Category: Global EconomyThe analysis published under this category are as follows.
Tuesday, August 27, 2013
We've used the analogy before, in particular to describe what happened to the Roman Empire during the latter days of its existence. Looking around various economies in the world today, the same analogy once again comes to mind. One might say that what we see these days is analogous to the more advanced stages of hypothermia.
Early hypothermia may show in nothing more than cold feet, in itself an amusing analogy perhaps. But a body that is exposed to extreme cold over longer periods of time will at some point start to exhibit symptoms such as frostbite, which are the result of the core of the body trying to save itself at the cost of the periphery, the extremities. Typically, a human body, for instance, will lose its toes first because the heart can no longer pump enough blood (heat) to them and at the same time keep the body's core above a minimum temperature.Read full article... Read full article...
Thursday, July 11, 2013
The global shipping industry is oversupplied. Because supply far exceeds demand, shipping rates have plummeted, as have the prices of ships. Some shipping companies have sought to capitalize on this trend by purchasing newer, larger ships at lower prices so that they can remain price competitive. But unless demand rebounds by the time these ships become operational, the industry's oversupply problem will only worsen.Read full article... Read full article...
Saturday, July 06, 2013
Refutation of Economic Illusion with Gold and Silver Safety Perfect Timing / Economics / Global Economy
Illusions trick us into perceiving something different than what actually exists and the mainstream media is very good at creating them. Currently they have the herd convinced there is an economic recovery underway.
We all need to understand that to have a real, and sustainable recovery for an economy that relies on consumer spending for 70 percent of its activity we need to have a jobs recovery.Read full article... Read full article...
Saturday, May 25, 2013
Michael Lombardi writes:
A recession for the global economy is becoming an increasingly likely scenario.
The Chinese economy, the second-biggest in the world, witnessed a contraction in manufacturing in May. The HSBC Flash China Manufacturing Purchasing Managers’ Index (PMI) registered 49.6 for May, declining from 50.4 in April. (Source: Markit, May 23, 2013.) Any number below 50 represents contraction in the manufacturing sector.
Wednesday, May 22, 2013
Gold’s been on a wild ride. After reaching a peak of $1,920 an ounce in September 2011, gold has tumbled 28% to the current ~$1,380 level forcing John Paulson to take a 47% loss in his gold fund during the first four months of this year, according to Bloomberg.
Unlike Paulson who maintained his positions in gold, other big players like George Soros and BlackRock cut their gold ETF holdings, while Goldman Sachs issued a sell recommendation on gold right before the yellow metal plunged 13% through April 15, the biggest drop in three decades. And by looking at the futures curve (chart below), market does not seem to expect gold to come back roaring any time soon.Read full article... Read full article...
Wednesday, May 01, 2013
George Soros knows a thing or two about making money from big bets. In 1992, Soros made a $10.00 short wager on the British pound and walked away with a billion dollars in profits.
Soros is now convinced Germany needs to rethink its strategy toward the sustainability of the eurozone and, in a draconian manner, believes the country should leave the euro.Read full article... Read full article...
Monday, April 29, 2013
There is a new campaign to end austerity. First, the IMF lets it be known it has second thoughts about it; then we are told the threshold of 90% government debt to GDP which must not be crossed, set by Professors Reinhart & Rogoff, is based on an excel spread-sheet error. Lastly, Bill Gross of PIMCO, the largest bond fund in the world, tells us austerity is not working.Read full article... Read full article...
Saturday, April 27, 2013
For the last four years, the financial world has traded largely based on hope of more intervention from Central Banks.
That was and is the single driving factor of the markets. Good news was good news (it’s a recovery!) but bad news was even better (the Fed will have to print more money!) as far as stocks were concerned.Read full article... Read full article...
Thursday, April 25, 2013
George Leong writes: Consistent jobs growth remains an issue here in the U.S.
We also know that the lack of jobs is a worldwide problem that is only made worse by the world’s growing population and the stalling global economy.
The reasoning behind this worldwide jobs problem is simple.Read full article... Read full article...
Friday, April 19, 2013
Explanations for this gold selloff abound everywhere and nearly all of them are inane and incorrect. The silliest among all the reasons offered for the current bear market in gold is that Bernanke has recently morphed into a form of Paul Volker; even though he has maintained the Fed’s zero percent interest rate policy and massive money printing continues unabated. His policies have, and will continue to significantly weaken the intrinsic value of the dollar—so you can just summarily dismiss that reason.Read full article... Read full article...
Saturday, April 13, 2013
Bill Gross, Nouriel Roubini, Laurence Kotlikoff, Steve Keen, Michel Chossudovsky, the Wall Street Journal and many others say that our entire economy is a Ponzi scheme.
Former Reagan budget director David Stockton just agreed:
So did a top Russian con artist and mathematician.Read full article... Read full article...
Friday, March 08, 2013
The well known British economist the late Joan Robinson once observed that the only thing worse than being exploited by capitalism, is not being exploited by capitalism. This whimsical English humour was fine in her day, but questions she treated like generations of economists before her, have never been settled. More important, today's reason for asking questions like - Why are markets not working? - is that western society and its economic model or models now faces a critical, life-or-death struggle.Read full article... Read full article...
Tuesday, March 05, 2013
U.S. Outbound and Dubai-Inbound Compared - Leaving aside the hangover from the debt bubble, not yet even half cured by the cocktail of QE flavored with the bitter spice of austerity…life goes on.
One way to get a feeling for the pulse of the economy that exists outside of borders, literally, in the stratosphere, or close-by, is to look at how much of that apparently soon-to-be-worthless fiat-money real-people are spending on travel internationally.
Saturday, March 02, 2013
Many academics such as Niall Ferguson have been publishing books and broadcasting TV series promoting the rise of China and the threat it poses to a decaying West whereas in my opinion far from the west being in decline it has yet to even peak. That coupled with the probability that China rather than presenting a threat to the west, is likely approaching significant hurdles to future growth as evidenced by the fact that academics such as Niall Ferguson are making TV programmes for mass media audiences, much as the tek stocks were becoming all the rage in the mainstream media just before they went bust.Read full article... Read full article...
Monday, February 18, 2013
Governments have refused to accept the necessity of a period of economic re-adjustment following the credit-bubble. The bubble burst about five years ago and economic progress has been effectively suspended ever since. The consequences of this refusal to accept reality are at a minimum to make this adjustment unnecessarily drawn out and needlessly painful, without offering a better eventual outcome.Read full article... Read full article...