Obama and Geithner will be pushing for a growth package. It is likely that some of the other countries are going to give the US a thumbs down. America is going to be the only major country left that is continuing down the path of fiscal insanity.
It is this concept of interconnectivity that as the players are finding out it is a disaster. How can solvent European countries even contemplate a $2 trillion bailout for nations that really do not care if the debt is ever paid off?
Francis E. Warnock argues, that the United States was at the tipping point in 2009 of a collapse of its bond market, but was saved, ironically enough, by the Greek financial crisis, which caused a flight into the U.S. Treasury market.
When the artificial conditions are removed the valuation of the bubble 'reverts to the mean, ' a more normal valuation based on the fundamentals, unadjusted and undistorted supply and demand. An asset bubble often involves a fraudulent design...
In his latest note on comparisons between the current state of the economy and the Great Depression, Martin Armstrong provides a nice look at the dollar index between 1900-1950.
We may break $1.20 on the euro today, which would be huge. The big twin fears: Hungary and SocGen. Futures are off about 1%. France is getting hammered.
A business inadvertently gives you counterfeit money — are you stuck with it? In most cases, yes. But what if that business happens to be a branch of the federal government?
This is not a true parabolic curve because as the trend accelerates the curve changes shape until it becomes vertical. It’s the vertical section of the curve which is most useful because it provides a exact date when the trend will inevitably collaps
The prices of Bonds, particularly the longer term Bonds (10, 20, 30 years), are rather sensitive to changes in interest rates. Unless you hold a Bond to maturity, its price can fluctuate rendering your investment not all that risk-free after all.
The Eurozone may be forced to undergo severe economic and political adjustments in order to manage a currency system they're stuck with. Many Europeans are suddenly realizing that they had no idea what they were agreeing to when they joined...
Already the Euro has given up 100% of its gains. Round trip currency moves of 3% each way, from 1.27 to 1.31 and back, in just over a day are not the norm to say the least. This could get very interesting soon enough.
This is a short interview of Ron Paul by Stewart Varney of Fox News.
"Money is printed or created and thrown at people to actually cover their insolvency with waves of free money and waves of liquidity that we end up with fiat currencies being completely devalued in the eyes of people and gold at $7,000 an ounce...