The world is complicated enough. Europe’s sovereign debt crisis will eventually migrate its way to America and the super cycle in fiat money will end in either a debt deflation or massive inflation or both. Real wealth will be destroyed. Meanwhile, China faces a property and credit bubble of its own.
May 14th, 2010 | Dan Denning | 21 comments | ContinuedAll Posts Tagged With: "balance sheet"
Surge in Chinese Bank Lending in 2009 Leads to Fall in Bank Capital
And while we’re on the subject of China we should relay that Citic Pacific Ltd, which is an arm of China’s largest state-owned company, is set to spend more on magnetite iron ore projects in Australia. Magnetite is a lower grade ore than the hematite ores that BHP and Rio have all but locked up in the Pilbara.
November 26th, 2009 | Dan Denning | 2 comments | Continued
More Quantitative Easing by Fed has Markets Spooked About Inflation
Bullard said, that, “If the economy came in very weak, let’s say, in 2010, weaker than expected, we would have the option of doing further quantitative easing.” The Fed would do this through additional asset purchases, presumably with more, uh, “money” it created.
November 24th, 2009 | Dan Denning | 43 comments | Continued
India Beats China to Walk Away With 200 Tonnes of IMF Gold
India’s central bank is now the proud owner of 557 tonnes of gold. That gives it the tenth largest gold holdings among central banks. But it probably isn’t finished. Gold makes up just six percent of India’s foreign exchange reserves. There’s plenty of room for that to grow.
But don’t forget China. China has $2.3 trillion in foreign exchange reserves…
November 4th, 2009 | Dan Denning | 5 comments | Continued
Gold Price Should Continue Going Up as the Dollar Accelerates its Terminal Decline
But first, just a reminder about the gold conference in Canberra November 2nd through 5th in Canberra. You can read about it here. Space is limited, so if you’re keen to go, you’d better move fast. Your editor will be there too, for the first time, and is looking forward to a world-class line up of speakers on gold as money and gold investments.
October 2nd, 2009 | Dan Denning | 6 comments | Continued
The More Money in a Financial System the Less Each Unit is Worth
For the last 10 years, the money supply in the United States has expanded at roughly twice the rate of GDP growth. And the Fed doubled its balance sheet in just the last 18 months.
September 8th, 2009 | Bill Bonner | 1 comment | Continued
One in Four US banks Announce Unprofitable Quarter
“Friday’s edition of The Wall Street Journal picks up on the theme of the long road of pain ahead for bank shareholders in the US,” colleague Dan Amoss tells us. “In ‘Banks on Sick List Top 400,’ the WSJ details several ugly highlights from the latest FDIC Quarterly Banking Profile, published last Thursday.
September 1st, 2009 | Bill Bonner | 0 comments | Continued
Commercial Mortgage Backed Securities Are Back
Today’ Age reports that the Trust will try to raise $280 million from the issue. Some of that will be used to pay off nearly $450 million in securities that mature in December. Hmm. Selling more debt to pay off old debt. There’s never a bad time for that if you don’t have cash.
August 27th, 2009 | Dan Denning | 6 comments | Continued
Inflationists Reappointed at the Fed
Why is the biggest story of the day? Because Ben Bernanke is a well-intentioned arsonist. Bernanke inherited an American and global economy built on an upside down pyramid of debt, with a very small asset base. When the entire edifice began to collapse in 2007, the Fed Chairman was slow to react.
August 26th, 2009 | Dan Denning | 1 comment | Continued
The Challenge of a Balance Sheet Recession
In a world where Austrian School precepts held sway, the dog would be allowed to exhaust itself and start out fresh, facing less-distorted relative price signals that eventually would lead to a more productive set of behaviors. Debts that could not be supported…
July 29th, 2009 | Rob Parenteau | 0 comments | Continued
Glenn Stevens Says Australia’s Economy Has Been Travelling Better Than Others
We’ll see about that. Stocks are certainly pricing in a profit recovery (about which we have our doubts). But Mr. Stevens also had a bit to say about credit markets and balance sheets, in comments that were not as widely reported as his comments on Australian housing. More on housing in a second.
July 29th, 2009 | Dan Denning | 25 comments | Continued
Government Could Succeed in Reflating the Bubble
The dotcom bubble had exploded. Stocks were going down. The economy was in recession. But the recession turned out to be very, very mild. Most people seemed unaware that there was a recession at all. Spending never went backwards…not an inch.
May 27th, 2009 | Bill Bonner | 0 comments | Continued
It Wouldn’t be a Real Bear Market Rally if it Didn’t Test Your Confidence in Your Position
Perhaps it’s too early to say. But after the long holiday break and the news that Goldman Sachs somehow eked out US$1.8 billion in earnings in the last quarter, you get the feeling that the Aussie market might enjoy a stroll in the green today.
April 14th, 2009 | Dan Denning | 6 comments | Continued
