All Posts Tagged With: "u.s."

Don’t expect spending on the pentagon to decrease. Not with US national security at stake. And not with China posing an ever- greater threat.

China’s economy grew 71 times faster than the US over the last 4 years. At that rate, it won’t be long before US output is actually lower than China’s.

Big Dog in the Pac

US President Obama is in da house! And he’s received a pretty warm welcome since stepping through the door. Now while China isn’t over the moon about his trip to Australia, it’s a nice change for the president. He’s not too popular at home.

The U.S. dollar is falling because it is fundamentally dishonest money. But rather than prove that today, we’ll begin with a man sleeping soundly a camp cot at a mining site in Botswana and show why his visit – and the opportunity he was investigating – is tied directly to the dollar’s dishonesty.The man is Dr. Alex Cowie, or Dr. Stock as we call him around the offices when he’s here and not chasing up some geologist over coffee in the CBD. You may know him as the editor of Diggers and Drillers.

Sales collapsed an unprecedented 33 percent from April to an annual pace of 300,000, less than the median estimate of economists surveyed by Bloomberg News and the fewest in data going back to 1963, figures from the Commerce Department showed today in Washington. Demand in prior months was revised down.

Uh oh. Just when you thought it was safe to jump back into Greece again, news comes that Greek borrowing costs have soared above 7% interest. AFP reports that, “Taxi drivers and lawyers have begun strikes against planned budget cuts.” Yet the important news here is that despite the assurances of loans from the EU, market investors are making the Greeks pay to borrow.

In the early 19th century, traders from Britain and America bought porcelain (china), silk and tea. Trouble was, they could find nothing to sell in exchange.

There is a risk in holding cash in an environment of asset price inflation – a condition that usually occurs when governments create large fiscal deficits and inflate the money supply.

Millions of people, for example, earned their money in ‘housing.’ They were putting up houses in the sand states…or building granite countertops…or selling, flipping, financing the houses.