Investment/Trends

“Startup Cities,” Honduras, and Experiments in Freedom

"Tom W. Bell, a law professor at Chapman University and a legal consultant to the Honduran 'startup city' project, spoke at Reason's Los Angeles headquarters about why libertarians should be interested in the potential for new forms of governance within the proposed 'zones of economic development' (ZEDEs) being pushed in Honduras. He addressed various legal challenges and setbacks that prior efforts faced, such as Paul Romer's failed RED zones. Bell also discussed other experiments in municipal governance, such as Co-op City in the Bronx and Sandy Springs, GA." Continue reading →

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First Tax Haven in Armenia Launched

"Senior Armenian and Russia officials inaugurated over the weekend Armenia’s first-ever tax-free business zone which is meant to mainly cater to high-tech manufacturing companies. The Free Economic Zone is located in the premises of an electronics plant and a research institute in Yerevan that were handed over to Russia, along with several other Armenian enterprises, a decade ago in payment for Yerevan’s $100 million debt to Russia. Companies will be exempt from profit, value-added and property taxes as well as import duties. The government hopes that this privileged business environment will help to attract more foreign investment to Armenia." Continue reading →

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Lebanon’s Banks Have the Highest Cash Reserve Ratios in the World

"There are three features that distinguish the Lebanese financial system: 1. The banks have the highest cash reserve ratios in the world. 2. The central bank holds the second highest gold reserves on a per person basis. 3. Real financial privacy. Lebanon is also one of the few countries left in the world that still has real financial privacy, both in theory and in practice… just not for Americans, though, thanks to FATCA, which Lebanon has indicated it will comply with. Additionally, Lebanon ranks only behind Switzerland in terms of gold reserves per person according to this chart below from The Economist." Continue reading →

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Gold, the Titanic & Lifeboats – Why it’s Important to Own Physical Gold

"Why it is so important to own physical gold in the actual context and why the spot price doesn't matter that much in determining the real value of gold. We try to explain this by making an historical parallel with the Titanic shipwreck." Continue reading →

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The Secret’s Out: Now Is the Time for International Diversification

"For the United States and other debt-addicted countries, years of profligate spending have more or less sealed their economic fates. With the stage set, further encroachments of privacy are practically guaranteed. Faced with economic uncertainty, governments will search for new ways to plunder the productive members of society. These may include capital controls, more onerous regulations, or wealth confiscation, either explicitly or by way of the printing press. The developing NSA story along with the crisis in Cyprus prove that desperate governments will stop at nothing to prevent their house of cards from collapsing, no matter how futile." Continue reading →

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Chesapeake Energy drops legal fight over natural gas leases in New York state

"Landowners in Broome and Tioga counties, who had leased acreage to Chesapeake over the past decade, had battled the pioneering oil driller in court to prevent it from extending the leases under their original terms, many of which were agreed to long before a boom in hydraulic fracturing swept the United States. 'I can renegotiate with other companies now,' said Frank Laskowski, who owns land in Broome County. 'Before that we were tied up with Chesapeake at $3 an acre and 12.5 percent. Most people are getting much more than that.' One landowner in Broome County said he now hoped to secure up to $3,000 an acre." Continue reading →

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Swiss bank UBS pays $50 million to settle SEC charges from 2007 financial meltdown

"UBS agreed to pay nearly $50 million to settle charges over its disclosures related to a money-losing 2007 investment vehicle linked to sub-prime loans, a US agency announced Tuesday. UBS presented inaccurate or incomplete information about upfront payments in marketing literature to investors and in submissions to the CDO’s directors, the SEC said. When the CDO was liquidated in 2007, outside investors lost approximately $130 million in the CDO, according to an SEC administrative order. In the settlement, UBS agreed to pay about $50 million in disgorgement, interest and penalties. The bank did not admit or deny the SEC’s findings." Continue reading →

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Rahm’s Chicago: $1 Billion Financial Shortfall Forecast by 2015

"Chicago Mayor Rahm Emanuel released the city’s second Annual Financial Forecast on Wednesday. Not only does the report predict a $369 million financial shortfall for the city's operating 'budget' in 2014, but it also predicts a shortfall of more than $1 billion by the year 2015. On Thursday, Breitbart News reported the city’s payroll is more than $2.4 billion, with over 2400 city employees (not including school employees) making over $100,000 a year. The payroll is by far the highest expense for the city, yet in the Financial Forecast report, it is expected to increase by $100 million in 2014." Continue reading →

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Marc Faber: The Fed Will Increase QE

"Marc Faber was characteristically pessimistic during his interview with Sprott Money late last month. 'I don’t think they will end QE. I rather think they will have to increase it, because as you print money or as you purchase assets, from a central banking point of view, it loses its impact over time. In order to keep the impact going, you have to essentially increase it. I believe that the dovish members of the Fed will print more money. Especially after the resignation of Mr. Bernanke early next year, when he will be replaced, there will be even more dovish members.'" Continue reading →

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Jeffrey Tucker: The Triumph of Scrooge McDuck

"CNBC says, 'According to research from American Express Publishing and Harrison Group, the savings rate of the wealthiest 1% in the second quarter rose to 37%. That’s up from 34% in the second quarter of 2012 — and more than three times their savings rate in 2007.' In other words, their saving is actually increasing, even given the evidence that the everlasting recession has abated in some ways, which suggests that this class has little confidence that the high stock market and seemingly good news that trickles out are really sustainable. They are preparing for the next crisis in ways they wish they had prepared for the last one." Continue reading →

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