Daily Business Report

Tuesday, May 16, 2006

Party time (until real estate collapses) by PAUL B. FARRELL

Like now with America the oil addict, the debt addict. It's party time. Government cannot stop spending. Consumers can't stop buying. We're partying! Spend what's left of your savings, have a great time before you're forced to stop living high on the hog. Before rehab. Yes, we all know we'll have to cut back. Just not now. It's coming, we just want one last fling!

Monday, May 15, 2006

The equity bull market is dead, say City experts by Edward Simpkins and Robert Watts

The bull market that has seen shares rise in value by a third over the past two years is finished, according to leading equity strategists and economists.

Market analysts say that low growth prospects in the US and the weak dollar, combined with rising inflation, could see an end to the growth in stock market values for the rest of the year.

Thursday, May 11, 2006

Beijing whispers push gold to $700 by Ambrose Evans-Pritchard

They seized on comments yesterday by Liu Shanen, an official at the Beijing Gold Economy Development Research Centre, who said China should raise the portion of gold in its reserves from 1.3pc today to between 3pc and 5pc. Such a move would entail the purchase of 1,900 tonnes of gold, equivalent to gobbling up nine months of global mine production.

Wednesday, May 10, 2006

Monetary Myths by Aaron Singleton

"Money carries with it an expectation. We see it as the symbol of our productive effort, which can be traded for the things we desire. That’s why we accept it. We expect that others will do the same. In our minds, money becomes the physical embodiment of our sweat, our hard effort, our ideas, our achievements, and our labor. It is these things, and the material goods they produce, that do not grow on trees. The money we currently use does."

Tuesday, May 09, 2006

Dollar weakens on deficit fears

The dollar slid further against sterling this morning amid speculation that the US wants a weaker greenback to help tackle its severe current account deficit and that 15 consecutive interest rate rises are about to come to a halt.

Monday, May 08, 2006

The fallout from a falling dollar by Ron Scherer

As a result, the Canadian "loonie" is at its highest point in 30 years. The British pound is at its uppermost level since last September. Even the closely managed yen is at a six-month peak.

If the dollar were to continue falling, it could have wide ramifications:

Friday, May 05, 2006

If Cuba Can Drill for Oil, Why Can't We? by Jerome R. Corsi

The U.S. Geological Service estimates there may be as much as 9 billion barrels of oil in the North Cuba Basin. The Gulf of Mexico may be one of the world's largest oil resources, but truly we don't know. We have yet to explore the entire Gulf, especially not in the deeper waters more than 125 miles offshore.

Thursday, May 04, 2006

Canadian Dollar, Mining Stocks and Warrants by Dudley Baker

Are you keeping up with the Canadian Dollar (commonly known as the Loonie)?

The Canadian Dollar is now the strongest currency in the world and there have been many forecasts of parity with the U.S. Dollar and as of today, the Loonie is trading at 90.35 as we write this article.

The first and second charts below shows the strength of the Loonie over the last year and the third chart is of the XAU Gold Index. Observe the long term trends in all of the charts.

Wednesday, May 03, 2006

Has Bernanke's credibility taken a hit?

"Federal Reserve Chairman Bernanke told me over the weekend that the media and the markets basically got it wrong last week in speculating that the Fed is done raising interest rates," she said moments before a live interview with Chicago Fed President Michael Moskow.

Tuesday, May 02, 2006

Canada's Dollar Has Biggest Monthly Gain Since 1971 on Rates

Canada's dollar posted its biggest monthly gain since at least 1971 on prospects the Bank of Canada will keep raising borrowing costs to prevent the economy from overheating.

Monday, May 01, 2006

Iran oil bourse next week

Oil Minister Kazem Vaziri Hamaneh said on Wednesday that the establishment of Oil Stock Exchange is in its final stage and the bourse will be launched in Iran in the next week.

He told reporters, upon arrival from Qatar where he attended the 10th General Assembly of International Energy Agency and consultations with OPEC member states, that registration of the Oil Stock Exchange is underway and the entity will operate after being approved by by Council of Stock Exchange.

Friday, April 28, 2006

Silver bullet cocked and ready by John Spence

At long last, a silver exchange-traded fund that has been in the works for over a year is expected to begin trading Friday.

A registration statement for the highly-anticipated ETF from Barclays Global Investors was declared effective at 10 a.m. Eastern time Thursday by the Securities and Exchange Commission, clearing the way for the ETF to list, an SEC spokesman said.

Thursday, April 27, 2006

The real federal deficit weighs in at $760 billion by Jerry Reynolds

For those who have harbored doubts about the Bush administration's official statements of the federal deficit, a harrowing confirmation came in mid-April. The federal deficit for fiscal year 2005 was not $319 billion, the figure given for the official national budget. The federal deficit for fiscal year 2005 was, in fact, $760 billion, or $156,000 for every person in America.

The figure is found in the Financial Report of the United States Government, a rare document run to earth by nationally distributed Washington Post columnist David Broder.

Wednesday, April 26, 2006

A Look at Hyperinflation by Mike Shedlock

The Fed is almost always fighting the wrong battle so I agree with Faber that it should be abolished. A return to the gold standard and elimination of fractional reserve lending is just what we need. It would be a very painful adjustment to make, but a serious adjustment is coming anyway. We may as well make it the right one.

Monday, April 24, 2006

The threat to a fistful of petrodollars by Liam Halligan

The greenback's recent volatility and the yawning US trade deficit, "are definitely causing concern with regard to its reserve currency status," he said. "The international community can hardly be satisfied with this instability."