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Mohamed El-Erian Explains Why He Is Now "Mostly In Cash"
"I am mostly concentrated in cash... because I think most asset prices have been pushed by central banks to very elevated levels. Central banks look at growth, at employment, at wages. They are too low. They don’t have the instruments they need, but they feel obliged to do something; so they artificially lift asset prices... Because they hope that they will trigger what’s called the wealth effect, but there is a massive gap right now between asset prices and fundamentals."
"The Fed has been pushing everybody into the public markets... it makes sense to reduce your exposure to the most trafficked assets."
Reflecting Julian Robertson's warnings from yesterday that, unless The Fed acts to end this bubble, there will be a "complete explosion," El-Erian points out the difference between what The Fed will do and what The Fed should do...
That will probably be the last time Mohamed El-Erian is invited to CNBC for a while. Here is what El-Erian said previously on this topic from the OC Register.
Q. Where is your money? Stocks? Treasuries? Bonds?
A. It is mostly concentrated in cash. That’s not great, given that it gets eaten up by inflation.
But I think most asset prices have been pushed by central banks to very elevated levels.
Q. So we’re nearing a bubble?
A. Go back to central banks. Central banks look at growth, at employment, at wages. They are too low. They don’t have the instruments they need, but they feel obliged to do something. So they artificially lift asset prices by maintaining zero interest rates and by using their balance sheet to buy assets.
Why? Because they hope that they will trigger what’s called the wealth effect. That you will open your 401k, see it has gone up in price, and you’ll spend. And that companies will see their shares are going up and they will be more willing to invest. But there is a massive gap right now between asset prices and fundamentals.
...
The West fell in love with the wrong growth models 10 years ago. It fell in love with finance as an enabler of prosperity. The whole society fell in love with leverage and credit as a way of prospering. We were entitled to accumulate debt! People bought homes they could not afford. Governments borrowed money that they could not pay back.
Regulators believed that finance was so sophisticated that you could lessen regulations on it. This romance with the wrong growth model fell apart in 2007 and 2008.
Q. Now what?
A. We are struggling to find a new growth model because the political system hasn’t stepped up to its responsibilities. Obvious things like investing in infrastructure at extremely low interest rates are not being done. The reform of corporate taxation. The reform of labor markets – retraining workers, developing apprenticeships through public-private partnerships.
Either governments and politicians and companies will step up to their economic governance responsibilities and we will turn to something sustainable or, if we don’t, then you will have low growth and financial instability.
...
Income inequality has risen so much that consumption as a whole is undermined. That’s because rich people have a much lower propensity to consume than poor people. But it is the rich people that have captured all the income growth for the last seven years.
A little bit of inequality is good for the system because it creates incentives. A lot of inequality actually creates negative economic effects. It has become an inequality of opportunity.
* * *
It certainly seems like El-Erian has the same fears that Julian Robertson described as we concluded yesterday:
Robertson's conclusion: we can certainly see a 2008-like market crash because "the bigger this bubble gets, the bigger the burst."
I am looking at a bubble that is almost sure to pop at some time and I don't know when it's going to happen, but I know it's going to happen.
His conclusion, and the reason why there is no CNBC any time in Julian Robertson's future is his answer to how big a selloff we could get: "I don't think it's at all ridiculous to think of a selloff like we saw in 2008." Obviously, he uses the term "selloff" loosely.
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Bada bing!,
Maybe we should all pray harder for the infamous "muddle-through" to manifest?
What happened to this big mouths' "new normal"? Switched teams?
there is only two teams; them and us. we outnumber them 1 million to 1, assuming there are 7000 in the club...
How does this differ from 4 years ago?
Now, the only problem is getting to the Cash....
"... it makes sense to reduce your exposure to the most trafficked assets."
He just called Central banks criminal organizations without outright saying it. Classic.
We are all trafficking in one way or another. Trafficking is simply doing business or commerce. It is the movenment of something. It is the MSM that uses trafficking in the negative sense, such is trafficking drugs or sex slaves.
Let me put to you this way. Why would the government or media have to identify ILLEGAL trafficking?
That also means there is LEGAL trafficking. And that LEGAL trafficking is business.
Anyway, I am NOT defending central banks. I think central banks should be disbanded.
When borrowing costs almost nothing, and their stock prices are up, and businesses (most of the DJ, S&P big ones, anyway) are STILL not investing in R & D - the future looks grim for a long ways out. Definitely signalling for a new model. Non-comsumptive based. Which ultimately will be a better approach for the planet as well as economics.
