Global Market Commentary, Analysis and Investments
The world’s “faith-based” monetary system is breaking down before our eyes. Don’t be caught off guard.
Last week’s euphoria over the Euro bailout turned around sharply this week on news that the political situation in Greece is worsening. That’s been the pattern for months.
The grim reality is that “rescue plans” can’t fix what’s broken. The Western nations are suffocating under mountains of debt…and there are only two known “cures”: default or inflation.
[Read more...]The world of high finance was still in full flight in February 2007. The cracks in the mortgage market had not yet begun to show and Stephen Schwarzman’s Blackstone Group had just completed its $39 billion purchase of Equity Office Properties in what was the largest leveraged buyout ever.
There was plenty to celebrate, so Schwarzman threw himself a party for his 60th birthday, a 3 million dollar affair for 350 of the billionaire’s closest friends, including Barbara Walters, CNBC money honey Maria Bartiromo, the Donald, Cardinal Edward Egan, and former New York governor George Pataki.
[Read more...]On its way to becoming the world’s greatest superpower, the United States pulled off some truly remarkable trades.
Two notable transactions come to mind and were both outstanding bargains.
Today commemorates the day when the Virgin rose to Heaven.
It is also marks the day when the world’s money system headed to Hell.
As to the first, Dear Readers need no reminder or instruction. Everyone knows about the Assomption of the Virgin, though no one we know seems to know how it happened, exactly, or what is the significance of it. Looking it up in our Petit Larousse, we find that it is a miracle of recent vintage, only established in 1950.
[Read more...]Gold is not money. So says Ben S. Bernanke, the maker of “money”…at least as he defines it…and at least for now.
If gold is not money, then, what is?
First, let us look briefly at why we desire money in the first place. Before cash, credit cards and PayPal, before money itself, there was barter. A barter system is one of direct exchange. It does not require money to function.
[Read more...]Yesterday, the Dow shot up more than 200 points, for no apparent reason. Gold backed down below $1,600 for a very obvious reason.
Nothing goes up in a straight line, not even gold. After such stunning gains over the last few weeks, the stuff that Ben Bernanke does not regard as money, gold, needed a rest.
[Read more...]In his recent commentary, Ambrose Evans-Pritchard sees the world nearing a revived gold standard as the US, Europe, and Japan all continue testing the limits of maximum sovereign debt levels.
With potential for QE3 — a third round of the Federal Reserve’s quantitative easing program — on the horizon, governments around the world must consider alternatives to the US dollar and other paper money. These developments are likely to continue impacting precious metal prices.
[Read more...]The US economy is still broken, which is the only plausible reason why bonds might not be a “sell.” But then Bernanke keeps trying to fix the economy, which is the best reason why bonds probably are not a “buy.”
According to conventional wisdom, a sluggish economy tends to reduce demand for credit, which, therefore, tends to keep interest rates low… all else being equal. Robust economic conditions, on the other hand, tend to increase demand for credit, which tends to push interest rates higher…all else being equal.
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By Gold
Have you ever had any doubts about gold? Does it sometimes feel like it should be performing better? Are you concerned about its volatility? Do you worry about how it might perform in the future? Have you ever wondered about its true purchasing power? Maybe you’re nervous about a big drop in price again? I decided to go directly to the source to address these concerns: Gold himself. He put his arm around me and asked me to tell you a few things…
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