S&P 500 runs triple-dip risk
The stock market hasn’t been this carefree since early 2007. Should we be worried about that?
As the S&P 500 Index moves toward an all-time high and volatility sits at multiyear lows, investors should remember we’ve been here twice before, with the index just below 1,600 both in 2000 and 2007 only for it to take a dive soon after.
So is a third dip on the horizon? [...]
From Dennis Miller of Casey Research:
… [T]he Federal Reserve is keeping interest rates artificially low to support banks that made poor business decisions. They are doing so at the expense of the public; seniors and savers are often the hardest-hit.
A few months ago, I wrote that I felt like the federal government had declared war on seniors and savers. Much to my surprise, some folks took issue with that remark… [...]
by Gold Silver Worlds
Germany recently made big news by announcing its plan to bring home part of its massive gold reserves. By retrieving 300 tons from New York and all 374 tons from Paris, 19% of its holdings – $36 billion worth – will be repatriated. By 2020, Deutsche Bundesbank expects to have 50% of its gold reserves stored in its Frankfurt vaults.
While Germany’s announcement is no longer front-page news, it [...]
Prime Minister Shinzo Abe’s fiscal and monetary stimulus measures may trigger a collapse of Japan’s economy as early as this year, according to Takeshi Fujimaki, a former adviser to billionaire investor George Soros.
The yen has slumped 6 percent since elections last month returned power to the Liberal Democratic Party run by Abe, who’s demanded that the Bank of Japan (8301) undertake unlimited cash infusions to end deflation. The premier also unveiled 10.3 trillion yen ($116 [...]
Exchange-rate manipulation by countries from China to Denmark has cost the U.S. as many as five million jobs in recent years, according to the Peterson Institute for International Economics.
More than 20 nations have increased reserves of currencies such as the dollar by an average of almost $1 trillion a year, economists C. Fred Bergsten and Joseph E. Gagnon said in a report published last month.
By buying foreign currencies, countries reduce the value of their [...]
BEIJING, Nov. 13 (Xinhua) — The spot price of the yuan against the U.S. dollar rose to 6.2262 on Tuesday, marking a record high since China’s foreign exchange reforms seven years ago.
Tuesday was the second consecutive day that the spot price of the yuan against the U.S. dollar hit a record high since China launched its foreign exchange reforms in 2005.
Enterprises and banks have been selling off foreign currencies in [...]
A gang of 16 shady individuals have been arrested by Iranian officials for allegedly smuggling currencies outside the banking network in order to increase the value of foreign currencies and to disturb the public. As CNN reports, amid the protests in the clip below, Iran says the 16 unidentified individuals “had used an atmosphere of psychological war created by the enemy” and colluded with “certain domestic and foreign groups” to exacerbate conditions. One of [...]
A changing trend? World Gold Council thinks so. Ruchika Shah / Mumbai May 17, 2012, 22:35 IST
Central banks across the world have started picking up gold as reserves, observed World Gold council in its first quarter gold demand review report released today.
Although down from buying in the first quarter of 2011, central banks continued to purchase gold as a reserve. In Q1 2012, central banks gold reserve demand was at 80.8 [...]
Posted by Mybudget360
We are reaching a point of no return with global debt. The US will be running deficits for as far as the indebted eye can see. This isn’t a new or novel trend but the magnitude certainly is. Since we stepped on the deficits do not matter accelerator in the 1980s the US Dollar Has Been Losing Its Purchasing Power year after year. This might not be a big deal for [...]
Published on Apr 13, 2012 by RTAmerica
The United States has long been considered an economic superpower, but Charles Kupchan says all of that could soon change. Kupchan, author of the book No One’s World, says that the US dollar will soon take a backseat to foreign currencies, with China’s global GDP expected to surpass that of America within the next decade. Kupchan cautions that Americans need to understand that the world [...]
The Fed, Gold, the S&P 500, & the Retail Mindset
Courtesy of J.W. JONES
The recent rally has been breathtaking, however the majority of investors have missed out on a large portion of these gains as significant levels of cash have been either moved to bond funds or taken out of equity markets consistently during this rally. Let’s face it, financial markets around the world are not what they once were.
U.S. equity markets [...]
No one understands the declining effectiveness of printing currency and an expanding currency supply better than Ally Bank/GE/CNBC’s Bob Pisani, telling investors today that theJapanese Stock Market “Sold Off On The News Of No Quantitative Easing.” Apparently waiting a month is too long.
Bob is aware that the Bank of Japan just authorized, under the cover of Valentine’s day, another $120 billion to be printed. Perhaps more importantly, they announced a [...]
Cow to them, and they will own your sorry A$$$’s forever….
Icelanders who pelted parliament with rocks in 2009 demanding their leaders and bankers answer for the country’s economic and financial collapse are reaping the benefits of their anger.