When only Apple, Google, Facebook, and Netflix are investing - you sure aren't gonna see your grampa's old school economy coming back.
Since all the 1%-ers (not just Marc Faber) tell us to stay away from all the reflated assets (equity, real estate, gold, land), we should be cautious.
Holding cash only is like putting all eggs into one basket.
trafficing = cia
debasement = fed
"How does this differ from four years ago?"
It doesn't? However, It has, does, will & always will be for as long as the same Psychopaths / Sociopaths continue to rob, steal, bomb, wage illegal wars, Murder & rape continue to Govern us.
He used to be one of the best contra-indicators around. When they trotted his gloom and doom out on TV you knew the tide was turning bullish again. Now that El Erian is out of the game does that still hold true?
And while the lazy sit around and whine about it.
And most of them will be in New Zealand when the SHTF... in case anyone wants to hold these banksters accountable.
Note the one word/asset that both El-Erian and Robertson are avoiding: gold!
p.s. before everybody goes ahead again with the Pavlovian minus kudos: I'm not making a statement here regarding gold, it's merely an observation.
ah, but do you know that for sure? his malibu home may have a basemnt full. i don't know...
All these guys play with OPM. Different ball game.
Anyone with three brain cells to rub together, a rudamentary understanding of history, and a few million lying around owns gold somwhere.
Regards,
Cooter
Cunt, put your money into the DAX and Nikkei - Don't you know they go up every day
Mohamed El ? hmmm is he from the "other" circumcisionist cult ?
Gold will be a contender when currency instability becomes so acute, nations are forced to either sign on to a global currency or fall back to traditional money; gold.
Understand that a producer of anything in one country, who exports to another country, might see a transaction cycle that could easily take weeks or months. Costs to produce (energy, commodities, capital, labor) all have to be paid up front and these costs feed into the sales price. But the buyer may not see the goods for a while, so who eats the risk of a massive currency move during that time? It is zero sum and if there is a big move, the loser may very well end up out of business (or avoiding business - same outcome).
This shit show will become slowly but surely less stable and when it comes unmoored is it the Yen that blows up? Euro? Dollar? Yuan?
They all suck!
This won't be overnight, it will be a "decay" that goes on for months or years. The Swissy was the first tremor. Over time, it will build pressure to either go with a global currency or gold.
Buying gold is a chance to buy into the system before it is priced in collapsing fiat. It isn't a return, it's a seat at the new table. It also has the risk governments will simply confiscate it, but what doesn't these days....
Regards,
Cooter
Cooter, My comment appeared underneath yours but was aimed at the Cunt, that this article is about (not you)
You're okay, it's your taste in music that sucks
:-)
"Buying gold is a chance to buy into the system before it is priced in collapsing fiat. It isn't a return, it's a seat at the new table. It also has the risk governments will simply confiscate it, but what doesn't these days...."
Regards,,
Cooter.
+1,000oz of Gold.
Chupa,
Gold is cash, Gold is the only cash.
You are only on "their" team if they draft you and keep you. If you get cut you join "our" team. Of course there are the waterboys but they end up with nailgun problems on the permanent injured reserve.
So cash is a better investment than stock...
"Most trafficked assets" is really an appropriate assessment of this cartel economy. Cartel + economy = Cartelonomy*
*All rights reversed.
<Streches and snaps on a rubber glove>
Regards,
Cooter
Damn! I've tried so hard to be a Honest Man*. If I use "Cartelonomy" now, does that make me a Breaker of the Law**?
.......
*as in
Oh, the finest man I ever knew / was Officer McGurk
He said I was a no good bum / a shirker and a jerk
The other night when I got tight / he thrrun me in the can
And now you see ... he's made of me ... A Honest Working Man!
** As in:
Oh such a bunch of Outlaws / no one ever saw,
highwaymen and robbers / Breakers of the Law!
They sang a song the whole night long / the curses rang like hail
God bless the day ... that takes me away ... from the Portland County Jail!
Oddly they never mention precious metals when they eschew cash as a good place to be.
Don't kid yourself, these big fish have some parked away in metals and other hard assets, they just don't talk about it, you know.....it would not fit the narrative very well and they don't want Mr Nailgun knocking on the front door at 2 a.m.
