Category: Global Debt Crisis 2012
The analysis published under this category are as follows.
Friday, April 20, 2012
Currency Wars: Gambling With Other Peoples’ Money / Politics / Global Debt Crisis 2012
By: Axel_Merk
If running out of your own money wasn’t bad enough, policy makers are increasingly spending other peoples’ money to bail their country out. At the upcoming G-20 meeting, finance ministers from around the world will contemplate an increase to the resources of the International Monetary Fund (IMF). At stake for politicians is whether they can continue to do what they know best – to play politics. In contrast, at stake for investors may be whether currencies will retain their function as a store of value.
Tuesday, April 17, 2012
The Anatomy of Sovereign Debt Default / Interest-Rates / Global Debt Crisis 2012
By: Michael_Pento
The three primary factors that determine the interest rate level a nation must pay to service its debt in the long term are; the currency, inflation and credit risks of holding the sovereign debt. All three of those factors are very closely interrelated. Even though the central bank can exercise tremendous influence in the short run, the free market ultimately decides whether or not the nation has the ability to adequately finance its obligations and how high interest rates will go. An extremely high debt to GDP ratio, which elevates the country’s credit risk, inevitably leads to massive money printing by the central bank. That directly causes the nation’s currency to fall while it also increases the rate of inflation.Read full article... Read full article...
Friday, April 13, 2012
Sovereign Debt, Gold and Okun's Law / Stock-Markets / Global Debt Crisis 2012
By: Richard_Mills
Is gold's run over? Let's look at some facts.
The amount of money the federal government owes to its creditors, combined with IOUs to government retirement and other programs, now tops $15.23 trillion. That's roughly equal to the value of all goods and services the U.S. economy produces in one year: $15.17 trillion as of September, 2011.
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Thursday, March 29, 2012
Martin Armstrong on the Sovereign Debt Crisis / Interest-Rates / Global Debt Crisis 2012
By: Ron_Hera
The Hera Research Newsletter is pleased to present a fascinating interview with Martin A. Armstrong, founder and former Head of Princeton Economics, Ltd. In the 1980s, Princeton Economics became the leading multinational corporate advisor with offices in Paris, London, Tokyo, Hong Kong and Sydney and in 1983 Armstrong was named by the Wall Street Journal as the highest paid advisor in the world.
As a top currency analyst and frequent contributor to academic journals, Armstrong's views on financial markets remain in high demand. Armstrong was requested by the Presidential Task Force (Brady Commission) investigating the 1987 U.S. stock market crash and, in 1997, Armstrong was invited to advise the People's Bank of China during the Asian Currency Crisis.
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Monday, March 19, 2012
The Greeks, the Fed, And Sovereignty / Politics / Global Debt Crisis 2012
By: Andy_Sutton
The financial woes of Greece have been fairly well documented over the past year and a half that is for sure. The deduction many analysts, myself included, that the country would end up defaulting on the majority of its debt was a foregone conclusion. For the technocrats to pull a default, and then call it a bond swap, was an exercise in semantics that even Roget himself would have been proud of. The very idea of calling it a swap presents the idea that the bondholders got something other than an empty bag, when an empty bag is exactly what they got.
Monday, February 27, 2012
Our Depraved Future of Debt Slavery (Part II) / Politics / Global Debt Crisis 2012
By: Ashvin_Pandurangi
There have been many forms of “debt slavery” throughout history, and almost everyone is chained to the oppressive financial, corporatist system now in one way or another. Although, this fact has not even remotely sunk in for millions of people who, unfortunately, have absolutely no clue how bad it can get. The real issue here, however, is not necessarily what people will have to do to survive the upcoming storms. Rather, it is what they will be forced to do to remain a functioning part of the system under threat of excessive monetary punishment, physical confinement or violence to them and/or those close to them. So, one must be financially/coercively attached to the system to be a “debt slave”.Read full article... Read full article...