Since the end of 2008, the island’s banks have forgiven loans equivalent to 13 percent of gross domestic product, easing the debt burdens of more than a quarter of the population, according [...]
EUR/CHF has so far proven successful as the pair has not only remained above 1.20, but has yet to even test it.Talks of the huge EUR/CHF demand from SNB – has filtered to demand, possibly in AUD, NZD, GBP, JPY as SNB diversify its reserves linked to the EUR/CHF “unlimited foreign currencies buying” pledge.EUR/CHF hit 4-month lows around 1.2025, its lowest levels since Sep 15 1.2015 – less than 10-days [...]
Larry D. Spears: The U.S. dollar will start 2012 on an upswing – but don’t let it fool you. What we’re seeing is only a short-term rally inspired by Europe’s travails. In the long-term, the U.S. Federal Reserve‘s loose monetary policy and the United States’ own Debt burden will drive the greenback back down.
That’s the consensus among experts who follow the global money markets and the leading currencies, including several of Money Morning’s own analysts.
“The dollar is going to rally [...]
December 29, 2011
Earlier this month, Federal Reserve boss Ben Bernanke told senators the cartel has no intention of bailing out European banks. Bernanke told lawmakers that “he doesn’t have the intention or the authority” to bail out countries or banks.
Former Fed official Gerald O’Driscoll says Federal Reserve is covertly bailing out Europe.
Now we learn that the Fed is indeed in the business of bailing out European banks. It is secretly using [...]
Congressman: Dr. Ron Paul
In response to pressure from Wall Street, the White House and central banks in Europe, the Federal Reserve last week drastically cut interest rates for currency swaps to benefit troubled European banks. This will flood world markets with more dollars and will soon mean rising prices for every American at the grocery store. This extra liquidity will temporarily ease the cash crunch for irresponsible bankers, but in [...]
Among the specters lurking in ShadowStats.com’s Editor John Williams’ gloomy outlook for the U.S. are the demise of the dollar, hyperinflation and the ongoing lack of political will to take sound corrective measures. Still, as he tells The Gold Report in this exclusive interview, investors have options. Williams contends that turning to gold, silver and strong foreign currencies would protect wealth and position savvy investors to take advantage of extraordinary opportunities likely [...]
by George Washington
The coordinated swap line bailout by the Federal Reserve Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, and the Swiss National Bank- and China’s reduction of reserve requirements by .5% – shows desperation. (For background on swap lines, see this, this andthis.)
The Street notes:
Don’t get flustered by the terminology of “dollar swap lines” above. Here’s a more simple explanation: Central banks around the globe have acted in desperation to boost [...]
Thursday, December 1, 2011
The Fed’s latest actions in cooperating with foreign central banks to undertake liquidity swaps of dollars for foreign currencies is another reason why Congress needs enhanced power to oversee and audit the Fed. Under current law Congress cannot examine these types of agreements. Those who would argue that auditing the Fed or these agreements with central banks harms the Fed’s independence should reevaluate the Fed’s supposed [...]
From Ron Paul
Statement on the Fed’s Continued Euro Bailout
The Fed’s latest actions in cooperating with foreign central banks to undertake liquidity swaps of dollars for foreign currencies is another reason why Congress needs enhanced power to oversee and audit the Fed. Under current law Congress cannot examine these types of agreements. Those who would argue that auditing the Fed or these agreements with central banks harms the Fed’s independence should reevaluate [...]
While we will get into the nuances of why the Austrian AAA rating is the next to go (just after Hungary is downgraded in a matter of weeks if not days, following the country’s request for IMF helpearlier today) an event which we described ten days ago when the news that Austria’s shaky rating was about to be downgraded first broke via the FTD and has since resulted in a [...]
November 18, 2011
Here’s a bold prediction to feed Western worries that power is shifting inexorably to the East: China’s yuan could overtake the US dollar as the world’s principal reserve currency as soon as next decade.
China has been promoting the use of the yuan, also known as the renminbi (RMB), beyond its borders since 2009 to settle trade transactions. The resulting build-up of deposits in Hong Kong has [...]
With stocks tanking and gold and silver consolidate recent gains, today King World News interviewed Bill Fleckenstein, President of Fleckenstein Capital to get his take on where we are headed from here. When asked about the action in the metals, Fleckenstein responded, “First of all gold was down in dollar terms but it was up in terms of many other foreign currencies. Sometimes people will say how can gold be [...]
Jim Chanos appeared on Bloomberg TV and talking about the European debt crisis and China. Similar to the view here, he is not impressed by the European solution so far, just as Wolfgang Münchau Was Not Impressed, and I Am Not Impressed. Of course, the current rally is not good for bears, but he also thinks that the latest solution has only solve the immediate crisis.
He is also not impressed about China bailing [...]