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| Will US monetary system with Gold fix problems? Commodity Online Back in the 1930s, they raised the price of Gold and devalued the dollar. In the 1970s, they ended convertibility entirely. Today we cannot raise interest ... See all stories on this topic » |
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| Australian Dollar Down Late, Falls Below Parity With US Dollar Wall Street Journal SYDNEY (Dow Jones)--The Australian dollar sunk in Asia trade Friday, weighed down by concerns over the Seoul meeting of the Group of 20 industrial and ... See all stories on this topic » | ||
| Senior US Official: Confident G-20 Can Build On Consensus To Curb Imbalances Wall Street Journal SEOUL (Dow Jones)--The heads of the world's 20 largest nations will endorse a communique later Friday that vows to make exchange rates flexible and commits ... See all stories on this topic » |
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| China Diesel Squeeze Lifts Refining Profit, Oil: Energy Markets BusinessWeek It was at $86.25 a barrel today, bringing its gain in the past year to 9 percent. "With international oil prices likely to rally above $100 a barrel in the ... See all stories on this topic » | ||
| Gold, silver and oil fall as dollar strengthens further India Infoline.com Crude oil futures fell for the first time in three days today, heading for a weekly drop, as Asian equities and US stock index futures slid on speculation ... See all stories on this topic » |
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| India gold demand picking up in 2010 Commodity Online By Kitco News (Kitco News) - Indian gold demand in 2010 is likely to return near the levels from prior to the global credit crunch, as buying picks up ... See all stories on this topic » |
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| Stocks Fell on Dollar Strength and Cisco's Weak Outlook. Dow Laggards: CSCO ... TradersHuddle.com The Dow Jones Industrial Average fell 73.94 points, or 0.65%. The S&P 500 index slid 5.17 points, or 0.90%, while the NASDAQ dropped 23.26 points, or 0.90%. ... See all stories on this topic » |
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| TSX Venture Exchange Daily Bulletins Trading Markets (press release) The Company's Initial Public Offering ('IPO') Prospectus dated October 29, 2010, has been filed with and accepted by TSX Venture Exchange, and filed with ... See all stories on this topic » |
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| Oaktree Marks: No Great Opportunity In Distressed Asset Investing Wall Street Journal HONG KONG (Dow Jones)--Oaktree Capital Management LP Chairman Howard Marks said Friday he doesn't see any great opportunities in investing in distressed ... See all stories on this topic » | ||
| Australia's Gillard: Hope To Reach Deal On MAP Timeline Today Wall Street Journal BEIJING (Dow Jones)--Australian Prime Minister Julia Gillard said that the Group of 20 nations hopes to reach an agreement Friday on the process and ... See all stories on this topic » | ||
| Forex and Dow Jones recommended levels International Business Times Today's resistance: - 1.3770(main). Break would give 1.3812, where a correction is possible. Then goes 1.3837. Break of the latter would result in 1.3863. ... See all stories on this topic » | ||
| G-20 MAP Report Unlikely To Detail Country-Specific Proposals - Sources Wall Street Journal By Ian Talley SEOUL (Dow Jones)--World leaders meeting here this week are largely suppressing details necessary to credibly outline a country-by-country ... See all stories on this topic » |
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| Comex Gold ends firmer as traders buy the dip Commodity Online By Jim Wyckoff of Kitco News Comex gold prices ended modestly higher Thursday as investors once again stepped in to "buy the dip" and do some bargain ... See all stories on this topic » |
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| Merged Chile, Peru, Colombia Bourse To Create Virtuous Cycle - Santiago Bourse CEO Wall Street Journal SANTIAGO (Dow Jones)--The integration of the Chilean, Colombian and Peruvian stock exchanges will create a virtuous cycle of liquidity and increased ... See all stories on this topic » |
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| Why Some Think a Gold Standard Wouldn't Work Gold Seek Just some preening know-nothing stating, "gold will not work"! Hahaha! Jon Nadler at Kitco.com writes that "A case was made for a new anchor or 'basket' of ... See all stories on this topic » |