If you are waiting for a market pullback it sure is......
Can't believe this guy was head of PIMCO, no wonder Gross tried to toss him out.
To manifest?
"Muddle through" has been going on since 2008 if not before that
Well, the muddle has been ongoing since then. We'll see about the timing of the "through" part.
No shit Sherlock
I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... http://goo.gl/9YqZBb
This is the recipe for BIG disaster. Well, what else would one expect??? That the international socialists in NY/London just can on forever with their utterly dark $ ponzi scheme?
The entire time i was reading this i was screaming GOLD BITCH! He looks like a fucking caveman, you think he would like the shiny stuff.
Unless you own physical gold and silver or a pile of actual cash, you own nothing but a blip on a computer screen. Stocks and bank accounts are just that, blips on a computer. It will end badly
Anyone else here try to have that conversation with your wife?
That ends badly
There's your problem, shouldn't include that in your financial life. Mine just spent 700 dollars (cash) on a fucking cat that was limping.
Yea, well mine just spent 200 dollars cash on some family picture thing she made off pinterest, I even got the pleasure of hanging it.
I shouldn't complain, she sees a lot of what is going on and is a good woman and mother, I just can't convince her that the 401k she hangs over my head is not "free money from your company". There are some things better left alone after repeated attempts, and besides.......I still like getting some every so often.
i took control and said sign off on the withdrawl (403b) as it will be gone someday and i want to spend it on you. it worked, she signed and now we are buying 5000 $'s of dental work on her mouth. rest is spent on prepping and saved:). all good, penalties paid, irs happy. no moar 40x anythings, iras or any gov.org squid rules. do it and set it aside. guns gold anything other than fiat.
don't take no for an answer, you know better. it is your money not hanks...
Thats just one of the reasons why I got rid of my wife. I like to be in control.
Freeshitter - A lot of guys went through the ringer on a horrid form of private taxation, family law. Avoid the state contract, that solves a lot of the problem.
I have a good woman now and will be married soon by a pastor in a tiny ceremony. When we started dating a couple years ago I told her upfront I would not sign another marriage contract again.
About a year later she told her close friends and Mom who said if I didn't sign one to ditch me. I told her if she didnt trust me then to move on, she could pack her things up and go but she would be missing out on a continued decent life.
She recently got a really nice ring, all chicks at least expect one of those and I got her more than she expected. After the ceremony I will put assets in living trust for her.
She is an RN and works part time to bank a little of her own dough and spending money. It promotes her independent personally and self-esteem, avoid co-dependency and bad pyschology. It is a good partnership. If that chick tells you she'll walk without a state contract tell her to pack up and go. Grow some balls or likely face ruin down the road.
An old joke: Why is the bride smiling as she walks down the aisle?
Answer: Because she knows she'll never have to give another blowjob again.
As for the article I prefer gold to cash and I view it as a long-term investment and way to save. If I had a pile of cash I would also be tempted to dip into it once in awhile.
El-Ehrain is calling for a deflationary event of a market crash but stating doesn't want to be in cash because of inflation but he does to keep it safe. That argument is a bit contradictory.
Your advice may apply to those that live in the u.s., but if you live in canada, co-habitation for 1 year is the same as marriage when it comes to assigning assets in a broken relationship.
I think Charlie presents a pretty good example of how to avoid the loss of one's hard earned assets to a former "love" interest ;-)
Marriage is a trap laid for honest men.
Q: What's the difference between your wife and your job?
A: After 3 years your job still sucks.
Yes, I talk to "your wife" all the time.
haha too funny. Yeah my wife just looks at me like i'm crazy...
No conversation required, buy it, bury it.
Wifey surprised the daylights outta me when I asked what should we squander the tax returns on?, she replied, "lets buy some more silver". I asked "all of it?, she replied, "all of it.." god I love that grrrl. She likes to shoot too.
if you have your stock in your name with the transfer agent, you own a piece of a company
Cash, gas or ass. Nobody rides for free.
cash and gash - consolidated it for you.
I need to see pictures of the aforementioned gash in order to determine quality and potential monetary value.
Show her your 'hard asset'
The judge told me that I can't do that any more.
gas is near the ash
This.
"The West fell in love with the wrong growth models 10 years ago. It fell in love with finance as an enabler of prosperity. The whole society fell in love with leverage and credit as a way of prospering. We were entitled to accumulate debt! People bought homes they could not afford. Governments borrowed money that they could not pay back."
