IMF Doubles Inflation Target!
IMF Doubles Inflation Target!
 |
Inflationary periods are highly unjust. They undermine the ethics of hard work and thrift. They destroy solidarity, lead to widespread hardship and often to social unrest.
All these points are well documented in history. Many countries have suffered through the destruction brought on by huge surges of inflation. And many people have lost their wealth, their savings, and even their perspectives in the wake of inflationary episodes. (go to article....)
Urgent alert: Debt crisis speeding this way!
by 03-02-10
Suddenly, the exploding debt crises in the PIIGS countries — Poland, Italy, Ireland, Greece and Spain — have been unceremoniously shoved out of the headlines, only to be replaced by shocking news that … read on
Suddenly, the exploding debt crises in the PIIGS countries — Poland, Italy, Ireland, Greece and Spain — have been unceremoniously shoved out of the headlines, only to be replaced by shocking news that … read on
Why the Failing US and EU Should Follow the Swiss Government Model
Feb 25th, 2010 | By Ron Holland |
The European Union and the United States should consider the successful freedom model of Swiss confederation government rather than the failed top down examples of other nations and empires. Few would question that Switzerland is the most secure, stable, and freedom-oriented nation in the world but it is time to ask what is so unique about the Swiss. read on...
The European Union and the United States should consider the successful freedom model of Swiss confederation government rather than the failed top down examples of other nations and empires. Few would question that Switzerland is the most secure, stable, and freedom-oriented nation in the world but it is time to ask what is so unique about the Swiss. read on...
Transcript: Nine Shocking New Predictions for 2010-2012
by 03-01-10
Nine Shocking New Predictions for 2010-2012
With Martin Weiss, Richard Mogey and Monty Agarwal
(Edited Transcript)
Nine Shocking New Predictions for 2010-2012
With Martin Weiss, Richard Mogey and Monty Agarwal
(Edited Transcript)
The Calm Before the Coming Storm
by 02-28-10
Why You Should Be Worried About China
Armageddon
by Martin D. Weiss, Ph.D. Money and Markets, 02-22-10
"In the entire world, the United States government and its agencies have, by far, the largest pile-up of interest-bearing debts ($15.6 trillion), the largest accumulation of unsecured obligations (over $60 trillion), the largest yearly deficit ($1.6 trillion), and the greatest indebtedness to the rest of the world ($4.8 trillion)." Read article..
"In the entire world, the United States government and its agencies have, by far, the largest pile-up of interest-bearing debts ($15.6 trillion), the largest accumulation of unsecured obligations (over $60 trillion), the largest yearly deficit ($1.6 trillion), and the greatest indebtedness to the rest of the world ($4.8 trillion)." Read article..
On the Brink of a Bond Market Apocalypse
by Money and Markets, 02-21-10
Trusting Washington and Wall Street is bankrupting millions of Americans ... and now they're at it again!
In the 1990s, Wall Street urged you to buy Internet stocks at 500 and 1,000 times earnings — and even tried to railroad you into stocks with no earnings at all.
Result: According to the Fed, nearly $6.6 trillion vanished into thin air when those stocks crashed and burned.
Then, in 2001, Washington got into the act — driving interest rates to their lowest levels since World War II ... helping to create the greatest real estate bubble in history ... and doing absolutely nothing when money-hungry bankers and brokers broke every rule in the book.
(read on)
Trusting Washington and Wall Street is bankrupting millions of Americans ... and now they're at it again!
In the 1990s, Wall Street urged you to buy Internet stocks at 500 and 1,000 times earnings — and even tried to railroad you into stocks with no earnings at all.
Result: According to the Fed, nearly $6.6 trillion vanished into thin air when those stocks crashed and burned.
Then, in 2001, Washington got into the act — driving interest rates to their lowest levels since World War II ... helping to create the greatest real estate bubble in history ... and doing absolutely nothing when money-hungry bankers and brokers broke every rule in the book.
(read on)
The Future of the Euro in Question
by Money and Markets, 02-20-10
At the beginning of this year, I wrote a Money and Markets column entitled “Will the Euro Become the Most Hated Currency for 2010?“
At that time, the euro/dollar exchange rate was about 5 percent off of its 2009 highs. And we were just months removed from hearing the constant and broadly espoused opinions suggesting the euro would become the world’s next primary reserve currency — replacing the troubled U.S. dollar.
