If Spain goes bankrupt out of the blue, everything goes down for a while and there will be consolidations around the way but yes, they’re gonna print more money. Either the world economy is going to get better and commodity is going to go up because of shortages or they’re going to print more money and throughout history when they printed a lot of money, you protect yourself by owning real assets.

I always buy the Renmimbi when I can. You can’t just pick up the phone and buy a lot of Renmimbi. You have to do it when circumstances allow it.

If you want to buy the Euro, you can buy the Swiss Franc because the two are tied together right now. I am not buying either. Some day that’s going to break and then the Swiss franc will pop a lot. Likewise, if you want to buy the US Dollar, you could buy the Hong Kong Dollar. They too are tied together and the Hong Kong Dollar is going to break free someday. These are imminent trades by any stretch of imagination but if there are people interested in buying the Swiss Franc or the euro the best way is to buy the Swiss franc and likewise with the HK dollar.

- Jim Rogers. Money News Interview.

@1 year ago
#Jim Rogers #Quotes 

Gold has a huge rally from around – the low was a 1522 last December and we are now over 1700 and I think we need a correction here. In fact, I am now bearish about practically all assets near term I think we’re entering a correction time where there will be some disappointments, where stock markets, from the recent times can easily drop 20%.

I think some people in the US, actually the ECRI already say that the US is in a recession. But of course we have to consider the following, an economy is a very large vessel, there are different sectors. And some sectors are improving like housing in the U.S. is improving. The problem with improvement in housing is that stocks have already gone up very substantially, they more than tripled from their low. And so we are ahead of ourselves. The Greek stock markets from its low is up more than 60%, so a 20% correction is nothing unusual.


- Marc Faber. Fox Business News.

@2 years ago
#Marc Faber #Quotes 

There is not much global growth at the present time that’s the problem , because money does not flow into economic activity it flows into asset prices , into speculation and yes we have diverging move between equities and other asset prices and economic activity with economic activity worldwide being depressed. The money (from monetary easing) does not flow into economic activity, it flows essentially into asset prices, into speculation.

We have the money printing today which we did not have before and so it is very difficult to predict because it is a political decision, all I can say is if you look at history the most powerful people were usually in the end killed or hanged or crucified and the central bankers today are the most powerful people, so you could imagine what I am thinking about the central banks and what their leading employees will eventually happen to.

We don`t know when it will burst, but I could imagine that every inflation eventually came to an end. Consumer price inflation of the 1970`s came to an end, the asset inflation in equities, notably the Nasdaq in 2000 came to an end, then the commodities boom in 2007/2008 came to an end, the housing bubble came to an end.

Seems that all the money is flowing essentially into the hands of well-to-do people in the financial sector. I could imagine a situation where suddenly well-to-do people will suffer the most, either through increased taxation or a decline in asset prices.

Basically, if you are over-indebted, the one solution is to bring down debt but by extending more debt and encouraging more consumption, you do not do that. You just postpone the problem. You do not resolve it and in my view, the problem with money printing is that the money that is being printed or dropped as Mr Bernanke said from helicopters does not flow evenly to everybody and does not left all crisis at the same rate.


- Marc Faber. FNN Australia.

@2 years ago
#Marc Faber #Quotes 

Depressed Commodities

When I want to invest in commodities, I start by looking at the things that are the more depressed. Soy beans have been making all time high or near all time highs. I do not like to buy things making all time high. I prefer to look at things that are still haven’t moved. Sugar, for instance, is 65~70 percent below its all time high. I am not suggesting you buy sugar. I am just suggesting if I were an investor looking to invest in agriculture or any commodity, I would start by looking at the things that are still depressed. Sugar is down 65~70 percent from where it was 38 years ago that’s astonishing.


- Jim Rogers. CNBC India.

@2 years ago
#Jim Rogers #Quotes 

Bubble Movie: Jim Rogers Feature

It is ludicrous that you have these people in Washington who are quote saving the world but these are the people who few of them saw the problems coming. Few of the people running Wall Street companies saw the problem coming and yet they all walked away with tens of millions of dollars.

The guy who ruined Merrill Lynch is now extremely wealthy man.
The man who ruined Citibank is now an extremely wealthy man.
The guy who was the head of US Stock Exchange walked away with hundreds of millions of dollars.

