By Addison Wiggin Addison Wiggin: When Janet Yellen gave her first news conference as Federal Reserve chair in March, the media pounced on her for “stumbling”; she was asked how soon they’d start raising the fed funds rate once quantitative easing was over and she said “about six months.” The market freaked out for an hour or so. But what else could she say? Imagine if she’d been[...]
Tag: daily reckoning
Will The Swiss Vote to Get Their Gold Back? – Popular Pushback Directed at Financial Bully
By Ron Paul ….no tyrannical regime in history has bullied Switzerland as much as the United States government has in recent years. On November 30th, voters in Switzerland will head to the polls to vote in a referendum on gold. On the ballot is a measure to prohibit the Swiss National Bank (SNB) from further gold sales, to repatriate Swiss-owned gold to Switzerland, and to mandate that gold[...]
Preserve Your Wealth in the Face of Financial War – Battles Happening Right Now
By James Rickards During the Cold War, the United States had enough nuclear missiles to destroy Russia and its economy and Russia had enough missiles to do the same to the United States. Neither adversary used those missiles and the leaders were quite careful to avoid escalations that might lead in that direction. Proxy wars were fought in places like Vietnam, the Congo and Afghanistan, but[...]
“S&P 2000″ Is a Fed Manufactured Mirage – Phony Stock Prices No Substitute for Real Economy
By David Stockman That 4% market correction in July was quick and virtually painless. Not missing a beat after the market briefly tested 1900 then, the dip buyers came roaring back — gunning for the 2000 marker on the S&P 500, confident that longs were not selling and that shorts had long ago been obliterated. Needless to say, bubblevision had its banners ready to crawl triumphantly across [...]
One World, One Bank, One Currency – The Path with One Result
by Addison Wiggin “The government is very good at making things overly complicated for the purpose of obscuring what’s really going on from the public,” observed hedge fund manager Erik Townsend during our interview in May. He was making a point about the 2008 bailouts. The Federal Reserve played a leading role, applying trillions in paper-clip and rubber-band solutions. The Fed’s[...]
Another Crisis of Confidence in the Dollar is Coming – Monetary System Will Never Be the Same
By James Rickards On August 15, 1971, a quiet Sunday evening, President Richard Nixon took to the airwaves, preempting the most popular television show in America, to announce his New Economic Policy. The government was imposing national price controls and a steep surtax on foreign imports and banning the conversion of dollars into gold. The country was in the midst of a crisis, the result of an [...]
Fed Incompetence: Your Financial Bubble Indicator – Bill Bonner
by Bill Bonner The game of speculation is the most uniformly fascinating game in the world. But it is not a game for the stupid, the mentally lazy, the person of inferior emotional balance or the get-rich-quick adventurer. They will die poor. – Jesse Livermore, How to Trade in Stocks The trouble with capitalism’s guardians is that they have no respect for it. Markets have been around for[...]
The Safest Investments in a Dangerous World Market – Jim Rickards
The relationship between geopolitics and global finance has rarely been more densely connected and complex as it is today. Knowing how to invest and allocate assets among various classes requires understanding the strategic drivers of valuation and volatility. Here is an around-the-world tour of flashpoints and their implications for investors. The disintegration of Iraq is far from over. The[...]
Important Lessons from the 12 Largest US Bear Markets
By: Marc Faber In the late 1990s, just ahead of the bursting of the NASDAQ bubble, I reproduced, courtesy of the late Peter Bernstein (author of Against the Gods), a table showing how many quarters of previous capital appreciation were given back in the 12 largest US bear markets since 1929. In the meantime, we have had another three bear markets and I have updated his table to reflect the new[...]
6 Major Flaws in the Fed’s Economic Model – James Rickards
The U.S. dollar is the dominant global reserve currency. All markets, including stocks, bonds, commodities, and foreign exchange are affected by the value of the dollar. The value of the dollar, in effect, its “price” is determined by interest rates. When the Federal Reserve manipulates interest rates, it is manipulating, and therefore distorting, every market in the world. The Fed may have [...]