Low oil prices are destabilizing the financial sys

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first_img Low oil prices are destabilizing the financial system. Things could get ugly: fewer stocks are participating in S&P 500’s advance to new highs, and momentum indicators have dropped to their lowest reading in 16 years. China plans to use gold as a primary currency along the new Silk Road. Airbus is suing the NSA for stealing its tech secrets after it came out the US used German spies for industrial espionage. Bitcoin’s original appeal was that it could not be controlled by any government. Now it may be regulated out of existence. George Soros spent $33 million on Fergusson protest groups. The amazing race to invest in Iran has begun. Each year around this time, the spring thaw in northern Canada creates a buying opportunity in mining stocks. Miners must wait for the mud to dry before they restart their drills, so progress is slow and news is sparse. Impatient investors lose interest and sell their shares. This year’s “shopping season” could be epic. Miners have cut exploration budgets to the bone, and it’s unlikely that gold production can keep up with demand. Our Senior Precious Metals Analyst Jeff Clark just reviewed gold producers’ year-end reports, and he found that reserves are already falling. (“Reserves” is a mining term for ore that is economically mineable.) Clark discusses three developments that “paint an ominous picture for new gold supply.” Exploration won’t pick up until gold prices are significantly higher. With the stock market on the brink, that day may not be far off. The West Wants to Impose Oppressive Taxation on Everyone Bankrupt western governments need every penny they can steal tax. That’s why they’re obsessed with eliminating “unfair” competition from tax havens. Powerful western nations are now vilifying tax-friendly countries like the Isle of Man, the British Virgin Islands, and Bermuda. How dare a government let people keep more of their own money. What this all boils down to, says Jeff Thomas, is that governments want to destroy our economic freedoms and make us their prisoners. Eliminating tax havens would be a dangerous step in that direction. Robo Advisors Are No Substitute for Judgment Relying on a computer program to build and maintain your portfolio is the hot new thing. But these “Robo Advisors” are no substitute for human judgment, warns Money Forever’s Dennis Miller. There’s no one-size-fits-all investment blueprint. Mimicking stock market indices, for example, might work for a twenty-six year old. But a near-retiree can’t afford to risk his entire nest egg in the stock market. If you want to try automated investing, make sure your robo advisor understands your financial goals. Blips & Bogeys The sudden plummet of LinkedIn’s share price is making tech investors nervous. Zerohedge has forced the CME to bust two traders for “spoofing” the gold market Is Apple screwing the US economy? Russia signs up to $100 billion BRIC ‘IMF-style’ reserve fund. Is the world on course for the biggest mass default in history? Pebble plans to win the smartwatch Wars. But are smartwatches just 21st-century electric can openers? The reshoring of manufacturing jobs could be a boon for US miners. The UK faces Internet rationing, as capacity can’t keep up with demand. Greek ruling party economist says consensual exit from the euro is the only option left. 3D printing stocks crash. Big oil companies crush earnings estimates, leaving energy bears scratching their heads.last_img

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