U.S. Dollar - Most Vulnerable In 2 Years To Large Decline [View article]
Agreed. The problem is CB's believe that keeping the currencies in the same relative valuation will mean that global trade will stick to the status quo, which is a big mistake.
Weaker markets equals weaker demand, but add inflation into that equation and you end up with weak markets, weak demand for commodities, but high prices. Bad mix, this is like the Four Loko of CB policies. Nasty hangovers will result.
U.S. Dollar - Most Vulnerable In 2 Years To Large Decline [View article]
I imagine the CB's are all tied together by a rope called international trade. They have decided to run in full sprint down a steep slope, and because of trade issues, all have to follow each other in a race to the bottom. Not one CB can put the brakes on for fear of crashing hard. They must race at full speed because someone else on the line is already doing so.
Moral Hazard 101: IMF Report Shows Little Concern For Inflation, Currency Debasement [View article]
A better and more pertinent example: We must go the way of Iceland - peaceful, non-agressive firing of the entire government, jailing of rotten bankers, defaulting on all gov. debt the public never approved, and re-establishing a sound financial system that will float up while the rest of the EU sinks.
Return To Bretton Woods: Economic and Investment Implications [View article]
@O The Chinese are much too crafty to think inside of your box. And last time I checked, the Fed, the Administration, and most economists are opposed to default as an option. Not to say they have a choice with every passing day of deeper debt, but it sounds like the gov would rather inflate than default at this point.
The Chinese are trying to infiltrate our communications and infrastructure. They also take a twisted crony capitalism and beat our market over the head with it. Lastly, they're trying to claim other countries' land in order to reap the natural resources.
They'll isolate America from valuable resources and separate the general public from their money. That's how they'll respond.
Return To Bretton Woods: Economic and Investment Implications [View article]
Alright, so that makes you feel better about China? Or that China is not applicable to the argument because they are the biggest outside of the US?
We know the largest shareholders can influence a business in strategic and fiscal decisions. With the US, isn't that what the Fed is basically doing with ZIRP and QE? So how can we argue against China if they want to influence our policies or change our "board of directors"?
Return To Bretton Woods: Economic and Investment Implications [View article]
Just because one country has moral and ethical standards does not mean the world can only be run by countries with moral and ethical standards. The fact of the matter is, moral high ground is not preventing the US from losing in all economic, fiscal, and competitive advantages to China.
China is the largest shareholder in US debt, we owe them more than they owe us. Americans are too busy talking about the Presidential debate and not paying attention to Chinese aggressive expansionist policies. China recently argued ownership of any country/island that payed tribute to it at any time of history, which if taken to it's full conclusion means all of Southeast Asia, Mongolia, and Eastern Russia, as well as parts of Japan, Korea, and the Philippines belong to China by that argument.
Look up the Ryukyu islands crisis, as well as Chinese attempts to buy out land in and around US bases in the Pacific. China is walking its talk seriously.
Just because you think the Chinese have no right to dominate world politics and economics doesn't mean that they can't do it in your lifetime.
Negative Interest Rates On Reserves: The Right Or Wrong Stimulus? [View article]
The main point the CB's are missing is increasing loan activity. Low interest rates are not going to increase lending, it will produce the opposite. Everyone ends up going into risky assets and we all end up poorer for it because of GDP at the rate of inflation, high unemployment, and a lack of savings at the end of the day.
Negative Interest Rates On Reserves: The Right Or Wrong Stimulus? [View article]
Great point. This also explains why precious metals don't always move conversely to currencies. Most people have been fooled into believing that the gradual inflation is good for us, and therefore don't even wince at the thought that pence/pennies are more expensive to make than they're worth.
Eurozone Crisis: From Periphery To Core [View article]
Isn't there a high chance that Bernanke also took Draghi's indefinite OMT into consideration when he started an indefinite QE to maintain the currency status quo?
Regardless, I see a sinking ship called the EU, one where instead of plugging the holes where the water's filling in, the captain instead takes buckets of the water and dumps it into other parts of the ship that is not wet. Draghi is taking the bad debt, giving it to others all over the EZ and drowning the whole continent.
Why Gold Won't Reach $2,000 This Year [View article]
This author wrote an article on GLD a few weeks back saying QE won't happen. Now he's saying gold won't hit 2,000 this year. What this tells me is that being contrarian to a contrarian-based trade (long gold), doesn't always yield the correct result.
Why Gold Won't Reach $2,000 This Year [View article]
Regardless of the official numbers, the drop to 8.1 came not because of rising employment but after 368,000 people quit looking for jobs. Regardless of what a politician might say about the unemployment or inflation numbers, we have to look at the details to see how serious the situation is. When was the last time we could publicly see M3 money supply?
GLD is only a "fraud" to people who buy ETF's expecting the physical material in return on the secondary market. For example, I don't buy wheat ETF's expecting that I can sell those shares for either dollars or wheat, so why should I expect the same with a gold ETF that doesn't work this way with retail investors?
Dr. Marc Faber's Market Outlook For 2013 [View article]
U.S. Dollar - Most Vulnerable In 2 Years To Large Decline [View article]
Weaker markets equals weaker demand, but add inflation into that equation and you end up with weak markets, weak demand for commodities, but high prices. Bad mix, this is like the Four Loko of CB policies. Nasty hangovers will result.
U.S. Dollar - Most Vulnerable In 2 Years To Large Decline [View article]
CB's: +1
Humanity: -1
Moral Hazard 101: IMF Report Shows Little Concern For Inflation, Currency Debasement [View article]
Return To Bretton Woods: Economic and Investment Implications [View article]
The Chinese are trying to infiltrate our communications and infrastructure.
They also take a twisted crony capitalism and beat our market over the head with it. Lastly, they're trying to claim other countries' land in order to reap the natural resources.
They'll isolate America from valuable resources and separate the general public from their money. That's how they'll respond.
Return To Bretton Woods: Economic and Investment Implications [View article]
We know the largest shareholders can influence a business in strategic and fiscal decisions. With the US, isn't that what the Fed is basically doing with ZIRP and QE? So how can we argue against China if they want to influence our policies or change our "board of directors"?
Return To Bretton Woods: Economic and Investment Implications [View article]
China is the largest shareholder in US debt, we owe them more than they owe us. Americans are too busy talking about the Presidential debate and not paying attention to Chinese aggressive expansionist policies. China recently argued ownership of any country/island that payed tribute to it at any time of history, which if taken to it's full conclusion means all of Southeast Asia, Mongolia, and Eastern Russia, as well as parts of Japan, Korea, and the Philippines belong to China by that argument.
Look up the Ryukyu islands crisis, as well as Chinese attempts to buy out land in and around US bases in the Pacific. China is walking its talk seriously.
Just because you think the Chinese have no right to dominate world politics and economics doesn't mean that they can't do it in your lifetime.
Negative Interest Rates On Reserves: The Right Or Wrong Stimulus? [View article]
Negative Interest Rates On Reserves: The Right Or Wrong Stimulus? [View article]
This is all just an illusion of wealth.
Eurozone Crisis: From Periphery To Core [View article]
Regardless, I see a sinking ship called the EU, one where instead of plugging the holes where the water's filling in, the captain instead takes buckets of the water and dumps it into other parts of the ship that is not wet. Draghi is taking the bad debt, giving it to others all over the EZ and drowning the whole continent.
Why Gold Won't Reach $2,000 This Year [View article]
Why Gold Won't Reach $2,000 This Year [View article]
Roubini Bets On QE3 [View article]
Unemployment Numbers Give No Breathing Space For The Fed [View article]
Unemployment Numbers Give No Breathing Space For The Fed [View article]