Investment/Trends

Get Ready for Confiscation

"Once it has sunk in that such a move is perfectly acceptable in Europe, the US will declare its own bail-in policy. Those who still cling to some hope that there may be some good news here, may say, 'Well, at least if I have less than €100,000 on deposit, I can still call that my own.' These folks will be the same ones who are relieved that they are likely to be left out of a 'one-time' wealth tax that is currently being floated as another solution to the exorbitant operating costs of governments. However, any government that steals your money once is likely to have another go at a later date. And another and another. Once they are accepted at all—for any reason—governments tend to repeat them." Continue reading →

Continue ReadingGet Ready for Confiscation

Get Ready for Confiscation

"Once it has sunk in that such a move is perfectly acceptable in Europe, the US will declare its own bail-in policy. Those who still cling to some hope that there may be some good news here, may say, 'Well, at least if I have less than €100,000 on deposit, I can still call that my own.' These folks will be the same ones who are relieved that they are likely to be left out of a 'one-time' wealth tax that is currently being floated as another solution to the exorbitant operating costs of governments. However, any government that steals your money once is likely to have another go at a later date. And another and another. Once they are accepted at all—for any reason—governments tend to repeat them." Continue reading →

Continue ReadingGet Ready for Confiscation

European Union Stripped of AAA Credit Rating at S&P

"The European Union lost its top credit rating from Standard & Poor’s, which cited the deteriorating creditworthiness of the bloc’s 28 member nations. Ratings remain under pressure more than four years after the outbreak of the European debt crisis, which led the EU to offer emergency financing to Greece, Ireland, Portugal, Spain and Cyprus to shore up their bonds and banks. European Central Bank President Mario Draghi’s pledge to do what it takes to save the euro has helped stabilize debt markets, while deficits and debt in most euro-area countries remain well above the limits set for membership in the single currency." Continue reading →

Continue ReadingEuropean Union Stripped of AAA Credit Rating at S&P

China puts out yet another credit market fire with more liquidity

"The People’s Bank of China announced that it had injected cash into the short-term credit markets. While the PBOC does that regularly—twice a week via its regular, publicly announced open market operations—the cash injection that it announced today was a different kind of mechanism known as a short-term liquidity operation or SLO. It directs the central bank’s money to 12 large Chinese banks seen as crucial to the stability of the system. That the central bank has been so quick to try to ease stress in short-term markets indicates that policy makers are leery of repeating last-summer’s severe credit crunch." Continue reading →

Continue ReadingChina puts out yet another credit market fire with more liquidity

China credit crisis fears as central bank injects funds

"China’s central bank has rushed to pump money into the stalling banking system but markets across Asia still fell sharply amid fears that the world’s second-largest economy faces a credit crisis. State media in China had reported that the PBOC has unexpectedly pumped $33bn (£20bn) into the domestic money market through what it refers to as 'short-term liquidity operation'. Fears over a looming Chinese debt crisis spurred by a poorly regulated and opaque financial system stoked fears over the summer that the Asian powerhouse could finally be on the brink of a sharp slowdown in growth." Continue reading →

Continue ReadingChina credit crisis fears as central bank injects funds

Former U.S. Mint Director: Bitcoin ‘Likely Here To Stay’

"The next five to 10 years will be critical. But like how the mobile devices, Internet, cable, television, movies, musicals, operas and symphonies all have found their niches, the same will be with currency. Precious metals like silver and gold will co-exist with coins and bills (necessary if the lights go out or cyber attack), checks and money orders, credit and debit cards, online payments and digital currency. This technology has the ability to disrupt the status quo and springboard the global economy into the future. It gets sovereign nations out of the currency manipulation business. It may or may not be Bitcoin or its imitators, but chances are likely that digital currency is here to stay." Continue reading →

Continue ReadingFormer U.S. Mint Director: Bitcoin ‘Likely Here To Stay’

Bank of Japan “Very Interested” in Bitcoin: Kuroda

"The Bank of Japan is 'very interested' in the online virtual currency Bitcoin, Governor Haruhiko Kuroda said Friday. The central bank's Institute of Monetary and Economic Studies is studying it, Kuroda said at a regular news conference. 'Compared with traditional ways of money transfers and existing electronic money, Bitcoin has both similar and different aspects,' Kuroda said. Central banks around the world are closely watching Bitcoin, the value of which has been swinging wildly due to speculative trading. The BOJ currently has no plans to take action on the situation surrounding Bitcoin, Kuroda said." Continue reading →

Continue ReadingBank of Japan “Very Interested” in Bitcoin: Kuroda

Australian Bank Publishes Report ‘Bitcoin to replace AUD?’

"The National Australia Bank (NAB), one of Australia’s ‘Big Four’ banking groups, published a three-page research paper on 19th December titled 'Bitcoin to replace AUD?' (Australian dollars). Despite the provocative title, the paper does not suggest replacing the national currency with bitcoin, nor say it could happen in the near future. Rather, it is an explanation of bitcoin and a comparison of the nature of digital currencies with existing sovereign currencies, and how they fit into the current international financial system. Bitcoin could well become a widely accepted medium of exchange, the paper said, but it would take many more years to achieve mainstream acceptance." Continue reading →

Continue ReadingAustralian Bank Publishes Report ‘Bitcoin to replace AUD?’

Singapore government decides not to interfere with Bitcoin

"The Monetary Authority of Singapore (MAS), the country’s central bank, has decided not to intervene on whether businesses can accept Bitcoin as a means of transacting goods and services. 'Whether or not businesses accept Bitcoins in exchange for their goods and services is a commercial decision in which MAS does not intervene,' it told Singapore-based Bitcoin trading platform Coin Republic in an email. Singapore is one of the world’s top finanacial hubs that is increasingly seen as a challenger to Switzerland’s private baking dominance. The last time MAS issued a statement on Bitcoin was in September, when it warned speculators about the risks of trading the cryptocurrency." Continue reading →

Continue ReadingSingapore government decides not to interfere with Bitcoin

Fed’s ‘Elixir’ Is Surely a Temporary One

"The idea once was that powerful central bankers would work behind the scenes to make sure that various markets were stable and fair. Nowadays, central bankers work to ensure that markets – especially stock markets – are propped up so that the appearance of an improving economy can be maintained. And far from working in secret, this generation of bankers is desperate to reassure investors that optimal conditions for continued equity gains will be continued. This is, in fact, what the Bloomberg article is telling us. The Fed's magic elixir is simply the ability to assure top investors that they can continue to shovel money into the stock market without undue risk of reversals." Continue reading →

Continue ReadingFed’s ‘Elixir’ Is Surely a Temporary One