Saturday, February 25, 2012
Financial Markets 2012: Bombs... er Government Bonds, Fiat Currencies and Gold / Stock-Markets / Global Debt Crisis 2012
By: Ty_Andros
The UNFOLDING destruction of the developed world's economies and financial/currency systems continues apace. Public servants are trying to defy Mother Nature with the stroke of a pen; she will not yield to this. Radical Marxist POLITICAL solutions to practical problems are at the end of their collective ropes (double entendre intended). You CANNOT store wealth in paper, PERIOD. Those who do will get what they deserve: NOTHING. It has been and will be printed endlessly from this point forward as Socialist government policies have destroyed wealth creation and substituted Ponzi asset-backed economies in their place. Now those economic models have reached their COLLECTIVE endpoints.
Friday, February 24, 2012
How Greece Could Take Down Wall Street / Politics / Global Debt Crisis 2012
By: Ellen_Brown
In an article titled “Still No End to ‘Too Big to Fail,’” William Greider wrote in The Nation on February 15th:
Financial market cynics have assumed all along that Dodd-Frank did not end "too big to fail" but instead created a charmed circle of protected banks labeled "systemically important" that will not be allowed to fail, no matter how badly they behave.
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Friday, February 24, 2012
Greek Debt Nightmare and a Macro-View for Investor Profit and Protection / Stock-Markets / Global Debt Crisis 2012
By: DeepCaster_LLC
“A “strictly confidential” report on Greece’s debt projections prepared for Eurozone finance ministers reveals Athens’ rescue programme is way off track and suggests the Greek government may need another bail-out ..
“The 10-page debt sustainability analysis, distributed to Eurozone officials last week but obtained by the Financial Times on Monday night, found that even under the most optimistic scenario, the austerity measures being imposed on Athens risk a recession so deep that Greece will not be able to climb out of the debt hold over the course of a new three-year, €170billion bail-out
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Wednesday, February 22, 2012
Global Economic Lent / Politics / Global Debt Crisis 2012
By: Jan_Skoyles
Today is Pancake Day and whilst many, including The Real Asset Co research desk, will be enjoying it, there is still an ongoing economic crisis in the foreground. Maybe its time to give up something other than chocolate or smoking, maybe its time to give up on reckless spending and fiat money.
Shrove Tuesday, or Pancake Day, is celebrated the day before Ash Wednesday and is typically the day that signals the beginning of a period of abstinence and self-control.
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Sunday, January 29, 2012
Fed Transparency Gap, Central Banks High Wire Balancing Act, Greek Exhaustion Syndrome / Interest-Rates / Global Debt Crisis 2012
By: John_Mauldin
This week we take a brief pause in our series on the choices facing the developed world to look at some items that are catching my attention. We will get back to the US next week, as somehow I think we will not solve our problems between now and next Friday, and there will be plenty left for us to talk about. So today we look at the “shift” in Fed policy, and at the balance sheets of central banks, US GDP, Portugal and the ECB, the LTRO policy, and yes, there’s even a tidbit on Greece. Plenty of ground to cover, so with no “but first,” let’s get started.
Tuesday, January 24, 2012
How to Work Out of the Long and Painful Debt Deleveraging Process / Interest-Rates / Global Debt Crisis 2012
By: John_Mauldin
This week we look at a report called “Working Out of Debt,” about debt and deleveraging, from the McKinsey Global Institute. This is a well-done summary of their longer paper, which has been updated, called “Debt and deleveraging: Uneven progress on the path to growth.” I discussed the original paper both in my regular letter and in Endgame. It is one of the best, most definitive pieces on the topic I have read. For those trying to understand how the deleveraging process will affect their particular world, I think it is a must-read. I have been spending more and more time thinking about the whole process of deleveraging, and am coming to think deleveraging is the critical and fundamental factor shaping the economic environment and impacting every decision countries and businesses are faced with. This paper was done by Karen Croxson, Susan Lund, and Charles Roxburgh; and they are to be especially commended for their insight and work.
Friday, January 20, 2012
Roubini Says Greece Will be a Credit Event, Regardless of Debt Deal / Interest-Rates / Global Debt Crisis 2012
By: Bloomberg
Bloomberg Exclusive: Nouriel Roubini and Ian Bremmer spoke with Bloomberg Television's Margaret Brennan about the state of the global economy.
