What we saw was an over-stretched empire getting ready to snap. But we were also allowing ourselves to be lazy. Rather than deconstruct the capital structure of the world’s largest economy, we decided to sell the whole damned thing.
October 12th, 2009 | Bill Bonner | 5 comments | ContinuedAll Posts Tagged With: "bonds"
Should You Buy Gold Now?
The Trade of the Decade is still buy gold/sell stocks. And the decade isn’t over. If you have US stocks, this is a good time to sell. The Dow went up 63 points yesterday – a weak bounce after several days of losses.
September 7th, 2009 | Bill Bonner | 0 comments | Continued
Is Inflation Necessary for Recovery and Growth in the United States?
It was French economist Jacques Rueff who revealed the scam more than half a century ago. The whole idea of Keynesian stimulus, he explained, was to cause inflation…which would reduce the real price of labor. In a modern democracy, politics prevents wages from falling.
August 3rd, 2009 | Bill Bonner | 0 comments | Continued
World Economy Faces Hyperinflation or Deflation?
What is more likely is that over the coming months, we will get another deflationary scare. Any sell-off in the markets later this year will be met by an even larger stimulus from the policymakers and this will ultimately result in high inflation.
July 9th, 2009 | Puru Saxena | 4 comments | Continued
Superannuation Raiding Party Being Formed
For the superannuation industry, the bigger problem is that the generational bull market in stocks is over. There are still sectors and industries that will do quite well and that fund managers can profit from. But finding them and managing to get capital into them at attractive prices is going to be a lot harder. People might actually have to work for a living and even think, rather than just clipping tickets and surfing a bull market higher…
June 12th, 2009 | Dan Denning | 48 comments | Continued
American Family’s Share of Government Debt Now Over Half a Million Dollars
Last year’s spike is the biggest since the Medicare prescription drug benefit was added in 2003. According to the rag, the government garnered $6.8 trillion in “new obligations” in 2008, bringing the total US tab to $63.8 trillion.
June 2nd, 2009 | Bill Bonner | 2 comments | Continued
The Chinese and the Fed Both Buying U.S. Treasury Bonds
“We have a huge amount of money in the United States,” said Wen Jiabao, premier of the People’s Republic of China, back in March. “I request the U.S. to maintain its good credit, to honor its promise and to guarantee the safety of China’s assets.”
May 26th, 2009 | Bill Bonner | 6 comments | Continued
Central Banks’ New Money is Piling Up
“Quantitative Easing” it is called. As a refresher for readers with real lives and better things to do, QE is how central banks describe what is essentially an act of counterfeiting. They buy bonds with money created – electronically – specifically for that purpose.
May 25th, 2009 | Bill Bonner | 6 comments | Continued
Dollar’s Demise Has Started a Chain Reaction in Currency and Commodity Markets
The Aussie dollar, for example, tacked on 4.5% against the greenback last week. The Aussie is now at a seven-month high against the USD. You could be tempted to say the “carry trade” is back on. That’s where investors borrow in Yen or U.S. dollars to buy higher yielding currencies like the Australian and New Zealand dollars. But we don’t think that’s the case. Why?
May 25th, 2009 | Dan Denning | 0 comments | Continued
Monetary Inflation the Old-fashioned Way!
All of our economic problems are caused by the Federal Reserve creating the excess of money and credit that produced the bubbles in stocks, bonds, houses and size of government, but doesn’t have to be electronic money made from electronic credit.
May 5th, 2009 | Mogambo Guru | 1 comment | Continued
The World of Money Seems a Million Miles Away
When we arrived back in civilization…or at least back in Salta, Argentina…we were happy to see that nothing much had changed. Just as well. We didn’t want to write much about the financial world anyway.
April 22nd, 2009 | Bill Bonner | 4 comments | Continued
Australia Ponders its Chinese Future
Let’s take a break from the great housing debate today and return to markets. What a day it was! Gordon Brown is ridiculed in the European Parliament as a U.K. bond auction fails. The U.S. Treasury Secretary is forced to consider a Chinese proposal for a new reserve currency that is not the greenback.
March 26th, 2009 | Dan Denning | 3 comments | Continued
A CAP to Replace the TARP
The share market is digesting the ambitious speech Barrack Obama gave to the U.S. Congress. He’s going to cut the U.S deficit in half, increase spending, provide universal health care, improve education, replace oil with alternative energy, introduce a carbon cap and trading scheme…and that’s just before lunch! You have to wonder what kind of Kool Aid the folks in Washington are drinking…
February 26th, 2009 | Dan Denning | 0 comments | Continued
An Irish Bond Bomb
More people are beginning to see States in a different light. Rather than seeing states as the (most of the time) democratically elected representatives of the people, people see something much more feudal. They see a set of elites who achieve and maintain their position by looking out for the economic interests of a small group of elites, including themselves…
February 19th, 2009 | Dan Denning | 3 comments | Continued
Circle September 26th on Your Monetary Calendar
Bankers are bankers, after all. Their product is money. But they have gold in their vaults for a reason. It was money before paper was money. So September 26th may mark the end of the orderly and coordinated management of gold sales by European Central Banks. And it may mark the beginning of a new monetary era where gold reasserts its importance as money…
January 28th, 2009 | Dan Denning | 2 comments | Continued
