I wholeheartedly endorse the sentiments of the correspondent you cite.

Thank you, Bill, for fostering and mentoring the Cara Community. Blessings upon you and yours.

Thank you Bill for daring to dance to the beat of your own heart, and daring others to do the same. I see a lot of great dancers around these days. Love your book too. Cheers

CaraCommunity will do well.
You will help many readers navigate through rough waters in the financial markets.

I believe that a huge contraction in employment in the financial sector is coming.

The real economy will do better.

I have posted a chart of the ratio of Employment in the financial sector vs Natural Resources.

This ratio declines in periods of inflation and it has along weay to go.

The fact that international bankers control the US and world governments and enslave people in debt is very depressing. What can we ordinary people do against this force?

Bill,

I'm reposting this b/c most of the quotes in your Daily Report for 4/12 are, if not all, from the link below...

Whoever, in any nation, not just ours, controls the money supply controls credit and the economy and can cause booms or bubbles and busts or recession.

Bill has one of the best understandings of that power and in addition to what he shares with us here on his blog (thank you Bill!) this video helps further in understanding what we are up against.

The entire history of our nation from the perspective of money and money supply and central banking is in this video. Complete with quotes from our Presidents, Congressmen, Economists, and even bankers, you find the reason we have had so many volatile times in the course of the history of this nation. I enjoyed the history of the civil war from the perspective of money.

Again, very long but very worth the education it provides about the power that can even control markets, economies and governments. You can then see why some of the most powerful in government are still pulled by the voters one way and by the elite connected to the central bank, the other way.

http://tinyurl.com/3g72s8

Harbinger of what is coming en masse:

http://tinyurl.com/6peabu

Interesting perspectives from the antipodes - bullish on silver mining stocks:
http://tinyurl.com/5ojb4y

SteveC, there is not much you can do that will provide immediate change or satisfaction. There is a lot you can do that will be a slow, frustrating and tiresome path.

1) Eliminate personal debt as much as possible.

2) Live below your means.

3) Invest in yourself through education. That may mean going back to school to get a better job or it may mean learning here from Mr. Cara and the fellow posters.

4) Invest in your children. Invest time, attention and in their education. Help them to have a better chance at a life path superior to yours.

5) Vote for what and who you truly believe in. Evene if that means a 'wasted vote'.

6) Educate others around you if and when they are willing to learn.

7) Invest as wisely as you can.

Anecdote: I have been working out of the corporate headquarters and at a production facility for the last few weeks. A young engineer who had just been hired less than a year ago was a topic of discussion (which he freely took part in as well..no office backstabbing or rumor mill). The topic was how underwater he was on his home loan, how it was soon to reset and what he should do.

I sent him links to this site, Calculated Risk (specifically showing him the Ubernerd section) and Mish's site. I gave him some advice but clearly stated many things I did NOT know, that these sites would help him learn and encouraged him to speak to a lawyer.

He was clearly hungry to learn. He dove into it. What happens from now going forward no one knows but he has more tools to educate himself.

I told if he I had the financial awareness I do now when I was his age I probably wouldn't have to work anymore.

He is now on his path to an earlier financial enlightenment then I had.

what is your opinion on CALM

75% short
RSI oversold
PE 4.87

Thanks

Bill,

A hearty thank you to you and all that you do for the greater good here. I received your book a few days ago (very slick and professional - I was expecting a paperback but was pleasantly surprised by the hardcover tome that arrived). Have begun to dig in and am enjoying it. I reckon it will be well-thumbed over the years. This community you have established - I believe it is the light that will help guide me through this den of thieves, and past the charlatans in my path, so aptly described by the many quotes listed in your 4/12 daily report.

If I might add another:

"...la plus belle des ruses du diable est de vous persuader qu'il n'existe pas!"

"...the devil's finest trick is to persuade you that he doesn't exist!"

-Charles Baudelaire, ('The Generous Gambler', 1864)

Also, a hearty thank you to the greater good here and all they do for each other and the 'little guy' (that'd be me...)

Thanks

ALOHA !!

vinod ... CALM ... WOW !!! That's short interest for sure!! I see 98% of float and Jim Cramer has announced on TV that short position is the single biggest reason to avoid it! His Wall Street pals must own all the shorts!

