economy

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‘Unsinkable’ Gold

A solvency crisis is an economic nightmare several orders of magnitude worse than a mere deflation. In a solvency crisis, “deflation” implies nothing less than bankruptcy… In an ordinary deflation, “cash is king” (even arguably worthless paper currencies). However, in a solvency crisis “cash is trash” unless that cash is directly backed with precious metals.

29Aug2011 | | 0 comments | Continued
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The Ratings Agencies, Part I: Experts or Charlatans?

… supposedly our legal systems don’t allow a group of people to call themselves “experts” when they are pocketing fat fees for their analysis/assessment of the quality of complex financial products; and then to say “Just kidding. We’re not experts, and no one should base any financial decision on our opinions” once such “opinions” have been shown to be severely flawed.

22Aug2011 | | 0 comments | Continued
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Crumbling Infrastructure Symbolizes U.S. Economy

Remember all of that “infrastructure spending” which was (supposedly) part of the stimulus package, which in turn supposedly led to a “U.S. economic recovery”? It never happened. Just like the supposed “recovery” itself, it was nothing but smoke-and-mirrors. No recovery, no investment in infrastructure. Only the debts from all that “stimulus” were real.

19Aug2011 | | 2 comments | Continued
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California is Bankrupt

Since California will never/could never have any “surplus” revenues to pay off these warrants they are nothing but a blatant fraud. In the “real world” we already have a term for such fraud: “kiting a cheque”. It is the last resort of all deadbeats – just before they declare bankruptcy.

12Aug2011 | | 4 comments | Continued
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Punditry Aside, Market Crash Is Continued Liquidity Panic

this isn’t a “normal” trading market; it isn’t responding to the “big news” events in a common-sense way (much beloved by omnipresent j-school financial writers), if at all. It is only responding to what is happening with liquidity. And that is clearly draining out. Will we get the same Fed reaction (QE) we got in 2008? Most likely.

8Aug2011 | | 0 comments | Continued
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Why 2011 Is Not 2008

With many investors now having descended back to full-fledged “panic mode”, we explain why 2011 could never be another event like the Crash of ’08, as the nature of any such crash would be remarkably different.

8Aug2011 | | 3 comments | Continued
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The Two ‘Faces’ of U.S. Debt-Ceiling Deal

Mercifully, it appears that the U.S. debt-ceiling farce has finally ended – with an anti-climactic “thud”. It is only fitting that the two-faced regime which negotiated such an agreement should present us with a scenario which has two distinct interpretations.

2Aug2011 | | 7 comments | Continued
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Such a Deal

So they made a deal… in a week’s time the Treasury will need to hit the market and raise around $150 billion in new cash, with Primary Dealers and other market participants having virtually no advance notice of what type of paper will be sold when. The last time the market faced anything like that was when they were raising money for the TARP in late August and September of 2008, and we know what happened to the stock market then. Splat!

31Jul2011 | | 1 comment | Continued
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Dinosaurs, Dodo Birds, Wooly Mammoths, and Free Markets

Connecting the dots of recent revelations of the Fed’s market manipulations jointly with the money center banks amidst the bailouts, as well as the public oil market manipulation, with evidence of long-running gold and silver markets manipulations and interest rate manipulation through derivatives.

22Jul2011 | | 0 comments | Continued
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Economic Rape of Europe Nearly Complete, Part I

The banksters had already perfected their terrorist weapons: interest-rate swaps and credit default swaps. Now they needed to determine if they actually “worked” – i.e. if their scam-victims were gullible enough to be fooled by bankster double-talk, and if our legal systems would “tolerate” this massive, systemic fraud.

22Jul2011 | | 0 comments | Continued
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