The renewed compromised has, in the eyes of the market, already been accepted and everything is back to normal and all is forgotten! Well, that is certainly how the markets have reacted today after the new austerity news broke. Of course this too will fail as the economy turns down and these politicians, who always view […]

On Wednesday, China’s Securities Finance Corporation — known as CSF — announced that it will lend billions to big Chinese brokerage firms so they can buy more stocks. The goal is to purchase enough shares that stock prices stop plunging. These measures have resulted in a positive performance for the Chinese market (+5.8% on the day) […]

QUESTION: I understand austerity is self defeating and crippling, but is there any other way to constrain elected officials from driving into unsustainable public debt as they pander for votes and campaign support?………or must we just go through periodic sovereign debt bubbles? and i understand austerity protects the bondholders at the expense of the people [the […]

QUESTION: Why was the confiscation of gold by FDR in 1933 a good thing? ED ANSWER: What you have to understand is that Franklin Delano Roosevelt’s (FDR) actions in 1933 were not directed simply at gold. This was the end of austerity, which is what was creating the serious economic depression. So, you must separate gold and […]

The bond markets were the talk of the city today in London with continued uncertainty putting a bid under the street. Bunds were up over one and half points in early trade and although peripherals followed (BTP’s +70 cents) the gap just increased. Ten year Treasuries in late trading hit 2.20% — despite printing 2.31 in early Asia. […]

Some readers sent in comments that my use of the phrase “World War III by economic means using the pen” was harsh, so let me state this very clearly. Brussels and the Troika will NEVER back down. To them, the euro is irreversible and they refuse to see that their policies are dead wrong. Proof that this […]

Brussels has been dead wrong. The stupid idea that the euro will bring stability and peace, as it was sold from the outset, has migrated to European domination as if this were “Game of Thrones”. Those in power have misread history, almost at every possible level. The assumption that the D-marks’ strength was a good […]

Our staff in Athens right now is reporting that it appears the NO vote has the majority. This vote demonstrates that Brussels has been dead wrong with austerity for the last five years. This is likely to encourage a contagion. Brussels will most likely resist for this is now all about saving their power and […]

The reading from our staff on the grounds in Athens seems to be 50/50 right now, but the NO vote appears to be more organized with booths and stalls setup everywhere. A NO vote is the ONLY way forward for Greece. What they must be mindful of is that Brussels will have its talons firmly embedded in the count. It is […]

As you would expect ahead of July 4th weekend, volumes were a fraction of their norm – as if they were not poor enough! Asian equities were the early talk today and the possible investigation into the recent wild volatility of the Shanghai (SHCOMP) equity market – today closing down almost 6%. An interesting point of fact […]