The RSI is only oversold based on weekly. It looks like it has more downside room and it seems someone wants to see more downside. Some 12mil+ shares worth! Yikes!!

SHORTS IN ACTION
Decliners

Shares of Cal-Maine Foods Inc., (CALM) the Jackson, Miss., egg producer, fell 6.7%. It reported that fiscal third-quarter net income more than tripled on 59% higher sales. Earnings for the quarter ended March 1 reached $57.2 million, or $2.41 a share, from $17.4 million, or 74 cents, in the year-earlier period. Sales advanced to $278 million from $175.2 million. END

Yeah ... it makes sense to sell this stock since net income only tripled on 59% higher sales and EPS only rose 630% plus they only pay a measely 11% dividend! OH YEAH ... SELL IT!!! Buy Fannie Mae FNM instead since FNM only has a 5% short interest on 100% debt!!! FNM is a bloody "DEBT ZEPPLIN"! Someone wants these shares down and are placing a huge bet to make it happen!

Lots of stuff to like about CALM as it seems to be pumping out great financials and paying a hefty dividend and is in the right space ... "food" ... specifically eggs(protein)!

I think at this point I'd wait before I bought until the shorts run their course and go buy a few chickens instead! Cheap eggs and fresh!

Onlineaces, re the Alabama sewer default, how ironic sewer debt is in the toilet. I wonder why the bank did not issue the payment demand? Could it be the domino effect from the default would cause even more pain for the bank?

Bill: loved the quotes you dug up. The system has systemic issues, but what to do about it? I write frequent emails to Congress, for no good. I think the genius of the Am. Revolution is that we now have an open system that allows for a 2nd (non-violent) revolution, if only we could persuade enough Joe's of the need.

not to be pessimistic but i have said the only way the central banks would change for our purpose is if the people boycotted the system. but that entails decisions that require the people to have money that will outlast the powerful. ie, the people stops going to work, paying taxes, etc. basically a financial civil war. anything less it will just be another version of the same corrupt system.

this is why i love this community. it helps us learn to navigate and profit with more informed decisions while the cards are stacked against us.

thx Bill!

Kaimu

Thanks for info about CALM
I enjoy reading your post about GOLD and I am thinking about gold first time

Thanks Bill for all quote
Every one at work enjoy it
And now every Monday morning we all talk about Bill's WIR

Spread the Wealth and Give Workers a Raise

Paulson's plan is a power-play; nothing more. The investment Mafia wants to take over the whole financial system lock, stock and barrel. They want to liquidate the SEC and any other government watchdog and put the investment banks, hedge funds and brokerages on the honor system.

Paulson and Bernanke are expanding the balance sheets of the Government Sponsored Enterprises (GSEs) so that Fannie Mae and Freddie Mac will underwrite 85 per cent of all mortgages while FHA will cover 10 per cent more. The mortgage industry is being nationalized to save banking fellowship while the taxpayer is on the hook for another $4.4 trillion of dodgy loans. Paulson doesn't care if the taxpayer gets stuck with the bill. What bothers him is the prospect that, somewhere along the line, workers will demand higher wages to keep pace with inflation. Then all hell will break loose. Paulson and Co. would rather see the economy perish in a deflationary holocaust than add another farthing to a working person's salary.

http://www.counterpunch.org/whitney04122008.html

Kaimu, that's a fine summary of CALM. I pulled up my Cara daily/weekly/monthly charts and they agree with your analysis.

This is one to watch.

But then again, maybe CALM is under pressure because it won't be able to steal money back from the U.S. treasury over the next few quarters because it is actually PROFITABLE. ;)

Are You Unhappy? Is It Because of Consumer Addiction?

industrial civilization -- and its end product, consumerism -- has disconnected us from nature, the cycle of life, our communities, our families and, ultimately, ourselves. This unnatural, inorganic, materialistic way of living, coupled with a marked decline in society's moral and ethical standards -- what the French call anomie -- has created a kind of pathology that produces pain and emptiness, for which addictive behavior becomes the primary symptom and consumption the preferred drug of choice.

