Friday, 24 May 2013 18:42

Already bigger than many sovereign currencies, Bitcoin has broken the $1 billion in value mark this week. In the wake of continuing economic crises and liquidity shortages, this new virtual currency is poised to challenge the euro and US dollar.

By not being tied to any particular financial institution and independent from world governments, Bitcoin will become a safe haven for anyone trying to save their money from the crippled international banking system, claimed Max Keiser, the host of RT's Keiser Report.

“It is inevitable that Bitcoin will become a multi-trillion dollar enterprise because every other currency in the world is tied to dying central banks that are encumbered with impossible-to-pay debts and bankrupt counter-party risks,” Keiser said.

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For the Full Story: RT.COM http://rt.com/news/bitcoin-challenge-dollar-currency-121/

Friday, 24 May 2013 18:42

We live in a world with two economic circuits in which capital flows.

Firstly, capital markets are awash with liquidity-- this is where Bernanke has pumped in trillions and it has pumped up commodities and stocks. Commodities however have retained more of the inflationary pressure from this printing spree as investors see these 'hard assets' as safer bets than corporations, which in recent time operate as quasi-financial outfits just as susceptible to the moral hazard that has permeated the financial sector.

The middle class and small business are tight, banks have lost faith in American industry and the American middle class this is evident in the tight lending. This along with the outsourcing of labor to the third world has left America’s middle class largely dependent on debt that is vanishing as we speak. So we are seeing a serious bout of stagflation that should continue in the near future.

Friday, 24 May 2013 18:42

Silver is approximately 3 dollars away from its 52 week high. And through the election chatter, with rabble rousing political debates it could see a bit more incremental growth. However, I don’t see it breaking past its 46+ peak from August of 2011 just yet. That might have to wait till after the election high is over. [This is in line with Jim Rogers, Marc Faber, Et. Al.]

In any case I’ve been tracking silver for quite some time (its one of my preferred investments). I would say, if you want to surf it, and you been on for the last few months it might seem like a good time to cash in, but I think that it won’t actually taper off till sometime in the 2^nd quarter of next year-- where I sense it could have a step inflection in either direction.