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| Mexico Stocks Close Lower On US; IPC Down 0.3% Wall Street Journal By Paul Kiernan Of DOW JONES NEWSWIRES MEXICO CITY (Dow Jones)--Mexico's stocks saw mild losses Thursday as official data confirmed an expected slowdown in ... See all stories on this topic » | ||
| Petroleum shares touch two-year high MarketWatch The Dow Jones Industrial Average (DOW:DJIA) dipped 62 points, but shares of components Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX) rose about 1% each. ... See all stories on this topic » | ||
| Chile Stocks Closes Lower On Profit-Taking, US Market Tumble Wall Street Journal By Carolina Pica Of DOW JONES NEWSWIRES SANTIAGO (Dow Jones)--Chile's blue-chip Ipsa index ended lower Thursday, coming down from a record high close the ... See all stories on this topic » | ||
| Brazil Stocks Close Lower, Tracking Wall Street Losses Wall Street Journal SAO PAULO (Dow Jones)--Brazilian share prices closed lower Thursday, tracking losses on Wall Street as investors fretted about Chinese inflation and the ... See all stories on this topic » | ||
| US HOT STOCKS: Finisar, Nvidia Climb In Late Trading Wall Street Journal US stocks closed lower Thursday as the Dow Jones Industrial Average fell 74 points to 11283, the Standard & Poor's 500 declined 5.2 points to 1214 and the ... See all stories on this topic » |
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| TODAY'S STOCK MARKET DOW JONES INDUSTRIAL AVERAGE DJI, S&P 500, NASDAQ INDEX ... Learning and Finance End of day close for the Dow Jones Industrial Average was lower by .65% and settled at 11283.70. The Nasdaq was lower by .90% and settled at 2555.52. ... See all stories on this topic » | ||
| Brazil's Petrobras Profit Rises On Demand, Lower Debt Costs Wall Street Journal The company had been expected to report a third-quarter net profit of BRL9.4 billion, according to the average estimate of six analysts polled by Dow Jones ... See all stories on this topic » | ||
| S Korea President Lee Urges G-20 To Make Concessions - Official Wall Street Journal SEOUL (Dow Jones)--South Korean President Lee Myung-bak urged his Group of 20 counterparts to make concessions on the difficult issues that continue to ... See all stories on this topic » | ||
| Mexico's Peso Ends Weaker Against Dollar As Risk Aversion Rises Wall Street Journal By Amy Guthrie MEXICO CITY (Dow Jones)--The Mexican peso weakened against the US dollar Thursday as concerns about European debt and the Chinese economy led ... See all stories on this topic » | ||
| WSJ: Atlanta Fed's Lockhart: Companies Remain Cautious On Hiring Wall Street Journal By Timothy Aeppel Of THE WALL STREET JOURNAL ATLANTA (Dow Jones)--Few of the businesses surveyed by the Federal Reserve Bank of Atlanta expect their sales ... See all stories on this topic » | ||
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| WORLD FOREX: Euro Falls To 5-Week Low Vs Dollar; Debt Worry Flares Wall Street Journal By Bradley Davis Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--The euro dropped to its lowest levels in more than a month against the dollar Thursday as ... See all stories on this topic » |
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| United States American Eagle gold bullion coin price value today – Invest in ... Healthy Financial Habits When it comes to buying American Eagle gold coin, you will purchase the coin for the current price of gold in addition to a small premium. With today's ... See all stories on this topic » | ||
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| TSX-listed corporate dividends and distributions declared Nov. 11, 2010 CanadianBusiness.com Transcanada Corporation 1st Pr Series '1' (TSX:TRP.PR.A): $0.2875. Payable Dec 31. Record Nov 30.< Transcanada Corporation 1st Pr Series '3' (TSX:TRP.PR. ... See all stories on this topic » | ||
| MOSAID Technologies (TSX: MSD) to Release Second Quarter Fiscal 2011 Results ... MarketWatch (press release) OTTAWA, ONTARIO, Nov 11, 2010 (MARKETWIRE via COMTEX) -- MOSAID Technologies Inc. (THE:CA:MSD) will issue a news release on the Company's second quarter ... See all stories on this topic » | ||
| Boralex begins to reap financial rewards of power fund acquisition Winnipeg Free Press Boralex (TSX:BLX) said Thursday it earned $27.1 million in the period ended Sept. 30, up from $700000 a year earlier, with per share earnings skyrocketing ... See all stories on this topic » |
