The golden age of iron ore profits is ending for Australia. Europe’s banking system is slowly going bust because of the government debt crisis. Europe is a big customer of China’s. China is a big customer of Australia’s.
February 8th, 2012 | Dan Denning | 0 comments | ContinuedArchive for Dan Denning
Dan Denning is the author of 2005's best-selling The Bull Hunter (John Wiley & Sons). He began his financial publishing career in 1997 and has covered financial markets form Baltimore, Paris, London and, beginning in 2005 Melbourne. He’s the editor of The Daily Reckoning Australia and the Publisher of Port Phillip Publishing.
Why Australian Banks Make Lousy Investments Right Now
Moody’s has just released a report claiming that Australian banks are the “most exposed” banks in the Asia-Pacific to a worsening of Europe’s sovereign-debt problem. What exactly does that mean?
February 7th, 2012 | Dan Denning | 1 comment | Continued
What the RBA Index of Commodity Prices Doesn’t Tell You
A whole sector of the commodities complex that’s in a long-term bull market isn’t measured by the RBA’s commodity prices index. Do you realise what this means?
February 7th, 2012 | Dan Denning | 0 comments | Continued
Natural Gas: The Big Transition in Energy
Today we look at why energy is becoming a flash point in Europe and how natural gas is taking centre stage. First, though, we’d like to announce a changing of the guard in the leadership of the resources market.
February 6th, 2012 | Dan Denning | 1 comment | Continued
On the Edge of Evolution: An Investment Story in Three Acts
Today’s story is how the investment world you live in came to be…and how we’re on the edge of a great leap forward…or a great leap into a deep abyss. If you don’t have time to read it, go over to Facebook and tell everyone you’re too busy to read about the most important investment story of your life.
February 1st, 2012 | Dan Denning | 2 comments | Continued
What the Facebook IPO Says About Your Most Valuable Asset
Social networking site Facebook may go public this week. This is important. The fact that the company is ready to sell shares to the public and Wall Street is underwriting for the initial public offering (IPO) can only mean one thing: the age of superficial communication devoid of real content and real meaning may be peaking… as soon as tomorrow!
January 31st, 2012 | Dan Denning | 11 comments | Continued
The Energy Empire of the Sun
We take up the issue of national power and real energy in today’s Daily Reckoning. And we take it up because the fate of nations and the welfare of men and women are directly related to how much sunlight we all get. All power—from the stored solar energy in fossil fuels to the sunlight that makes food grow—comes from energy.
January 30th, 2012 | Dan Denning | 16 comments | Continued
Australia’s Place in the World of Debt – An Each-Way Bet On The 21st Century
Australian government debt (Federal) crossed the $200 billion barrier last year. In a few short years, then, the government has gone from a modest $20 billion surplus to a $200 billion debt. That debt is still small as percentage of GDP compared to the US, Japan, and the UK. But it’s a lot larger than it was a few years ago…and once these things get rolling, they have a way of building momentum.
January 25th, 2012 | Dan Denning | 7 comments | Continued
The Link Between Japan’s Economy and Australia
Japan’s economy posted its first trade deficit since 1980. This is a country whose entire economic model has been based on exporting manufactured goods to the rest of the world. But for 2011, the Japanese ran a trade deficit of $2.6 billion.
January 25th, 2012 | Dan Denning | 0 comments | Continued
The Downside of a Strong Australian Dollar in the New Brand of Capitalism
The strong Australian dollar makes some export industries chronically uncompetitive. Not only does this make them bad investments, it damages their ability to remain a going concern.
January 24th, 2012 | Dan Denning | 4 comments | Continued
How Australia’s Terms of Trade is Riding the Dragon
Today’s terms of trade boom exceeds anything Australia has seen in previous booms. The wool booms in the 1920s and the 1950s – both war related – helped Australia ride the sheep’s back to prosperity. This time, Australia is riding the Dragon’s back to prosperity.
January 23rd, 2012 | Dan Denning | 6 comments | Continued
The War Against the Euro
The Americans are trying to discredit the euro in order to perpetuate dollar hegemony, so goes the argument. Hmm. It’s possible. It’s also possible that all central bankers and monetary policy makers are singing from the same hymnal. Their answer to the end of the credit bubble is to try and pump it back up with currency debasement. In that case, this is a war of all against all.
January 18th, 2012 | Dan Denning | 5 comments | Continued
For the Love of Gold
Signalling a desperation for tangible wealth, customs officials arrested eight South Korean men for smuggling gold out of the country…in their rectums.
January 17th, 2012 | Dan Denning | 1 comment | Continued
Downgrade of European Financial Stability Facility Becomes a Reality
“It won’t be long before the EFSF has its own credit rating cut,” we wrote yesterday. And it wasn’t! Standard and Poor’s delivered the coup de grace yesterday. It downgraded the European Financial Stability Facility from AAA to AA+.
January 17th, 2012 | Dan Denning | 2 comments | Continued
The Growing Energy and Oil Alliance Between China and Saudi Arabia
The oil and energy alliance between China and Saudi has just been strengthened. On Saturday – in the wake of Europe’s debt crisis – Saudi state oil company Aramco signed a deal with China’s Sinopec to build an oil refinery in the Red Sea city of Yanbu.
January 16th, 2012 | Dan Denning | 0 comments | Continued
