The Big Picture: From banking crisis to sovereign debt crisis to currency crisis (diagram)

Last week’s article ‘The Big Picture: From banking crisis to sovereign debt crisis to currency crisis’, provides a brief outline of each of the macro forces and trends that are currently impacting the global economy and financial markets. Today’s article attempts to show these forces in visual form so that investors can begin to understand the interplay between them.

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The Big Picture: From banking crisis to sovereign debt crisis to currency crisis

This article attempts to outline all the macro forces and trends that are currently impacting the global economy and financial markets. It is only by understanding all of these forces (and the interplay between them) that investors can begin to see the inevitable path from banking crisis to sovereign debt crisis to currency crisis.

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Examining the global crack-up boom: Part II

Since the 2008 financial crisis central banks around the world have created in excess of $12 trillion. Not only has their policy of ultra-lose money created another unsustainable boom in asset prices, it is looking increasingly likely that it will end in what Austrian economist Ludwig von Mises called a “crack-up boom”, i.e. a complete breakdown of the monetary system.

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The Markets vs. the Economy: Examining the Great Disconnect

There exists today a vast disconnect between the performance of the stock market and what is taking place in the real economy. Over the past few months the Dow, S&P 500, and Russell 2000 stock indices have all climbed to new all-time highs. However, the jubilation in the stock market is at odds with the gloomy sentiment found in the real economy.

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Gold, a Hedge Against Financial Repression?

Had those with money tied up in the Cypriot banking system owned gold instead, they might have been able to watch the unfolding crisis relaxing on the beach. So why isn’t gold going through the roof? Is Cyprus too small to matter? Can it happen in the U.S.? Should investors hold gold?

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“Risk-Free” Is So 2012

So you’ve got this pile of cash and you’re not sure what to do with it. Nice problem, as problems go, but definitely not trivial, especially if you’re more concerned with keeping what you have than trying to make it grow.

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Money In The Bank? No Thanks

Niall Ferguson believes that individual property rights are responsible for turning a bunch of ignorant, “malodorous” Europeans into the world’s dominant culture. That is why the proposed violation of such rights in Cyprus is sending shock waves through the global financial system.

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Keynesianism, inflation & euthanasia of the rentier: A survival guide

The Keynesian economic policies being pursued by finance ministers, central bankers and politicians around the world are designed to create inflation and destroy the wealth of investors. This article outlines the dangers and explores ways in which investors can protect themselves.

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The final countdown

Following the bursting of the credit-bubble five years ago, governments refused to accept the necessity of a period of economic re-adjustment and economic progress has been suspended ever since. The consequences of this are to make the adjustment unnecessarily drawn out and needlessly painful, without offering a better outcome.

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The real move in gold hasn’t started yet, it is still to come

Some investors are disappointed as gold only went up 7% in USD in 2012. After having compounded at over 19% p.a. over 11 years, gold certainly should be allowed to just gain 7% without some people calling an end to the bull market.

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The 247Bull financial & economic forecast for 2013 & beyond

This article lays out the 247Bull forecast for 2013 and beyond. It explores the primary factors that will shape our financial and economic futures and aims to prepare investors for the real financial crisis that still lies ahead.

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Why Goldman is wrong about gold peaking in 2013

Goldman Sachs has issued a report stating that the price of gold is likely to peak in 2013, ending the yellow metal’s 12 year run. Goldman is assuming that US real interest rates will being to rise, however the Fed is pursuing aggressive monetary policy to ensure this doesn’t happen.

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