Approach Resources Inc. (NASDAQ:AREX) surged 7.58% to $17.81 on an unusual volume of 1.80 million shares. The company announced that it has upsized and priced its previously-announced underwritten public offering of common stock. The size of the offering has been increased from the previously-announced 5,000,000 shares of common stock to 5,750,000 shares of common stock at a price to the public of $16.25 per share. The Company has granted the underwriters a 30-day option to purchase up to an additional 862,500 shares of common stock to cover over-allotments. The stock today also touched a new 52-week high at $18.59. iStar Financial Inc. (NYSE:SFI) jumped 5.59% to $5.48 on a volume of 1.14 million shares seeking to avert a bankruptcy filing next year, is in talks with creditors about exchanging debt and lining up as much as $2 billion in new financing, three people with direct knowledge of the matter said. The stock has been moving within a range of $2.29-$7.82 over the past 52-weeks. So far in this year the stock has soared 114.06%. Brigham Exploration Company (NASDAQ:BEXP) spurted 4.43% to $25.20 on 2.31 million shares after analyst at Jefferies upgraded the stock with Buy rating and raised the price target from $20 to $32. The stock today also touched a new 52-week high at $25.63. So far in this year the stock went up 86.05%. Flotek Industries, Inc. (NYSE:FTK) also surged 9.22% to $2.37 on a volume of 1.25 million shares after it reported financial and operating results for the three and nine months ending September 30, 2010. In the third quarter of 2010 Flotek revenue totaled $40.0 million, an increase from $31.2 million in the second quarter of 2010 and $23.8 million in the third quarter of 2009. The Company posted a net loss attributable to common shareholders of $2.4 million in the third quarter of 2010, an improvement compared to a loss of $7.4 million in the second quarter of 2010 and $23.9 million in the third quarter of 2009.
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Newsworthy Stocks
Here are some more breaking stock news briefs which could see some changes on the markets later. The following stocks should see some movement: Boeing Co. (NYSE:BA), Toyota Motor Company (NYSE:TM), Dell (NASDAQ:DELL). Here is a more detailed look at the news that will affect each company when trading continues. Boeing Co. (NYSE:BA) Boeing (NYSE:BA) has announced an order from Spice Jet for the 30 next generation 737-800s. Spice Jet had declared its intent to purchase Boeing’s Next-Generation 737-800 in July this year, valued at about $2.3 billion at list price. Boeing (NYSE:BA) will deliver Spice Jet's Next-Generation 737-800s with the all-new 737 Boeing (NYSE:BA) Sky Interior. The interior promises to redefine the travel experience for Spice Jet passengers, who will enjoy the modern, sculpted sidewalls and window reveals and larger stow bins that are standard with the new interior. Dinesh Keskar, the vice president of Boeing (NYSE:BA) International said that, “Spice Jet is already operating a sizeable fleet of 737-800s and 737-900ERs and the new order underscores the airline’s confidence in the airplane.” Toyota Motor Company (NYSE:TM) Toyota Motor Corporation (NYSE:TM) has planned to sell electric cars in Japan. According to reports, world's largest car maker will start selling a compact electric car in Japan by 2012. The Toyota Motor Corporation (NYSE:TM) has not commented on the report yet but it has confirmed that they will launch an electric vehicle in the United States by 2012. It has been reported that Toyota Motor Corporation (NYSE:TM) is now trying to improve its quality checks and customer satisfaction rather than increasing its volume on sales. Dell (NASDAQ:DELL) Dell (NASDAQ:DELL) India has launched new high-end 3G handsets. Eyeing the smart phone market, Dell (NASDAQ:DELL) India has rolled out two new models named XCD28 and XCD 35. The new models have been equipped with several enhanced features including an access to Android Market applications. Dell (NASDAQ:DELL) India General Manager (Consumer and SMB) Mahesh Bhalla said, "In the fast growing Indian mobile market, this will allow more and more younger generation and mobile professionals to access a rich browsing and multimedia experience, backed with the assurance of an uncompromising, market-leading service support." There will probably be more movement when trading continues for Boeing Co. (NYSE:BA), Toyota Motor Company (NYSE:TM) and Dell (NASDAQ:DELL).
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E money daily
Buy Gold, says this investment strategist, because it’s “Inflate or Die!” for the US economy…
WHOEVER controls the US Congress, John Embry – chief investment strategist at Sprott Asset Management – holds out little hope for economic happiness in the short run.
As he tells The Gold Report in this interview, “It’s consequence time…”
The Gold Report: Why are equities markets generally increasing and what should we expect from equities and gold markets going forward?