Consumption without need is the hallmark of addiction, and "consumerism" is defined as "the equating of personal happiness with the purchasing of material possessions and consumption." The pattern of out-of-control consumption in the United States, which per capita consumes 70 times more than India, with three times the U.S. population, is not qualitatively different from the well-known patterns of behavior of substance abusers. In fact, it looks as if the United States just finished with the worst binge of its life and is now cresting the peak of a wicked crash.

http://www.alternet.org/healthwellness/82013/
---------------------------------------------------------------------------

Happiness brings its own wealth

It comes as no surprise to learn from a study published this week that, although Britons are twice as rich as they were in 1987, they are no happier. The lack of relationship between wealth and happiness has long been common knowledge, and the knowledge itself has long been a source of happiness to moralisers who like the fact that money is not life's answer.

http://tinyurl.com/6gpw2f

"I write frequent emails to Congress, for no good."

JRPauley, I don't write so frequently, but it is extremely disappointing during those times when I do that nothing comes of it. No response. No indication that my representative has even considered my views.

And with regard to the recent Senate vote on the bailout of home builders and banks via tax loss carrybacks, knowing that I was not alone in expressing my views, but rather one of many who were against this my an overwhelming majority, it leaves me feeling that government does not work for the people at all. That special interests ARE in control.

Representative government, at the national level at least, is a myth.

How to Change the Way We Think about Water

Learning in Nature's Laboratory

The most fruitful way to see the hidden nature of water, is to observe water, to listen to water, and to comprehend how it behaves as it moves.

When we take away water's flexibility, it's balancing capacity, we take away its role as a mediator between life and death.

When we listen, we learn that water serves life through processes of change and rhythm. Water motion is always organized, fluid and flexible. We can understand it as though reading someone's "body language" to assess their state of being.

Water that is allowed to move according to its own nature cleanses itself and sustains life. This is our model for the future. If water is not allowed to move and change and be open to organizing principles, if it becomes stagnant, then it becomes dead.

http://www.alternet.org/water/80885/

Speaking of quotes, I'll ofer one that IMO describes perfectly main objective of this communicty.

"To live through an impossible situation, you don't need the reflexes of a Grand Prix driver, the muscles of a Hercules, the mind of Einstein. You simply need to know what to do."
-Antony Greenbank

At the end of the day, all we really have to ourselves is our honor. Some on Wall Street (e.g. many here and the Minyanville community) take pride in that ethos. Others not so much. The ethical high ground needs no defense.

FWIW, I am newly long CALM with a small stock position, and a "repair" option position, with net short options via ratio calls spreads.

http://www.voptions.com/bullish_strategies_long_stock_ratio_call_spread.htm

Sorry for the wordiness.

"All we have to do is tell them they are being attacked, and denounce the peacemakers for lack of patriotism and exposing the country to danger. It works the same in any country."

I got as far as this quote and had to stop. It was that chilling.

Nothing more aptly sums up the current climate in the U.S.

After reading about all those quotations, the antics of African elections, the shocking negligence of US air carriers, and the general misbehaviour of governments and business people, one can only conclude the following (forgive the alliteration): Power and Profit will always take Priority over People. Author Dick Davis sums it up very well as it relates to the corruption that runs rampant in the US: "...until greed is no longer part of the human condition, we will always have fraud and cheating in corporate America."

vinod-

ESLR- thanks again for putting it on the radar- we've (wife and i) been trading around it for awhile, plus your local perspective has given us the confidence to hold a core position as well...

losses- exiting your positions last week prior to being away from the market was a smart move, even if things eventually went your way...made a similar call friday on SMN/DUG-> exited at losses, but with no regrets in the face of obvious strength in energy/commodities (and less than obvious reasons why)...i would argue that learning how to handle a loss is 90% of the game-> once you conquer the fear of losing, then winning takes care of itself-> we've taken daily/weekly hits on the port many times over the past few years, but the monthly trend is all up...all kinds of (great) advice out there in books and blogs-> for me it's distilled down to exiting when it's clear i have doubts, with doubt defined as a true change in (personal) sentiment about the position (as opposed to normal volatility)...[and of course we always begin with position size, buying on weakness, and incremental buy-ins as natural defense mechanisms]...

