Archive - Jul 2012 - Blog entry

What Would Jesus – Or the Rabbis of Old – Do?

Some positive indicators have prompted at least one article at Forbes to predict $8.00 natural gas by "the approaching winter."

Things are getting worse, not better. There will be more mass murders and horrific acts of violence, and they will not be fueled by guns but by the untreated mental illness produced by the stress of economic and social collapse.

What You Should Know about this “Unthinkable” Development…

WARNING: ABSOLUTELY NO FOOD OR BEVERAGES NEAR THIS POST!

Dizzying spikes are part of the business.

The Moody’s outlook change on Germany lets us know that this time around the debate is more than political posturing. If Germany loses its AAA status, then it’s GAME OVER for the EU: the German population, already outraged by the EU bailouts, and now facing a recession will NOT tolerate a credit rating downgrade. 

Charts are saying higher, gut instincts are saying not so fast. 

GDP Growth More Strongly Correlated with Rule of Law than Anything Else ...

As I’ve stated many times, Germany is THE REAL backstop of the EU. And it’s comprised its own solvency as a result: the country is only €328 billion away from reaching an official Debt to GDP of 90%, the level at which national solvency is called into question. Moreover, that €328 billion has already been spent via various EU props. Indeed, when we account for all the backdoor schemes Germany has engaged in to prop up the EU, Germany's REAL Debt to GDP is closer to 300%.

The middle of the end is coming, The beginning of the end started in 2008, BTW...

A moment of serious science from Banzai7 Labs...

Booming in one corner, morose in the other.

As I’ve outlined in earlier articles, Spain will be the straw that breaks the EU’s back. The country’s private Debt to GDP is above 300%. Spanish banks are loaded with toxic debts courtesy of a housing bubble that makes the US’s look like a small bump in comparison. And the Spanish government is bankrupt as well.

As usual, the stock market was vexatiously out of step with reality last week, soaring on word that the ECB plans to do “whatever it takes” to preserve the euro and the political union that it binds. For U.S. investors, especially those who believe in hope and change (and, presumably, the Easter Bunny), there was also the invaluable news that the U.S. economy is once again verging on recession – a development which is widely believed to portend yet more Fed easing.