John Embry: I think the equity markets are reflecting the enormous amount of liquidity being injected into the market, particularly in the US. There’s no question that POMO [permanent open market operations] are going on continuously – to the extent that Goldman Sachs has identified the days they’re happening, and recommending people buy equities those days. They’re having an outsized impact on the market. This does not reflect the underlying economics whatsoever.
We’re very concerned about what might happen to equities, because we continue to believe our view on the economy is playing out and that the US has no real forward thrust. I don’t think equities are all that interesting now, particularly at the level to which they’ve been elevated due to these various market interventions.
The authorities wanted to make things look better going into the November elections. Maybe now, there will be less pressure to inflate things to such an extent and they will focus more on reality than elections. Now that we’re through the elections, it’s almost like the roadrunner off the cliff. The feet are going fast, but look out below.
TGR: Do you anticipate poor economic data will be released after the elections?
John Embry: I think the spin will be less positive. I am a great believer in John Williams’ ShadowStats. His numbers are much closer to reality, but those the public sees don’t look as bad as they really are. I think that perception will change. More people will start paying attention, see that things aren’t as good as they think and realize we could get into a reasonably unpleasant period.
TGR: How do you feel about Gold Investing?
John Embry: We continue to like gold very much. All this talk about bubbles and overbought is interesting in that sentiment is actually quite lousy. Interest in the market amongst the hoi polloi is very limited. I don’t see a lot of enthusiasm toward gold at this point, which is a precursor to better markets. So, we like gold; we don’t like equities so much.
TGR: Ultimately, will the US economy be affected by either Republicans or Democrats controlling the Senate?
John Embry: In the long term, maybe; in the short-term, no. In the short run, I think the die is cast. They realize how serious the problem is, and that the Fed is in control and will likely continue down this path of quantitative easing (QE). That will be the defining thing in the short run.
In the long run, I think the conservatives on the Republican side – certainly the Tea Partiers – may have an impact along the lines of what’s going down in England now. What the Conservatives are doing in the UK is quite remarkable; really Draconian. It will be an interesting test case to see how this works out.
TGR: Wouldn’t you say they did the same thing in Greece?
John Embry: Yes; but so far, the English are putting up with it; the Greek, French, etc., are already starting to rebel. It will be fascinating to see how Americans will respond to that sort of activity.
TGR: Given the power of the American consumer, could something that drastic happen in the US without tanking the economy?
John Embry: No. I am absolutely positive on that point. If the US took a really hard stance on dealing with the budget deficit, the implications would be horrific for the economy. I think it would set off a depression that would make the ’30s look good.
TGR: When you say, “the die is cast,” are you referring to QE as the proposed solution to counter that?
John Embry: Unquestionably. The government is going to take the path of least resistance in the short run. Do I believe this is a solution in the long run? No. It just postpones the inevitable and, conceivably, makes it worse. But that doesn’t mean the Fed won’t opt for QE in the short run; it’s certainly indicated it will go that direction.
TGR: The Draconian cuts would push the US into a greater depression; and, at the other extreme with QE, we don’t know quite the magnitude. Is there no middle ground?
John Embry: No. This is where I differ from many analysts and pundits; I think the middle ground was lost years ago. Any opportunity for a pleasant near-term outcome is long gone. Americans can take the pain now or something verging on hyperinflation and greater pain later. So, pick your poison. If I were emperor, I’d take the pain now.
TGR: Is it a foregone conclusion that inflation or hyperinflation would lead back into a depression? Will we end up in the same place regardless?
John Embry: I think we do end up in the same place. There’s no example in history that unbridled money creation works to solve any problems; in fact, it usually exacerbates them. I’m not sure it’s going to be any different this time because I believe today’s financial structure is probably more vulnerable than it’s ever been in history. I don’t want to get into derivatives and all these various collateralized debt vehicles, but the fact is we’ve never seen anything like this before. If you try to deflate, that would come to the fore immediately; if you inflate, that just creates a bigger problem later.
So, I’m kind of stuck; I can’t see a more positive outcome. I am a great believer in the Austrian School of Economics, and with a hugely excessive debt buildup in the economic system, there’s no escaping the consequences. We’ve had the biggest debt buildup in history, and here we are in consequence time.
TGR: I think everybody agrees about consequence time; it’s a matter of the degree of pain.
