Reports in the press this week say that China is considering ways to diversify out of the dollar. The Chinese are no fools. They see what is coming. And they know what it will do to them – the holders of the largest pile of dollars ever assembled. The Financial Times made it perfectly clear to them in a cartoon yesterday. It shows Barack Obama in front of a huge smoking trashcan filled with dollars. The president is pouring on gasoline…
February 16th, 2009 | Bill Bonner | 7 comments | ContinuedAll Posts Tagged With: "deficit"
The Good War
When it comes to war and adultery, make-believe may be better than the real thing. Certainly, it is safer. In the War on Terror, the enemy had no tanks…no aircraft…no ships…no armies…no celebrated strategists…no famous generals…no sophisticated weapons…no military culture…no leather trench coats…no burnished helmets…no battle cries… The problem was, it was hard to find the enemy at all. Bill Bonner explores…
February 2nd, 2009 | Bill Bonner | 6 comments | Continued
Patching Up The World With Golden Glue
It was in the Wall Street Journal, in their “Best of WSJ.Com’s Money Blogs” where I got the news that “As any private banker will tell you, the wealthy have become gold bugs. They are buying futures, gold bars, just about anything made from the shiny stuff.” Personally, this was surprising, since I didn’t know how or why bankers would know what the wealthy are doing, especially as concerns gold, but maybe this is because my relationships with my bankers are always frosty for one reason or another…
January 27th, 2009 | Mogambo Guru | 0 comments | Continued
Ask Not What Your Banks Can Do For You…
Everyone believes the banks need more money. Obama is likely to give them more. How? Using the “quantitative easing” technique…otherwise known as printing up money. The banks, of course, will not lend…and people will not borrow. They’re not fools. So, then, the Obama administration will begin pumping harder…like they do in Zimbabwe…
January 21st, 2009 | Bill Bonner | 1 comment | Continued
A World of Financial Freeloaders
Protect yourselves against your constantly acting stupid by electing spendthrift, promise-them-everything morons to government office, who have allowed the Federal Reserve to create so much money and credit to accommodate government deficit-spending that that government has now spent you into debtor’s hell to support a government So Freaking Huge (SFH) that the total of government spending constitutes half – half! – of all spending in the freaking country!…
January 20th, 2009 | Mogambo Guru | 2 comments | Continued
The Coming Oil Back Draft
During the big run up to $150, national oil companies were cash cows. But it now appears that little of the oil bounty was reinvested in new production or even maintenance of existing production. So what do we have now? We have a situation here. A situation where the falling oil price is leading a big reduction in oil production. This will match, for a while reduced demand for oil. But we also think it’s baiting the trap for a huge blowback in oil prices. And the spark for that could be geopolitical…
January 19th, 2009 | Dan Denning | 1 comment | Continued
The Baddest Bank in the West
The world’s full of bad banks already – banks that did just what Bernanke is proposing to do; they bought financial assets, notably mortgage market derivatives, for cash. Now, they turn to the taxpayer, desperate for a handout to keep them from going under. And the baddest bank of all? Next to the Central Bank of Zimbabwe it’s the U.S. Fed…
January 15th, 2009 | Bill Bonner | 2 comments | Continued
Said the Joker to the Thief
And now we face a grim task; for now we have to reckon with the year ahead. Stocks are no longer absurdly over-priced. Nor is oil. Nor is anything else – with one major exception – U.S. Treasury debt. Should you buy stocks…or sell them? Should you buy more gold now…or wait for the first signs of inflation? Is it time to buy the oil producers…or the gold miners? Will the world economy sink into a Japan-like slump…or will the feds cause a Zimbabwe-like catastrophe?…
January 12th, 2009 | Bill Bonner | 1 comment | Continued
Replace Private Spending with Public Spending
The world’s markets have begun a major correction. The world’s governments – led by the United States – are determined to stop it. They want people to spend like there was no tomorrow. But people are acting like every day is tomorrow. Instead of spending, they are beginning to save…
January 9th, 2009 | Bill Bonner | 7 comments | Continued
Deficit Spending in Australia Reaches a New Era
What to make of the world today? You have interest rate cuts in China, bombings in India, wretched economic data in America, onerous taxes in Great Britain, and a new era of deficit spending in Australia. If this were a Bad News Digest, we would have to print an extra edition today. Let’s start with the news in China. The central bank there cut one-year interest rates by over one percent to 5.58%…
November 27th, 2008 | Dan Denning | 4 comments | Continued