CALM- i'm going to add it to the watchlist...

Options specialist question:
What do you think of this strategy? tia
Russell 2000 (IWM) last 68.72

Buy a call and a put on the Jan Leap 2010 69 strike. Call @ 11.20, put @ 10.25.

Sell an Aug08 71 call @ 3.29
Sell an Aug08 67 put @ 3.96

Is there a name for this type of option strategy?
What are the plusses and minuses?

Not sure if this has been posted as work commitments have kept me from monitoring the blog everyday. An outfit called Cambridge House is producing a resource investment conference in Calgary April 12th & 13th. Details at cambridgehouse.ca. I'm thinking of attending either Saturday or Sunday (depends on the golf friendly weather). Nothing like PDAC - looks like they have just shy of 200 exhibitors and about 25 newsletter writers/commentators. If anyone would like me to address questions to one of the exhibitors - just ask

Re: Junior PM underperform

I normally post a comment with charts once a week to Stockhouse.com because the charts from stockcharts render so well, and formatting can be changed around to suit the individual poster. Some people might not like Stockhouse, that's ok. Its really one of the few on-line sources for retail investors to share information freely on-line about any particular equity.

This week I have tied in my comments about currencies, indexes and a particular stock, which by coincidence happens to be well indexed with both the venture exchange and the inverse silver/gold ratio. If anyone needs a way of looking at junior PM stocks, then simply use the same method as a way of making comparisons for your own purposes and drawing conclusions.

stockhouse.com

http://tinyurl.com/5rqa4o

n2s/student- how many conversations have we all had (at school, at church, with our kids, with friends/family over coffee or beer) about good and evil...we all know it when we see it (sometimes it takes a revelation), and at that point i think we all take one side or the other...there can be huge obstacles (denial, fear, self-doubt) to doing anything about it, of course...(a few) real changes occurred on/off campus in the sixties/seventies-> now that (those of us old enough) are in positions of influence, i think most of us make the right choices within our spheres on a daily basis...the world has changed, but the human condition has not-> i think the scale of corruption/greed is now larger simply because advances in technology and globalization allow those in power to act on a larger scale-> but then, those who speak out against it have access to the same technology...

Okay - more sleep. The Calgary Cambridge Resource show is this weekend - not next, and I won't be attending - sorry for the date slipup

it is very nice to see you back bill. i look forward to reading your commentaries every day and really missed it when you weren't on line... thank you for everything you are trying to teach us.

Here is result for March
Beginning value as of Mar 1 $129,806.60
Additions $30,000.00
Transaction costs, loads and fees -$854.25
Change in investment value $4,024.05
Ending value as of Mar 31 $162,976.40

Gold inventories drop to zero in Shanghai...

LONDON – Goldessential.com – Apr 11 – 7.30GMT

Gold warehouse inventories monitored by the Shanghai Futures Exchange fell 540 kilograms to 0 kilograms in the week ending Thursday, the SFE said today. Gold stocks had been 540 kilograms in the week before.

Fransix - Juniors, canadian dollar, euro, silver/gold?

I've read all your posts on these subjects, but would really benefit from a simple, direct summary of your key points. Perhaps there are others who only get "pieces of the puzzle":

- when silver rises vs. gold, there is speculation (because central banks don't hold silver?)

- juniors are priced in Canadian $, so when the loonie is weak, juniors sufffer?

- why the emphasis on the euro?

I'm sure you are onto some important relationships, and would like to understand your reasoning better. TIA

vinod- so you were up 3% more or less in march net of costs-> can't argue with that ;)

CALM- you may want to study charts of TASR and OSTK during their short squeeze periods for an idea of how the subsequent declines played out...

onlineaces-----reference "harbinger of what is coming"

Not surprised as posted this warning about a month ago.
**********
There it was one recent morning, a Sewer/Water muni bond paying something like 5.85%, maturity in about 10-12 months! Sounded to good to be true, still rated AAA, but on watchlist to downgrade to A. Someone throwing out the baby with the bath water?

