by Kris Sayce on December 18, 2009
It seems that not only is our friend Michael Pascoe unable to see the value of gold, but he is obviously quite incapable of working out a basic sum – that 1 + 1 = 2.
And his unwavering faith in the ability of the Reserve Bank of Australia is commendable, yet completely mad. After all, the RBA is the same crowd that’s overseen the destruction in the value of your money over the last fifty years.
And here’s the proof courtesy of the RBA’s website:
They don’t even hide the fact that they’ve singularly failed in one of their main aims, to provide a stable currency.
[click to continue...]
VN:F [1.7.3_972]
Rating: 10.0/10 (5 votes cast)
VN:F [1.7.3_972]
Rating: +3 (from 3 votes)
by Kris Sayce on November 25, 2009
We always believe it’s good to hand out awards to people who deserve it. Whether it’s for doing good things or bad things, we believe they should receive an award to recognize their “achievement.”
In this instance, the newly inaugurated “No —- Sherlock Award” goes to the US Federal Reserve’s Federal Open Market Committee (FOMC). Like the board of the Reserve Bank of Australia (RBA), the FOMC is responsible for making interest rate decisions for the central bank.
And last night the FOMC released the minutes of its November 3-4 meeting, which contained the following, hehem, wonderful lines:
“Members noted the possibility that some negative side effects might result from the maintenance of very low short-term interest rates for an extended period, including the possibility that such a policy stance could lead to excessive risk-taking in financial markets or an unanchoring [sic] of inflation expectations. While members currently saw the likelihood of such effects as relatively low, they would remain alert to these risks.”
[click to continue...]
VN:F [1.7.3_972]
Rating: 5.3/10 (8 votes cast)
VN:F [1.7.3_972]
by Kris Sayce on November 24, 2009
If the price of something has risen by 45.06% in the space of a year, does that mean it is a price bubble?
Not necessarily, but it’s a question worth asking.
Take a look at the chart for gold priced in US dollars below:
Even in the last two months the price has burst through the USD$1,000 level and is now trading comfortably at USD$1,164.
[click to continue...]
VN:F [1.7.3_972]
Rating: 7.8/10 (4 votes cast)
VN:F [1.7.3_972]
Rating: +2 (from 2 votes)
by Kris Sayce on November 5, 2009
As Shae noted in yesterday’s 60-Second Market Round Up, “The price of gold has hit record highs as a result of the Reserve Bank of India (RBI) decided to buy 200 tonnes of bullion.”
Today the price of gold has gone a touch higher. This morning it’s trading at USD$1,092.60, or AUD$1,200.66.
So while the Indian central bank buys ‘hard assets’ in the shape of the shiny yellow stuff, the US Federal Reserve remains busily giving away almost free money.
This morning the Fed decided to keep interest rates as they are – close to zero.
[click to continue...]
VN:F [1.7.3_972]
Rating: 9.8/10 (6 votes cast)
VN:F [1.7.3_972]
Rating: +3 (from 3 votes)
by Kris Sayce on October 12, 2009
Over the past week or so your editor has been reading a book.
Yes, perhaps contrary to the opinion of some, we can read.
Actually, it’s taken us about two weeks to read it.
You may recall that several weeks ago we admitted not knowing nearly as much as we should about the Great Depression of the 1930s.
[click to continue...]
VN:F [1.7.3_972]
Rating: 9.2/10 (13 votes cast)
VN:F [1.7.3_972]