It’s absolutely outrageous what these people got away with and now they are still turning around. I mean you go down to Washington. The people who caused the problem, Bernanke, Greenspan… the guys at the federal reserve are now supposedly saving us from the problems, they are making the situation worse. They never saw it coming in the first place. They didn’t understand it. They don’t understand it and now they are making it worse.

Everybody is in favor of prosperity a chicken in every pot. Everybody should be a homeowner. All politicians do whatever they can to make sure we all own a house. Unfortunately, if you get somebody who has to pay for this, usually when they forget that somebody has to pay for it, we all end up having to pay for it and in this particular case, we all end up having to pay a lot for their foolishness.


- Jim Rogers. The Bubble Movie.

@2 years ago
#Jim Rogers #Quotes 

Meanwhile, Brazil, India, Russia, and other emerging economies are playing the same game. Many have not adjusted as advanced economies’ weakness reduces the room for export-led growth; and many delayed structural reforms needed to boost private sector development and productivity growth, while embracing a model of state capitalism that will soon reveal its limits. So the recent slowdown of growth in emerging markets is not just cyclical, owing to weak growth or outright recession in advanced economies; it is also structural.

In China, a hard economic landing looks increasingly likely as the investment bubble deflates and net exports shrink. Meanwhile, the reforms necessary to reduce savings and increase private consumption are being delayed. As in Europe and the US, the worst will be avoided in 2012 only by kicking the can down the road with more monetary, fiscal, and credit stimulus. But a hard landing becomes more likely in 2013, as the stimulus fades, non-performing loans rise, the investment bust accelerates, and the problem of rolling over the debts of provincial governments and their special investment vehicles can no longer be papered over. And, given a new leadership’s caution as it establishes its power, reforms will occur at a snail’s pace, making social and political unrest more likely.

Ineffective governments with weak leadership are at the root of the problem. In democracies, repeated elections lead to short-term policy choices. In autocracies like China and Russia, leaders resist the radical reforms that would reduce the power of entrenched lobbies and interests, thereby fueling social unrest as resentment against corruption and rent-seeking boils over into protest.

Financial markets have rallied since July on the hope that the global economic outlook will not worsen, or, if it does, that central banks stand ready to backstop economies and markets with additional rounds of liquidity provision and quantitative easing. So, not only has good—or better-than-expected—economic news boosted the markets, but even bad news has been good news, because it increases the probability that central-banking firefighters like U.S. Federal Reserve Chairman Ben Bernanke and European Central Bank President Mario Draghi will douse the markets with buckets of cash.

- Nouriel Roubini. Project syndicate.

@2 years ago
#Nouriel Roubini #Quotes 

Federal Reserve’s BankNote Supply - Summer Outlook

Everyone understands that if $1 is printed and exchanged for an agreement to pay $1 + x% interest, additional dollars must be printed to pay the interest and allow for safe expansion of the system. This is how the Federal Reserve operates, and there is no mathematical question that the Fed will expand the supply of money.


- Mike Maloney.

(Source: wealthcycles.com)

@2 years ago
#Quotes #Mike Maloney 

Why Buy Gold Now?

We consider gold today not in a common top-10 list of why to own what humanity has spontaneously selected as money. Rather, we address why to swap your medium of exchange from paper currencies to gold right now. Here are some of the factors we will touch on:

Dollar’s loss of world reserve currency status: The extent to which the Fed’s banknote (the co-opted dollar) is no longer needed or demanded for use in global transactions.

What defines demand is the rate at which gold is adopted as an alternative to the dollar
Bankers fighting deflation.

Loss of World Reserve Currency Status.

Ever since Chinese President Hu Jintao emphasized in his 2011 visit to Washington that “the present U.S. dollar-denominated currency system [is] a ‘product of the past’ and highlighted moves to turn the yuan into a global currency,” the world has been watching.

We have not been left disappointed. Here are some of the most pertinent headlines impacting the demand for dollars overseas (no demand, and they eventually come home…):

2nd and 3rd largest economies bypass dollar; China and Japan directly trade currency.

Brazil and China agree on direct currency swap.

China and Russia drop dollar in bilateral trade.

