Are Banks Finally Ready To Start Lending?

In normal times, today’s combination of record low interest rates and massive infusions of capital into the banking system would ignite the mother of all expansions. That it hasn’t has confused the economists whose textbooks clearly state that it should. And it has convinced the Fed to just keep upping the ante with QE after QE.

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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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Examining the global crack-up boom: Part I

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 role of GLD and SLV

Those invested in SPDR Gold Trust (GLD) and iShares Silver Trust (SLV) must be prepared to accept a lower standard of custodial regulation. They must also be aware that GLD and SLV are only suitable for investors who look to benefit from a rising gold or silver price until they decide to take their profits. They are definitely not for those seeking a safe haven or hedge from a financial crisis.

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This will end badly but not yet

Since the onset of the global financial crisis governments and central banks have been attempting to bring about economic prosperity by creating money and pushing it out into the global economy. After almost six years however, they have failed to produce a lasting recovery, or indeed anything close.

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Goodbye to austerity

There is a new campaign to end austerity. First, the IMF lets it be known it has second thoughts about it; then we are told the threshold of 90% government debt to GDP which must not be crossed, set by Professors Reinhart & Rogoff, is based on an excel spread-sheet error. Lastly, Bill Gross of PIMCO, the largest bond fund in the world, tells us austerity is not working.

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The Long Wave Versus the Printing Press: Another 2008?

Marc Faber of the Gloom Boom Doom Report was interviewed by Bloomberg on Friday, and of course topic number one was the brutal takedown of gold. Not all that surprisingly, he likes the resulting buying opportunity and expects “a major low in gold within the next two weeks.”

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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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The impossibility of economic calculation in a fiat world

Money should be constant if comparisons over time are to mean anything. Only then do prices of capital goods, consumer goods and services truly reflect their changing values, however, with unstable fiat money market signals lose much of their meaning.

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Recommended Reading: Don’t they get it?

In this article, Dr Tim Morgan explores the disconnect between government policy and economic reality. He discusses the assumption in Britain that “growth will [magically] arrive” sooner or later, “despite evidence to the contrary”, and his charts demonstrate the dangerous trajectory of US Federal debt.

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A Conversation With John Llewellyn: Part II

In his latest Amphora Report John Butler has an interesting discussion with economist John Llewellyn. Some of the key macroeconomic areas they cover include: the troubling trend of financial repression, the survival of the euro, the debt and demographic issues in Japan, the coming currency crisis, and more…

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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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