Paying a high price for too many elites and their ‘frivolous cravings’ Nowadays many countries’ social and political structure relies on debt-driven consumption and increasing levels of entitlements. Blame the policy makers. To drive economic growth, boost living standards, and manage growing inequality, policy makers have used debt and monetary tools to create economic activity. This has [...]
Tag: central planning
When All News Is Bad News
by John Rubino on April 21, 2015 One of the defining traits of financial bubbles is the willingness of traders and investors to interpret pretty much everything as a buy signal. Rising corporate earnings mean growth, while falling profits mean easier money on the way. War means more revenues for defense contractors and easy money for everyone else. Blizzards means consumer spending will[...]
Take a Look at What They Buried in This Obscure Report
April 21, 2015 Cancun, Mexico Imagine having a net worth of $57 billion. That sounds like a lot. And for the few folks out there like Bill Gates, Warren Buffett, and Vladimir Putin who have racked up such a prodigious amount, it is a lot. But not if you’re the US Federal Reserve. Just like how individual people can calculate their ‘net worth’ by adding up all of their assets (cash,[...]
WHERE DO PRECIOUS METALS GO FROM HERE?
I urge you to consider my arguments for investing in gold and silver, and the miners that extract it. I am holding on to my post 2008 forecast for gold reaching $3-5k per ounce by 2017 (and silver reaching $100) because the world’s largest governments continue their plunge into default, and cannot afford to let interest rates normalize if they don’t want to be forced into a[...]
IMF Tells Regulators to Brace for Global ‘Liquidity Shock’
Financial engineering that preceded the last two financial crises is back, International Monetary Fund warns An illusion of liquidity has beguiled financial markets across the world and spawned some of the worst excesses seen on Wall Street in modern times, the International Monetary Fund has warned. Investors are borrowing money to buy shares on the US stockmarket at a torrid pace and are[...]
It’s Not The Weather: Industrial Production Is Rolling Over, Yet The Fed Is Clueless About Its Own Index
Another day of “incoming data” and still more evidence that this isn’t your father’s business cycle. This time it comes from the Eccles Building itself, but don’t expect the Keynesian money printers domiciled there to recognize that the industrial production report they issued today constitutes yet another rebuke to their entire macro model. The March index slipped badly (0.6%)[...]
The Collapse Of The Petrodollar: Oil Exporters Are Dumping US Assets At A Record Pace
Back in November we chronicled the (quiet) death of the Petrodollar, the system that has buttressed USD hegemony for decades by ensuring that oil producers recycled their dollar proceeds into still more USD assets creating a very convenient (if your printing press mints dollars) self-fulfilling prophecy that has effectively underwritten the dollar’s reserve status in the post WWII era.[...]
Rickards, Paradoxes, and Getting Ahead
By Chris Campbell We have three big announcements for you today… First: You are no ordinary person. These are no ordinary times. And this is no ordinary episode. The second: I was just inside the White House yesterday. For reasons I’ll tell you later. And our third announcement, which I’ll get to in a moment, is even bigger than the first two. I’ll announce it in just a moment. But[...]
PROOF that the US Peaked During Ronald Reagan’s Presidency
April 13, 2015 Santiago, Chile On March 16, 1936, the government of the United States published the very first edition of the Federal Register. President Roosevelt had been taking a lot of heat over the previous year; under his New Deal program, dozens of government agencies were passing new rules, regulations, and codes at an absolutely feverish pace. It became impossible for anyone to keep[...]
Gold Bugs Might Have Their Day in 2016
By Sue Chang SAN FRANCISCO (MarketWatch) — Judging by the gloomy commentary and headlines, there isn’t much cause to recommend gold as an investment option in the near term--a far cry from 2013 when some analysts had boldly predicted that gold would trade at $2,000. That exuberance hasn’t been justified, so far. Gold for June delivery GCM5, +0.64% was looking to snap a three-day losing [...]