and fall of silver, particularly after the May massacre, is much more a function of the COMEX machinations than a pure…