Subscribe for 12 months with recurring billing - $199

Buy 12 months of subscription time - $199


Search Gold Prices
Gold Price
[Most Recent Quotes from]
Our RSS Feed

Gold Updates by Mail

Enter your email address:

Follow Us on Twitter

Portugal: A(nother) Central Bank Story

Portugal: A(nother) Central Bank Story

By Hard Assets Alliance Team

By Shane Obata, Special Correspondent to the Hard Assets Alliance

The Greenspan put, the Bernanke put, the Yellen put, the Draghi put?

Easy money causes people to take risks that they otherwise wouldn’t. And the result is always the same—a boom followed by a bust. Will the retail investor ever learn? Probably—but it won’t last because the emotions of greed and fear are too strong.

Yes, there have been improvements in the global economy since the financial crisis. That said, the devil is in the details. Artificially low interest rates have been okay for the global economy and great for asset prices. But structural problems such as youth unemployment, corruption and fraud, a high cost of living and high taxes, aging populations, and excess debt still remain.

We can’t paper over these problems. If they’re not dealt with, then they’ll persist—and they might get worse.

As a result of central bank policies, saving your money no longer pays off. Interest rates are so low that it’s hard to rationalize leaving your money in a bank. To compensate for this, investors are buying all kinds of junk securities, such as government bonds issued by the PIIGS.

Today we’re going to take a look at Portugal specifically.

If people are buying its bonds, does that mean they’re optimistic about its future potential? Not necessarily. What it means is that they’re confident they’ll get their money back—regardless of the fundamentals.

Debt and Rates

Portugal’s total government debt outstanding fell from 2011 to October 1, 2013; however, debt as a percentage of GDP is still rising and has now reached 129%.

Even though it seems that the government’s financial health is deteriorating, the chart below shows that demand for Portuguese bonds sent rates down from over 18% in late January 2012 to less than 4% on August 11, 2014.


Click image to enlarge


Investors want to buy Portuguese bonds, but it seems like a dangerous bet.

Click to read more ...


Will There Be a ‘New Gold Rush?’ -- Ian Gordon, Longwave Analytics

Henry Bonner

Ian Gordon created Longwave Analytics, which studies the Longwave principle, by which economies obey long-term cyclical trends of expansion and contraction. Eric Sprott is an avid reader -- he suggested I interview Ian Gordon for his take on the role of Kondratiev’s ‘long wave cycle’ in explaining the economic environment we are seeing today.

Ian said ‘winter’ was coming for the world economy,

Click to read more ...


India hikes mining royalty

Meantime, miners struggle to pass on the higher cost of business with the government going for a bigger slice of the pie during a tough time for the industry.

Author: Shivom Seth
Posted: Monday , 25 Aug 2014 


The Indian government has approved the hike in royalty rates of at least 10 minerals, which will enrich the exchequer of states by over $1.9 billion (Rs 120 billion).

Click to read more ...


Dollar marks biggest weekly gain against yen in a year

NEW YORK (MarketWatch) — The U.S. dollar moved higher on Friday after the top Federal Reserve official suggested the economy is moving toward the central bank’s objectives, pushing the greenback to its biggest weekly rise against the yen since July 2013.

Click to read more ...


What if China, Russia Succeed in Going off the Dollar? -- Alasdair Macleod

Alasdair Macleod writes the blog FinanceAndEconomics.Org. His research aims to explain the relationship between the dollar and gold, and to warn investors about the biggest threats to their wealth from macro-economic events. 

Besides what the Fed is doing by printing money, there is another big threat to the dollar, said Alasdair. Countries in Asia are banding together in order to rid themselves of using the dollar in international trade.

Click to read more ...


Jackson Hole Rally at Risk as Investors Preempt Yellen

The end of the Jackson Hole bull run may be at hand.

Every time then-Federal Reserve Chairman Ben S. Bernankespoke at the annual monetary policy symposium in the shadow of Wyoming’s Teton mountains since 2007, stocks rallied. WithJanet Yellen set to make her first speech to the conference as central bank chief on Aug. 22, investors may be setting themselves up for a fall,

Click to read more ...


Allow Me to Reintroduce You to Silver and Gold…

By Darren V. Long

August 13, 2014

In this so often ungraceful world of money we are getting the opportunity to witness a coming of age. A story filled with bobs and weaves, peaks and valleys moments of joy and years of sorrow the likes of which are book worthy. An opportunity so grand that simply having a small piece could be enough to invigorate even the most flaccid of portfolios, perhaps even financially prepare us for retirement at an early age. It is to this end, that I once again alert our readers to the story of gold and silver bullion.

Click to read more ...


Stocks Up, Bonds Up, Gold Up, Oil Up, Dollar Up, F'd Up

Worst Japanese consumer spending data drop ever - BTFD. China financing slowed - BTFD. European industrial production tumbled - BTFD. US retail sales miss dramatically - BTFD. The worse the news the better the buy-the-dippiness as between JPY (102.50) and VIX (12 handle), US equities shrugged off shitty data and worsening geopolitics to jump to August highs. But it wasn't just stocks...

Click to read more ...


Gold Videocast: Jim Rickards & Peter Schiff on Gold & Currency Wars (Video)

Peter Schiff and Jim Rickards

In his latest Gold Videocast, Peter Schiff meets with Jim Rickards, author of The Death of Money, for an exclusive interview about gold’s role in the international currency wars.

Jim Rickards is Chief Global Strategist at the West Shore Funds,

Click to read more ...


Tensions Continue to Rise Between USA & Russia & the Media Plays Games

Posted on August 11, 2014 by 

Russia is teaming up with the Red Cross to send aid to Eastern Ukraine. The US is trying to say this is an invasion attempt. In fact, our sources are clear. In the city of  The greatest complaint rising from the East is the propaganda being hurled around in both directions.

Click to read more ...

Page 1 ... 4 5 6 7 8 ... 196 Next 10 Entries »