For those of you that missed my Friday night BNN interview, or for my American friends that don’t catch BNN, please find enclosed a link to my BNN Interview.
This is a two-part interview. Wait for the video to go to second part when part one is finished.
Peter,, Heard your comments on BNN and how Bearish you are on the American dollar. I read the following excerpt from the King Report and of course with the currency trade, timing is everything. Do you agree with his timing?
“… dollar might be exhausted for now and a significant pullback could appear. However, there should be more hedge fund liquidations and commensurate dollar buying in November as investors try to meet the November 30 deadline to withdraw funds from hedgies and fund of funds.
“Then there could be one last dollar surge in December as banks, brokers, operators, non-financial companies, and other dollar shorts cover their positions for year end. But there could be an even larger dollar-buying force in December: foreign banks, especially the Japanese, which must procure term money for year end. But after year end obligations have been met, the dollar could be very vulnerable.”
Would love to hear your comments.
Thanks
Superstar – I like your name. My resource readers call me supurdud. Yes, that’s a possible scenario and as i said on BNN, I could be early. But in my heart of hearts, I bet my life on the Loonie vs. the dollar over the next few years.
Hi Peter,
Enjoy reading your blogs and listen to your interviews always. My broker has begun to nibble on a few stocks lately. One that he’s watching closely is Mercator (ML) on the tse. Recent news of it’s phase 1 copper/ moly project starting production in a couple weeks and being well capitalized makes it a likely survivor and a takeover target. Do you follow them and if so I’d love to here your thoughts?
I’m also in the camp that the US dollar is about to run out of steam. This will no doubt have a positive affect on commodities.
Regards
Richard
Thanks for an informative BNN interview, Peter. It helps me keep my compass straight with a vision to plan properly.
Someday economists may look back upon the 1st decade of the 21st Century as a deflationary decade, where the house of cards came tumbling down.
But it’s merely a prelude to the bigger story of a massive Hyperinflation ahead in the second decade. There will be a scramble for Precious Metal & other investments for protection against a U.S. government run amok. That may be unavoidable at this point.
People believe that the U.S. Government will save us, but in the end deficit spending and the Federal Reserve will destroy us. Hyperinflation is on the way. Just some more patience, but there may be few if any winners in the end.
Regards, SGGroup
*** A CHANGE OF COMPASS DIRECTION ****
It’s improper etiquette to stand in the shadow of Peter Grandich’s thunder. He has an itellect that I admire and apology if my sometimes lengthy synopsis seem to enroach upon his fame. Without intention to join the newsletter writing circuit, surely this communication is innocent and purely for the purpose of ‘MASTERMINDING’ in some way with ‘THE’ top professional. Here’s what I have to say…..
This evening, my wife and I had dinner with a Bond Market professional (A couple that I have strong acquaintance with) who works in the guts of creating large corporate bond financings. Several months ago, he disagreed with my expectation that the Dow Jones Industrial Average (DJIA) would end up at 25 cents from the peak, maybe 3,500 to 4,500, I had said. That’s all it’s worth.
My personal experience after working around corporate income statements and balance sheets is that the survival of leveraged corporations is quite fragile especially under duress. Most of corporate America is leveraged far beyond the levels of previous decades with reliance upon Debt Financing.
What this professional had to share is that there is ‘No New Financing’ for maturities in the high yield market and even ‘High Grade’ corporations pay a big premium for very scarce funds. Next year, there will be many maturities of Bond Issues especially in the technology sector, but nothing will be available for replacement . Go back to the late 1990’s, especially 1999, when Ten Year Bond Issues were the favorite for financing by the telecommunications companies. His conclusion is that there will be many bankruptcies in the telecommunications and other industries next year.
So thinking of this pending corporate debacle on Ten Year High Yield Issues, the probable discharge of 100,000 auto workers in November, and the uncertainty in Municpal and Consumer debt markets all poised for difficulty what do I do? Stay focused on precious metals !
SGGroup doesn’t want anything to do with U.S. Equities here or anytime soon. The fundamentals do not support a strong meaningful trading rally. Stay with Precious Metals and related investments . Close your eyes to short & intermediate term movements because Gold has been in an uptrend since the dawn of civilization.
SGGroup. Feel free to post. I want everyone to feel this is a place where we all can learn from one another and posting is welcomed.
God Bless
Hi Peter,
Your words of wisdom are a boon in times like these. I’m a novice investor who unfortunately decided to start investing under 2 years ago, it has been quite an education thus far to say the least! I also have a doubly invested interest in your words on the junior market as I am both an investor and have many juniors as clients through consulting as a geologist.
I’m interested in your trade against the USD and was wondering if I could have your thoughts on something. I hold a small portion of my portfolio in $US with recent purchases in some large international companies I am looking to benefit from an eventual recovery (GE, shippers of raw materials like FRO and DSX). If the USD sees a significant pullback in the next year or two as you say, could this improve the earnings outlook even in the face of possible global recession?
I’m weighing whether or not to leave my money invested, possibly adding UDN as a hedge for the USD. Do you think the risk of a lower USD is great enough that I should repatriate my money to canadabucks and avoid the US altogether?
Cheers,
Martin
Peter don’t know if you’ve heard of this Hal Turner and his conspiracy theory on the Amero (new North American currency). A lot of what he’s saying in the last part of his dialogue is similar to what Doug Casey and Peter Schiff are saying and I’m wondering if you know any thing more about the credibility of his claims. Here’s his video:
http://video.google.com/videoplay?docid=1954933468700958565&hl=es
Martin – I’m likely early on the bearish case again for the U.S. Dollar. It can get as high as 91 or so on the U.S. Dollar Index
Superstar The world as we know it would be over if Mr. Turner is right. This will sound horrible but if he was suddenly found dead his claims may be more valid.