It's hard to resist debt when you see everyone else using it to make more money then you can by working. Work became devalued. Why be the only fool slaving away when you just need a HELOC so you can flip your first house?
True dat, hence gold/silver/shit you can't print with an hp laserjet in your mom's basement or ctrl+p into existence.
Which is exactly why the banks MUST not let housing fall to the level where it will naturally correct, which is about 80% lower than what it is now. If that happens, banks are screwed as people will just walk.
I am beginning to see some cracks in raw land prices where land shot up to $15k/acre is now on the market for $6k ... but really needs to correct to about $2-$3k if you look at historic prices for the area.
Lots of big developers are backing away when they understand the global slowdown will not only effect local money but also foreign inflows.
Most folks dealing in real estate think that as long as interest rates are low then land is a buy but developers are realizing that it's cash flows from foreign investment that was driving the last boom and that source is beginning to dry up now. Watch out once interest rates begin to reverse because that will likely set in place a fairly prolonged slide in the price of US real estate going forward (Canada's market could break alot sooner though)
the pigman speaketh
https://www.youtube.com/watch?v=TcV4B-74pDk
Big man, pig man, ha ha charade you are.
You well heeled big wheel, ha ha charade you are.
Some comfort from reading I'm not the only one sleeping on a lumpy mattress.
THERES A FIRE IN THE AUDITORIUM.....RUN FOR THE NARROW HALLWAY WITH THE INSWINGING DOORS MARKED EXIT!!!!
Because it's rational doesn't mean it happens yet.
When.....be a second too late or years too early...still be miserable.
"there is a massive gap right now between asset prices and government entitlement fundamentals."
Fixed it for you. Don't down play the propaganda problem. Tell them that their policies are fucked up. They thought we would come in droves. We have told them to fuck off since Obama became a President TOTUS reading asswipe.El-Erian had no trouble over the past years cheering on central bank money printing. Now he is concerned over the effects. Such is the lot of Keynesians. They love that Keynes' theory justifies and enables the greatest institutional-scale embezzlement of private wealth in all human history, but it appears they need for the rate of theft to be carefully metered so as to not cause too much inflation and thus put a stop to the public's willingness to allow the scheme to continue.
And what do we get when government can create near-infinite amounts of money? We get near-infinite amounts of government. Government funding near-infinite amounts of "benefits" and near-infinite amounts of bureaucracy. This all comes at the expense of those who work to create the wealth being embezzled and the credit base from which the near-infinite borrowing is justified.
Since limits on spending are the first and best way to limit government, when the States finally call an Article V Convention to consider repairing the relationship between the Federal government, and the States and People, the first order of business is how to forbid the federal government from spending more than it can take in taxes.
when the States finally call an Article V Convention to consider repairing the relationship between the Federal government, and the States and People, the first order of business is how to forbid the federal government from spending more than it can take in taxes.
Amen to that, brother. A constitutional convention of the states is the only shot the american majority has to stop the madness that is destroying america.
In 2000, was completely stupid in understanding how the system works. Thanks to great financial sites; we become advanced educated independent individuals.
They're living in fear, not us.
"Reflecting Julian Robertson's warnings from yesterday that, unless The Fed acts to end this bubble, there will be a "complete explosion," El-Erian points out the difference between what The Fed will do and what The Fed should do..."
These revelations are dog whistles for the FED.
Greenspan, Bernanke, Julian Robertson, Larry Summers, El-Erian...the parade will continue.
Are we to believe that only the FED can save the system?
Name a wall street insider that's screaming for reform instead of FED largess.
Exactly. El-Arian is simply fishing for a policy change from the fed so he can take that cash hoard and go short with no risk to himself.
El-Erian's 'bar bell' hedge fund investments are most likely the Hedgies that are 'short' the market. He didn't get out of bed to go on TV for nothing.
whole lotta wish/think going on in this article. the club does not give two shits about you or i.
obummers task force, along side uncle warren. yea he gives a shit about you and i. the enmies within. i don't buy his wish think stuff. if you are reading my comment tell us how you really feel after about 5 drinks...
Trillions is the new billions. They will just keep pouring it on and kicking the can. Nobody has the balls to do what's right and that's let the free market do what it needs to do. Our kids will be saying, zillions is the new trillions...as the 0.1% take an even bigger slice of the pie as the rest of us clamor for crumbs.
