What Happens When the World Economy “Goes Japan”

The Dow sinking.

Gold sinking.

Oil sinking.

Copper sinking.

Yields sinking.

We struggled with this, Dear Reader. We meditated. We prayed. We drank heavily.

And finally…we overcame the rank desire to say: “We told you so!”

As you know, Martin Wolf, of The Financial Times, is the voice of The Economics Establishment. All that is great and good in the field — which isn’t very much — is given voice by Wolf. Then, it is acceptable for policymakers, Treasury ministers, and central bankers, not to mention the people you talk to at cocktail parties.

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What Happens When the World Economy “Goes Japan”

The Dow sinking.

Gold sinking.

Oil sinking.

Copper sinking.

Yields sinking.

We struggled with this, Dear Reader. We meditated. We prayed. We drank heavily.

And finally…we overcame the rank desire to say: “We told you so!”

As you know, Martin Wolf, of The Financial Times, is the voice of The Economics Establishment. All that is great and good in the field — which isn’t very much — is given voice by Wolf. Then, it is acceptable for policymakers, Treasury ministers, and central bankers, not to mention the people you talk to at cocktail parties.

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Taxing the Rich to Fix the Economy

Gold down below $1,600! Is the bull market in gold finally over?

Nah…let’s change the subject.

Today, our hearts go out to the poor 1%…

Yes, dear reader, they’re blamed for the crisis…

They’re reviled, calumnied, and criticized…

They’re hunted by the taxmen…

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Eurozone Economy Slows Down

Good day. Strangeness all around, folks. The U.S. government continues in their effort to make us all feel better, so we go out and spend, spend, spend. We have that to talk about today, along with the regular risk-on/risk-off discussion. The sun finally came out yesterday, which always makes me feel more alive.

[Read more...]

Eurozone Economy Slows Down

Good day. Strangeness all around, folks. The U.S. government continues in their effort to make us all feel better, so we go out and spend, spend, spend. We have that to talk about today, along with the regular risk-on/risk-off discussion. The sun finally came out yesterday, which always makes me feel more alive.

[Read more...]

Spain Enters its Second Recession in Three Years

Friday’s price action in the currencies was all about tight ranges, but if there was any bias, it was to sell dollars, especially after it was announced that the first print (they’ll be revisions coming) of first-quarter US GDP was 2.2%, down from the fourth-quarter’s 3% clip.

We edge ever so slightly to the other side of the storm from the “eye” and data print after data print show that. Shoot, Rudy, the “experts” had forecast slippage, so they see what’s happening too. Unfortunately for their reputations, they forecast first-quarter GDP at 2.5%, but it printed at 2.2%, even worse slippage than the “experts” saw happening.

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Austerity Around the World

When things are going well, people vote for the status quo.

When they aren’t going so well, they move farther out on the political spectrum. In France, a couple of years ago, both Melenchon on the far left and Le Pen on the far right were considered “politically dead.” Now, a few years of crisis have brought them both back to life.

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A Positive Approach to the US Economic Downturn

In the spirit of Good Friday, we’ll keep our message upbeat today.

For starters, all government offices are closed. So there’s some good news right off the bat! The financial markets are also closed, which is probably good news for the holders of gold and silver. If the markets are closed, no one can enter a “Sell” order.

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Misguided Faith in an Economic Recovery

We watched last night the rows of cars below our balcony, snaking their way out of the pollution and congestion of South America’s second largest metropolis, out into the peace and calm of the surrounding campos and estancias.

The usual rabble and riff-raff have left for the long weekend. The city is empty. And quiet.

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