Economic update

Marc Faber: His thoughts clear on inflation (5-8%), & where the Egyptian riots will strike next: "You may not have a problem in Saudi Arabia and in the Emirates, in Kuwait and Qatar, because there the governments can heavily subsidize food if they want to. But I am worried that what has happened in Egypt will happen in Pakistan... I think Egypt is a reminder to people that politics, and social events, and geopolitics have a meaningful effect on asset markets. The developed markets have way outperformed, and now I think that it may be a wake up call that the US outperforms emerging economies for a while." As for inflation "The annual cost of living increases are more than 5% today and the BLS is continuously lying about the inflation rate, including Mr Bernanke, he's a liar. Inflation is much higher than what they publish. I think that inflation is between 5% and 8% per annum in the US, and in Western Europe, a little bit lower, also 4-5% per annum."

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Gold is Money
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http://ashedfc.blogspot.com/

^

At first I thought it was titled "God is Money"... :)

A "Must Read" report for all investors who wish to protect & grow their wealth.
Its also one of the most awaited report in the investment industry......
http://www.sprott.com/docs/Marketsat...nuary_2011.pdf

The Job Creation story: It speaks for itself, permanent full time jobs are disappearing, & part-time temporary jobs seems to be the new trend..
http://www.zerohedge.com/sites/defau...e%20Jobs_1.jpg

20 Facts That Will Make You Really Mad If You Stop And Think About Them For A While

http://www.businessinsider.com/soul-...-2011-2?slop=1

U.S.’s 65 trillion in debt is bigger than globe’s entire GDP of 60 trillion (Most scary numbers explained in simple terms)..

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(US Dollar cannot survive in its current form), some massive restructuring has to happen..

16th Feb 2011:
Here is an excellent example of inflation: In a month and a half, cotton has risen 44%: since there have been about 44 days in 2011, that means about a 1% a day.
The genie is out of the bottle....... its going to make life a lot difficult for people surviving on fixed income source.. pensions, GIC's, etc..

http://www.zerohedge.com/sites/defau...ein/Cotton.jpg

Must watch video: Just released & very interesting info ...

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wow this was a very interesting video-thanks for sharing

Gold & Silver prices are an indication of massive inflation in the forthcoming near future..
Gold: http://3.bp.blogspot.com/-CHWvb3js-u...golddaily7.PNG
Silver: http://3.bp.blogspot.com/-WZ3grbORLS...verweekly2.PNG

Interesting details on the coming inflation (which has already arrived; & being manipulated by BLS - Bureau of Labour Statistics). Gov't have a vested interest to show low inflation, as they have to pay less increase in pension & benefits. Its for you to prepare for higher (much higher) prices in the future.
And we are in a low interest environment: imagine if/when interest rate goes up, the increase in interest cost alone it will suck up all the spare money every household is sitting on.

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Bottomline: Buy Silver/Gold/Oil/commodities (or any inflationary hedge) as a hedge against inflation.

Gold Just reached its all time high $1435/oz & Silver $34.80/oz its 31yr record nominal high (on its way to break Hunt brothers spike $50 price of 1980).
And mainstream media, has no mention of this very important news...
MENA (Middle East & North Africa) turning into chaos, Oil spiking above $100/barrel, & its felt by everyone at the gas pump. Money is increasingly becoming worth less, as it buys less & less everyday.
Here's another interesting video (enjoy the music)

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(Finally the hectic RRSP season is over.. thanks to all;
It might be appropriate to add some Gold in your RRSP portfolio, one can easily transfer funds inside RRSP with no tax implications & own Gold/Precious metals funds as a hedge against currency devaluation)

You Call It Inflation, I Call It Theft A Must Read
On my daughter’s birthday, she received a crisp new $5 bill, which she promptly deposited in her piggy-bank. Never foregoing an opportunity to expound on free market principles, I warned about her susceptibility to a subtle means of theft even more devious than a burglar breaking in at night against whom you might get a clear shot.

Usually, when she asks why it’s, “Because I told you so!” But for inflation, because Washington wills it, that explanation hardly suffices. And as often as economic prognosticators prescribe currency debasement as some miraculous panacea, her question is a good one. Why do we suffer inflation?


I searched online for “benefits of inflation.”
Please read.. http://blogs.forbes.com/billflax/201...call-it-theft/

Another All Time High for Gold today 1444 USD(& in several currencies http://goldprice.org/gold-price.html ).
Just a wake-up call for investors: Pay attention to the Silver price ... its indicating a very high inflation in the near future (a possible hyperinflation) & in an hyperinflation environment, one has to refer to Wiemar/Zimbabwe to discover what happens to the value of currency.

A must read report published today: http://goldswitzerland.com/index.php...uge-evg/print/