In the final analysis, a People deserve all the shit they're willing to put up with.
Greece and Ukraine are just testbeds and templates for the EU, USSA, Canada, etc., because the Oligarchs R US know that most people are just Sheeple: uninformed, unintelligent, comfy/complacent, scared, lazy, disorganized.
The feudal masters have centuries more experience than do the masses. Were it not so, the 2% or even the 0.1% would not be getting away with the things and behaviors they are getting away with: Treason, Grand Theft, Larceny and Murder.
Buy gold???
Buy Silver?
The strong dollah has made my mattress money worth more or at least losing less. When it becomes obvious it's going the other way is when I convert more into silver.
Tell me when you see it become obvious and I will sell you my silver.
Well, yeah, it makes sense, but anyone who has used common sense, traditional metrics, and logic to trade or invest in this market, is now living naked, under a box in Compton sipping Ripple or Mogen David from a brown paper bag, cold, hungry, and babbling jibber jabber to himself about the government beaming deadly rays, thru his aluminum cone hat, into his brain from drones.
When none of the Fed policies have been at all effective vs their presumed motivations (stable prices, full employment) then there is only one thing to do.
You have to look at it the other way around.
Ask yourself what the policies accomplish, and then use those effects to determine the motivations.
So where does he keep his cash? The bank? Mattress?
There are no markets......only the FED
Jeezus.... This level of naivete and historical ignorance just isn't cute anymore.
The whole point is to siphon wealth from productive labor to capital, and to buy real assets for pennies on the dollar.
The fed is doing slowly what Sachs, Summers, and a mostly Jewish cabal of economists and oligarchs ( not to offend anyone but they * were * -Russia was less than 3% Jewish ) did to Russia under Yeltsin, a Russia that Putin largely freed from their grasp - which is why he is hated most of all by Jews and neocons and Zioturds.
El-Erian still doesn't really get it. The wealthy aren't capturing more of the real income- they are capturing more of the wealth-effect. Redistributing that wealth-effect more equitably wouldn't then solve the problem. He still is one of those putting the cart before the horse. At some point, a future Fed will probably try to redistribute it via something that is a helicopter drop. At that point, you won't want to be in "cash".
What do you mean "in love"? Nobody ever mistook debt for love, er, I mean growth - did they? I mean other than Obummer? Yes I know the Fed *acts* like they believe that, but they don't really - do they? As soon as you start to believe your own lies, *that's* when the real trouble starts.
I keep a shit load of cash for it works until it doesn't, after the collapse. A metric ass load of fine silver as well as bags of junk silver. The gold is stacked and buried. We won't be Mad Max for long. A new government will be formed and currency issued. I just want to know what the exchange rate of NAU Amero's to the USD will be.
Hey Muhammad what happens to your cash when overnight China anounces how much gold they really got? Or what if the six foot turd interrupts an episode of dancing with the stars to announce he's devaluing the dollar by 50%.
Tyler. Peg this as link on ZH. It's important for them to understand.
The Fall of Rome and Modern Parallelshttp://m.youtube.com/watch?v=K0zacaIard0
36-year-old video?
Lame.
Those who cannot remember the past are condemned to repeat it.
They had the chance to let all bad debt wash down and clear instead of placing on public balance sheet "saving the economy" and destorting future growth model.
They had the chance to invest in infrastructure and supporting investments of real growth instead of financial coverup.
There will be no new growth model only what we have seen in the last few years to continue until more financial crisis arise and give way to do more of the same untill the system breaks down and upon us will be a new IMS.
one should be invested into self-sufficiency based on access to resources and technologies to produce goods and services one intends to use
."We are struggling to find a new growth model ..."
How bout a fuckin 'growth model' based on actually producing something?..
its amazes me that in world with some overcapacity in everything, goods and services, that government has to be the supplier of first and last resort.
El Erain is wrong about government needs to do more. Government needs to get out of the way.
Fiscally, US government feeds the consumer economy, which doesn't produce nothing. Regulations restrict investment in production. Simply put US has too much government. Health care costs are expensive which is attributed to government incentives to increase demand, and restrict supply. Yes tax cuts would be nice for everybody, not just corporations, but government spending has to cut before that happens, otherwise it's pointless. It's good to attract foriegners in every aspect, not just corporations.
