News

“Everything we are told about deflation is a lie”

"Messrs Yellen, Draghi et al should be careful what they wish for. Inflation targeting is hardly a precise science. Achieving an entirely arbitrary 2% inflation level is bad enough for savers on fixed incomes when deposit rates are close enough to zero as to make no difference, but markets have a tendency to overshoot. Most government bond markets are clearly overbought – but in a QE world given fresh impetus by the looming arrival of the ECB, overbought markets can become even more overbought. When we don’t claim to understand the underlying dynamics (political) or the final destination (though we have our own fears), it’s much better simply not to play." Continue reading →

Continue Reading“Everything we are told about deflation is a lie”

The richest man in Asia is selling everything in China

"Here’s a guy you want to bet on– Li Ka-Shing. Li is reportedly the richest person in Asia with a net worth well in excess of $30 billion, much of which he made being a shrewd property investor. Li Ka-Shing was investing in mainland China back in the early 90s, way back before it became the trendy thing to do. Now, Li wants out of China. All of it. Since August of last year, he’s dumped billions of dollars worth of his Chinese holdings. The latest is the $928 million sale of the Pacific Place shopping center in Beijing– this deal was inked just days ago. So what does he see that nobody else seems to be paying much attention to? Simple. China’s credit crunch." Continue reading →

Continue ReadingThe richest man in Asia is selling everything in China

Getting the Best Rates on Currency Conversions

"Forex trading platforms allow you to convert and transfer your money for minimal charges and are perhaps the best way to do so. You may want to consider Interactive Brokers as a forex platform (but do shop for other forex trading platforms in your jurisdiction). You can do all sorts of currency conversion with Interactive Brokers, and it has extremely competitive spreads. For certain currency conversions involving the US dollar, the spread can be smaller than 1 pip (1/10,000th of dollar or 0.01%). Moreover, you can execute limit orders. These spreads are attractive considering most banks operate at a spread of about 2.5-3%." Continue reading →

Continue ReadingGetting the Best Rates on Currency Conversions

Evidence That Consolidated Global Power Is Wielded by a Tiny Elite

"For the past 12 years an elite cell at the US Treasury has been sharpening the tools of economic warfare, designing ways to bring almost any country to its knees without firing a shot. The strategy relies on hegemonic control over the global banking system, buttressed by a network of allies and the reluctant acquiescence of neutral states. Let us call this the Manhattan Project of the early 21st century. The stealth weapon is a 'scarlet letter', devised under Section 311 of the US Patriot Act. Once a bank is tainted in this way - accused of money-laundering or underwriting terrorist activities, a suitably loose offence - it becomes radioactive, caught in the 'boa constrictor's lethal embrace'." Continue reading →

Continue ReadingEvidence That Consolidated Global Power Is Wielded by a Tiny Elite

Does Anti-Money-Laundering Work? Rick McDonell of FATF Answers

"Can you put in place effectively a system that identifies who is sending what to whom? In terms of virtual currencies that remains the same. [..] One significant issue is identification of the beneficial ownership of trusts, entities and companies, the ability of criminals to hide behind a corporate veil or some other legal instrument. That is a challenge we are dealing with. We have a new standard in place for that, and it will be tested in practice very shortly. That will require much closer cooperation between different arms of government that haven’t perhaps had to work together before. I would put that down as a significant challenge going forward." Continue reading →

Continue ReadingDoes Anti-Money-Laundering Work? Rick McDonell of FATF Answers

Global Debt Exceeds $100 Trillion as Governments Binge

"The amount of debt globally has soared more than 40 percent to $100 trillion since the first signs of the financial crisis as governments borrowed to pull their economies out of recession and companies took advantage of record low interest rates. The $30 trillion increase from $70 trillion between mid-2007 and mid-2013 compares with a $3.86 trillion decline in the value of equities to $53.8 trillion, according to the Bank for International Settlements and data compiled by Bloomberg. Borrowing has soared as central banks suppress benchmark interest rates to spur growth Yields on all types of bonds, from governments to corporates and mortgages, average about 2 percent." Continue reading →

Continue ReadingGlobal Debt Exceeds $100 Trillion as Governments Binge

Bill Bonner: Debunking the Fed’s Credit Propaganda

"We have no choice but to go ahead. But to where? And how? Hold on. One question at a time, please. To where? Japan! How? By using the same policy tools the Japanese used. It worked there, didn’t it? The Fed is fully committed to staying the course. If credit deflation returns to the US, it will have to be over Janet Yellen’s dead body. Which is not a bad idea. But Yellen is not likely to let it happen… not if she can prevent it. But there’s the rub. If credit is going to keep expanding, someone has to borrow more – a lot more." Continue reading →

Continue ReadingBill Bonner: Debunking the Fed’s Credit Propaganda

Bank of Japan To Double ETF Purchases in Next Round of Easing

"Japan’s central bank will probably double purchases of exchange-traded funds in a second round of monetary easing under Governor Haruhiko Kuroda anticipated in coming months, a Bloomberg News survey of economists shows. The Bank of Japan, which tomorrow is forecast to leave unchanged a 60 to 70 trillion yen target for yearly expansion of the monetary base, will increase annual ETF buys to 2 trillion yen, according to a survey of 36 analysts. Evidence of budding inflation expectations among Japan’s companies may restrain more ambitious plans, such as open-ended ETF purchases, even as the economy slows because of this month’s sales-tax increase." Continue reading →

Continue ReadingBank of Japan To Double ETF Purchases in Next Round of Easing

Jim Rogers: Buy Russia & China

"Russia is very, very cheap, and it’s a very neglected stock market with enormous natural resources. I first went to Russia in 1966 and came away negative, and I stayed negative for the next 46 years, so it’s been a long-term bear for me. But in recent months I’ve started changing my views and have started buying shares in Russia. Another one might be Japan. I don’t know if Japan is ignored or not, but it’s down 60-70 percent from its all-time highs, so it’s still neglected to some extent. In 20 years, we’ll look back at Japan, and its death knell will be what Mr. Abe did in 2012-2014. But in the meantime, there are staggering amounts of money and spending, and printing has to go somewhere." Continue reading →

Continue ReadingJim Rogers: Buy Russia & China