China and Iran bypass dollar, plan barter for oil.

Iran and Russia replace dollar with rial and ruble in trade.

India and Japan sign new $15 billion currency swap agreement.

India joins Asian dollar exclusion zone, will transact with Iran in rupees.

Based on recent headlines alone, it appears that the vast majority of the manufacturing and solvent large economies that are not completely up to their ears in debt (Europe) have already begun the process of carefully diversifying out of dollars. There will be far less need for dollars in the future, and they will eventually return to our shores in a growing pool of paper, sending gold prices skyward.

Even to a casual observer, it’s obvious the world is not just talking about saying goodbye to dollars as a world reserve currency, but actively expanding the use of alternatives to dollars. As a result, it’s likely perceptions about the dollar’s future value could change rapidly.


- Mike Maloney.

(Source: wealthcycles.com)

@3 years ago
#Mike Maloney #Quotes 

I think that, to be quite honest. I, as an investor, it concerns me that, for instance, the government appoints principally people connected to Mr Thaksin for, say, Thai [Airways] International.

As an investor, to me, it sounds very strange that people who run large companies are appointed by the government and that the government then favours people that are supportive of them. There is |still a lot of so-called cronyism. In other words, I have political power and you’re a businessman or you are someone who was at the party before and I give you a good job and the position of power.

The purchasing power of money has depreciated a lot, and maybe the gold is still cheap. I will never sell my gold.

Now I happen to believe if you have money on deposit in Thai banks, it’s much safer than if you have deposits with Citigroup, UBS, Royal Bank of Scotland and so on, because Thai banks don’t have huge derivative portfolios. JPMorgan, they have trillions of dollars in derivatives. Nobody knows how to value this ‘garbage’.

Thai property was still reasonably priced when compared with real estate in other parts of the world. He said he had invested in some Thai stocks, including Bumrungrad International Hospital, Bangkok Dusit Medical Services, CP All, Charoen Pokphand Food, and some companies related to telecommunications and real estate.


- Marc Faber. The Nation a Thai Newspaper.

@1 year ago
#Marc Faber #Quotes 

Great societies and great economies throughout history were based on saving and investing. Look at the countries that have been doing very well in Asia in the past 30 or 40 years. They are countries with very high saving rates. People saved and invested and put their money into productive capacity. They built for the future. That’s how countries became great and successful nations. You don’t become a great and successful nation based on consumption. You may have a wonderful time. You may love to go to the disco every Saturday night and the beach but that’s not the way to go a successful economy for the long term, even Karl Marx said to build asset you have to build capital.


- Jim Rogers. RSBF 2012.

@2 years ago with 1 note
#Jim Rogers #Quotes 

As I wrote 2 years ago Indonesia deserves more than Russia to be a member of the BRICs. Stable democracy, strong growth, sound macro policy.

I spoke today at the NYSE at the Indonesia Investment Day. The country’s growth is accelerating while that of BRICs & other EM is slowing.


- Nouriel Roubini.

@2 years ago
#Nouriel Roubini #Quotes 

I own corporate bonds and I recently, as I wrote, I pulled some bonds from Kazakhstan because Kazakhstan economically is a much sounder country than the United States or any European country. But it is in small doses. I wouldn’t put all of my money in corporate bonds. They have an equity character. I also own equities still in Asia and as I pointed out already four months ago for the first time in my life I bought equities in Portugal, Spain, Italy and France because they were unbelievably distressed. I think what people overlook today is they look at markets but they don’t look at what happens within the market. In the last 12 to 18 months the U.S. has massively outperformed European markets, Asian markets with a few exceptions and now some markets are relatively depressed. I could argue the Chinese stock market is now relatively depressed. So the asset allocators may move some money in Chinese stocks and then they can rally 10 percent to 20 percent.

I think there is a huge misconception and fallacy that money printing can actually improve the rate of employment because the money flows down into the system. It goes first into the banking system and into financial institutions, into the pockets of well-to-do people. If you drop money into my pockets and you have at the same time increased government involvement in the economy and we have the government growing with its regulation and legislation that stifles economic development. I don’t want to build a new business. But what I may do is look around the world, where are the distressed assets. So I will go and buy existing assets, takeovers. But takeovers don’t add to employment. They destroy employment. Secondly, I would just like to mention one thing. This money printing business, they have been saying that for the last 15 years that bailing out LTCM were necessary. Then they say the NASDAQ collapsed after March of 2000. We need to create another bubble, print money. They created a gigantic credit bubble and the misery that we have today.


