Author Archive: Gary Christenson

I am a retired accountant and business manager who has 30 years of experience studying markets, investing, and trading futures and stocks. I have made and lost money during my investing career, and those successes and losses have taught me about timing markets, risk management, government created inflation, and market crashes. I currently invest for the long term, and I swing trade (in a trade from one to four weeks) stocks and ETFs using both fundamental and technical analysis. I offer opinions and commentary, but not investment advice.

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When Will US Debt Hit the Wall?

When Will US Debt Hit the Wall?

Assuming that revenue increases 4.6% per year, public debt increases 14% per year, and that a maximum of 1/3 of revenue can be used for paying interest, the blended interest rate in 2030 cannot exceed 2%. This tiny exercise tells me that western economies are accelerating toward a wall, there are only a few years or perhaps a decade or two remaining before a major reset must occur, and that the time for delusional thinking is nearly gone. What have you done to prepare for when one or many western economies “hit the wall?” Gold and silver might be better answers than devaluing currencies, overpriced bonds, or levitated stocks.

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First Strike Capability: Gold or War

First Strike Capability:  Gold or War

When the inevitable correction/crash occurs, the exits will be crowded, the herd will fall over the cliff, a few financial “dead bodies” will float to the surface, and banks will need bail-ins from depositors, so the “war on cash” is designed to force more assets into banks in anticipation of coming bail-ins.

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150,000 Cigarettes or 3,275 Ounces of Silver

150,000 Cigarettes or 3,275 Ounces of Silver

A pack of Marlboros cost $0.19 many years ago. A typical price is now $6.50. Since we use unbacked debt based fiat currencies, inflation is here to stay, along with occasional panics, periodic crashes, and wealth transfers to the financial cartel. Exchanging a small expense every day for a purchase of silver will create a considerable stack of silver over 20 years. The expense is gone but the silver endures. We have choices as individuals and as nations. More silver and less fiat currency is, in my opinion, a good choice.

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Gold versus the Status Quo

Gold versus the Status Quo

The status quo is heavily slanted in favor of fiat currencies, against gold, and maintaining their power and wealth. The anti-gold sentiment is quite strong. It reminds me of two thoughts. If everyone is thinking the same thing, no one is thinking. If everyone is leaning over the same side of the boat, watch out.

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Silver Lows and Bubble Bonds

Silver Lows and Bubble Bonds

T bonds and the S&P look dangerous, while silver has been crushed during the past four years. Which of those three asset classes is likely to perform better between now and Election Day 2016? Which of those assets has no counter-party risk? Two of those assets currently trade at or near all-time highs, while one is, relatively speaking, quite inexpensive! Invest accordingly.

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Gold Bashers – Just For You!

Gold Bashers – Just For You!

There is no shortage of negative commentary on gold and silver. A quick google search will produce headlines which make that point. Not all objections and criticisms of gold are intellectually honest – they slant the narrative to support their bias in favor of the status quo, stocks, bonds, and central bank issued currencies, such as Federal Reserve Notes. The dishonesty is understandable since gold is often viewed as an anti-dollar and gold prices sometimes function as a check on the excessive debt creation.

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Addicted To Debt, Deficit Spending, and QE

Addicted To Debt, Deficit Spending, and QE

Central banks and governments created this addiction – addicted to debt, deficit spending, and Quantitative Easing. Consider the upcoming pain for most people, governments, markets, and pension plans if the drug is removed and we suffer the withdrawal symptoms.

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Debt and the Tinderbox

Debt and the Tinderbox

We know that the Federal Reserve cranked up their digital printing presses and created over $16 Trillion in new currency, swaps, loans, bailouts, gifts, etc. in response to the 2008 financial crisis. If you invested in stocks and bonds, the various QE – “money printing” programs were probably successful for you. Examine the following chart and note the impact of QE on the S&P 500 Index.

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Asking the Wrong Questions

Asking the Wrong Questions

Garbage in, garbage out! Ask better questions and the answers will be more useful. The same thinking that brought the world to this point will not be helpful in solving the problems that threaten our financial well-being.

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Bikers, Bonds, and Black Swans

Bikers, Bonds, and Black Swans

Death, injuries, prison, and life changing consequences arose from an argument over a parking space. What might occur in an argument over several $Trillion of dodgy sovereign debt or a territorial fight in the Ukraine, Iraq, or Syria? Do you own insurance in the form of gold and silver, which have NO COUNTER-PARTY RISK?

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Lunch With Elvis

Lunch With Elvis

One FKEU isn’t what it used to be. Perhaps that partially explains why there has been so little media interest regarding Fort Knox gold and why there has been no audit in the past 60+ years. An audit might discover that the gold in Fort Knox is, like the purchasing power of the US dollar, mostly gone. Times change, gold moves to China, India and Russia, debt increases exponentially, a mighty storm is coming, and, I confess, we really did not … enjoy Sasquatch burgers.

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Gold Has Bottomed – More Evidence

Gold Has Bottomed – More Evidence

Markets become over-bought and over-sold, or extended to extremes, in both directions. At some point they reverse, as indicated by the Stress Index. Intense moves in the S&P and Bond market indicate extremes in sentiment that also affect the gold and silver markets. Many gold bottoms and tops have been identified over the past 15 years by this Stress Index. The “gold-bashers” may be correct (I doubt it), and the High-Frequency-Traders and central banks may crush gold and silver prices again, but I doubt it. The Stress Index indicated a bottom in the gold and silver markets in March of 2015.

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Suicidal Credit-Based Money System

Suicidal Credit-Based Money System

Governments and central banks have been able to “extend and pretend” by printing a few $Billion or $Trillion to keep the system working, which maintains the money flow to the political and financial elite. The elite are purchasing elections, legislation, and votes, and for this they expect to receive benefits from their investments.

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Gold and the Parable of 3 Squirrels, 2 Vultures, and 1 Turtle

Gold and the Parable of 3 Squirrels, 2 Vultures, and 1 Turtle

There will always be hawks and vultures in our financial world. If you are not a hawk, don’t want to be a vulture, are worried about “black swans,” own no “tame” politicians, and want to protect the purchasing power of your assets, then use gold and silver for financial insurance and protection, just as the shell protects the turtle.

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