What is going to happen when the greatest economic bubble in the history of the world pops? Themainstream media never talks about that. They are much too busy covering the latest dogfights in Washington and what Justin Bieber has been up to. And most Americans seem to think that if the Dow keeps setting new all-time highs that everything must be okay. Sadly, that is not the case at all. [...]
When it comes to explaining the problems with our economy, one of the hardest things to do is to get people to understand that we are living in an economic fantasy world that is completely and totally unsustainable. As a nation we consume far more than we produce, we spend far more than we bring in, our debt is growing much faster than our GDP is, our entitlement programs [...]
The Federal Reserve continues to pump up this “bubble economy” by recklessly printing money and by setting interest rates artificially low, and the U.S. Congress continues to stand aside and allow them to systematically destroy our economy. The U.S. Congress could choose to end this madness at any time, but the truth is that Congress won’t even pass a law that would allow the American people to see [...]
The “Central Banks’ Central Bank” Slams the Federal Reserve
The central banks’ central bank, the Bank of International Settlements or “BIS” – which is the world’s most prestigious mainstream financial body – has slammed the policy of America’s economic leaders.
This is especially dramatic given that The Banks Own The Federal Reserve, And That The Federal Reserve And Other Central Banks – In Turn – Own BIS. In other words, BIS is criticizing one [...]
by George Washington’s blog
Simultaneous Global Printing Is Failing Miserably
Mainstream Keynesian economists argue that the failure of the European austerity measures to pull Europe out of the doldrums proves that more stimulus is needed, and that austerity is poison at this stage.
Indeed, most mainstream economists pretend that debt doesn’t exist … or believe that debt for its own sake is good and necessary.
But Martin Weiss noted last month:
Four of the world’s largest central banks have gone absolutely berserk, running the [...]
Rising layoffs, falling home sales and slowing manufacturing activity are sparking fears that the economic recovery is headed for a springtime stall for the third year in a row.
New data Thursday provided fresh evidence that the job market is losing the momentum it built earlier this year, which could pressure fragile housing markets that have been showing signs of life. Separate reports this week suggested that the factory sector, [...]
Olympus shares slide 2.4 pct vs 0.3 pct dip in TOPIX
* Arrests mark ‘a day to remember’ – ex-CEO Woodford (Adds quote from ex-CEO Woodford)
By Mayumi Negishi and Nobuhiro Kubo
TOKYO, Feb 16 (Reuters) – Four months after one of Japan‘s biggest corporate scandals, police and prosecutors on Thursday arrested seven men, including the former president of Olympus Corp and ex-bankers, over their role in a $1.7 billion accounting fraud at [...]
Ben Bernanke is speaking in Texas to some soldiers and ther families in what is mostly a boilerplate presentation: he mourns the bubble economy, protects his policies and tries to deflect focus away from the Fed, just like the ECB, to the legislative. To wit: “it doesn’t feel like the recession ever ended. The unemployment rate remains painfully high, and more than two-fifths of the unemployed have been out [...]
With troubles in Europe’s banking system threatening to contaminate the global financial system, it’s beginning to look a lot like 2008 to many observers. History doesn’t repeat, but it often rhymes which is why Robert Wiedemer of Absolute Investment Management believes investors need to prepare for another 2008-style maelstrom — or something even worse.
“I do think we’ll have another meltdown within 2 to 4 years,” [...]
When asked about year over year increases in inflation in the UK with butter being up 57%, bread 50%, potatoes 103%, tomatoes 63%, cauliflower 82.6% Schiff remarked, “Inflation is the money that the Fed is printing that is causing all of these prices to rise. The Fed has been printing money like crazy. The Federal Reserve has been printing enough money to buy all [...]
by Nick Ricciardi
On Japanâ€™s Bond Market and Its Economy
Over the past few weeks there has been a new round of articles and commentaries predicting doom for Japanâ€™s economy. Yet, as usual, Japanâ€™s bond markets have shrugged off these fears.
Japanâ€™s capital markets and its macro-economy are replete with confounding puzzles. But they are all rooted in two basic misconceptions that Japanese hold concerning their debt. [...]
by Charles Hugh Smith from Of Two Minds
Fed Goldilocks Ignites Firestorm, Three Bears Now Homeless
Under the guise of engineering a “Goldilocks” recovery, the Federal Reserve has instead heated up yet another bubble which is now imploding.
The Fed has long played Goldilocks to the U.S. economy, claiming the ability to avoid overheating (“too hot”) or contraction (“too cold”) and thus engineer a “Goldilocks, not too hot, [...]
The persistent and huge trade deficit is made possible by the SAME lie that makes possible the persistent and gargantuan government deficits: the dollar as reserve currency which allows titanic amounts of fraudulent public debt to be issued .
The world(and a growing number of real Americans) is increasingly aware that the biggest economic lie in history is the fiat dollar. When the lie is [...]
On top of news that Iceland’s economy is growing, its central bank again lowered rates, citing an appreciating krona, declining inflation expectations, and slack in the economy. The krona has gained 21% against the euro this year.
via New York Times:
Iceland emerged from recession in the third quarter, official data showed Tuesday, returning to growth for the first time since its financial system collapsed at the [...]
Observations from Walter Zimmerman, United-ICAP
We have noted before that we have all been passing through a golden age of speculative financial bubbles. Since the year 2000 the history of the financial markets has been the history of a series of bubbles. By now we are all familiar with the sequence. First the speculative bubble inflates, then the bubble bursts, and then a financial panic ensues. [...]
Make these profligate gamblers with our futures be the ones to pay. Why should we pay for their mistakes?
French President Nicolas Sarkozy has spoken the magic words: â€œTax the banks,â€ and this is the big news from the opening day of this yearâ€™s UN General Assembly plenary session in New York. For reasons which have much to do with internal French political struggles, Sarkozy has [...]
And afterwards there were different economic and political events that occurred.
1933 – Roosevelt devalues the dollar against gold (Sorta like printing more money). 1932-1936, Nazi sieze power, begin building up armed forces, I think Britain did the same, probably helped our exports.
1973 – Oil shock after Arab-Israeli war. Vietnam war winding down.
Discount rate in 1973 ~8%, discount rate in 1975 ~6%.
1981 – Interest rates were sky high, in order to [...]
1. In China there are about 30 billion square feet of space in construction only in the commercial property sector.
2. Fixed investment is forecast to reach 60 percent of Chinese gross domestic product in 2010, up from around 50 percent in 2009.
3. China’s credit boom has increased bank lending by more than 6 trillion Yuan in the period between December 2008 and June 2009.
4. Apart from the dollar weakness, part [...]