Archive - 2013 - Blog entry

It is worth remembering that Goldman, to much fanfare and media attention, “told clients” in November 2007, to sell gold. On November 29, 2007, Goldman recommended that investors sell gold in 2008 and it named the strategy as one of its ‘Top 10 Tips’ for the year.

Resolution of current fiscal "crisis" unlikely to matter to markets.

Ready! Set! [bank]Run!

China's predominant foreign policy has been cutting business deals, while the US policy has been one of military deployment followed by pressuring trade deals. Reception to the latter, not surprisingly, is increasingly being viewed as one-sided and not a win-win.

Pay no attention to that Keynesian moron behind the curtain!

Overview of Abenomics. 

Isn’t it wonderful how the US believes (whether that be the citizens or the politicians) that the state will never default on its debt repayments?

A year or two from now the insurance companies will be getting big increases. Whatever you think of Obamacare today, wait two years, you will come to hate it.

The appalling fiscal and monetary situation in the U.S. will lead to further dollar weakness in the coming  months. This weakness will be most manifest versus gold as other fiat currencies have their own risks. 

The euro system has many peculiarities as we have shown extensively on our blog. To a large extent the system can be analyzed as a “tragedy of the commons” problem. As is well known in economics, when a shared resource can be exploited in full by individuals with no exclusive property right, the resource will be overexploited.

The euro is a shared resource. Every national central bank can exploit it to the fullest while the cost will be shared by every member state.

The incentive in such a system is obviously rigged to its disfavor and it will eventually break down.

The Bible and Nobel Prize Winning Economists Agree: “When The Sentence For A Crime Is Not Quickly Carried Out, People’s Hearts Are Filled With Schemes To Do Wrong”

As the US government shutdown enters its 7th day today it looks as if we shouldn’t be holding our breath unless we want to go blue in the face in the hope that there might be a compromise or somebody might actually cave in.

His government has ramped up spending to ward off unrest, helping drive inflation to a 15-year high last year, and pushing Algerians into the currency and real estate markets as they seek to shield savings.

“To protect themselves against inflation, and therefore the devaluation of the dinar, Algerians are investing in property, gold and foreign currencies,” Abderrahmane Mebtoul, a professor of economics at the University of Algiers, said in an interview. 

Seasoned CBS News Anchor: “Whenever I’m Asked What Is The Most Manipulative And Secretive Administration I’ve Covered, I Always Say It’s The One In Office Now”

There isn't anybody out there...