A CONFIDENCE BOOST?
May 28, 2003
Novellus has been choosen as the salvation of the falling financial indexes. They reported after the close Tuesday that they are increasing their 2Q estimate. How much would you guess they are upping the estimate? How about a PENNY? And with that news CNBC will go wild and expect you to buy more stocks. Right!
A SAD IMAGE
May 28, 2003
Unfortunately Houston just keeps adding to it’s lousy business image. We now have the “other shoe” dropping. First it was Ken Lay at Enron being disgraced and now it is Chuck Watson who has resigned from Dynergy. So much for the high-flying entrepreneurs. Sad!
DOW 10,000?
May 27, 2003
Remember that old saw? Well, the Dow is now below 10,000 (for about the tenth time this year) and all those folks at CNBC can hype the five digit number- again!
ROCKY VERSACE
May 27, 2003
On July 8th, George W. Bush will give to Rocky’s brother the “Medal Of Honor”. He was killed September 26, 1965 in Vietnam. He is one of the first names on the Vietnam Memorial Wall.
If anyone has walked that wall, as I have, it’s an experience you’ll never forget. There is also a grave stone with an empty grave in Arlington National Cemetary- another place to visit and wonder.
Rocky was a Green Beret and Army Ranger captain who was captured in a firefight in mid 1963. He was tortured for two years and the more they tortured him, the more his body shriveled up, the more he praised God and country. He would respond to the incredible torture with three words: name, rank, and serial number. He knew what it meant to really be an American. He understood the price of duty, honor, and country. He is a model for all military men.
His reputation for strength and courage became common knowledge in the land. He was only weeks away from being released from the military so he could study for the priesthood when he was wounded and captured. Few can imagine the pain and horrible torture he endured. I stand amazed at such courage and valor.
On September 25th, the day before his execution, he praised God and somehow mustered up the strength to sing “God Bless America” over and over again. On July 8th, his death will be remembered with the highest honor this nation can bestow on a person.
What’s Memorial Day all about? It’s about men like Rocky Versace. I enjoy my freedom because of his life and death. I salute him and the millions who like him have given their life for this nation. How trivial my life is compared to theirs.
GETTING OUT
May 27, 2003
Foreigners are dumping the Dollar. Saudi Arabia no longer thinks that “greenbacks” are that good and besides, dumping the Dollar is Islamic war on American economic might. One other interesting statistic brings the picture in focus.
A year ago, foreigners increased their holdings in America by $33.8 million. One year later (2002) in last wek’s report, the number was $646 million- DOWN! They’re pulling money out and with the action goes the U.S. Dollar (down). With it goes the stock market (down). With it goes gold (UP).
QUICK OVERVIEW
May 27, 2003
Last week was a humdinger. Everything down (except gold) including the GDP revision. Oh yes, Krispy Kreme “beat the street by a penny” but doesn’t everyone? Greenspan printed another $33.1 BILLION in paper money meaning he’s printed more money in the last month than the value of every gold mining stock in the entire universe. And you think INFLATION is not on the way? Mutual Funds continue to lose YOUR money (top 23 funds down 8.3% on the year). Note: mutual funds don’t lose THEIR OWN money! It’s your IRA. It’s your 401(k).
DENIAL or PARANOIA?
May 27, 2003
It seems as though there is a paranoia on Wall Street about gold. As I drove home from the airport, the “Money Matters” segment on 740 radio was asked by a caller what he thought of gold and of course the answer was negative.
There is a great fear about what gold might do to the stock market, reality, and the decade-old scam way of life. But, the truth be known, if you want a good investment, buy a gold mutual fund. Most are up 50-75% in the last twelve months compared to the Dow, Nasdaq, or S&P500 which are all down. Or, how about the downgraded Barrick (ABX) that is up 70% in the last 18 months? How about GFI that’s up 492% in the last 18 months. Or maybe the little South African corporation- DROOY (up 700% in the last 18 months). Or, one could follow Wall Street, put your head in the sand and pretend it’s 1999 again.
As I mentioned a few days ago, the top 22 gold mining stocks all hit new 52 week highs in the last 5 days, but is Wall Street saying anything about it? Is it just denial- or something more sinister?
Another Nail
May 24, 2003
The Saudi’s just put another nail in the “Dollar coffin”. According to the WSJ many Mideast nations and investors are jumnping out of the Dollar and getting into the Swiss Franc. To me, this makes far more sense then flying planes into buildings. If you want to bring down the U.S. economy, bring down the Dollar! It seems to be working as well.
Fiat Paper
May 24, 2003
Those dollar denominations that you hold in your pocket are becoming worth less by the week. Are you aware that paper money printed by governments is nothing but fiat money and there is no nation in history whose currrency has survived time. Did I mention that GOLD has? 
Extreme Bias!
May 24, 2003
Fraud is another term for what the Wall Street analysts have been and are still doing. They kept pushing Enron as a BUY even when it was bankrupt. But, when GOLD is soaring through the roof, how many gold mining stocks have they upgraded? NONE is the answer. To add insult to injuury, earleir this year Goldman-Sachs downgraded PDG. Go figure!
A Serious Fact…
May 24, 2003
American household debt or liability now exceeds household equity. How long do we think this can last? How long does Greenspan think that the American consumer can continue to go into debt? How long before the “house of cards” is nothing but a pile of cards?
Goodbye, Fall!
May 24, 2003
Well, it’s 1;30 in the am EST and my toes are cold! My nose is running from the 50 degree weather at 6,000 feet. The roar of the rushing river down the mountain side is almost as good as the sound of the sea. But, I have to leave this paradise and return to Maracaibo in a few hours and then 24 hours later head back to Houston where summer should be in full swing now. This fall-like weather has been an oddity and a reminder- of the awesome diversity of our world.
Inflation Cometh…
May 23, 2003
As surely as the tide goes in and out, inflation and deflation work the same cycle. Productivity, the advent of computers, competition, and smarter management have been able to keep down “price” inflation; however, money supply inflation is on the way.
In order to battle deflation, Greenspan has been expanding the money supply meaning our dollars are worth less. About a week ago, the world community seemingly awakened to this phenomena. The Dollar has been falling like a rock! Whereas it once stood at a tall 121, it is now barely holding it’s own above 112.
The world has figured out that America can no longer afford to have them finance $1.5 billion a DAY (our trade deficit). And, someone probably figured out that when Greenspan printed $42 BILLION in new money and released it into the economy in ONE WEEK alone that the dollar was not going to be worth very much down the road.
Do you realize that Alan’s one-week release ($42B) in new money was equivalent to 50% of the value of all the gold mining corporations that are listed on Wall Street. Inflation is on the way!
A New Phase…
May 23, 2003
Now, the police begin an entirely new phase of the Chandra Levy case. With the discovery of her body, new clues will come to the surface and hopefully the person(s) who are and were responsible for her death will be found.
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