But the focus of global investors was starting to shift (read on)
At the beginning of this year, I wrote a Money and Markets column entitled “Will the Euro Become the Most Hated Currency for 2010?“
At that time, the euro/dollar exchange rate was about 5 percent off of its 2009 highs. And we were just months removed from hearing the constant and broadly espoused opinions suggesting the euro would become the world’s next primary reserve currency — replacing the troubled U.S. dollar.
But the focus of global investors was starting to shift (read on)
Debt Auctions Bombing ... China Heading for the Hills ... Higher Rates Dead Ahead!
by Mike Larson, Money and Markets
You can't count on Washington to proactively warn you about major economic and market problems ...
Politicians and Fed policymakers failed to warn investors away from tech stocks during the Nasdaq bubble.
They failed to warn you in advance that the housing and mortgage markets would crash.
Now, they're doing it again!
They're failing to warn you about the next massive threat to your wealth — a Treasury bond crash and the corresponding surge in interest rates.
Fortunately, as a Weiss Research subscriber, you don't have to worry ...(read on)
You can't count on Washington to proactively warn you about major economic and market problems ...
Politicians and Fed policymakers failed to warn investors away from tech stocks during the Nasdaq bubble. They failed to warn you in advance that the housing and mortgage markets would crash.Now, they're doing it again!
They're failing to warn you about the next massive threat to your wealth — a Treasury bond crash and the corresponding surge in interest rates.
Fortunately, as a Weiss Research subscriber, you don't have to worry ...(read on)
Total red ink through 2020: $7,400,000,000,000!
Recently, the Congressional Budget Office (CBO) became the first official D.C. source to open its bomb bay doors and let loose on all of us. The CBO's projections: Instead of falling substantially from $1.4 trillion in 2009 (9.9 percent of GDP), the 2010 deficit would essentially hold steady at $1.35 trillion (9.2 percent of GDP).
The massive 2010 deficit would be followed by another $980 billion deficit in 2011 ... $650 billion in 2012 ... and $539 billion in 2013. Total red ink through 2020: $7,400,000,000,000!
from A Time for Honesty, Sacrifice, and a Serious Financial Course Change
The massive 2010 deficit would be followed by another $980 billion deficit in 2011 ... $650 billion in 2012 ... and $539 billion in 2013. Total red ink through 2020: $7,400,000,000,000!
from A Time for Honesty, Sacrifice, and a Serious Financial Course Change
The Next Contagion
by 02-01-10
The next contagion is beginning to spread around the globe.
It is unexpected on Wall Street, misunderstood in Washington — and very dangerous.
It could sabotage the plans of the U.S. Treasury, the Federal Reserve, and many of their counterparts overseas.
It is …(read more)
The next contagion is beginning to spread around the globe.
It is unexpected on Wall Street, misunderstood in Washington — and very dangerous.
It could sabotage the plans of the U.S. Treasury, the Federal Reserve, and many of their counterparts overseas.
It is …(read more)
The Greatest Money War of All Time
by Martin D. Weiss, Ph.D. Weiss Research, 02-08-10
"We are caught in the grips of a great war!
It is not a traditional land or sea war with tanks and battleships.
Nor is it an anti-terrorist, guerilla war for hearts and minds.
Rather, it is war of a third kind — pitting government bureaucrats against millions of investors ... and causing massive collateral damage to innocent Americans.
Battle by battle, this great war has been escalated — each time with bigger guns deployed by Washington, each time with deadlier attacks striking Wall Street or Main Street .." read more
"We are caught in the grips of a great war!
It is not a traditional land or sea war with tanks and battleships.
Nor is it an anti-terrorist, guerilla war for hearts and minds.
Rather, it is war of a third kind — pitting government bureaucrats against millions of investors ... and causing massive collateral damage to innocent Americans.
Battle by battle, this great war has been escalated — each time with bigger guns deployed by Washington, each time with deadlier attacks striking Wall Street or Main Street .." read more
Crisis and Recovery and the U.S. Dollar
In a world of instant information, it’s easy for our focus to be drawn away from the underlying fundamental problems in the world economy …
It can be difficult to see the forest for the trees when stock markets are rising, commodity prices are recovering and the media is touting hot burgeoning world economies.
It can be difficult to see the forest for the trees when stock markets are rising, commodity prices are recovering and the media is touting hot burgeoning world economies.
U.S. Stock Market
Three Walls of Worry Explain the Stock Market Corrections
by Claus Vogt
Stock markets around the world are down about 10 percent since their January highs. Complacency, which was so high only weeks ago, has quickly vanished. Worries, if not outright angst, have returned...