John Embry: If you went the tough route initially, you’d go through a lot of pain but you’d probably come out the other end sooner and save your currency. Now, if you go the unlimited QE route – or, as my friend Jim Sinclair puts it, “quantitative easing to infinity” – the currency will be destroyed. When that happens, you unleash an immense amount of inflation in your system; and, in that situation, people lose all their rudders. There’s nothing to hang onto when your money’s value is destroyed. I worry about social unrest; but in the end, you’ve got to clean the system out anyway.
TGR: That’s why you’re bullish on gold…?
John Embry: That’s why I am extraordinarily bullish on gold. Either way, gold will be all right because it’s a tangible asset – a hard asset that’s existed through centuries. The hardest point to get across is that gold isn’t what’s changing. Gold is gold. It’s been around for thousands of years, recognized as money by most societies. What’s changing is the current paper-money experiment.
Without exception, paper money is always devalued in the end and always ends up worthless. We’ve got a long way to go, but we’re definitely en route to that ultimate conclusion. So, it’s not gold that’s changing; it’s the value of the paper money in which gold is valued; that’s why the price of gold is going up.
TGR: What kind of timeframe are you thinking about?
John Embry: It’s hard to put an exact timeframe on it, but I think the direction will become more evident in the next year and a lot more people will become acutely aware of the extent of the problem. Only a small minority of people realize the risk at this point. But once it starts, I use Weimar Germany after WWI as a guidepost. That experience lasted about three to three and a half years from beginning to end. We’re now at the beginning, so I think it will take at least that long.
TGR: But that was one country. If the world’s reserve currency loses all value, it will impact many more countries.
John Embry: Yes, that’s why the G20 finance ministers and central bank governors got together in South Korea on October 23 in advance of the G20 Summit there, which I think will solve absolutely nothing. Many other countries are extremely unhappy with the route the US is taking and they’d probably share my opinion and say, “Get your house in order now rather than taking the rest of us down with you.”
TGR: But you say the die is cast and that this currency, the US Dollar will go down.
John Embry: It appears inevitable to me and that feeling is reinforced by the Fed’s statements that it will indulge in some form of QE. Goldman Sachs chief economist Jan Hatzius said it needs $4 trillion worth of asset purchases to get this thing turned. That number is astounding – and he knows more about it than I do.
QE to infinity is a flawed concept because the more the Fed does it, the less interest other countries will have in buying US paper. As a result, it’ll need more QE. Once you get on the slippery slope, it moves quickly. That’s why I think it’s a horrible policy; but every indication tells us this is the route the Fed has chosen.
TGR: Countries that hold large amounts of US currency are putting on the pressure against QE. Will they have any influence on this policy? If so, what will happen?
John Embry: There are only two outcomes possible. One, debase the money to the extent that it lessens the impact of existing debt so it can be maintained. Or two, default on some portion of it (i.e., the Argentine route).
TGR: Your hedge fund focuses on a fair amount of precious metals assets as one way of protecting yourself regardless of which scenario plays out.
John Embry: Yes, we have a considerable amount in both gold and silver bullion, plus shares in both commodities.
TGR: Everyone agrees that gold is money but opinions on silver vary, including the idea that it’s an industrial metal and monetary asset. What makes you want to invest in silver?
John Embry: Quite frankly, silver is a better story than gold – and I love gold. We’ll see evidence of the expression “silver is poor man’s gold” come into effect shortly. More people are looking at silver as a store of value, and not buying it just to convert into jewelry or for medical and industrial uses. More people are starting to hoard Silver Bars and coins.
The silver market differs from the gold market in two ways. First, central banks still have a fair amount of Gold Bullion in their vaults, though not as much as they’d have you believe (and there isn’t a lot of silver inventory because the central banks have accumulated none to speak of). Second, silver differs from gold in that the vast majority of newly mined silver is being consumed for medical and industrial uses, jewelry, etc., and not much is left over for Silver Investment demand. There’s been a deficit for many years. As far as we can determine, above-ground inventories are being reduced down to almost nothing. So if people want to invest in both gold and silver, it’s going to have an outsized impact on the Silver Price.
TGR: Are you saying the price of silver will outpace that of gold?
John Embry: Without question. I virtually guarantee the Silver Price, on a percentage basis, will outperform the Gold Price by a considerable amount. That’s not to denigrate gold at all, because I think it will outperform virtually everything else.
