Economy

It’s incredible that the Mayans forecast 2012 would be the end of a major era. It looks, today, like we are standing on the eve of massive changes in the world that will have consequences for a long, long time to come. The scene is already set....the euro will collapse, and...other major currencies will collapse. The consequences of these (eventual) collapses will be horrible because we will have a hyperinflationary depression.

We’re coming to the end of government’s ability to borrow money to fund current spending that’s beyond the growth of their economy....and I actually find that massively bullish because that government funding misallocates capital. It’s going to end in the next 2 or 3 years, Europe first, then Japan, then the US....

Everyone who purchases a Treasury bond is purchasing a depreciating asset. Moreover, the capital risk of investing in Treasuries is very high. The low interest rate means that the price paid for the bond is very high. A rise in interest rates, which must come sooner or later, will collapse the price of the bonds and inflict capital losses on bond holders, both domestic and foreign. The question is: when is sooner or later? The purpose of this article is to examine that question. Words: 2600

The Citigroup economics team...made some noise late last week when they wrote that Greece would exit the euro on January 1, 2013 [and,] despite the results of this weekend's Greek elections which favors bailouts, austerity, and the euro, Citigroup continues to believe Greece is likely to exit the euro. Here's why. Words: 950

How does Greece — an economic basketcase — compare to Germany — an economic powerhouse? The infographic below answers that question. Take a look.

...The US Government and its catastrophic fiscal morass are now viewed by the world as a ‘safe haven’. This would easily qualify for a comedy shtick if it weren’t so serious....[but] the establishment is thrilled with these developments because it helps maintain the status quo of the dollar standard era. However, there are some serious ramifications that few are paying attention to and are getting almost zero coverage from traditional media. [Let me explain what they are.] Words: 1150

With 10 year Treasuries yielding 1.6% in the United States, some argue that higher deficits are warranted. As the discussion below shows, the logic behind that view is fundamentally flawed, if not reckless. Words: 1238

The U.S. economic recovery has been weak and the looming fiscal cliff threatens to act as a further drag on the economy. Europe is imploding with the chances of a 'Grexit' increasing, and Spain's economy deteriorating and risking contagion. David Rosenberg looks at the state of the U.S. and global economy via 51 depressing charts.

Dark...financial and economic clouds are, it seems, rolling in from every direction: the eurozone, the United States, China, and elsewhere. Indeed, the global economy in 2013 could be a very difficult environment in which to find shelter.

Jim Sinclair is now warning... that ‘The end is not near, it is here and now’ in reference to the global financial system...[and] reiterating his long held view that there will be “QE to infinity” despite the denials of Bernanke and other central bankers. [He also has some interesting things to say about gold and alarming things to say about the euro. Read on.] Words: 305