Ahh, but then I noticed it was Johnson County Alabama! Last weekend buried somewhere in the middle of Section A, B or C in the WSJ, I had read Johnson County Alabama had used derivatives to leverage their cash. Yes, derivatives!

Guess what? They didn't know where the money would come from to pay off their bonds in this illiquid market. Even though it was a revenue bond (source sewer) which is usually reliable, I let this one go by for someone else to grab. Checking this morning, someone did. It's gone. Caveat Emptor!

On to today's roller coaster!

Posted by: Seamus at March 13, 2008 9:28 AM

*********

All municipalities do not engage in this type of risk behavior. Challenge for some will be the impact of the recession on tax receipts.

ALOHA !!

Yes Bill ... You have quite a few admirable historical quotes. The degree of honesty in governemnt is matched only by the honesty of the money it produces or as I like to say ...

GOVERNMENT IS ONLY AS HONEST AS ITS MONEY ...

All I can say is right now in this World he have a lot of dishonest global governments!!

Its always refreshing to my soul to visit websites like yours Bill that offers a respite from the deluge of lies that exists in the "paid-for" media! With that said, I suppose next we will have to fend off government rule and financial censorship of the internet ... the last "Free Press" we have!

US Taxpayers have to be the most abused and maligned group that exists in this World. As single "US Taxpayers" we have no power monetarily or politically, yet we are used to finance trillions in wasteful spending. United in a "Union Of US Taxpayers" we would be a formidable force and one heck of a HEDGE FUND. With only a $1,000USD donation the combined numbers of some 150 million of us could come up with $150 billion dollars which would rival China's Sovereign Wealth Fund of $200 billion. With that kind of funding we could buy and sell politicians by the dozens and put the biggest lobbyists out of business as we go around the World buying up strategic resources like the Chinese are doing now. Our leaders foolishly buy up resources via warfare at much more extravagant costs in terms of human life and future US financial security. In one "War On Terror" the Bush regime has spent the last of our Father's hard-won accumulated financial wealth and spit on every patriot who fought for our Freedom and Independence since Thomas Jefferson. We, "US Taxpayers" are asleep at the wheel, which is just how our leaders and those private bankers that control our money want it to be. By time we taxpayers wake up we'll all be too poor to afford any Union of any kind and then we are at the mercy of "Divided We Fall"!

ALOHA !!

This was my post on 4/11 to the question about gold bars and coins.

READ ON:

Whadayadoin ... I suggest using gold/silver coins, specifically British Gold Sovereigns or Canadian Maple Leafs(foreign coins), for personal stash and large bars, such as gold kilo or 400oz gold bars and 1000 oz silver bars, for storage accounts.

You will be able to "spend" coins as they are official "coin of the realm" and readily accepted, especially British Gold Sovereigns, which have been in circulation since 1533. They weigh less and you can carry them in your pockets easier. Good for emergencies as even the US Air Force give British Gold Sovereigns to their pilots as part of their "rescue kit" in the event they are shot down behind enemy lines. Notice the USAF does not have any crisp $100 FRNs in the "rescue kit"! What does that say about "real money"?

If you are storing bullion in a "bullion vault" best to keep them in the form that most mints and refiners and metals markets readily accept since they will be your likely customers when it comes time to sell. These size bars are always numbered(serial numbers)and are therefore readily verifiable as authentic.END

Hi!

Re IMF gold sale:

here is a pieve of news a friend sent me by e-mail, published by Associated Press news wire:

Chavez muses about buying IMF gold

CARACAS, Venezuela (AP) - Venezuelan President Hugo Chavez said Saturday that his government could afford to buy some of the International Monetary Fund's gold reserves as the Washington-based lender faces hard times.

Chavez raised that idea with a chuckle as the IMF, the lender of last resort for countries in trouble, considers trimming costs by selling off some of its gold reserves.

"Look at how the U.S. empire must be in unimpeded decline, that the International Monetary Fund ... is selling its crown jewels," Chavez said during a speech at a military parade.

"The International Monetary Fund is selling what gold it has left to be able to pay salaries," Chavez said. "We could give a loan to the Monetary Fund. ... We could buy some gold bars. ... I think they're selling gold cheap."

