The world is hurdling toward what seems to be certain economic collapse so, if your expectations are similar to mine, then you should be exploring ways to prepare for something that eventually will become an economic dark age. Investment performance is always relevant and it has never been more important than in these difficult economic times - nor has it ever been more difficult. Markets have already changed and are getting worse...As the economy worsens, market movements [like the two 50% declines we have seen since 2000] are likely to become more pronounced [and, as such,] it behooves anyone with exposure to the stock market to understand what is happening and [take action to] protect themselves against further 50%, and possibly larger, downsides. [This article outlines how best to do just that.] Words: 1491; Charts: 2; Tables: 1
Read More »A Rise in Interest Rates Would Derail An Economic Recovery – Yes or No?
[While]... I am not currently predicting an acceleration in inflation [I believe]...that the risk of interest rate instability is very real [given that] core inflation is already above a key benchmark that the Fed has staked its credibility on,. It should be of concern to investors that, despite economic growth being so anemic and overall resource utilization being so low (including human resources), there is currently very little margin for error on the inflation front. [In this article the author evaluates the danger that rising interest rates could potentially have on the U.S. economy.] Words: 2050
Read More »Egon von Greyerz: Gold & Silver Off to the Races – to $4,500+ & $100+ Each – Here’s Why (+3K Views)
The closing of the gold window back in August 1971 has led governments worldwide to create endless amounts of worthless paper money and the resulting credit bubble has created a world debt exposure of over US$ 1 quadrillion (including derivatives). It has also created perceived wealth for big parts of the world's population - a wealth which is only backed by promises to pay and by grossly inflated assets. Few people realise that this wealth is totally illusory and will implode considerably faster than the time it took to create it. [Let me explain.] Words: 890
Read More »von Greyerz: More QE & Higher Gold Prices Virtually Guaranteed! Here's Why
"The U.S., with $15 trillion in debt, and roughly $1.5 trillion in tax revenues, is an enormous disaster waiting to happen. At 10% interest rates the U.S. would use 100% of its tax revenues to finance the debt....This is why money printing is guaranteed...and this time, like it has before, it will lead to a financial crash [which] will be of a worldwide magnitude.”
Read More »More on the Coming ‘Perfect’ Financial Storm from Peter Schiff (+2K Views)
The perfect storm is the real fiscal cliff that we’re going to go over. The real fiscal cliff is when we can’t borrow any more money because our creditors wake up to the fact that we’re no good for the debt and interest rates start to rise.
Read More »Take Note: What's Happening in Europe Could Cause MAJOR Crisis in U.S.!
Many people have been writing in to ask me, "why are you focusing on Europe so much? Who cares about Spain?" The short answer is that everyone should care about Spain. Spain could potentially take down the banking system in Europe, which would mean the US facing a Financial Crisis at least on par with 2008. That is why Europe is a HUGE deal for everyone....We're talking about systemic risk on a scale that would make 2008 look tiny in comparison. [Let me explain further.] Words: 674
Read More »von Greyerz: Events This Fall to Lead to 15 – 20% Interest Rates, Stock Market Collapse, Bonds Imploding & Gold Exploding! Here's Why
I believe that in the autumn of 2012 we are going to see...a series of negative events - failing economies, higher unemployment, more QE, and extraordinary levels of social unrest. When QE is announced, I see a temporary rally in stocks but at some point stocks will collapse. I’m not talking about mining stocks, but common stocks outside of the mining sector.
Read More »von Greyerz: Events This Fall to Lead to 15 – 20% Interest Rates, Stock Market Collapse, Bonds Imploding & Gold Exploding! Here’s Why
I believe that in the autumn of 2012 we are going to see...a series of negative events - failing economies, higher unemployment, more QE, and extraordinary levels of social unrest. When QE is announced, I see a temporary rally in stocks but at some point stocks will collapse. I’m not talking about mining stocks, but common stocks outside of the mining sector.
Read More »Pento: The U.S. is About 2 Years Behind Europe’s Pernicious Path
The U.S. is about two years behind Europe’s pernicious path. We are now over 100% debt to GDP, and if we want to know our future, all we have to do is look across the Atlantic because that’s exactly where we are headed.
Read More »Eventual Rise in Interest Rates Will Be Downfall of U.S. – Here’s Why (+3K Views)
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
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