Monetary policy is terrible rewards borrowers who gamble looking for yield. Lenders are entrepreneurs, when you squeeze interest you squeeze entrepreural investments into the productive economy. Savings are needed. Without savings and some level of defferment of consumption, they will be LESS entrepreneaurial activity, not more. Lifting asset prices is not economic growth. It's inflation. Inflation is not growth, but here modern mainstream economic theory says inflation is growth, or something connected to it of that nature. Ridiculous.
There isn't any "growth models", it's either free markets, or centrally planned economies that grow anemically because a vibrant economy is restricted from developing. El Erain is completely wrong in just about everything he said in this piece. US needs more investment in capital goods, goods that improve efficiency of production and frees up resources so the economy can grow into next step, step by step. Government doesn't need to train workers when there isn't the jobs to fill them. There needs more investment for growth to happen, not investment in inflated assets and watching them appreciate, which is again product of inflation (increases in the money supply) and speculation based on that inflation.
at really great turning points the experts always have it all wrong. 2008 is pearl harbor and 9/11 rolled up in a financial crisis. we didnt fall in love with the wrong growth models. the free market started to take off and the fed crashed (verb form) the market to get control again, because the fed is a government agency and they are running a centrally planned economy. 2008 was the death of the free economy. now he says the fed should be less timid? how vichy of him. out of deference to the money center banks were running the free economy, the fed gave them a lot of power. and as ellen brown suggests there may only be five banks left when the next crisis hits, but consolidation mainly occurs in industries which are leading the economy. the rift between the fed the REAL banks is growing, first you shit in our sandbox, then you gave us more sand to play with, in exchange for keeping control. in 1913 the fed was created because the government didnt like JPM setting interest rates. now the general opinion is that JPM should be setting interest rates, but the fed is only there to empower the same politicians who gave you W1,2 and probably 3. bottom line the banks are more interested in your well being than the fed.
Wait, till oil and gold prices goes to moon then all cash and big bang.
Wait a minute, didn’t El-Erien walk away from PIMCO with over $200 million? If he’s so uncomfortable with his massive income inequality, why doesn’t he give it back, or hand it out to beggars on the street?
It’s like he’s saying, “I’m the problem, and someone else needs to do something about it”.
I'm sure he tips his barista reasonably well.
Just goes to show -
I always thought El-Erian was a Middle Eastern airline.
I hope he gets cancer!
I wonder if he was talking about his personal money or the funds his firm manages? It sort of reads like its his personal money.
Bill Gross Is Very Bullish on Treasuries https://www.youtube.com/watch?v=9Fi2ICzJDoQ
Apr 6, 2015 Bloomberg Business
It is time to give Neville Chamberlain a rest as the sole poster child for appeasement. Yes, he appeased Hitler in a hopeless quest to avoid war. He even was honest enough to say that was what he was doing. But when Hitler violated Munich and seized all of Czechoslovakia, he offered security guarantees to other countries who felt threatened.
Then, when the Nazi leader invaded Poland, Chamberlain listened to those in his own party who demanded he stand up to Hitler, brought Winston Churchill into his government, and declared war. And in the months that followed, months that some called “the phony war” because Hitler paused before moving West, the British prime minister promoted rearmament.
http://euromaidanpress.com/wp-content/uploads/2015/03/hitler-walking-ove...
As wrong as Chamberlain was to think that he could win by appeasing a dictator like Hitler, he actually looks remarkably statesmanlike in comparison with some contemporary heads of state. When Vladimir Putin invaded Ukraine and seized Crimea, they refused to take action or even use those terms, even though he now takes very public credit for what he did.
When they rushed to Minsk to reach an agreement that Putin then ignored, they decided that the best course was to go back to Minsk and sign another agreement, even though the Kremlin leader was violating it before the ink was dry, allowing Putin’s forces to continue their expansion into Ukraine.
And when Ukraine asked for weapons to defend itself against Russian aggression, they worried more about not offending Putin than about protecting a democratic country from an invader and if yesterday’s reports are to be believed finally decided not to provide such arms to allow Ukraine to defend not only itself but the principles on which the West says it operates.
At every step of the way, these Western leaders have argued that the situation now is different because “Putin isn’t Hitler” as if that were the relevant standard and because Russia’s possession of nuclear weapons means that they can’t stand up to him, thus sending a dangerous message to Iran and others that if you have such weapons, you can do what you like.
