Wednesday , 18 October 2017


Debt & Deficits

The Average Joe’s Take On How Governments Manage Their Finances

Revolving-Door1

This scheme of revolving credit will end badly when the pigeons come home to roost; when the piper has to be paid; when we find out that there is no such thing as a free lunch. It is just a matter of time before we become the last of society’s ‘greater fools’ and, as such, are the ones required to pay the inevitable price of achieving future economic and financial stability.

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Who Are the ‘Greater Fools” Now?

dollar bubbles

Many households, financial and non-financial firms and government, may well spend the next decade in debtor’s prison having to tighten their belts to pay for the losses inflicted by a decade of reckless leverage, over-consumption and risk taking. What fools we have been for living beyond our means all these years and taking no fiscal responsibility for our future well-being in the false hope that there always would be a ‘greater fool’ out there than us. Words: 1230

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Cassandra, Central Banks & Gold

lies-about-gold

The general public doesn’t like hearing what some of us who are Cassandras have to say because our message does not fit in with the choir of propaganda and lies. We are predicting a future for the world which is unpleasant for most people and therefore few believe our predictions.

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Markets Need A 30% Stock Drop Or 50% Higher U.S. Yields. Or Not.

escape-from-gold-market

The S&P 500 is near a record high, and global bonds have rallied for 5 straight months. The benchmark 10-year Treasury yield, at 2.20%, is close to its 2017 low. One of those investor groups has to lose. The US Treasury will be under-financed by as much as $4.5 trillion over the next 5 years, and will have to issue more debt. To find enough demand, interest rates would have to climb 120 basis points from current levels, or equity prices would have to plunge 30%.

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