TGR: In the October Investor’s Digest, you said, “I firmly believe the primary reason Western central banks hold any gold today is for purposes of manipulation.” If the government can manipulate the Gold Price, why are you so excited about gold?
John Embry: That’s an excellent question. It’s because they’re running out of ammo. We’ll know for sure when that time comes because the Gold Price will go up $100 in one day. I believe these banks don’t have a fraction of what they purport to have, because they have been lending, leasing and swapping it surreptitiously for years, rather than selling it outright. Their gold has gotten into the markets through the back door, not through any overt policies that made it easy for the public to discern what they were doing. The vast majority of what has been leased or swapped will not be retrieved and, as a result, they’re close to reaching the limit where they don’t want to part with what’s left.
The theory is that Western central banks own 30,000 tons of gold give or take. If they have a third of that, I’d be surprised. Many of them are starting to realize the error of their ways now. But their ability to influence the Gold Price is rapidly coming to an end. They’re being pressured dramatically by the Eastern central banks that have made no bones about diversifying out of paper into gold. As far as I’m concerned, the Western banks already look extraordinarily stupid for what they’ve done; and they’ll look even more stupid if they continue in this vein. I don’t think they will. There’s no better example than what’s happened under the European Central Bank Agreement, where they were able to sell up to 500 tons of gold a year and after meeting their quota year after year, they slowed down dramatically in 2009 and stopped in 2010. They sold nothing, which indicates either they don’t have it or have lost any appetite for selling it.
TGR: So, do the holders of that physical Gold Bullion get all of the price appreciation or do the governments get some of it?
John Embry: No. When it gets loaned, particularly in a financial transaction, it goes to a bullion bank that sells it into the market; and the gold migrates to the Middle and Far East where the wealth is being created. It’s gone, and the central bank’s counterparties can replace it only by going into the market and buying it from existing Gold Mining production or whatever inventory is available. But to do that would drive the price to the moon. I think a lot of these loans will be forgiven in the end.
TGR: In the Investor’s Digest, you mentioned the IMF sale to Bangladesh. Obviously, the IMF is bearish on gold if it’s selling that much, and people like Paul Walker with GFMS are also quite bearish on gold.
John Embry: To be fair, Walker’s been wrong the whole way up.
TGR: But how do you respond to those who look at your argument and say, “No, the supply/demand fundamentals say this.”
John Embry: Well, I think they hang that on two things. They say investment demand is transient, which means that paper money is going to regain its luster and people will want to hold it. That would require interest rates that give people a real return, though; and I can’t see that happening in, say, the next two to three years. So the idea that Gold Investment demand is going to evaporate is preposterous. I would argue the other way. I think it will accelerate because, to this day, it’s still the purview of only a limited number of investors. So, I think the demand side of their argument is dead wrong.
Conversely, on the supply side, I think two issues are debatable. For one thing, they seem to think there will be an unlimited mine supply of gold. Gold is a precious metal because it’s hard to find, and most of the new stuff being found is around existing mines. Very few greenfields are being discovered. At the same time, existing mines – particularly the open pits – are being depleted at an alarming rate. So, I don’t see any threat from higher mine supply over the next five years.
TGR: What’s the other debatable issue?
John Embry: Scrap. This one is a little bit more controversial, because if the Gold Price gets high enough, people might sell even more jewelry and anything else from which they can recover gold. But we see a lot of that today – all of these TV ads with jewelers screaming, “Sell us your gold, yak, yak, yak.” Then they rip them off. I think people are wising up to that; so I don’t see scrap – which is not that huge a factor to begin with – rising so dramatically it will have any significant impact on the overall supply/demand equation.
Over the last 15 years, central banks have pumped a lot of gold into the market and they’ve likely reached the end of their rope in that activity while Eastern central banks are becoming buyers. Rather than supply 1,000-2,000 tonnes a year into the market, the central banks will be taking gold out of the market. With everything else going on – namely more investment demand and no new mine supply – the supply/demand equation becomes enormously positive. The only way it can be balanced is dramatically higher prices. So, I don’t see a negative aspect on supply and demand.
TGR: Point taken. But is there any way they could be right?
John Embry: They could be right if, suddenly, the world magically rights itself and the economy starts to grow with no inflation. I don’t think that’s going to happen.
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