The U.S. Still Leads the
World's Financial Markets
And Shows No Deterioration!
I'm a European living in Germany. Yet my main analytical attention has always been directed towards the U.S. financial markets, because that's where the major trends are born. The 2007-2009 crisis showed the validity of this approach ...
When others were talking about the decoupling of Asia, and even Europe, from the U.S., I stuck to my approach and predicted a global recession starting in the U.S.
Now I look at the leading economic indicators for the U.S. and do not see any signs of a pending recession ...
I look at U.S. interest rates and do not see increases large enough to become a threat to either the economy or the stock market ...
So there you have it ... stock market corrections from three regions of the world explained by vastly differing reasons. Debt worries, too much growth and too little growth. Whatever story fits best to falling stocks seems to be offered by the media.
But to me the current situation is typical for a correction in an ongoing, medium-term up trend.
We could easily see another week or two of shaky stock market behavior. And I expect that this correction will run its course relatively soon. Thereafter, January's highs will quickly be in jeopardy. (go to article)
by Claus Vogt
Stock markets around the world are down about 10 percent since their January highs. Complacency, which was so high only weeks ago, has quickly vanished. Worries, if not outright angst, have returned...
The U.S. Still Leads the
World's Financial Markets
And Shows No Deterioration!
I'm a European living in Germany. Yet my main analytical attention has always been directed towards the U.S. financial markets, because that's where the major trends are born. The 2007-2009 crisis showed the validity of this approach ...
When others were talking about the decoupling of Asia, and even Europe, from the U.S., I stuck to my approach and predicted a global recession starting in the U.S.
Now I look at the leading economic indicators for the U.S. and do not see any signs of a pending recession ...
I look at U.S. interest rates and do not see increases large enough to become a threat to either the economy or the stock market ...
So there you have it ... stock market corrections from three regions of the world explained by vastly differing reasons. Debt worries, too much growth and too little growth. Whatever story fits best to falling stocks seems to be offered by the media.
But to me the current situation is typical for a correction in an ongoing, medium-term up trend.
We could easily see another week or two of shaky stock market behavior. And I expect that this correction will run its course relatively soon. Thereafter, January's highs will quickly be in jeopardy. (go to article)
Breaking news: Recovery a major DUD!
from Martin Weiss, Money and Markets
The German and Portuguese economies failed to grow at all ... Spain’s economy contracted .1% and Greece’s economy shriveled by.8%.
That brings total economic growth in the European Union to a MINUS 2.3% for the year!
Meanwhile, the news from our side of the pond wasn’t much better: Foreign investors are recoiling in horror from Washington’s spending and borrowing spree: Yesterday’s auction of 30-year treasuries was a huge disappointment — only about 28.5% of the issues were sold to indirect bidders.
Nevertheless, even as the likelihood of a double-dip recession increases in Europe and the U.S., Washington and Wall Street are continuing to tout their Pollyanna propaganda.
Just yesterday, for instance, president Obama announced that the U.S. will ADD an average of 95,900 new jobs every month this year, while Wall Street’s talking heads continued urging investors to get off of the sidelines and risk getting skinned yet again
Win-Win Scenario for the Dollar
by Bryan Rich
The debt problems in Dubai threw a wrench in the happy-go-lucky risk trade of last year. And since then, the perception of the state of the global economy has been unraveling.
All of the sudden, the world isn't as safe a place as was thought just months ago: Global stock markets are falling, commodity markets have cracked, and foreign currencies are back in decline.
All of this has been good for the U.S. dollar.
In fact, the dollar is operating in a win-win environment these days. Heads the dollar wins; tails practically every foreign currency loses.
Here's why ...
When evaluating the prospects for economic growth and recovery, the U.S. economy is expected to do better than other major economies around the world. And the Fed is winding down its extraordinary policy programs sooner than the likes of the UK and Japan. So, with respect to economic growth and interest rate prospects, global investors have had a growing bias toward buying dollars.
Furthermore, global risk appetite is taking a hit.
When that's the case, investors become less concerned about where the best projected returns might be, especially given the rosy assumptions made about recovery in those projections.
Instead, they become more concerned about the ripple effects of a potential debt crisis, so they seek shelter. And the safest place to park capital is in the deepest most liquid capital markets and currency in the world: The United States and the U.S. dollar.
As I laid out in a December Money and Markets column, back when the masses were still predicting the imminent collapse of the dollar, there are four catalysts at work that are projecting another leg of safe-haven demand for dollars — and potential crisis for other currencies.
