| Name | Description |
 | Bernanke's Dilemma: Hyperinflation and the U.S. Dollar | With interest rates near 0% and with unprecedented government debt and deficit spending beyond sustainable levels there is a clear risk of high inflation or hyperinflation if inflationary forces are not counterbalanced with a heavy hand. In theory, high inflation or hyperinflation could be prevented by restricting the flow of money and credit to consumers and businesses. Such a policy would exert deflationary pressure on the U.S. dollar within the domestic U.S. economy since principal and interest payments on existing debt would drain money from circulation. While preventing inflation temporarily, such a policy would not succeed in the long run because, in addition to offsetting inflation, deflation depresses economic activity and results in debt defaults. |
| Interview: Rob McEwen and the Next Homestake Mining Company | Gold mining industry legend Rob McEwen, Chairman and CEO of US Gold Corporation (NYSE:UXG and TSX:UXG), in an exclusive interview with Hera Research, discusses financial markets, the McEwen Junior Gold Index (MJGI) and the junior mining sector, which he believes offers superior growth opportunities, and where the gold market is headed in 2010 and beyond. Mr. McEwen also offers unique insights and reveals his strategy to create the next Homestake Mining Company. |
| Interview: Ross Beaty's 100 Year Energy Plan | Ross J. Beaty, Chairman and CEO of Magma Energy Corp. (TSX:MXY) talks about green energy, peak oil and geopolitical risk and reveals the investment strategies of Lumina Capital Partners, LP. |
| Into the Abyss: The Cycle of Debt Deflation | The U.S. economy is in a downward spiral of debt deflation despite the bold actions of the federal government and of the U.S. Federal Reserve taken in response to the financial crisis that began in 2008 and the associated recession. Although the vicious circle of debt deflation is not widely recognized, precisely what von Mises described is happening before our eyes. |
| Interview: Jim Rogers on Currencies and Inflation | Jim Rogers doesn't mince words. When a person as remarkably successful and accomplished as Jim Rogers, and having long experience, states that the official statistics produced by government economists and views expressed in mainstream financial news outlets are incorrect, or disingenuous, one must take pause. |
| Rent Seeking and the Flight of Capital | The next decade is likely to see a massive flight of capital from the United States to countries where property rights are respected (or where government is simply smaller) and where the values of investments are less vulnerable to the ravages of excess monetary expansion, counterproductive taxation and sovereign debt risk or redistribution by government in the service of political constituencies seeking entitlements. Within the latter constraints, China and emerging economies that are rich in natural resources and that produce commodities or physical goods will surely become the new bastions of capitalism. |
| Interview: Dr. Marc Faber on the Federal Reserve and Hyperinflation | History shows that well-intentioned lawmakers and their economic advisers cannot predict the outcomes and unintended consequences of economic interventions. Neither central bankers nor governments have been successful in substituting centrally planned economic agendas for the decentralized decisions of millions of entrepreneurs and owners of private capital, but they persist, nonetheless, with ever more centralized control and ever larger interventions. Dr. Faber confidently predicts that greater government control over the economy will hamper economic growth rather than stimulate it, and that interventions into the free market, no matter how large or well meaning, will continue to fail as they consistently have in the past. |
| Interview: Eric Sprott on QE2 and Gold | Whether one agrees with Eric Sprott's skepticism regarding the fiscal responsibility of governments, the soundness of fiat currencies, or the stability of debt-laden companies and sovereigns, his contrarian analysis has enabled him to capitalize on the trade of the decade: gold. |
| QE2 and its Consequences (Part I) | The Federal Reserve cannot prevent rising prices while the U.S. dollar moves lower due to QE2 and due to the U.S.' deteriorating creditworthiness and credibility, nor can it control the flow of liquidity resulting from its actions or, therefore, resulting asset price bubbles, whether in the U.S. or abroad. In light of the Federal Reserve's current policies, it seems likely that, in the next 12 months, global economic volatility related to inflation, currency debasement and, potentially, developing currency and trade wars will increase while the financial stability of the U.S. and of the Eurozone countries continues to decline and while commodity and precious metals prices continue to move higher. |
| QE2 and its Consequences (Part II) | The unintended consequences of QE2 indicate a countdown to the hyperinflationary collapse of the U.S. dollar. If QE2 is not stopped, the U.S. dollar will eventually fail. A double dip recession in the U.S. that shatters confidence in U.S. debt, or a rush on the part of domestic or foreign investors to exit U.S. Treasuries, or a rapid and widespread rejection of the U.S. dollar abroad, or a large, rapid decline in the value the U.S. dollar, regardless of the cause, or runaway price inflation, i.e., cost push inflation, could trigger the collapse of the U.S. dollar. |
