Archive - Apr 2015 - Blog entry

Today, China remains central to the notion that the world is in recovery.  It is believed to be growing at 7%: not as rapid as the 9% growth we’re used to seeing, but still dramatically higher than any of large country... Only the whole thing is bogus.

Show me the money!

All the comparisons to 2000 seemed a little far-fetched.........until today.

UK debt has continued to rise throughout the recovery and has soared to an eye-watering £1.48 trillion. In recent days, a slew of foreign exchange analysts have warned that the pound is vulnerable to falling in value. The incumbent government have not reined in public and trade deficits and have been accused of juicing the property market and the economy to postpone a crisis until after the election. 

They’ve become sitting ducks, in a market that is "in extreme overvaluation."

Some economic facts that you did not know...

On the occasion of William Shakespeare's Birthday...To Default or Not To Default 

It's the Last Stand for Our Republic

The era the phony recovery narrative has come unhinged.  We have now entered a cycle of actual price discovery in which financial assets fall to more accurate values. This will eventually result in a stock market crash, very likely within the next 12 months.

Gold developments may not be a golden opportunity.

The Saudi bombing of Yemen is another flash point and will deepen tensions between the U.S., NATO allies and Russia and indeed China. Geopolitical risk remains high and the region remains a powder keg that is likely to explode as has already been seen in Syria and much of North Africa.

For now, EIA still estimates that total U.S. crude oil production will fall in May. But we think the current oil prices are enough to get the shale E&Ps excited.  

The People’s Bank of China may have tripled holdings of bullion since it last updated them in April 2009, to 3,510 metric tons. It is worth noting that the U.S. refuses to allow their gold reserves to be publicly audited and the Bundesbank is having difficulty repatriating much of its gold stored with the Federal Reserve. This has led many analysts to speculate that the U.S.’s gold reserves have been leased out or sold or are encumbered as part of an ongoing effort to manipulate gold prices.

Death by a thousand cuts now has a venture capital version. Observe as I walk through FinTech startups literally disassemblet the almighty money center bank.

Show me ur data...