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Rosenberg – 16 Reasons I’m Not Buying The Employment Report I went through the January data one last time with a fine tooth comb. I fail to see what got everyone so excited, beyond the upward revisions to the back data. That only proves that productivity has been weaker than initially thought. And the income from those upward job revisions has probably already been spent. But as I highlighted yesterday, the [...] From Bargaineering: There are a lot of bad financial products out there. While some offer you great opportunities to build wealth, others can sap your wealth with high costs — and even keep you in the debt trap forever. … Before you decide to take the plunge with a financial product, really think it through, and determine whether or not you are really making the best decision for your finances. … Here are five [...] http://www.atomcapital.co.uk/wp-content/files_mf/1343131061AR_0712.pdf Pacific Investment Management Co.’s Bill Gross said a “debt trap” remains in place even after European leaders reached an agreement that alleviated concern the region’s banks will fail. Pimco continues to avoid the debt of nations including Spain and Portugal in favor of U.S. Treasuries and mortgage securities, Gross, who runs the world’s biggest bond fund, said in a radio interview on “Bloomberg Surveillance” with Tom Keene and Ken Prewitt. European policy [...] by Alasdair Macleod, CM The reality is that Ireland, Portugal, Spain, Italy, Belgium, Greece, and France (in no particular order) are all in debt traps from which there is no escape. A debt trap is sprung when bankruptcy becomes the only outcome. With corporations, this usually becomes readily apparent and directors are forced by law to stop trading, but countries conceal this reality by printing money. Otherwise there is no difference [...] From Financial Highway: Even though it can be easy to fall into the debt trap when you use a credit card, the truth is that sometimes it’s best to use a credit card. It’s true you can use a debit card in much the same way as a credit card, but there are some things a debit card is missing. Many banks tell you that you can have similar protections with [...] George Soros has been a busy man the last few days. Appearing at the INET Conference a number of times and penning detailed articles for the FT (and here at Project Syndicate) describing the terrible situation in which Europe finds itself – and furthermore offering a potential solution. Critically, he opines, the European crisis is complex since it is a vicious circle of competing crises: sovereign debt, balance of payments, banking, competitiveness, and structurally [...] Mayor Bloomberg called the city’s pension system a “ticking time bomb” that costs six times more than it did 10 years ago. The city will have to shell out $8 billion to cover pension costs this year – with $1 out of every $6 from taxpayers going toward it, he said on Thursday. “Imagine what would happen to your family budget if the rent went up six times over the course of a [...] I recently posted An Article For GoldMoney Showing How US True Money Supply (TMS) Appeared To Be Growing At A Hyperbolic Rate, and that gold was also on a hyperbolic course. The difference between hyperbolic and exponential is a hyperbola’s rate of growth increases with time, while exponential growth does not. Hyperbolic growth in the quantity of money ends with hyperinflation, while exponential growth can go on for ever. Both TMS [...] “Billionaire investor George Soros says that the global financial system is on the brink of collapse. Developed countries are falling into a “deflationary debt trap,” in which consumer spending falls, products become more expensive, tax revenues drop, and sovereign debt grows…” http://www.huffingtonpost.com/2011/12/05/george-soros-global-financial-s…
Look at the US Dollar the last decade… The FED has already guaranteed ZIRP till at least mid-2013, many FED members believe far beyond that date it shall continue. The latest Kyle Bass interview also got an admittance from an Obama [...] by ZH While Italy’s Mario Monti earlier said that the country with the still ridiculously high bond yields would be somehow able to avoid a debt trap on its own (for its second largest debt load in the entire Eurozone), the Chicago Fed’s Evans just said that America, which has the lowest rates in the world (with the possible exception of Japan) just said that unlike Italy, the US apparently needs [...] By Brenda Cronin, WSJ The world financial system not only isn’t functioning, it’s on the brink of collapse, according to investor George Soros. Bloomberg News The Hungarian-born philanthropist, who recently spent time in countries where his charities are active, such as Africa, said he sees a growing bifurcation between emerging and developed countries – and he’s more