• GoldCore
    07/30/2014 - 18:58
    “But long term...and economic law says, if you keep printing a lot of paper money, the value of the dollar and currency will go down, and things and most prices will go up and indeed gold always goes...

Global Economy

Asia Confidential's picture

Is Inflation Next?





Market consensus is that deflation remains the greatest threat to the global economy. But that's ignoring signs of impending inflation, particularly in the US.

 
Tyler Durden's picture

And The World's "Most Powerful" Nation Is...





In terms of economic might, BBVA has created an index of "world market power" enabling an at-a-glance view of a nation's impact on the global economy via relevance of exports, exposure to external shocks, technological content, and retained value-added. And the winner is... Hint, not USA...

 
Phoenix Capital Research's picture

The Single Most Important Issue For the Power Elite In China… And What It Means For the Global Economy





The reason for the economic gimmicking pertains the political perspective of China’s economic data. As a communist regime, China’s government has one focus and one focus only. It’s not economic growth for growth’s sake, nor is it improving the quality of life for China’s population...

 
Tyler Durden's picture

What Happens After The Low-Hanging Fruit Has Been Picked?





One way to understand why the global financial meltdown occurred in 2008 and not in 2012 is all the oxygen in the room had been consumed. In the U.S. housing market, there was nobody left to buy an overpriced house with a no-document liar loan because everyone who was qualified to buy a McMansion in the middle of nowhere had already bought three and everyone who wasn't qualified had purchased a McMansion to flip with a liar loan. Once the pool of credulous buyers evaporated, the dominoes fell, eventually circling the globe. Right now China is at the top of the S-Curve, and the problems of stagnation are still ahead.

 
Tyler Durden's picture

Massive 8.2 Quake Hits Near Chile Coast, Tsunami Warning Issued; Residents Evacuating





UPDATE: *FIRST TSUNAMI WAVES REACH CHILE COAST, RADIO COOPERATIVA SAYS

At shortly after 1945ET,  a massive 8.2 (revised up from 8.0) earthquake hit close to the coast of Chile:

*MAGNITUDE 8.0 QUAKE HITS OFF COAST OF CHILE, USGS REPORTS
*CHILE QUAKE MAGNITUDE REVISED UP FROM 8.0 TO 8.2 BY USGS
*FLASH: TSUNAMI WARNING ISSUED AFTER MAGNITUDE 8.0 QUAKE HITS OFF
*QUAKE CUTS ELECTRICITY SUPPLY TO MUCH OF ARICA, CHILE: TVN

The BBC reports the quake was shallow (which means it felt more powerful) and the tsunami wave's arrival is imminent. Copper prices are jumping on the news as the region is an active mining area.

 
Tyler Durden's picture

Mark Faber: The Old World Order Is Over





"The US reached a peak in prosperity and influence in the world in the 1950s or 1960s," Marc Faber explains to an Australian audience at the recent World War D conference; but since the 70s the superpower has been locked into a cycle of bubbles, busts and growing debt. "There are some people who claim to be economists who will tell you debts do not matter," but the real story is different, he warns. "When you drop dollar bills into the economy... it won't lift all prices and assets equally at the same time," Faber explains, "in the 60s and 70s, extra money flowing through the economy inflated wages; in the early 2000s, money printing inflated commodities;" but, the Gloom, Boom, & Doom Report editor points out, this price and asset growth is never equal, warning that "we live in a new word... where the old world order is largely bypassed."

 
Tyler Durden's picture

Former Chinese President Asks Current One To Curb Crackdown On Criminals And Corruption





When one reads stories such as the following report from the FT, in which we learn that former Chinese president Jiang Zemin "has urged the current leadership to rein in an anti-corruption campaign that is proving the harshest in decades and is seen as threatening the interests and networks of some Communist party elders", or said otherwise - his cronies, aside from being utterly speechless at the rapid unravelling of the bizarro world, all one can say is - expect such developments in the US in a few years time, when then former president Obama asks Clinton, Christie or whoever the then-reigning dictator of the totalitarian states of America is, to take it easy on the Corzines of the world.

 
Tyler Durden's picture

Attention Deficit Dystopia





"The USA is exhibiting pretty severe signs of that sclerosis in the demented behavior of its leaders in episodes such as the current unnecessary manufactured fiasco over Ukraine to the physical deterioration of our towns, roads, bridges, and all the plastic crap we managed to smear over the mutilated landscape to the comportment of our demoralized, mentally inert, drugged-up, tattoo-bedizened populace of twerking slobs."

 
GoldCore's picture

Fed Needs To “Stress Test” Itself As Balance Sheet Balloons To $4.3 Trillion





The Federal Reserve is likely to suffer significant losses on its Treasury holdings once interest rates rise from historic lows. Indeed, the researchers at the San Francisco Fed have recently called for "stress tests" on the Fed itself. Fail to prepare ... prepare to ...

