Archive - Dec 7, 2014 - Story

A few nations may indeed be forced to sell some of their official gold reserves as a result of plunging oil prices. It seems however not likely at this juncture that Russia will be one of them, there is a good chance that Venezuela will eventually be forced to sell some of its official gold holdings. However, the impact - short term psychological impact - on the gold market should be quite limited.

At the end of 2012, 'economists' looked to 2014 as the year global growth would break out above the 3% trend and the world could rest back in Utopia... that never happened. At the end of 2013, 'economists' looked to 2015 as the year global growth would break out above the 3% trend and the world could rest back in Utopia... that expectation has now collapsed back to a mere 2.88%. And now, at the end of 2014, guess what...

The last time Israel ignored Syrian sovereignty and attacked Bashar al Assad's nation without fear of reprisals was in the spring of 2013, when the US was eager to launch an all out war, and tear apart the last country that stood in the path of the Qatari natural gas pipeline to Europe. As a result of last minute Russian intervention, the war was avoided in the last summer, but not before Syria had declared Israel's attack An "Act Of War.' Moments ago, following a year and a half hiatus, Israel, which had not made many headlines on the geopolitical arena in recent months, launched another bomb raid on Syria, and as AP reports, Israeli warplanes carried out two airstrikes Sunday near Damascus, one near the city's international airport and a second outside a town close to the Lebanese border, Syria's state news agency said.

"... we seem to have miscalculated..."

You almost have to step outside of economics, even out of the financial world as a whole, to pose what is the most elementary question about our economy today. That can’t be right.  The most elementary question is not how we can achieve growth, it’s whether we need growth, and what we would need it for that is important enough to destroy our entire societies and economies for.... We’re in dire need of fresh blood and smart new ideas to clean up the mess the present ideologies and their puppets and puppetmasters have created.

... It is hard to sum up a conference featuring fifty-eight different sessions spread across eight different streams: everyone’s impressions will inevitably be personal. Ours, though, is that investors remain united in their faith in the central banks – if not for their ability to create growth, then at least in their ability to push up asset prices. And yet the limits of that faith are increasingly on display. Not only are there signs of trouble at individual corporates on the ground. There is also a growing realization that the central bankers themselves – be it the ECB today, or the past and present Chairs of the Fed – subscribe to different theologies.