money

Cyprus, The First Domino?

"For the investor, if he has been preparing himself carefully for the events that will unfold in the next few years, Cyprus will have been an event that did not impact him at all. This sounds like economic heresy, because the very idea that banks would systematically and intentionally steal the money of its depositors is a major, major event. Yes, it is quite definitely a major event, but one that should not have impacted the seasoned investor, as it is an event that is a mere comma in his overall outlook – it is an event that was anticipated." Continue reading →

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The Financial Situation in Cyprus and the End of the Euro

"There are several lessons to be learned here: 1. Politicians lie. Only a few weeks ago, politicians in Cyprus promised that deposits in local banks would be backed 100% and that euro-zone taxpayers would finance any bailout. Obviously, that turned out not to be true. 2. The swift win the race. Those depositors who got their funds out of Cyprus banks before the bailout get to keep 100% of their capital. Those who delayed face losses up to 60%. 3. Cash is king. While the value of the euro has slumped in recent weeks, anyone with euros in cash form, rather than in an account, is far better off than with euros in a bank account. [..]" Continue reading →

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QE 3 Moves to Japan

"The Bank of Japan has announced a quantitative easing (mass inflation) QE program that matches Bernanke’s: $75 billion a month in purchases of Japanese government bonds. This is just under $1 trillion a year. But Japan’s GDP is only $6 trillion — 40% the United States’ GDP. This is way beyond Bernanke. For the Bank of Japan, this is QE1. But it is QE3 in the United States. It’s the same policy. The government of Japan has always been Keynesian. Now it has adopted desperation Keynesianism: just like the United States and the eurozone." Continue reading →

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Jeff Berwick on FOX Business: Varney and Co. talking Bitcoin ATM

"Jeff Berwick is on FOX Business: Varney and Co. discussing the value of Bitcoin and his recently announced BitcoinATM project set to launch in Cyprus very soon. Read more about BitcoinATM at www.BitcoinATM.com and read the original press release at The Dollar Vigilante: http://dollarvigilante.com/blog/2013/3/25/worlds-first-bitcoin-atm-is-announced-first-location-cyprus.html " Continue reading →

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State-Wrecked: The Corruption of Capitalism in America – David Stockman

"As the federal government and its central-bank sidekick, the Fed, have groped for one goal after another — smoothing out the business cycle, minimizing inflation and unemployment at the same time, rolling out a giant social insurance blanket, promoting homeownership, subsidizing medical care, propping up old industries (agriculture, automobiles) and fostering new ones ('clean' energy, biotechnology) and, above all, bailing out Wall Street — they have now succumbed to overload, overreach and outside capture by powerful interests. The modern Keynesian state is broke, paralyzed and mired in empty ritual incantations about stimulating 'demand.'" Continue reading →

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Economists Suggest The Federal Reserve Pump Money Directly Into Americans’ Bank Accounts

"Ben Bernanke himself famously argued years ago that a central bank should never run out of tools for fighting deflation and depression because, as a last resort, it could always drop cash out of helicopters. That would be fun to watch, obviously, but mailing checks would be a lot simpler. And even though it sounds a little insane, it becomes a more and more compelling idea the more you think about it." Continue reading →

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Jim Rogers: ‘Run for the Hills’ Now, I’m Doing It

"The EU/IMF raiding bank accounts in Cyprus to bail out the country's financial system sets a dangerous precedent and investors should 'run for the hills' said investor Jim Rogers, chairman of Rogers Holdings. Rogers said that with Cyprus, politicians are saying that this is a special case and urging people not to worry, but that is exactly why investors should be concerned. 'If you're going to listen to government, you're going to go bankrupt very quickly,' he added. 'I, for one, am making sure I don't have too much money in any one specific bank account anywhere in the world, because now there is a precedent,' he said." Continue reading →

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Another Warning Sign – NY Times Columnist Favors Capital Controls

"Krugman doesn't see irresponsible government spending and the resulting debt as the core cause of recent crises in Europe and around the world. Instead, he blames inflows of money by undefined foreigners. He even says that the US, too, is victimized by inflows of foreign money when he claims, 'It's not just Europe. In the last decade America, too, experienced a huge housing bubble fed by foreign money.' According to Krugman, it's not the fault of the Federal Reserve's artificially low interest rates for blowing up the housing bubble, nor the proliferate spending habits of European welfare states for causing the debt crisis." Continue reading →

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Russia to ban cash transactions over $10,000

"The move is expected to boost banks’ cash reserves and put a damper on Russia’s shadow economy. However, the middle class will most likely end up having to pay the price for the scheme. In 2014, a ban on cash payments for purchases worth more than 600,000 rubles (about $19,500) will be introduced; the limit will then be halved in 2015. Furthermore, the document introduces mandatory, cash-free, salary payments. Smaller companies with fewer than 35 employees will be the only exception, and trade companies will be able to pay salaries in cash if they employ no more than 20 people on staff." Continue reading →

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Bank of Cyprus savers could lose up to 60%

"Big savers in Cyprus’s largest bank face losses of up to 60 percent, far greater than originally feared under the island’s controversial EU-led bailout plan, officials said on Saturday. Cyprus meanwhile launched an investigation into a list published in Greek newspapers of Cypriot politicians who allegedly had loans written off by two banks at the heart of the financial meltdown. Officials said Bank of Cyprus savers will see at least 37.5 percent of funds over 100,000 euros ($128,000) turned into shares, but a further 22.5 percent will be held until authorities know they can satisfy the terms of the bailout." Continue reading →

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