reality

How much was the price of a gallon of gas before Obama took office?

 

 

By: Joshua Gayman

seriously ya’ll this has nothing to do with politics, only finance…

in response to all of the comments posted about how a gallon of gas was $1.81 or whatever when Obama took office: How about a gallon of gas hit $4.00 in 2007 when Bush(a Republican) was in office.

Economics lesson: when currency falls, commodities rise.

Hence, with the distaster in the EU from their fiat currency that has issued more debt than there is sufficient capital to pay back, the currency is losing value which pushes up things like gold, real estate, stocks, and OIL, amongst other things like sugar, corn, etc..

Thus, if you want to blame any one party or person for the price of oil rising, blame the central bankers ie: the Fed and the ECB(european central bank). They run BOTH parties anyways!!!

Until we think rationally TOGETHER(ie: both parties thinking of ways to work together to achieve a common goal of a higher quality of life for our nation and future generations), we are going to continue to get run over by the ultra rich and social elite.

The Facebook Crash Isn’t What It May Seem (as usually is the case with anything on Wall Street..)

I haven’t been very social lately. We’ve had the playoffs….the playoffs….ummmm…..the NBA Playoffs… Go CELTICS!!

Oh and we’ve been selling a TON of houses!!

Silver has been falling. “Sell in May, and go away.” So they say anyways, we’ll see. It’s an election year and we know that Central banks are trying to prop up the dollar as long as possible. We’ll see if we see QE3 after the election and a skyrocket in silver pricing tho.. The USD (US Dollar) is higher than it has been in over a year at over 82.

Facebook has gone public!

Many people think that when there is a stock IPO(Initial Public Offering) that it’s the first time people can buy stock. That’s not actually quite accurate.

It IS the first time the general public can buy the stock. But before the general public can invest, accredited investors get their shot first, and at a much lower price! To be an accredit investor, you have to meet certain criteria that the SEC sets out. Basically this means that the wealthy get an advantage with investing..No surprise!

Facebook stock opened up near $40, and it is now below $30.

Facebook shares dropped 10% today at a drop of over $3.

Many people are saying the IPO for Facebook was overvalued. Those who claim this might talk about how Google has 10x the cash flow of Facebook and 10x the strength on their balance sheet. What Facebook has now over Google is social usage. Google is working on that, but they got in late.

But here’s the thing: When a stock goes public, it is meant to benefit the company!! They make money by selling shares.

Facebook is smart and finds a way to do smart things. Zuckerberg is simply not your average CEO. There is something different to Facebook. It has swag. Facebook continues to adapt and integrate with other platforms. This is why I was wrong 2 years ago when I said Facebook was on the verge of falling to other platforms like wordpress and blogger.(right before my parents got on Facebook!) hah!

Will I invest in Facebook? I dunno…

With real estate, I can control my investment.

If Facebook keeps dropping, I can come up with a lot of fundamental analysis to support getting in. But I just don’t know…

What I can tell you I definately will buy more of if it keeps falling, is silver. I promise you I’ll pick up on that. I forecast QE3 after an election and more devestation to the European Union shooting the price of silver up.

If you want to follow Facebook as a company daily, and you commit yourself to a solid education in stocks, you can make money in Facebook. This way, you can make money whether Facebook stock goes up, goes down, or goes sideways.

But whether it’s Facebook stocks or any other investment, do your homework and don’t trust the BROKErs.

 

Silver down as Dollar is propped up by Euro problems, but QE coming

News from the BRIC nations this week. News from the Federal Reserve… QE…..Spain…When will the madness end? Dollar again propped up in short term by Euro problems, but fundamentals point to a coming implosion of silver and gold prices. Bernanke breaks bread this week with Wall Street Bankers.

Greece Credit Ranking Downgrade Shoots Silver Up

Last week Greece was bailed out and investors took over 50% losses on Greek bonds. This week their credit ranking is downgraded and silver skies!