Chavez spoke as the IMF and World Bank were holding weekend discussions in Washington. One proposal on the agenda would trim 15 percent of the IMF's staff and sell about US$11 billion (euro7 billion) in the institutions' vast gold reserves.

A vociferous critic of the U.S. government, Chavez also has long opposed the policies of the IMF and the World Bank. He called the IMF "the financial arm of the empire."

The leftist leader spoke during a parade marking the anniversary of a failed 2002 coup that briefly drove him from power. He accuses U.S. President George W. Bush's government of being behind the coup, which U.S. officials deny.

Speaking to troops, Chavez said of the U.S.: "It's an empire in decline, but it's still very dangerous."

Copyright 2008 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed

Sorry aboot that Jock!

I think this is the first time that you could say the vast world of forex trade has a strong relationship with commodities plays. That in itself is an interesting point. But my interest is in my gold junior stock, but it could apply to very many commodities related aspects.

The euro appears to be stepping up into the layup for a rollover against the yen:

stockcharts.com

http://tinyurl.com/3x7ywk

I think this will be supportive of the gold price going forward, as the same had occurred with the £ and the loonie:

stockcharts.com

£

http://tinyurl.com/6ecclv

Loonie

http://tinyurl.com/4rzkde

So the ¥/$ trade should be firming up as well:

stockcharts.com

http://tinyurl.com/4we383

This can only mean further declines of the $US, a sign of this would be further collapses in US treasury yields, which is far more likely than any Euro zone rate cuts. The Euro and other currencies are more likely to maintain their position against the $US, even as they depreciate against the Yen.

So US investors seeking to mitigate currency risk investing in US denominated assets may seek $C-based assets. The evidence of this comes when you can't buy Canadian Treasuries from your broker with any appreciable yield, but the Canadian Central Bank posts a 2% treasury yield. I am probably mistaken when I say that banks are withholding interest on Canadian bonds, its the roaring trade in this asset class that is depressing yields far beyond the central bank rate. But all of this means a strong loonie.

What that might mean for Eurozone investors interested in commodities related investments is that they will see an appreciating loonie against their own currency, or at least a steady state therefore making commodity related stocks in Canada listed in the Euro zone accessible to them.

So theoretically what we should be looking for if all of these pointers in foreign exchange are presumably favourable to commodities and the loonie, is close indexing with the CDNX, and improving market conditions for commodities related stocks and an absence of speculative fervour.

Stocks with a close relationship to the indexes, and especially precious metals stocks closely indexed to the inverse of the gold/silver ratio (silver/gold) gives us a clear(clear as mud) notion of what to expect.

Numerous stocks have seen speculative fervour outside indexing, and have since collapsed miserably. PM stocks with smaller floats tend to have big speculative upsides on drill results, but then become depressed once the speculation ends.

Stocks which depend on speculative activity and well known names to the industry will likely trade far above their asset value and eventually become indexed to the market. Investors want that torque that comes from a speculative upside, but I have found the volatile prices will shake out most people on average very badly.

Overall, its still a good time to invest in UNDERVALUED junior PM stocks. So I have laid out ways of looking at whether they are undervalued by making a comparison to indexes germaine to the investment in question.

Junior PM investment usually involves a lot of ego on the part of investors, so if they can use some measure of comparison to well-known indexes, then its possible to extricate one's self from one's own false notions.

But this is no guarantee that the market will favour the stock you pick, no matter what kind of speculative upside you think it might have.

F6

Hi....Bill

I think # 113 pretty well covers what this place is all about and what is going on outside the BLOG....

113. “In times of universal deceit, speaking the truth is a revolutionary act.” - George Orwell

Thanx once again Bill for this place and the REAL goods.......

Cheers.....DB

ALOHA !!

F6 ... I notice on your G/S chart that whenever the averages converge at one point, like they are now, that POG and CDNX and GBN go up simultaneouslly shortly thereafter. Place your bets?