| Interview: Rick Rule on Oil, Gas and Green Energy | If there were only one person in the world that an energy investor could ask about conventional oil and gas, oil shale and shale gas, oil sands, heavy crude, peak oil and alternative energies, including solar, wind, hydroelectric and geothermal power, that person would have to be Rick Rule. His encyclopedic knowledge and many insights into both industries and specific companies are invaluable. |
| Globalization and Global Chaos | It is tempting to consider only economics to explain growing worldwide social and political upheaval and civil unrest but economic recessions and reduced living standards do not usually bring tens of thousands of protesters and rioters into the streets around the world. Recessions come and go, but do not generally cause protests and rioting. It seems, therefore, that there must be more to the story. |
| OTC Derivatives: Failed Banks or Failed Nations? | Economic bubbles are not recognized by those inside of them and the entire Western world has become quietly trapped inside the largest economic bubble in history. The risks that led to the financial crisis in 2008 are likely to remain present in the global financial system for years to come. History may remember the global financial crisis that began in 2008 as a fateful choice between failed banks and failed nations. |
| Interview: Jim Rickards on Inflation and Currency Wars | Jim Rickards is one of the most astute intellectuals today in economics, financial markets and monetary systems, as well as an increasingly outspoken critic of the Federal Reserve's monetary policies. The debasement of the U.S. dollar—the world reserve currency—through QE2, and due to monetary expansion resulting from low interest rates, is exporting U.S. inflation abroad, disrupting economies in Asia, South America and elsewhere. In addition to putting upward pressure on food prices globally, with potentially disastrous consequences, inflation is a hidden tax on savings and wages and, as prices rise, the living standards of most Americans will decline. Currency wars, caused by the Federal Reserve's policies, could lead to trade wars or, in the worst case, to economic and political chaos as has been seen in Tunisia and Egypt. |
| Interview: Jim Sinclair on Gold and the World Financial System | Nicknamed “Mr. Gold” for his incredible timing of the gold market in the 1970’s, when he called the top of the market in 1980 to the day, Jim Sinclair, is a legendary precious metals, commodities and currency trader. Mr. Sinclair was influenced by his father, Bert Seligman, who was the business partner of Jesse Livermore, “The Great Bear of Wall Street” famous for short selling in the stock market crashes of 1907 and 1929. Currently Chairman, President and CEO of Tanzanian Royalty Exploration Corporation, part of Mr. Sinclair’s strategy to protect his interests from the effects of currency debasement, is to acquire as much gold in the ground as possible without rushing to production because, he believes, the price of gold will go much higher. Mr. Sinclair’s famous 2001 gold price target of $1,650 per ounce in 2011—a prediction ten years into the future—fell within 22% of the gold price in January 2011 after a phenomenal 511% increase over a ten year period, from an average price of $265.49 in January 2001 to an average price of $1,356.40 in January 2011 ( London p.m. Fix) —one of the most astonishing calls in the history of precious metals trading. As a commentator on precious metals, commodities and currencies, investors ignore Jim Sinclair at their peril. |
| Interview: Simon Ridgway on Gold Exploration in the Yukon | Using a pragmatic combination of experience, intelligence, boots-on-the-ground know how and hard work, Simon Ridgway is truly an explorationist extraordinaire. Investing in natural resource companies, such as precious metals producers, is fraught with risk and mineral exploration is the highest risk category. Where high risk junior exploration companies are concerned, the single most important mitigating factor for investors is the quality of the management team. |
| How the U.S. Will Become a 3rd World Country (Part 1) | Characteristics that define a 3rd world country include high unemployment, lack of economic opportunity, low wages, widespread poverty, extreme concentration of wealth, unsustainable government debt, control of the government by international banks and multinational corporations, weak rule of law and counterproductive government policies. All of these characteristics are evident in the U.S. today. |
| Understanding Resource Company Share Structure (Resource World Magazine) | This article, which appeared in the June issue of the prestigious Resource World Magazine, describes how Hera Research, LLC uses share structure information to evaluate the resource value and qualitative dimensions of natural resource companies. |