Here's what I said on December 12 and how it's playing out ...
Catalyst #1 —
Rising Prospects of a
Sovereign Debt Crisis
I said ...
The dominoes are lining up. What started with Dubai, quickly turned the market focus toward Greece. Now the ratings agencies are warning of downgrades on Portugal, Spain, Italy, Ireland ... and even France! And last week the outlook for Japan was downgraded. It's fair to say then that a sovereign debt crisis is underway.
Catalyst #2 —
Problems for the Euro
I said ...
How it's playing out ...
The European Monetary Union's credibility has been damaged. All of the sixteen countries in the monetary union have either breached or completely disregarded the Stability and Growth Pact by running excessive deficits. Greece and other gross offenders are exposing the EU's inability to enforce fiscal deficit limits.
And the unknown implication of a failure, and/or exit, of a euro member country is increasing speculation of a break-up of the euro currency.
Catalyst #3 —
Growing Uncertainty
Surrounding Economic Recovery
I said ...
After Chinese banks drenched the country with new loans throughout the first half of 2009, the Chinese government stepped in and applied the brakes, fearing asset bubbles. That's increased concern about a slowdown or worse, a crisis, in China. And that has resurfaced concern about a double-dip recession for global economies.
Catalyst #4 —
Protectionism
I said ...
As expected, China's currency manipulation is a hot topic. President Obama recently made his most aggressive statement on China, calling China's goods "artificially deflated in price." And the White House chief economic advisor threatened that free trade may not apply when countries were trading with nations that were pursing mercantilist policies.
In general, hostility between the U.S. and China is rising. China has accused the U.S. of wrongful accusations and pressures over trade policy, over the Internet, and over U.S. arms sales to Taiwan.
As you can see, these hot spots for the global economy that I presented in December are growing in intensity. But that's to be expected. After all, we have just emerged from a near global depression, and have witnessed unprecedented global policy responses.
The outcome can't be measured with any degree of certainty. And that uncertainty should continue to drive the safe-haven demand for the dollar.
Regards,
Bryan
About Money and Markets For more information and archived issues, visit http://www.moneyandmarkets.com
A shocking new report out just this morning gives the lie to the government-endorsed myth that the worst is behind us ...
Official figures out of Europe show that the Eurozone barely had a pulse — growing only .1%; a mere one-fourth as fast as predicted in the last three months of 2009.The German and Portuguese economies failed to grow at all ... Spain’s economy contracted .1% and Greece’s economy shriveled by.8%.
That brings total economic growth in the European Union to a MINUS 2.3% for the year!
Meanwhile, the news from our side of the pond wasn’t much better: Foreign investors are recoiling in horror from Washington’s spending and borrowing spree: Yesterday’s auction of 30-year treasuries was a huge disappointment — only about 28.5% of the issues were sold to indirect bidders.
Nevertheless, even as the likelihood of a double-dip recession increases in Europe and the U.S., Washington and Wall Street are continuing to tout their Pollyanna propaganda.
Just yesterday, for instance, president Obama announced that the U.S. will ADD an average of 95,900 new jobs every month this year, while Wall Street’s talking heads continued urging investors to get off of the sidelines and risk getting skinned yet again
by Bryan Rich
 |
All of the sudden, the world isn't as safe a place as was thought just months ago: Global stock markets are falling, commodity markets have cracked, and foreign currencies are back in decline.
All of this has been good for the U.S. dollar.
In fact, the dollar is operating in a win-win environment these days. Heads the dollar wins; tails practically every foreign currency loses.
Here's why ...
When evaluating the prospects for economic growth and recovery, the U.S. economy is expected to do better than other major economies around the world. And the Fed is winding down its extraordinary policy programs sooner than the likes of the UK and Japan. So, with respect to economic growth and interest rate prospects, global investors have had a growing bias toward buying dollars.
| Internal Sponsorship |
How to Recession-Proof Your Retirement Very few people are financially prepared to make their retirement dreams a reality, especially after the devastating market implosion of the last few years.And it really is important that you take steps to prepare yourself. Because corporate pensions are rapidly becoming relics of a previous era ... and any money you receive from Social Security will be a mere pittance — at best! Click here to learn how you should be preparing RIGHT NOW for retirement. |
When that's the case, investors become less concerned about where the best projected returns might be, especially given the rosy assumptions made about recovery in those projections.
 |
| Investors are seeking refuge in the world's safest market. |
As I laid out in a December Money and Markets column, back when the masses were still predicting the imminent collapse of the dollar, there are four catalysts at work that are projecting another leg of safe-haven demand for dollars — and potential crisis for other currencies.