Jock .. I too only read bits and pieces of the F6 correlations and I don't have time to go back and sort them all. Would F6 lay it all out in one post? Perhaps you could link it to your StockHouse Reports complete with back-up charts and all! Or does that already exist somewhere that I missed? Mahalo and Thanks ...

kaimu,

Thankyou for pointing that out.

I don't want to overwhelm this blog trollishly with too many posts.

Re: Re-assertion of CDNX stocks

But you know, there are people still waiting around for the second coming though their forefathers who have long since died 2000 years ago were waiting for the same thing. It would not behoove me to tell them they're perhaps mistaken as I await the ressurection of my gold stock.

:0

Re: Backup Charts

I do backup charts occasionally to my flickr account:

http://www.flickr.com/photos/11747277@N07/

Pegging the HK dollar to the yuan?

http://tinyurl.com/6otrvb

excerpt:

"..a Hong Kong dollar pegged to the yuan might follow as China pushes forward with currency reform. This, it's worth noting, might well take place faster than many think.
If such expectations grow, then the Hong Kong currency will become the "sure thing" as it moves to the China price for a yuan. The bigger that gap gets, the more upside for investors.
This provides a further rationale for parking some assets in Hong Kong, preferably in something with a dividend. H-shares and red chips have already been gaining as investors factor in the yuan currency boost to Hong Kong dollar earnings.
And expect not just Jim Rogers but hedge funds to be watching this development carefully as there will be money to be made. As for Joseph Yam, he might just find he ends up earning even more than his central banker peers."

La Nina affecting Chile--water shortage, mines facing power cuts.

"We've got the worst situation in 100 years."

http://tinyurl.com/3urrsd

Volker speaks out against current Fed,

from the Globe and Mail.

http://jglobal.blogspot.com/

Thanks for that post Seamus. I've been to Laja, beautiful place, what a shame.

So Haiti's gov. fell because of food prices. Who is next?

A Framework for Occupation

In a House Foreign Affairs Committee hearing last month, State Department Iraq Coordinator David Satterfield revealed the Declaration of Principles proposals have now been divided into a binding Status of Forces Agreement (on military involvement) and a nonbinding Strategic Framework Agreement (on economic and diplomatic relations). Neither would be submitted for the consent of Congress. Though Satterfield emphasized that, being nonbinding, the Strategic Framework would not "tie the hands" of future administrations, it could solidify changes the US has already made to Iraq's economic landscape - and pave the way for increased US control over Iraq's oil in years to come, according to Antonia Juhasz, a fellow at Oil Change International.

http://www.alternet.org/waroniraq/81573/

Would that your list of quotes be read aloud on the floor of Congress; immortalized in our Congressional Record as testament to the death of our Union and harbinger of a future of control to be realized... and would that they not seem so prophetic in these days of transition.

Its beautiful weather here on this sunny Sunday in lovely CO. May you all be experiencing just such a day.

Milton Friedman once said:

“If you put the federal government in charge of the Sahara Desert, in five years there would be a shortage of sand.”

Full article: http://tinyurl.com/54nslf

Does anyone know a good by way of options to short the $TRAN transport index?

"Those who make peaceful revolution impossible will make violent revolution inevitable." JFK

sorry, that did not come out the right way....

Does anyone know a good way to short the $TRAN transport index using put options? Is there an optionable ETF that is liquid enough so that the bid ask spread on its options are reasonable?

Looking to see how red asia will be on the GE news...it should be pretty bad!

US banks Citigroup and Merrill Lynch reveal fresh $15bn loss

http://tinyurl.com/5hp3th

most agree that mining companies are facing rising costs and shortages of both fuel and labour.

in the event of a severe recession in which commoditiy prices fall, the unemployment rate rises but gold stays strong due to US dollar weakness, wouldnt mining companies fare better with cheaper gas, and a larger labour pool?

onlineaces- not sure what your definition of a reasonable spread would be, but options are available on IYT (i shares dow jones transportation average)...closed at 86.18 on friday-> may 85 puts show open interest of 2824 contracts, bid 0.90/ask 1.15...