| Understanding Resource Company Lifecycles (Resource World Magazine) | The journey from discovery to established producer is long and dangerous but investors can take advantage of resource company lifecycles by balancing risks over different natural resources and over companies in different stages of development while exploiting the transitions between company stages in a continuous investment process. |
| Interview: Keith Neumeyer on Lack of Integrity in The Silver Market | Keith Neumeyer, Chief Executive Officer, President and Director of First Majestic Silver Corp. (TSX:FR / NYSE:AG) is an industry leader who analyzes the silver market with the gloves off. In the wake of the failure of commodities trading firm MF Global, Mr. Neumeyer’s lack of confidence in the CFTC and in the integrity of the COMEX appears to be justified. First Majestic Silver, which is one of a small number of primary silver producers, has consistently increased its production, cash margins and mineral resources while lowering production costs. With three operating mines and a fourth mine under construction, the company is growing steadily from a junior producer to a mid-tier producer that expects to produce 10 million ounces of silver in 2012. |
| How the U.S. Will Become a 3rd World Country (Part 2) | The United States is quickly coming to resemble a post industrial neo-3rd-world country. Unemployment, lack of economic opportunity, falling real wages and household incomes, growing poverty and increasing concentration of wealth are major trends in the U.S. today. Behind these growing problems are monetary inflation created by the Federal Reserve’s monetary policies, federal government deficit spending and the dominant influence of “too big to fail” banks and large corporations in Washington D.C., which has altered the direction of law in the United States. To make matters worse, the U.S. government faces a historic fiscal crisis. |
| Keith Neumeyer: How to Build a Major Silver Producer | Keith Neumeyer, Chief Executive Officer, President and Director of First Majestic Silver Corp. ( TSX:FR / NYSE:AG ) has led the company on a path of phenomenal growth. One of a small number of primary silver producers, First Majestic has consistently increased its production, cash margins and mineral resources while lowering production costs. With three operating mines and a fourth mine under construction, First Majestic has broken into the mid-tier producer category and is on track to become a major producer. The company is a showcase “growth story” that illustrates virtually everything savvy investors look for in precious metals mining stocks. Down from its 52-week high of $26.88 on April 26, 2011, the stock is poised to move higher with silver remaining over $30 per ounce compared to cash costs of $8.32 per ounce. |
| What’s Up with Gold Mining Stocks? | Claims that the gold bull market has ended are incorrect. One of the main causes of recently lower precious metals prices is the fact that the U.S. dollar has strengthened against the Euro. Volatility means that mining stocks are periodically on sale and the drop in the prices of precious metals mining shares represents a value buying opportunity. A savvy strategy at the bottom might be to sell shares of less developed companies where there are losses, i.e., if tax losses are desirable, and to move the remainder into shares of more mature, higher-quality companies that have also fallen in price, but that can be expected to rebound vigorously. |
| Interview: Hugo Salinas-Price Explains What Every Politician Needs to Know About Silver | With the encouragement of Hugo Salinas-Price, the country of México may become the first country to provide its citizens with a guaranteed store of value. Enabling citizens to save hard money offsets the inflationary power of the central bank and protects the savings of ordinary people from financial system turmoil and profligate government policies. Savings represents capital formation and capital, in the hands of ordinary citizens, is the foundation of small businesses, jobs and of the middle class. Without savings, there can be no middle class. A strong middle class is a fundamental requirement for higher living standards and for a strong and vibrant economy. Without a middle class, the overall wealth of society is reduced, upward mobility evaporates and the economy becomes less resilient. While the United States seems to be heading in the direction of a 3rd world country, México may soon lead the way to a brighter future for the Mexican people and for Latin America. |
| Rediscovering Gold in the Yukon (The Prospector) | The race to discover the hard rock sources of historical placer gold in the Yukon is likely to accelerate and there will surely be more hard rock discoveries. At the same time, the Rackla Belt could become a new mining district. For years to come, the Yukon promises to remain a hotbed of gold exploration activity. |
| The Unholy Alliance of John Maynard Keynes | The decline of the U.S. economy is the logical outcome of Keynesian economics, which enshrines central economic planning and embraces central banking. The unholy alliance of the federal government, the Federal Reserve and Wall Street has all but eliminated capitalism and has transformed the United States from a burgeoning free market economy into a failing corporate state. |
