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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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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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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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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Weekly Market Wrap: 5 April 2013 – One more rally & stocks are done (for now)

This regular column reviews the condition of several different markets including: stocks, commodities, currencies and precious metals. This week focuses on the Dow Jones Industrial Average, WTI, the US dollar, and silver.

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Weekly Market Wrap: 25 March 2013 – The party on Wall Street continues & may do for quite some time

This regular column reviews the condition of several different markets including: stocks, commodities, currencies and precious metals. This week focuses on the Dow Jones Industrial Average, copper, the US dollar, and gold.

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We’re moving closer to a financial crisis not further away

Five and a half years on from the Great Recession and with stock markets approaching their all-time highs, the feeling among investors is that a new crisis is becoming less and less likely. However the evidence suggests that we’re moving closer to a financial crisis not further away.

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Gritty Questions on the Historic Collapse: Part I

The current monetary system has a debt foundation, which is collapsing in lockstep with the breakdown in the sovereign bond market. The last 4 years have seen a long drawn-out unstoppable process, where the collapse cannot be avoided. This article addresses a list of critical gritty questions concerning the collapse.

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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 flawed logic of Keynesian economics: Part II

The economic policies being pursued in the majority of G8 countries are flawed. That’s because they are based on the flawed thinking of John Maynard Keynes. This article aims to give some insight into the flawed logic that lies that the heart of what is known as Keynesian economics.

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