Country Analysis Belgium The probability for Belgium joining EMU at the start date remains quite high, despite its failure on debt criteria. Belgium’s economic growth has been less than expected due to a large extent to the general poor eonomic conditions within Europe as a whole – particularly involving France and Germany. With GDP growth […]

The deal at the ECB shows what they themselves think of government debt. They are accepting Cypriot bonds as collateral for loans. At the ECB, a 10 year bond of a member is discounted to 29% of its face value. Interesting how the ECB does not consider government debt as really “quality” for borrowing.

Back in 1997, we warned that our computer model was forecasting that by 2016, we would see a tremendous rise in third party activity. This was our forecast back then and most said what is your computer drinking over there? The blue line in this chart showed the historical 3rd party movement and how it […]

QUESTION: Can you please comment on the following. I hear incessant talk about the market being supported by Bernanke.  The Fed gets the credit for the market going up.  (And when it goes down for not doing enough).    How much truth is there in this mantra?   How much is the Fed actually affecting stock prices by […]

Is there gold in Fort Knox? That question is completely irrelevant. Why? Will it really make a difference? The stories of no gold in the vault are just spun by people so desperate to support a gold bull market it is just crazy. I was given a tour of the NY Fed years ago and […]

The rise in taxation is driving costs higher, yet simultaneously lowering economic growth long-term We call this STAGFLATION because you get the worst of both worlds – rising prices with lower economic growth. Germany is headed into recession and their austerity policies have created massive deflation, high unemployment, and increased the pressure to cause the […]

I am not exaggerating what is going on and how uninformed the politicians are because they do not “represent” the people and are certainly not from our ranks. They are a professional class that see themselves on top of the Great Unwashed looking down upon us all. This is the very same attitudes of monarchy […]

To be a European politician, it is starting to look like the requirement was to be mentally challenged, incapable of reason, blind to the truth, oblivious to everything around you that shows you are wrong, and obviously they required special schooling as a child. Austerity to maintain “confidence” in the currency is PRECISELY what the […]

QUESTION: I read your metals report. This is really a great read. It is deflation that destroys empires by sucking in all assets like a black hole eats star systems. I am correct? ANSWER: Yes! The hyperinflationists only look at Germany and Zimbabwe and assume if you print enough money that is where you go. […]

Argentina is going through the classic stages of economic collapse. The government seized all pensions. They are destroying everything that gives the people incentive to be a society that emerges from the cooperation of everyone. When government turns against its own people, even as the USA is currently doing, you end up with deflation insofar […]