confident about prospects for the emerging ones. Despite their assorted problems, [...] Via Lew Spellman of the Spellman Report How Monetization Happens: Being at the Helm When the Ship Goes Down The consequences of excess debt are now facing the leaders of Europe head on, and a monumental decision must be made whether explicitly or implicitly. Excess debt leads to a long chain of D words:Deleveraging in an attempt to retire debt results in a depressed economy and declining asset prices. The depressed economy breeds private debt defaults that [...] From FT: Conventional wisdom may now be only half right when it comes to solving Europe’s mess. Fixing the sovereign debt problem is still necessary, but longer be sufficient. Europe must also move quickly to stabilise the banks at its core in ways that go far beyond what the European Central Bank announced on Wednesday. As senior BNP Paribas executives prepare to tour the Middle East in an attempt to raise [...] ForexCrunch According to a senior IMF economist who wasn’t identified, Greece will likely face a “hard default” well before March 2012. It could happen during 2011, and perhaps after the current round of negotiations. This acknowledgement from someone very close to the matter in a body that is heavily involved in the bailout, is quite worrying. The current talks are around the first bailout, agreed more than a year [...] by ZH A global public debt crisis, in which private sector deleveraging is offset by public debt, to the point where Reinhart and Rogoff say “no more” (and often times beyond) has only four possible outcomes. These are: 1) a debt trap; 2) hyperinflation; 3) austerity but in conjunction with actual economic growth and 4) default. Currently in the developed world, the only two outcomes actively pursued, [...] Famed investor George Soros spoke to Bloomberg Television about the U.S. economy yesterday, specifically the debate over cuts versus government spending. Soros argues that the U.S. should take on more debt and spend it on infrastructure. 0:20 It is a really open question; How much debt is too much and when should you tighten? We’re in the midst of a difficult, delicate, two-speed maneuver. Debt, debt and more mounting debt is plaguing countries around the globe. In this U.S., states across the country face a collective $125 billion shortfall for fiscal 2012, while Congress is facing a budget gap nearly 10 times that size. PIMCO founder Bill Gross — one of the world’s largest mutual funds managers, who focuses mostly on bonds — has previously said that if the United States were a corporation, [...] Minerd does have some pertinent observations on how the imminent pan-European bank run will eventually look like. ‘Imagine You’re Irish’ To help explain why I believe a broader financial crisis is coming to Europe, let me start with a quick story. Imagine for a moment that you’re an Irish citizen. Needless to say, you have many concerns about your country’s economic situation. The unemployment rate is 13.7 percent [...] by Gary After all, we’ve already started to monetize the debt. The inflection point is when total debt reaches a point where the interest on the debt accumulates in an exponential fashion, engulfing the government’s budget. When this occurs at a time when the economy is already weak and running deficits, there essentially is no way out. Significant runaway inflation and currency depreciation result from a government that essentially can no longer [...] by shelbymoore3 Most people think sovereign bonds interest rates must rise soon, but afaics, they fail to understand the nature of the global debt trap we are in: http://financialsense.com/contributors/shelby-moore/perpetual-deflation-causes-inflation Dr. Martenson, the most fundamental aspect that causes abrupt change, i.e. Minsky moments, is that centralization of policy prevents optimum annealing. Or more generally stated, the universe is trending to maximum disorder, and pockets of exponential order along the way, implode back [...] 1) Palm Beach County faces 13 percent property tax rate increase (Florida) “Palm Beach County property owners for the second year in a row face the possibility of a double-digit tax rate increase to head off a looming budget shortfall. The county’s proposed tax rate would go up about 13 percent  just one year after a nearly 15 percent tax rate boost  to help cover a [...] Greece urged to give up euro “THE Greek government has been advised by British economists to leave the euro and default on its €300 billion (£255 billion) debt to save its economy. The Centre for Economics and Business Research (CEBR), a London-based consultancy, has warned Greek ministers they will be unable to escape their debt trap without devaluing their own currency to boost exports. The only way this can happen is if [...] |
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