The global financial system is highly interconnected so problems in one part of the world can reverberate almost everywhere else – risking a default, contagion, contracting credit and collapsing economic activity… [Take a look at the amazing graphic in this article to get] a visual guide of the intertwined complexities of the crisis.
…[F]ollowing the crowd has never been the reason to buy gold. After all, that same logic would have recommended buying a house in Phoenix five years ago. Since the fundamentals still point to gold’s long-term viability… why [are] investors responding by selling gold and buying dollars and euros? I was always told not to look a gift horse in the mouth… [so] take advantage of the dip. Words: 880
The ridiculous posturing by Democrats and Republicans in the U.S. over the imminent rise in so-called borrowing makes it almost embarrassing to be human. They can’t even get out of the way of their own political agendas to solve a problem threatening to make politics obsolete. Certainly, I’d be embarrassed to be American – or English, Irish, German, French, Swiss, Portuguese and especially Greek, Italian or Spanish. Stand close to any of the Davos men who constitute these nations’ finance ministers and you are immediately struck by the impression that you’re in the presence of the best-dressed con artists walking the globe. [Let me explain.] Words: 1375
Every single day the U.S. economy is getting weaker. Every single day we are going into more debt. Every single day we get closer to the collapse of the entire system but time is running out. The entire U.S. financial system has become a gigantic shell game (a confidence trick to perpetrate fraud) but when it ends the consequences can be painful and, sadly, that [pain is eventually going to be ours to experience. Let me explain.] Words: 1483
We now live in a world where governments print worthless pieces of paper to buy other worthless pieces of paper that combined with worthless derivatives, finance assets whose values are totally dependent on all these worthless debt instruments. Thus most of these assets are also worth-less and the world financial system is a house of cards where each instrument’s false value is artificially supported by another instrument’s false value. The fuse of the world financial market time bomb has been lit. There is no longer a question of IF it will happen but only WHEN and HOW. Words: 1650
the US Government is on a trajectory to default on their obligations, and the same can realistically be said for the UK and Japan. The answer put forward by the US, UK and Japanese governments? Quantitative Easing and 0% interest rates. Have they learned nothing from the past decade?! Words: 2355
Pushing the big problems into the future appears to have been the working strategy for both the Fed and recent Administrations, yet the U.S. dollar and the budget deficit do matter, and the future is at hand. The day of ultimate financial reckoning has arrived, and it is playing out. Words: 1096
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