investment

Norway Ready to Use Rate Cuts to Weaken Krone, Central Bank Says

"Policy makers around the world are discussing how to respond to a re-emergence of so-called currency wars as finance ministers from the Group of 20 gather in Moscow. Norway’s central bank governor has shown before he’s willing to deploy rates to cap excessive krone gains, cutting the benchmark by 0.75 percentage point in two moves starting in December 2011. Olsen and his colleagues are torn between protecting exporters through lower rates that stem krone gains, and a policy that addresses an overheated property market." Continue reading →

Continue ReadingNorway Ready to Use Rate Cuts to Weaken Krone, Central Bank Says

U.S. Banks Bigger Than GDP as Accounting Rift Masks Risk

"Applying stricter accounting standards for derivatives and off-balance-sheet assets would make the banks twice as big as they say they are -- or about the size of the U.S. economy -- according to data compiled by Bloomberg. U.S. accounting rules allow banks to record a smaller portion of their derivatives than European peers and keep most mortgage-linked bonds off their books. That can underestimate the risks firms face and affect how much capital they need. Using international standards for derivatives and consolidating mortgage securitizations, JPMorgan, Bank of America and Citigroup would become the world’s three largest banks and Wells Fargo the sixth-biggest." Continue reading →

Continue ReadingU.S. Banks Bigger Than GDP as Accounting Rift Masks Risk

PBS Runs an Article on Government Default

"Should the U.S. government default? Wrong question. The right question: Can the U.S. government avoid defaulting? The answer is clear: no. It will default. It is $222 trillion in the hole. That’s the present value of its future obligations. Of course it’s going to default. Would that be bad? Not for taxpayers. Would it be bad for the Powers That Be who run this country? Yes. Devastating. It’s coming. The mainstream media have ignored this statistically inevitable problem. The problem threatens the Establishment as no other. So, the media pretend it does not exist. But the blackout may at long last be cracking. We read this on PBS." Continue reading →

Continue ReadingPBS Runs an Article on Government Default

The World Goes to Monetary War

"What does it all mean? Essentially that, just as in the 1930s during the Great Depression, everybody is in open protectionist confrontation against everybody else. Back then the 'beggar-thy-neighbor' policies started with the Smoot-Hawley Tariff Act of 1930. This time responsibility for triggering the devaluation race in the developed world is more widespread but the objective is similar to that of tariff policy in the 1930s." Continue reading →

Continue ReadingThe World Goes to Monetary War

U.S. tire magnate blasts France’s ‘so-called workers’

"An incredulous -- and insulting -- letter from an American capitalist to a Socialist government minister in France has revealed a monumental clash of cultures. Tire magnate Maurice 'Morry' Taylor Jr., head of Titan International, did not hold back when he decided to tell Arnaud Montebourg, France's minister for industrial renewal, where he could stick his suggestion that the U.S. businessman take over an ailing French factory." Continue reading →

Continue ReadingU.S. tire magnate blasts France’s ‘so-called workers’

British pound strikes seven-month lows amid calls for further weakness

"Sterling's slide came as Martin Weale, a senior Bank of England policymaker, said on Saturday that the pound may need to weaken further, which would help to make exports cheaper and spur growth. 'It may be that high levels of uncertainty and a reluctance to take on new risks have stood in the way of exporters seeking new markets and domestic producers doing what is needed to displace imports,' Mr Weale said in a speech. 'Provided the calmer atmosphere we have seen since the summer is sustained, we may see further benefits of the depreciation.'" Continue reading →

Continue ReadingBritish pound strikes seven-month lows amid calls for further weakness

Islands trade quick citizenship for investment

"Turmoil in the Middle East and North Africa has led to a surge of interest in programs that let investors buy citizenship or residence in countries around the world in return for a healthy contribution or investment. Most are seeking a second passport for hassle-free travel or a ready escape hatch in case things get worse at home. Nowhere is it easier or faster than in the minuscule Eastern Caribbean nations of Dominica and St. Kitts & Nevis. It's such a booming business that a Dubai-based company is building a 4-square-mile community in St. Kitts where investors can buy property and citizenship at the same time." Continue reading →

Continue ReadingIslands trade quick citizenship for investment

New UK wealth tax plan to target ALL assets – including jewelry and buy-to-let homes

"Families will be forced to pay tax on jewellery and other heirlooms under controversial new plans drawn up by the Liberal Democrats. Under the scheme, tax inspectors would get unprecedented new powers to go into homes and value rings, necklaces, paintings, furniture and other family treasures. Householders would be forced to pay a new ‘wealth’ levy on the assets – with the threat of fines for those who refused to let snoops value their possessions. A policy document seen by The Mail on Sunday spells out how the taxman ‘may have to visit homes to test values of jewellery, paintings, etc’." Continue reading →

Continue ReadingNew UK wealth tax plan to target ALL assets – including jewelry and buy-to-let homes

Sanders Introduces Legislation to End Offshore Tax Havens

"Vermont’s Bernie Sanders introduced legislation on Thursday to prevent U.S. corporations from sheltering income in the Cayman Islands and other offshore tax havens. Every year, said Sanders, corporations and wealthy Americans are 'avoiding more than $100 billion in U.S. taxes by sheltering their income in the Cayman Islands, Bermuda and other offshore tax havens.' Under existing law, U.S. corporations are allowed to defer or delay U.S. income taxes on overseas profits until that money is brought back into the U.S. U.S. corporations are also provided foreign tax credits to offset the amount of income taxes paid to foreign jurisdictions." Continue reading →

Continue ReadingSanders Introduces Legislation to End Offshore Tax Havens

Fed Vice Chair Says Higher Rates Not Assured After Thresholds Hit

"Federal Reserve Vice Chairman Janet Yellen said the central bank may hold the benchmark lending rate near zero even if unemployment and inflation hit its near-term policy targets. U.S. central bankers are focusing the full force of monetary policy on reviving growth and reducing 7.9 percent unemployment, using near-zero interest rates and a program of unprecedented bond buying. Yellen’s comments reflect the view of some policy makers that there is a risk of damaging the expansion by raising rates too early." Continue reading →

Continue ReadingFed Vice Chair Says Higher Rates Not Assured After Thresholds Hit