Echoing the WIR, SEC Chairman Cox is a complete political hack interested in confusing the public from the truth. Exhibit 1: his 1999 Cox Report, a hysterical Republican smear piece designed only to embarrass the Clinton administration, leading to a disgusting racist national railroading and scapegoating of Dr. Wen Ho Lee. When I heard Cox was appointed the head of the SEC, I wondered how someone with zero integrity could be placed in such an important position of protecting the public trust. Such is the state of US government.

It's telling when Paul Volcker supports Obama on the basis that this country needs change while knowing little about Obama's fiscal policy and record.

[Bill Cara note: Whoa SteveC... it sounds to me like you ought to discuss your evidence regarding this issue in greater depth before referring to somebody as having "zero integrity". I was poking some fun at the man... I really think he knows how many fingers I'm pointing... one and it's the middle one... but I never suggested he lacked integrity.

I think we are all making the same point though in that Christopher Cox needs to stand up for the People or else resign. He took the job at the request of the President, but he has the responsibility to represent the interests of the People. Too many of us think he is working in support of the interests of HB&B, as have some (but not all) his predecessors.]

KRXI Korea Kosdaq Program Trading Suspended On Sharp Market Fall
16 minutes ago
(RTTNews) - KRXI Korea Kosdaq Program Trading Suspended On Sharp Market Fall.

Nikkei 225 Stock Average Down More Than 3%

Australia Sharemarket 2.0% Lower In Early Trading

[Bill Cara note: PM's are getting hammered tonight.]

Thanks 2nd, but IYT is too thinly traded for me...I'll just look at the top 5 $TRAN components instead.

Thank you for your reply. I appreciated it.

JRPauley -

I got a real kick out of reading that story. The irony is overwhelming. Thanks for your reply...

Seamus -

I thought that story was familiar. It must have been your posting here...

Thanks for the reply.

shanghai down 4.5%...

may be jumping the gun here (so probably best to sit tight), but i'm leaning towards buying a few sectors-> home finance (FNM/FRE/WM), Japanese small cap (JOF), air transport, electronics...and if shanghai continues to fall, looking for entries into one or more china funds...

Re: Christopher Cox and the Cox report
Yes, I should give more information regarding to what I am referring. Here's a bit more from Wikipedia regarding my criticism of Cox. "Zero integrity" may be strong, but I've seen this man in action before and I cannot believe he would stand up for the People.

http://tinyurl.com/65m24p
"The Chairman of the Committee was Republican Rep. Chris Cox of California, whose name became synonymous with the committee's final report."
"In response to the allegations contained in the report, the CIA appointed retired U.S. Navy Admiral David Jeremiah to review and assess the reports findings. In April 1999, Admiral Jeremiah released a report challenging the Cox Report's main allegation that stolen information had been used to develop or modernize Chinese missiles and/or warheads."
"In December 1999, a group of physicists and other scholars from Harvard, Stanford, and Lawrence Livermore National Laboratory released an assessment of the Cox Report that published by the Stanford University Center for International Security and Cooperation. The review refuted all five major conclusions of the report revealing how the writers of the report lacked scholarly rigor in their research and a lack of understanding with regards to Chinese policy making."

Basically, what happened was Cox spearheaded a "Big Lie" that was widely accepted, in the name of the public good but designed to herd the public towards special interest agenda. Right in line with this weekend's money quotes.

By the time the truth managed to gain some credibility in the mainstream, real people's lives were destroyed, and that is not an exaggeration.

Watching the tells---Continued raw food price increases.

FARGO, N.D. - Supported by higher prices for almost all commodities, the Index of All Farm Prices received in March in North Dakota rose by 24 percent over last month's figures to 230 percent of the 1990-1992 base.

This is according to a report issued on March 28 by the North Dakota Field Office of the USDA's National Agricultural Statistics Service. This is up 77 percent from last year and 107 percent higher than two years ago.

Wheat, corn, soybeans, oats, barley, etc. all continue up.

http://tinyurl.com/48pwrw

If there's bad spring weather in planting areas across the globe this year, there will be a global food crisis. Already Vietnam weather has affected the rice crop.

People may get duped by bankers and do nothing; but when stomachs go empty, we'll see (more)riots.

Hussman with data and commentary. Important.

http://www.hussmanfunds.com/wmc/wmc080414.htm