Roubini said that the "probability of a recession in the United States is lower than 60 percent right now." On Europe, he said that even if an agreement is reached on Greece, "there are going to be so many holdouts that then they'll have a problem" and "either way you're going to get a credit event."
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Friday, January 13, 2012
Keynesian Death By Debt Continues / Economics / Global Debt Crisis 2012
By: Ned_W_Schmidt
Debt constrains one's enjoyment of life. Without debt to repay, we could use our incomes solely for the pursuit of the good life. You get to define of what that consists, be it food and wine, debauchery or charitable deeds. With debt, life is miserable. Greece has learned that lesson. Spain and Portugal now know that. Those that lost their homes due to the bursting of the Federal Reserve's housing bubble know that. Seems just about everyone but Keynesian economists hiding in their academic cloisters, free of the real world, are fully aware of economic death through debt.
Wednesday, January 11, 2012
End of the Debt Super Cycle, 2012 Market Forecasts / Interest-Rates / Global Debt Crisis 2012
By: The_Gold_Report
What do investors need to be watching out for in 2012? More Eurozone drama? Record gold highs? A hard landing in China? The U.S. Global Investors team addressed these questions with Endgame: The End of the Debt Supercycle author John Mauldin in a Jan. 5 Outlook 2012 webinar. The Streetwise Reports editors highlight some of the expert insights.
Monday, January 09, 2012
Year of Dragon on Shanghai Gold Exchange Sees 2nd, 3rd Highest Volume on Record / Commodities / Global Debt Crisis 2012
By: GoldCore
Gold’s London AM fix this morning was USD 1,618.00, GBP 1,047.38, and EUR 1,266.54 per ounce.
Yesterday's AM fix was USD 1,621.00, GBP 1,045.67, and EUR 1,045.67 per ounce.
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Wednesday, January 04, 2012
The Dollar Vigilante's Outlook for 2012 / Stock-Markets / Global Debt Crisis 2012
By: Jeff_Berwick
“When you see that in order to produce, you need to obtain permission from men who produce nothing; when you see that money is flowing to those who deal not in goods, but in favors; when you see that men get rich more easily by graft then by work, and your laws no longer protect you against them but protect them against you....you may know that your society is doomed” Ayn Rand
Tuesday, January 03, 2012
Any Difference Between Fractional Reserve Banking and Hypothecation? / Stock-Markets / Global Debt Crisis 2012
By: Sam_Chee_Kong
“ Capital markets are designed for the benefit of the few “
The above quote cannot be better used to describe the ongoing fraud, lies, crony capitalism and cheating in the financial markets. Ever since the collapsed of MF Global, the level of public awareness on the ‘behind the scene’, manipulation and wheeling and dealing of brokers in businesses and politics have somehow heightened.
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Tuesday, January 03, 2012
Global Government Bond Market Ponzi Scheme / Interest-Rates / Global Debt Crisis 2012
By: John_Mauldin
For whatever deeply embedded psychological reason – and your humble analyst is profoundly guilty – we humans seem prone to picking out a particular point in our space-time continuum (read: the New Year) to think about the future and new beginnings, rather than running the exercise every week or month. Maybe so much introspection and thinking is just too exhausting, so we only do it on an annual basis. I am deep in my reading as I research my annual forecast issue, which I will write Friday. I am thinking of being especially foolish (and anyone who makes predictions is foolish) and going out to a five-year time frame. It should be challenging.
Sunday, January 01, 2012
Grim Economic Prospects for 2012, U.S. Fed to Overshadow the European Banking System / Economics / Global Debt Crisis 2012
By: Bob_Chapman
Public institutions worldwide are fighting ratings downgrades foremost of which is France, the US and, of course, sovereigns and banks worldwide. Miracles of miracles finally the rating agencies are doing their jobs. The caper they pulled in collusion with Wall Street in rating mortgage securities should have put them all in jail for life. We’ll call these efforts makeup time for their previous sins, which they never were prosecuted for. The complaint is their methodology is unreliable. We can assure you they know exactly what they are doing. The French want them to cease and desist. That is not going to work, because the French government and banks have very serious solvency problems. Central bankers and sovereigns always believe they are above the law. Eventually they all pay the price of greed and corruption.