Here's what I said on December 12 and how it's playing out ...
Catalyst #1 —
Rising Prospects of a
Sovereign Debt Crisis
I said ...
"Debt problems in a global crisis have the ability to be contagious. And that can destroy investor confidence in the capital markets of such countries, and in the global economy. And when confidence wanes, capital flees. That's a recipe for falling dominoes."How it's playing out ...
The dominoes are lining up. What started with Dubai, quickly turned the market focus toward Greece. Now the ratings agencies are warning of downgrades on Portugal, Spain, Italy, Ireland ... and even France! And last week the outlook for Japan was downgraded. It's fair to say then that a sovereign debt crisis is underway.
Catalyst #2 —
Problems for the Euro
I said ...
"So the uneven performance in Europe will likely call into question the viability of the euro currency again. Another bout of speculation of a break-up of the euro is hugely dollar positive."
 |
| If a euro member exits, the common currency could be in trouble. |
The European Monetary Union's credibility has been damaged. All of the sixteen countries in the monetary union have either breached or completely disregarded the Stability and Growth Pact by running excessive deficits. Greece and other gross offenders are exposing the EU's inability to enforce fiscal deficit limits.
And the unknown implication of a failure, and/or exit, of a euro member country is increasing speculation of a break-up of the euro currency.
Catalyst #3 —
Growing Uncertainty
Surrounding Economic Recovery
I said ...
"Moreover, when you answer a liquidity crisis with more liquidity, you're bound to create more bubbles. While ground zero for the credit crisis was the U.S. housing market, new bubbles in real estate are developing in the areas that were relative outperformers in the downturn (such as China, India and Canada)."How it's playing out ...
After Chinese banks drenched the country with new loans throughout the first half of 2009, the Chinese government stepped in and applied the brakes, fearing asset bubbles. That's increased concern about a slowdown or worse, a crisis, in China. And that has resurfaced concern about a double-dip recession for global economies.
Catalyst #4 —
Protectionism
I said ...
"Perhaps the biggest factor in the protectionism threat is China's currency policy ... As this issue with China's currency gains in intensity, expect protectionist acts to rise, in retaliation. And expect collateral economic and political damage."How it's playing out ...
 |
| Currency issues are causing friction between the U.S. and China. |
In general, hostility between the U.S. and China is rising. China has accused the U.S. of wrongful accusations and pressures over trade policy, over the Internet, and over U.S. arms sales to Taiwan.
As you can see, these hot spots for the global economy that I presented in December are growing in intensity. But that's to be expected. After all, we have just emerged from a near global depression, and have witnessed unprecedented global policy responses.
The outcome can't be measured with any degree of certainty. And that uncertainty should continue to drive the safe-haven demand for the dollar.
Regards,
Bryan
About Money and Markets For more information and archived issues, visit http://www.moneyandmarkets.com
U.S.: Home foreclosures surge again!
Just as Washington was telling you the Great Recession is “over,” the crisis that originally caused it is rearing its ugly head again:
Just this morning, RealtyTrac has reported that, in January, the number of U.S. families facing foreclosure surged a shocking 15% higher compared to the same month last year!The detail in the report is even more shocking:
- In January, one in every 409 U.S. homes was sent a default notice, scheduled for a foreclosure auction or repossessed by a bank ...
- Banks repossessed more than 87,000 homes last month alone — that’s a whopping 31% increase over January 2009, and ...
- While an all-time record 2.8 million households were threatened with foreclosure last year, RealtyTrac expects that number to surge to 3.5 million this year — an appalling 40% increase!
Not to mention Fannie Mae’s January report that the delinquency rate among homeowners with conventional loans more than doubled in a single year — from 2.1% in November of 2008, to 5.3% in November of 2009.
Only one conclusion makes any sense at all: Despite all of Washington’s rosy claims, this highly touted “recovery” is little more than a trap.
And it means that, once again, anyone who trusts Washington or Wall Street’s economic analysis or investment advice is about to get his head handed to him!
More reports about the real estate market in the USA:
- An Insider’s View of the Real Estate Train Wreck (More...)
- "Real Estate and Interest Rates in 2010 — and Beyond" by Mike Larson / Friday, February 12, 2010
Subscribe to:
Posts (Atom)