Moreover, they have assumed that economic sanctions are an indication that they are in fact “standing up to Putin,” even though it has long been established that the Kremlin leader doesn’t care what happens to his own people and will only use their suffering to build up his power by blaming everything on the West.
And Western leaders have comforted themselves with the notion that the increasingly short attention spans of their electorates will mean that no one will talk about Ukraine as soon as it disappears from the news. At least, in the 1930s, what Chamberlain was doing is because neither he nor anyone else could forget what had happened in the trenches of World War I.
At the beginning of September 1939, when Chamberlain still was trying to find a way out short of war, Churchill famously complained that the Poles had been suffering and dying as a result of Hitler’s aggression for three days. One should ask oneself: how many months will the Ukrainians suffer until the West acts as well as Chamberlain finally did on September 3rd?
http://euromaidanpress.com/wp-content/uploads/2015/03/Churchill-Appeasem...
You are skipping over a few controversial details. When you only present one side to an argument you weaken the effectiveness of your efforts. Present both sides and refute your opposition and I'm more likely to read and consider your point of view.
Perhaps the West shouldn't have overthrown the Ukranian elected government to put the Ukranian people in this predictament.
Let's cut through the BS, the West wants to control the movement of energy through Ukraine. The Ukrainian gold was just the icing on the cake. Also, NATO gets to put's it's armaments on the border of Russia.
The comparison of Chamberlain vs Hitler and NATO(The West) vs Putin is ridiculous. Chamberlain was not engaging in coup d'etats of states bordering Germany.
A more accurate comparison (albeit without the direct coup d'etat), is what Khrushchev was doing in moving missles to Cuba (Cuban missle crisis of 1962). NATO is Khrushchev, Ukraine is Cuba, and Putin is Kennedy.
Buy assets that don't have anyone in them. GOLD and SILVER
So low growth and financial instability it is then.
Political brownie points are much more important than business and Government doing the right thing.
Pushed by the likes of faux news so low growth and financial instability it is then.
As all savings of the world had to be 'stored' in dollars and dollar denominated assets we saw the expansion (and the creation of) more of such assets. Derivatives were created, not because the world needed them or they were unto themselves great ideas, but to have another place to store wealth. The view from up high is that the world's savers want to keep part of their efforts available to be spent in the future. Unfortunately paer promises are all that is available.....and gold.
At this point in history it looks to me that gold might be the better vehicle. Gold has really only one function, to store wealth. If it was at a much higher price this would be obvious and the world would chose gold. While it is also sold in derivative form, the price of gold is artificially low. When other asset prices are crazy high I think many will return to gold as the way they carry wealth into old age.....they've been doing it for millennia, no reason to change now. Those paper derivative markets are already shakey. The big dogs of the world know this and do keep some of their saving in gold.
When we have our next crack up gold will need to be repriced higher and that 1 to 5 % stored in gold will redeem the savers who chose gold.
Here are some more signs of a coming recession.
http://michaelekelley.com/2014/12/20/leveraged-loans-predict-crash/
http://michaelekelley.com/2015/02/20/fed-warns-of-two-bubbles/
http://michaelekelley.com/2015/02/24/would-you-pay-39-more-than-asked/
http://michaelekelley.com/2015/03/24/stocks-could-have-worst-april-since-1970/
Here is how to prepare yourself.
http://michaelekelley.com/2014/10/16/8-things-to-do-when-recession-happens/
Good luck!
Oh boy, we have a winner here folks shilling his shitty blog!! BUY GLD!! HAHAHAHAHAHAHA!
Wonder if he mentions that the markets are for suckers, now that HFT rules the day?? NAH!
6. IF UP AND GOLD IS DOWN, BUY GOLD – Gold usually moves opposite of stocks, so buy gold or gold funds such as GLD which will move up when stocks crash.
"Q. So we’re nearing a bubble?"
WTF?!
DavidC
Long, long, long time ago he used expression Sugharhigh, he must be without cash now.....
Of course, they don't really hope to trigger what's called the wealth effect. They have their own definition of the wealth effect, which thus far has been triggered, namely that wealth should continue to be concentrated in their own and their friends' hands. At some point presumably, maybe, stocks and bonds will "sell off". Right around the time when the last bears capitulate. At that point we should try to figure out who got out near the top, and indeed, who is short. If the timing works out for him, El-Arian will be one of those. Soon thereafter, we should watch who buys up the valuable stuff on the cheap. As happens periodically.