QUESTION: “So Deutsche Bank is bankrupt and US investment and commercial banks are at big risk from rising yields, but all the stock prices are still going up because people will trust owning Goldman or Barclays stocks over owning government bonds???” ANSWER: I seriously doubt that bank stocks will do well. During the Sovereign Debt […]

Most of the forecasts now target gold in the 1050 range. This generally means that we could overshoot and crack $1,000 shifting the sentiment decisively negative. This will be POSITIVE long term for just as the talking heads disbelieved the rise in the Dow even as it made new highs laughing how this time they […]

COMMENT: Marty – You are correct I believe in regards to Germany during the 1919-1923 period and even beyond…It was taken over by the Bolsheviks. You’ve alluded to the revolutionary Marxist takeover and government in Germany at this time…a fact many people probably aren’t aware of.   Also, what many don’t realize is that CHAOS […]

  Resolving Globally Active, Systemically Important, Financial Institutions A joint paper by the Federal Deposit Insurance Corporation and the Bank of England   10 December 2012           Resolving Globally Active, Systemically Important, Financial Institutions Federal Deposit Insurance Corporation and the Bank of England     Executive summary   The financial crisis […]

Thomas Jefferson included among the injuries inflicted by the King in the Declaration of Independence the trick of creating a multitude of agencies. He wrote: He has erected a multitude of New Offices, and sent hither swarms of Officers to harrass our people, and eat out their substance. One reason the SEC and CFTC hate […]

The rise in interest rates will have a major impact upon commercial and investment banks. Believe it or not, their models are incapable of forecasting major changes in trend. They are far too short-term oriented and are created by quants with no real historical debt. That was the subject of When Genius Failed: The Rise and […]

Money has always been fiat whenever government gets involved. Aside from the debasements of England under Henry VIII and the Great Monetary Crisis of the 3rd century in Rome or the Great Monetary Crisis of 1092 in Byzantium, we even see attempts by city states like Florence. However, one of the great riots over money […]

The civil war in Syria has long-reaching consequences for the whole region. However, nothing is more serious than making the same mistake twice. While it is popular to demonize both the leaders of Syria and the former leader of Iraq Saddam Hussein, what both did was keep the religious zealots in check. The consequences for […]

  1929 Suicide Jumpers Whenever there is a deep economic decline with the economy imploding into a black hole of deflation, suicides skyrocket. The high cost of massive unemployment in Europe leads to massive desperation. As this erupts on a greater scale, what comes bursting forth is civil unrest and revolution. I cannot stress enough […]

Gold tumbled about 3% after positive US jobs data sent the dollar rallying and rekindled worries the Federal Reserve could be tempted to scale back its monetary stimulus later in the year. I have warned that the US economic outlook is bullish into 2015.75. The dollar will rise and that will help turn the US […]