What Could Possibly Go Wrong

Financial Times Sees “Endless Cycle Of Bubble, Financial Crisis And Currency Collapse”

"It's funny: nearly five years ago, when we first started, and said that the world is doomed to an endless cycle of bubble, financial crisis and currency collapse as long as the Fed is around, most people laughed: after all they had very serious reputations aligned with a broken and terminally disintegrating economic lie. With time some came to agree with our viewpoint, but most of the very serious people continued to laugh. Fast forward to last night when we read, in that very bastion of very serious opinions, the Financial Times, the following sentence: 'The world is doomed to an endless cycle of bubble, financial crisis and currency collapse.'" Continue reading →

Continue ReadingFinancial Times Sees “Endless Cycle Of Bubble, Financial Crisis And Currency Collapse”

India gold price at all-time high

"As we have discussed in previous articles, gold is synonymous with savings and security for many of India’s 1.24 billion people and recent events clearly show why. With capital leaving the country, investors fleeing the stock market and dumping Indian bonds, the only asset that has protected capital has been gold. In fact, holders of gold have prospered in an environment where there are few safe assets. The RBI has attempted to make gold ownership difficult and expensive for Indian buyers by restricting imports and increasing taxes, yet the chart below is evidence they have failed in their campaign." Continue reading →

Continue ReadingIndia gold price at all-time high

India’s Sonia Gandhi seeks support for law to banish hunger

"Gandhi told MPs to send a message to the world that India was ready to eradicate hunger and malnutrition. 'The big message which will go out to the country and rest of the world is clear and concrete: that India is taking the responsibility of providing food security of all its citizens,' she said. 'Our goal for the foreseeable future must be to wipe out hunger and malnutrition from our country,' Italian-born Gandhi told lawmakers to applause in the Lok Sabha, the lower house of parliament. Her government says the programme will add 230 billion rupees ($3.6 billion) annually to India’s existing 900-billion-rupee food subsidy bill." Continue reading →

Continue ReadingIndia’s Sonia Gandhi seeks support for law to banish hunger

Bill Bonner: Sooner or later, markets change

Bill-Bonner2

"What's a share in a company really worth? What's a bond worth? Heck, what's the dollar itself worth? All of these questions will draw the same reply: it depends. Among the things it depends on is the 'trust' in the society...in its leaders...in its capital structure...and in its future. When the sun is shining, it's easy to have trust in a society. It's when the chilly winds blow that the question marks begin to fly. You see them picked up by the gusts of wind like plastic bags...floating around until they are snagged on some barren tree. That's when it gets interesting...when the hopes and hallucinations that undergirded the boom give way. Our guess is that investors are about to go back to school." Continue reading →

Continue ReadingBill Bonner: Sooner or later, markets change

US Interest Rates Will Continue to Rise

"The recent rise in long-term interest rates is just the beginning of an increase that will punish investors who are seeking extra yield by betting on long-term bonds. The relatively low interest rates on both short-term and long-term bonds are now causing both individual investors and institutional fund managers to assume duration risk and credit-quality risk in the hope of achieving higher returns. That was the same risk strategy that preceded the financial crisis in 2008. Investors need to recognize that reaching for yield could end very badly yet again." Continue reading →

Continue ReadingUS Interest Rates Will Continue to Rise

Housing Recovery Mirage Over; Bernanke Hoping to Retire Before It’s Noticed

"At the end of 2010, the interest rate on a 30-year mortgage was just under 5 percent… 4.97% to be more precise. Over the next 28 months actions taken by the Fed pushed that rate down as low as 3.42%. So… wonders of wonders… miracles of miracles… soon we were witnessing the inexplicable recovery of our previously decimated and hopelessly underwater housing markets from coast-to-coast. Stories of streets being paved with the gold of home equity and sprawling rental empires were being passed along from Realtor to mortgage broker throughout our apparent Land of Opportunity… the worst was finally over… everyone said so… even on T.V. so it simply had to be true." Continue reading →

Continue ReadingHousing Recovery Mirage Over; Bernanke Hoping to Retire Before It’s Noticed

Bernanke Is Getting Killed in the Bond Market

"Federal Reserve Board chairman Ben Bernanke's latest disclosure statement for year end 2012 shows that he held positions in the Blackrock High Yield Bond Fund and US Treasury strips. If he continues to hold these positions, he is losing big time. His Blackrock bond position is down by at least 5%. Meanwhile, his strips position is likely getting destroyed. Here is a chart on the PIMCO 25+ Year Zero Coupon U.S. Treasury Index ETF, which is likely comparable to what Bernanke is holding. Over the last 12 months, it is down more than 24%. Bottom line: Bernanke is not only screwing up the nation's economy, he is screwing up his own portfolio." Continue reading →

Continue ReadingBernanke Is Getting Killed in the Bond Market

22 Reasons Why Starting World War 3 In The Middle East Is A Really Bad Idea

"Russia and China are sternly warning the U.S. government not to get involved in Syria, and by starting a war with Syria we will do an extraordinary amount of damage to our relationships with those two global superpowers. Could this be the beginning of a chain of events that could eventually lead to a massive global conflict with Russia and China on one side and the United States on the other? Of course it will not happen immediately, but I fear that what is happening now is setting the stage for some really bad things. The following are 22 reasons why starting World War 3 in the Middle East is a really bad idea." Continue reading →

Continue Reading22 Reasons Why Starting World War 3 In The Middle East Is A Really Bad Idea

Michael Scheuer: Use the Constitution to prevent war with Syria

"Amidst the developing momentum for the U.S. to enter another war that will strengthen al-Qaeda and its allies — like the one Obama fought in Libya and the anti-democratic one in Egypt he authorized this month — perhaps it is worth reviewing three salient and crystal clear facts. –1st : The United States has no genuine national-security interests in Syria. –2nd: Unless America is attacked first, no U.S. president has the constitutional authority to take America to war without a formal declaration of war by Congress. –3rd : Today’s status quo in Syria benefits U.S. national-security interests without Washington having to take any action at all." Continue reading →

Continue ReadingMichael Scheuer: Use the Constitution to prevent war with Syria