 
Tyler Durden's picture

China & Germany Sign Yuan-Settlement Pact And Obama Heads To Saudi Arabia





Lots of moves appear to be afoot on the macro front at the moment. Today's deal between the People’s Bank of China (PBOC) and Germany’s Bundesbank seems quite significant given the importance of Germany within the global economy generally and the E.U. specifically. And with that in mind, let’s not forget that Obama is currently in Saudi Arabia trying to restore ties with the Medieival Kingdom, i.e., he is trying to figure out a way to arm al-Qaeda in Syria without the American public finding out about it. It appears that becoming entrenched in a Syrian civil war is still very much on the table...  The months ahead should be very interesting to say the least.

 
Tyler Durden's picture

The Golden Era of the 1950s/60s Was an Anomaly, Not the Default Setting





If there is one thing that unites trade unionists, Keynesian Cargo Cultists, free-market fans and believers in American exceptionalism, it's a misty-eyed nostalgia for the Golden Era of the 1950s and 60s, when one wage-earner earned enough to buy all the goodies of a middle-class lifestyle because everything was cheap. Food was cheap, land was cheap, houses were cheap, college was cheap and most importantly, oil was cheap. The nostalgic punditry quite naturally think of this full-employment golden age of their youth as the default setting, i.e. the economy of the 1950s/60s was "normal." But it wasn't normal--it was a one-off anomaly, never to be repeated.

 
Tyler Durden's picture

Russia To Create Own National Payment System In "Bid To Reduce Dependence On The West"





The more the West attempts to "isolate" Russia and pushes it away from its "core values" and of course the US Dollar, the more Russia will seek the safety of a non-dollar based system. We have previously described how Putin has been scrambling to enmesh Russia in tight bilateral commodity-based trade with both China and India, and now it is Russia's turn to announce it would seek its own "national payment settlement system" following last week's surprising and unmandated service halts by both Visa and MasterCard, which as Vladimir Putin said earlier today, will be a "bid to reduce economic dependence on the West."

 
Tyler Durden's picture

And Now The Real Economic Pain Begins As IMF Unleashes $27BN Bailout In "Near Bankrupt" Ukraine





Gazprom must really be demanding payment on overdue Ukraine invoices which is the only way we can explain the unprecedented speed with which the IMF has managed to cobble together a makeshift bailout package of up to $27 billion - the bulk of which will naturally go to Russia - which has just made Ukraine its latest vassal state. There are of course, conditions: "Approval is “expected in April, following the authorities’ adoption of a strong and comprehensive package of prior actions aiming to stabilize the economy and create conditions for sustained growth,” IMF mission chief Nikolay Gueorguiev said in the statement. Disbursement may start next month, he said at a news conference in Kiev." And then comes the hyperinflation: "Monetary policy will target domestic price stability while maintaining a flexible exchange rate. This will help eliminate external imbalances, improve competitiveness, support exports and growth, and facilitate the gradual rebuilding of international reserves. The NBU plans to introduce an inflation targeting framework over the next twelve months to firmly anchor inflation expectations"...  Very high inflation targeting.

 
Tyler Durden's picture

Iraq Buys Massive 36 Tonnes Of Gold In March





The Central Bank of Iraq said it bought 36 tons of gold this month to help stabilise the Iraqi dinar against foreign currencies, according to a statement from the bank that was emailed this morning. It is very large in tonnage terms and Iraq’s purchases this month alone surpasses the entire demand of many large industrial nations in all of 2013. It surpasses the entire demand of large countries such as France, Taiwan, South Korea, Malaysia, Singapore, Italy, Japan, the UK, Brazil and Mexico. Indeed, it is just below the entire gold demand of voracious Hong Kong for all of 2013 according to GFMS data (see chart).  Iraq had 27 tonnes of gold reserves at the end of 2013 according to the IMF data and thus Iraq has more than doubled their reserves with their allocations to gold this month. Gold remains less than 5% of their overall foreign exchange reserves showing that there is the possibility of further diversification into gold in the coming months. The governor of the Iraqi Central Bank, Abdel Basset Turki, told a news conference that, "the bank bought 36 tonnes of gold to boost reserves and this move is to strengthen the financial capacity of the country and increase the elements of security and insurance reserves of the Central Bank of Iraq." He added that "the central bank seeks through the purchase of large quantities of gold to stabilize the Iraqi dinar against foreign currencies.” Iraq quadrupled its gold holdings to 31.07 tonnes over the course of three months between August and October 2012, data from the International Monetary Fund shows.

 
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