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1) Crude oil is the most volatile commodity of the year. After dropping to $30 per bbl., it rises to $60. 2) The hoped-for orderly decline of the dollar gives way to a sharp drop; the euro hits $1.50, the yen, 85??. 3) The yield of the 10-year U.S. Treasury rises to 6%; the federal funds rate ends the year at 4.25%. 4) The U.S. equity market goes nowhere after two years of gains. The S&P 500 index ends the year flat. 5) Resisting pressure from its trading partners, China refuses to change its currency system. 6) Japan slips back into recession as the yen strengthens; exports to China don't help. 7) Revelations of corruption in the Ukraine election trigger a second Russian Revolution; Putin resigns. 8) Oil-service and other energy-infrastructure stocks do well, especially Halliburton and Weatherford. 9) Worldwide food demand increases; corn, soybean and wheat prices rise sharply. 10) Republicans and Democrats defeat partial privatization of Social Security. |
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Bill Bonner on the Davos conference "The World Series of Humbug continues as the blabberfest in Davos, Switzerland begins another day. Newspapers dutifully report the latest bamboozle. More aid for Africa! Stop climate change! A new solution for Palestine! But can you really fault these idealists? Sure, much of what they propose is hopelessly unrealistic...or downright fraudulent. But don't we have to at least try to do something to improve the planet? We take the questions one at a time: Yes and no. One by one, the world's leaders rise. Solemnly, sincerely, they call for absurd measures - every one of which involves grand larceny. A few billion for this project...a few more billion for another. And not a penny of it out of the pockets of the great and good who, when not pompously grandstanding, are enjoying the caviar and champagne at Davos - usually, at someone else's expense. With a few notable exceptions, such as Bill Gates, none of those present has ever done anything but make the planet worse. They call for an end to world hunger - but none has planted a single turnip. They want to raise the Africans out of poverty - but who among them has started a business or built a bridge on that Dark Continent? They say they are for peace, but nearly everyone proposes some form of meddling in the affairs of others - almost sure to provoke an outbreak of violence at some point. No, dear reader, these people are not doing good. They are doing very well - for themselves." This is a useful, easy-to-digest reference of recent gold market analysis from the experts. |
