GM : Government Motors or General Motors

We should be proud owning automobile sector now with our tax dollars.....and may be many more to come with help of the Fed's printing press.

As General Motors careers towards the biggest bankruptcy collapse in American corporate history, we look back at the long and sometimes glorious history of the classic US carmaker.

1900s

William "Billy" Durant founded General Motors in 1908 in Flint, Michigan, at the dawn of the US car industry. Durant had previously manufactured horse-drawn vehicles, before acquiring a stake in the Buick Motor Company and turning the struggling carmaker into a major player. Durant's vision was to assemble a series of carmakers under a single company, with each one targeting a particular part of the market, rather than competing directly with each other. Durant doubled GM's stable of companies to two in November of 1908 by acquiring Oldsmobile, before buying Cadillac, Cartercar, Elmore, Ewing, and Oakland in 1909. Full Story

Is this the start for Gold Standard ?

German firm plans gold ATMs to meet growing demand

By Peter Starck FRANKFURT, May 19 (Reuters) - Private investors should hold up to 15 percent of their wealth in physical gold, according to a German asset management company which plans to set up 500 'Gold-To-Go' ATMs in Germany, Switzerland and Austria this year.
A gold-dispensing automatic teller machine (ATM) was on display at Frankfurt's main railway station for a one-day marketing test on Tuesday.

A one-gram (0.0353 ounce) piece of gold, the size of a child's little fingernail and about as thin, cost 31 euros ($42.25) -- a 30 percent premium to the spot market price .

The flat rectangular piece, bearing the imprint of Belgian metals and speciality materials firm Umicore (Brussels: UMI.BR - news) , came out of the cash-only ATM in a tin box, including a certificate of authenticity.

'This is more than a marketing gimmick,' said Thomas Geissler, chief executive of TG-Gold-Super-Markt.de, the company planning to set up the 500 gold ATMs at a cost of 20,000 euros apiece.

'It is an appetizer for a strategic investment in precious metals. Gold is an asset everyone should have, between 5 and 15 percent of your liquid assets in physical gold,' he told Reuters in an interview. Full Story

Dollar Dilemma

US dollar Index is on the edge of the mountain and it's really is a ticking time bomb. Dollar has to hold the psychological level 80 on the US dollar index and it may oscillate between 80-82 for shorter time frame. If that looses the ground to the down side then we might see distress in bond market US treasuries as dollar save haven is gone for good as US dollar has no fundamentals to drive other than printing money for debt. Money is flowing into different other currencies (mentioned in my previous post espl Asia and Canada) and precious metals is best place to be especially silver (will outperform gold) and gold.

What will be the US dollar to INR down the road?

My view on INR is that it will pop temporarily around 48-50 range at most for brief period and will fall to 45 before next summer for sure as FII money is flowing into India, Making rupee strong. 5-6 years from now we might see dollar at 30 INR or lower and stabilizing at those levels.

We might see currency crisis and at the same time commodity crisis espl food as we go coz the central bankers around the globe flooded with fiat paper currency during thier G-20 meets aprox 2-3 % of GDP this will make things lot worse than people imagine.



Most of you asked me (Uday) about the Indian markets will also post before this weekend as I'm unable to keep up with my routine. If you have any question please leave me message at the bottom of this web page under chat window that way I can be in touch with you people when I go to India.

Caffine Rush

Whats up with the caffine play they are looking good to me. Is this inflationary commodity play ? I've seen Green Mountain (GMCR) and Diedrich Coffee (DDRX) back in April and now they are almost more than 100%