Adens, Schultz, batten down hatches

http://www.marketwatch.com/story/adens-schultz-batten-down-hatches-2011-03-14

“Five Big Trends For The Next Five Years” with even more powerful articulation:
(1) Inflation is headed up.
(2) Gold and silver are headed up.
The Adens think the gold and silver rise could be more dramatic that the 1970s. However, they write:
“Let’s say it is similar to the 1970s, then as we mentioned last month, gold could eventually rise to about $6,000 and silver to $150. We’re not saying these will be the ultimate upside targets, but they could be.”
(3) The US dollar is headed down.
(4) Interest rates are headed up.
(5) Bond prices will fall.
Here the Adens say:
“Even though the Fed says they’re going to keep interest rates low to help the economy, they simply won’t be able to. The Fed can control short-term interest rates, but not long-term rates. And with the U.S. needing more and more money to finance all of its expenses, the marketplace will demand higher rates in exchange for the growing risk. Under the current circumstances, interest rates are poised to rise much further in the years ahead.”

Harry Schultz’s last testament

http://www.marketwatch.com/story/harry-schultz-last-investment-testament-2011-01-10?reflink=MW_news_stmp

“Roughly speaking, the mess we are in is the worst since 17th century financial collapse. Comparisons with the 1930’s are ludicrous. We’ve gone far beyond that. And, alas, the courage & political will to recognize the mess & act wisely to reverse gears, is absent in U.S. leadership, where the problems were hatched & where the rot is by far the deepest.”

He writes favorably of investment advice given in a recent interview by former Reagan Office of Management and Budget Director David Stockman:

“Stockman replied (to my huge surprise, coming from a former top government official) ‘Get some gold, beans, water, anything that Bernanke can’t destroy. Ron Paul is right. We’re entering a global monetary conflagration. If a sell-off of U.S. bonds starts, it will be an Armageddon.’”

About gold, Schultz retains his long-term bullishness. He quotes the respected Seeking Alpha service:

“For gold to match the growth in US M1, M2, public debt & budget deficit, gold will have to reach $1,800, $2,400, $7,800 & $13,200, respectively. While I can’t imagine gold going to $13k, these numbers tell me that calling gold a bubble is a bit premature. In my view, money supply, public debt & the budget deficit are in a bubble, not gold, not yet.”

Schultz’s comment: “Wake me up at $2,400 gold.”

Quotes from Harry Schultz and Ted Butler

Roughly speaking, the mess we are in is the worst since 17th century financial collapse. Comparisons with the 1930’s are ludicrous. We’ve gone far beyond that. And, alas, the courage and political will to recognize the mess and act wisely to reverse gears, is absent in U.S. leadership, where the problems were hatched and where the rot is by far the deepest. - Harry Schultz, in his last newsletter


"If my analysis is correct, and the era of silver pricing being dominated by a big Comex silver short is ending, what will the silver pricing landscape look like in the future? The answer is that the landscape will be radically different, in order to reflect such a radical structural change. Removing the dominant pricing force on the Comex is as radical a change as putting LeBron James on a high school basketball team. It changes everything." - Ted Butler, silver analyst