So it just so happens i get tires right next door to a coin shop. I go in and shoot the shit with the owner while I wait on my tires. I’m there about 30 minutes. 5 people come in to buy silver, one person comes into sell silver, and one person comes in with some junk to check the silver content in some old household items(which with a milisecond glimpse the owner told them was plated and worth it’s good old utility value..) My point is that it is crazy how backwards the psychology of the market is on Main St. People go crazy and buy when prices go up and they get scared and sell when things get more affordable. Don’t do this!! 🙂

 

Click here for more videos from Joshua Gamen about gold and silver investing!

Dollar Shun Continues – Gresham’s Law

“When a government(or governments) forcefully over value one money and under value another, the under valued money will disappear, and the over valued money will flood the circulation.” – Gresham’s Law.

Federal Reserve Says Economy Will Suck Through 2014

Written by: Joshua Gayman

Last week the World seemed to take a break from worrying about Europe and focused their attention back to the United States and the meeting of the Federal Reserve AKA the Fed. The proof? The Euro rised big against the Dollar.

Ironically, the United States’ problems far surpass the debt problems of the European Union. The difference? We have a Central Bank that can print our currency out of nothing!

The Fed introduced an “Inflation Target,” which they set at 2%. This is something that has never been done before! Last year’s inflation numbers were closer to 3.5-4%, but given that the outlook for coming months is to drop significantly, expectations point to a drop under 2%, at which time would be a perfect scenario for the Fed to come out and unveil a 3rd round of quantitative easing AKA QE3.

The Fed also said they will keep short term rates(“over-night rates”) at all time lows through 2014. The Federal Reserve has never stated a policy that would last 3 years! What’s more crazy, is that debt is the only product the Central Bank sells. Can you imagine if a large company came out and said, “We are going to sell our one and only product at all time lows for the next 3 years.”? I am thinking we’d question whether they could survive another 3 years. The same should be true for the Fed, but I doubt it will. People are still so blinded by the illusion that they actually produce something..

The monetary policy by the Fed to keep rates low KILLS savers. This included anyone who has money in checking, savings, any type of deposit account, IRA, 401k, mutual funds, pensions, etc. If you have your money in one of these places, don’t expect a return for…YEARS.

So where do you see the economy going in the next few years? Well, if the statement by the Fed is any indication, I would say a strong recovery is not on the horizon.

I really don’t see these long term low rates benefiting the masses. I do see it benefiting small business owners who rely on short term loans. I also see it benefiting those who have Adjustable Rate Mortgages AKA “ARMS.” And the group I see being benefiting most by this are those savvy entrepreneurs who will use this cheap money to buy cash flow producing assets.

So what’s the bottom line?

The bottom line is that nothing is free. Money is no exception. There is a “cost for capital.” This means that there is a cost for borrowing money. DUH! The problem is that the cost of capital would be much higher if it weren’t for the Federal Reserve who can set the interest rate anywhere they want. By the Fed placing interest rates under the cost for capital, mal investment is brought into our economy by people who are getting loans for things they shouldn’t. It is because of this that I think the Fed needs to back off and let the market find it’s true equilibrium. This would allow for the smart money to come back into the marketplace. The smart money will stand on the sidelines as long as the Fed holds interest rates low. Investors can’t compete with the Fed when the Fed gets it’s capital by printing it out of thin air! Because the Fed simply “prints” their “capital,” they can hold interest rates at all time lows as long as they need to. Of course this is terrible for the economy as it means we are at their mercy.

If stimulating more debt would help us recover, I think it’s safe to say we’d have recovered by now. The reality is that pushing more debt into the system will not make our problems go away. It won’t slow the foreclosures, it won’t add jobs, and it won’t make life cost less money.

Like any private company, the Federal Reserve exists for one main purpose….PROFIT. The Federal Reserve can’t profit if it doesn’t exits. And it wouldn’t exist if people realized they don’t create anything of real value.

An indebted society is not a healthy one. Look at Greece.. If it weren’t for the US being able to print money, we’d be no better off than them.

Gold and Silver Rise Following President Obama’s State of the Union Speech?

No…I am pretty sure it was because of the Fed’s news to hold interest rates at all time lows through (at least) 2014.

 

What type of gold or silver investor are you?

If you are investing then it is important you know the difference between fundamental analysis and technical analysis to develop your strategy!!