DEPRECIATION

The golden rule of investing is never ever borrow against a depreciating asset. Because the true cost of that transaction never allows you to recoup the investment. The western world is now on a collision course with it's debt issuance. Greece, Spain and now France says it is struggling over the weekend. The true story remains (the press will never say) the failed grand experiment of Socialism. America is next......we talk about billions needed here and there......and that government needs to bail this and that out with yet more borrowed money. America alone needed/ took yet another $170,000,000,000 in new debt last week! Tax receipts are falling dramatically (and will continue to do so) at the federal and state level...people are now pulling in their horns....
Wdc, llc., says, "they are in charge" ...they sure are!

Corporate debt issuance fell to the least amount last month in TEN YEARS....and there were many failed corporate offerings as well last week......the capital markets are now debt saturated....and nothing can compete with the struggling sovereign governments issuance. WHO WILL BUY ALL THESE NEW BONDS COMING???

Gold and silver are about to make new highs....when they do they will recharacterize the markets. The press says so much attention is paid to the over bought precious metals...but production peaked for both almost ten years ago....there is not enough physical metal to meet current global demand..

We are looking to find the best investments to make today with the over priced/ over bought US Dollar.

It is incredible how much negative news the the US and Chinese stock markets have absorbed. The million dollar question is how much have they already discounted??? Almost everyone we know has either exited the stock market or intends to do so within weeks or a couple of months.....the majority are looking for a stock market correction to resume and fall some 30% from here.....this is now an easy consensus....

Remember we started the year with the opposite.....the majority was looking for a really strong first six months then a correction.....so far that has not happened...many are looking to go to cash from here....we have seen near record cash outflows from the developed and emerging stock markets in the past two weeks.

The public unions blast the private sector for want of more pay or no reduced benefits....funny... more are employed now in the public sector than ever before...and the least in the private sector.....given their position.....who do they think should now pay for such extravagance? The press has it all wrong....the public sector wages and benefits are higher than the privates....

The race to debase each countries currency has begun.....

When we ask people why gold should be bought here or why it is being bought...everyone has a different answer.....but few we know say they actually own any gold...or silver....

THEY STILL LIKE BONDS...

Danny Boy seen here.....knows stocks are under owned (cheap) and bonds are over owned (expensive).