Economy

Keiser Report: Pickpockets Rule UK?

"In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss the beggar economy in which the biggest pickpockets rule. They look at the London Gold Fix, in particular, where every day for the past more than twenty years, pockets were picked every single day, according to the data. In the second half, Max interviews precious metals expert, James Turk, about his new book, 'The Money Bubble,' and about the dollar, gold and Bitcoin." Continue reading →

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Who Needs Bitcoin? Venezuela Has Its ‘Sucre’

"The late Venezuelan president created the sucre, a virtual currency designed to dethrone the dollar as the main trading currency used with his country's regional trading partners: Ecuador, Cuba, Bolivia and Nicaragua. The sucre is managed by a board of central-bank representatives, which has helped bolster its use. Ecuadorean companies exported $737 million worth of goods to Venezuela using the sucre system in the first nine months of 2013, an 80% increase from the same period in 2012, according to Ecuador's central bank. That growth has drawn attention from the country's regulators, which are cracking down as fraud involving the virtual currency rises." Continue reading →

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‘The Hazards of Lending to Bitcoin Users’

"Creditors are likely more concerned with restricting Bitcoin acquisition or use by borrowers due to the uncertain regulatory landscape, irreversible nature of payments, extreme volatility of value and anonymity of the system. Thus, credit agreements may contain covenants prohibiting borrowers from using or accepting Bitcoin, or operating Bitcoin accounts. In addition, diligence questionnaires and credit agreements may contain representations and warranties that the borrower does not use or accept Bitcoin, nor does the borrower have a Bitcoin wallet. Such provisions are just beginning to appear in credit agreements when use of an emerging payment system is apparent." Continue reading →

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Taiwan Welcomes New Year with Bitcoin Warning

"The Financial Supervisory Commission of the Republic of China and the Central Bank of the ROC have issued a joint statement warning against the use of bitcoin in Taiwan. The regulators said bitcoin remains volatile, that it does not have any legal protection, and that it is not issued by a monetary authority. The regulators noted that bitcoin trading is highly speculative and that investors should be wary of volatility, cyber attacks, malicious defaults, theft and other risks. The regulators also announced that they may take 'necessary steps' if financial institutions engage in bitcoin operations." Continue reading →

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Insatiable appetite for gold fuels India’s smuggling industry

"Indian gold smugglers are adopting the methods of drug couriers to sidestep a government crackdown on imports of the precious metal, stashing gold in imported vehicles and even using mules who swallow nuggets to try to get them past airport security. Stung by rules imposed this year to cut a high trade deficit and a record duty on imports, dealers and individual customers are fanning out across Asia to buy gold and sneak it back into the country. Sri Lanka, Thailand and Singapore are the latest hotspots as authorities crack down on travellers from Dubai, the traditional source of smuggled gold." Continue reading →

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Debt hits 200-year high; IMF warns of ‘savings tax’ and mass write-offs

"Much of the Western world will require defaults, a savings tax and higher inflation to clear the way for recovery as debt levels reach a 200-year high, according to a new report by the International Monetary Fund. The IMF working paper said debt burdens in developed nations have become extreme by any historical measure and will require a wave of haircuts, either negotiated 1930s-style write-offs or the standard mix of measures used by the IMF in its 'toolkit' for emerging market blow-ups. Financial repression can take many forms, including capital controls, interest rate caps or the force-feeding of government debt to captive pension funds and insurance companies." Continue reading →

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Why I’m Leaving

"My grandparents emigrated from Portugal to Mozambique during the 1940s and 50s in search of a better life. The massive and undeveloped colony seemed like the land of milk and honey for those willing to get their hands dirty. A few decades later my parents-to-be immigrated to South Africa as Mozambique headed towards what would become a 10-year war for independence. Then when I was just 4 years old they decided that a fascist state fully enveloped with the evils of apartheid was no place to raise a child. My mother was fortunate enough to get a work visa into the United States and that’s where we’ve been ever since. Now the time has come for me to follow in my family’s footsteps." Continue reading →

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3 Urgent Steps for the Ultimate Strategy in 2014!

"There’s no doubt we’re living in crazy times. Despite a slight reduction in the amount of unbacked money it prints every month, the Fed is still burying the world in unbacked paper dollars. Despite a 'budget deal,' the massive federal debt is nearing the $18 trillion mark and annual deficits are still massive. Despite the trillions Washington has poured into the economy over six years, growth is still sub-par. Despite Washington’s claims to the contrary, the real unemployment rate, measured the way our government used to, is still 13.2 percent. Yet this year alone, the S&P 500 has hit nearly four dozen new all-time highs in 2013. So what’s the wisest wealth-building strategy in times like these?" Continue reading →

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Bill Bonner: Avoid This Popular Stock in 2014…

"All eyes have been fixed on the stock market in 2013. But one of the most significant moves has happened in supposedly 'safe haven' bonds. Mom & Pop investors who rushed out of the stock market and into bond funds have been burned. In 2013, investors holding the iShares Barclay’s 20+yr Treasury Bond ETF lost 13.5%. This is strange, because the Fed has been supporting the long end of the Treasury market with $540 billion of Treasury bond purchases under QE3. If this is how long-bond investors are rewarded with the Fed set to buy another half trillion dollars of long bonds next year, it doesn’t bode well for bond bulls. Our advice: Steer clear of T-bonds in 2014." Continue reading →

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Is The NSA Changing Bank Accounts?

"The panels' recommendations are heartening because they are overwhelmingly critical of the NSA; the panel went so far as to unanimously call for splitting up the agency and for safeguards such as transparency. This is another surprise because the panel was hand-picked by Obama and included the die-hard loyalist Cass Sunstein and former CIA deputy director Michael J. Morell. Obama quickly indicated his rejection of some of the panels' recommendations. Meanwhile, everyone should make sure they have a print copy and a screen shot of their latest financial statements on hand. People should consider holding assets in a less conventional place than large and 'trusted' financial institutions." Continue reading →

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