Gold, Eurodollars, and the Black Swan That Will Devour the US Futures and Derivatives Markets

The Eurodollars estimate in the chart below is based on the BIS Banking Statistics from Commercial Banks and may not include official reserves held by Central Banks.

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A Hedge Fund Giant Is Betting Big on This Hated Tech Company

Seth Klarman has made a living buying hated stocks.
Klarman is founder and president of Baupost Group. Baupost is a value-based hedge fund with a focus on buying out-of-favor companies.
The fund has roughly $22 billion in assets under management.
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Does Gold Really Help in a Market Meltdown?

The gold we buy just sits there, either gaining or losing value according to market forces that don’t always make sense. The fellow below bought gold at $1,745 an ounce. It’s now at $1,750.

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Barack Obama Is Taking A 17 Day Vacation Even As America Falls Apart All Around Him

What in the world is Barack Obama thinking?  The United States of America is falling apart all around him, and yet he decides to take a 17 day Hawaiian vacation.  Does he even understand that he is the leader of the free world?

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How to Own Your Share of the Next Wave of American Oil Wealth

In yesterday’s essay, I showed you how we are in the midst of a massive, global discovery phase for oil and gas… a phase that will create tremendous wealth for investors.  As I’ll show you today, two things in particular will make this new phase of discovery so powerful.  First, thanks to seismic technology and a better understanding of geology, finding the source rock for these new oil and gas reservoirs is relatively easy. These are colossal layers of rock that cover hundreds of miles. They’re fairly thick, too. As a result, drillers hit very few dry holes – almost none.

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Fed Declares War on Dollar

Europe. Sigh. It makes my head hurt to think about it.  But here we are, watching and waiting AGAIN as a few overdressed men and women attempt to parse out the fate of the Western world.

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Have You Heard About The 16 Trillion Dollar Bailout The Federal Reserve Handed To The Too Big To Fail Banks?

What you are about to read should absolutely astound you.  During the last financial crisis, the Federal Reserve secretly conducted the biggest bailout in the history of the world, and the Fed fought in court for several years to keep it a secret.  Do you remember the TARP bailout?  The American people were absolutely outraged that the federal government spent 700 billion dollars bailing out the “too big to fail” banks.  Well, that bailout was pocket change compared to what the Federal Reserve did.  As you will see documented below, the Federal Reserve actually handed more than 16 trillion dollars in nearly interest-free money to the “too big to fail” banks between 2007 and 2010.  So have you heard about this on the nightly news?  Probably not.  Lately Bloomberg has been reporting on some of this, but even they are not giving people the whole picture.  The American people need to be told about this 16 trillion dollar bailout, because it is a perfect example of why the Federal Reserve needs to be shut down.  The Federal Reserve has been actively picking “winners” and “losers” in the financial system, and it turns out that the “friends” of the Fed always get bailed out and always end up among the “winners”.  This is not how a free market system is supposed to work.

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Chart of the Week – Oil’s Breakeven Price

One way to gauge support for the price of oil is to calculate the breakeven price. In other words, what is the dollar amount per barrel that would be required for an oil-producing country to balance its fiscal budget?

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The Currency War Big Picture Analysis for Gold, Silver & Stocks

I think you will admit that we are in the middle of one major crazy financial mess.  The part that makes things really crazy is that it’s not just in the United States anymore but rather serious global problem which if not handled properly could change the way we live our lives going forward or possibly even spark some type of war, hopefully things don’t get that crazy… But I do know one thing. Fear is the most powerful force on the planet and people do some crazy things when they are backed into a corner.

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Facebook IPO: How to Trade Facebook Today

The 800-pound gorilla is about to enter the room.  Facebook wants to IPO in the second quarter of 2012 with a $10 billion offering, valuing the company around $100 billion.

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