As we move closer to elections in Europe we will be confronted by a much more serious political crisis than appears on the radar right now. Merkel’s idea of saving the Euro by imposition of austerity upon southern Europe makes no sense. Their past debts exploded in real value terms when the Euro rose from […]

Only about half of U.S. states met their forecasts for withheld taxes in February after taxpayers made last-minute financial moves in 2012 for fear of having to pay higher federal tax rates in 2013 that befuddled politicians. Tax revenues rose about 5.7% during the last quarter as people took profits and companies moved forward bonuses […]

There is a backdrop to the whole deflationary mode that is not really being discussed. Household income has declined by almost 5% from the high in 2007. With the rise in payroll taxes and Obamacare, this should decline at least another 5% in 2013. Meanwhile, banks and insurance companies continue to downsize shifting back office […]

The economists are still failing to grasp what is taking place. The job growth that has surprised everyone is all PRIVATE sector taking the rate from 7.9% to 7.7%. This does not impact government jobs that we will start to see be reduced. This is not a fantastic number, but it illustrates how the pessimism […]

Question: Can you clarify your statement: “German short-term rates went negative showing people were willing to pay Germany to hold their money. This is part of the whole shift in capital from PUBLIC to PRIVATE” The movement internally within Europe is is showing that capital starts to move from one currency to another as CONFIDENCE […]

It was the best of times. It was the worst of times. But the cycle is 224 years. Historians place the peak of the Roman Empire at the reign of Marcus Aurelius (161-180AD). Subtract 224 years from 180AD and you arrive at the death of Julius Caesar in 44BC. The United States really began in […]

Question: I understand that inflation is really the reduction in purchasing power of the $. Can you expand on your statement “Our computer is bullish long-term because gold will play catch up as all commodities tend to do. It will blast off like a rocket ONLY when everything is set.” Specifically, “when everything is SET”.  What does […]

http://tv.msnbc.com/2013/02/04/exclusive-justice-department-memo-reveals-legal-case-for-drone-strikes-on-americans/ John McCain is a disgrace and should leave the floor of the Senate. Where was he demanding a clear answer? He is part of the problem. He has been on the Hill way too long to even understand what the issue is about. Including the WSJ. Nobody is bothering to ask what it took […]

http://www.reuters.com/article/2013/03/07/us-japan-economy-nishimura-idUSBRE9260AX20130307 The deputy governor of the Bank of Japan admitted that if yields rise 1 percentage point and they will lose 2.3 trillion yen. This is just the tip of the iceberg. We face a tremendous nightmare. Interest rates have been brought down artificially so low to bailout the bankers, that they have really screwed […]

The Libor Fixing Scandal of interest rates has shown precisely what I wrote about in Behind The curtain. I have personally witnessed the trading mentality of the commodities trader from the ’70s consume Wall Street when it began with the PhiBro takeover of the bond trading house Solomon Brothers – the mentor of so much […]