- Marc Faber. Businessinsider.

@2 years ago
#Marc Faber #Quotes 

How to Protect Your Family - QE3 Proves Zombie TBTF Banks are Getting Sick

Even though the FDIC can get huge loans from the Treasury and can obtain capital in other ways, when one too-big-to-fail zombie mega bank goes down, hundreds of billions of deposits will need to be insured, a tidal wave over the system.


- Mike Maloney.

(Source: wealthcycles.com)

@2 years ago
#Mike Maloney #Quotes 

At the “Head” or start of the Hebraic year 5773, we have access to fresh revelation for the coming year: The Camels are Coming - A Year to Bridge the Past and the Future and Move from Recovery to Wholeness! This will be the year of Ayin Gimel (73). Gimel is the third letter of the Hebrew alphabet as well as the number 3, and originally pictured a camel. This is a year that we will be looking for the camels to come! This is a time to keep your feet moving and go beyond where you have been in the past, until you drink and eat of the produce of your promise! The Kingdom of God will become the greatest influence in the earth realm.

Cry out to Lord to…

See the Camels Coming to Bring the Rewards and Reimbursements for Our Sorrows!
Find Our Way of Escape from the Past!
Cross the Bridge of the Past and Enter the Glory of the Future!
Neutralize the Enemy’s Power, Recover Lost Strength, and Nourish Us into WHOLENESS!
See the Priesthood for this Hour Blossom!
Grow Up and Mature into One New Man!
Bring the Impoverished into a New Dimension of Prosperity!

- Chuck D Pierce.

@2 years ago
#Chuck D Pierce #Quotes 

Operation Twists Only $267 Billion

The Federal Reserve Board of governors met today to decide and communicate monetary policy.

So what happened?

The Fed announced that they see unemployment rising. They previously predicted 7.8% for 2012 now changing that figure to 8.0%.

They have removed the phrase “labor market conditions have improved” from their statement.
Fed officials added that promoting a “sustained improvement in labor market conditions” could be justification for easing (in addition to promoting “a stronger economic recovery”).

Today’s statement also noted a downshift in consumption growth and a decline in price inflation.

So what does this mean?

We believe all of these statements and the incoming data are bullish for a significant new program announcement beyond the present maturity extension program (MEP) called Operation Twist 2 (OT2).

To extend maturities, the Fed sells shorter term bonds to primary dealers - too-big-to-fail banks - and buys longer term U.S. debt (owning more than 90%), calling it Operation Twist (Learn more about Operation Twist with our articles Private Bank Seeks to Monetize 2012 Treasury Bond Issuance…

The extension of Operation Twist is inconsequential. The markets had priced in real printing. This caused disappointment, but this disappoint will help lead the markets lower, which is exactly the excuse Ben Bernanke needs to fire up the printing press.


- Mike Maloney.

(Source: wealthcycles.com)

@2 years ago
#Mike Maloney #Quotes 

If Spain goes bankrupt out of the blue, everything goes down for a while and there will be consolidations around the way but yes, they’re gonna print more money. Either the world economy is going to get better and commodity is going to go up because of shortages or they’re going to print more money and throughout history when they printed a lot of money, you protect yourself by owning real assets.

I always buy the Renmimbi when I can. You can’t just pick up the phone and buy a lot of Renmimbi. You have to do it when circumstances allow it.

If you want to buy the Euro, you can buy the Swiss Franc because the two are tied together right now. I am not buying either. Some day that’s going to break and then the Swiss franc will pop a lot. Likewise, if you want to buy the US Dollar, you could buy the Hong Kong Dollar. They too are tied together and the Hong Kong Dollar is going to break free someday. These are imminent trades by any stretch of imagination but if there are people interested in buying the Swiss Franc or the euro the best way is to buy the Swiss franc and likewise with the HK dollar.

- Jim Rogers. Money News Interview.

1 year ago
#Jim Rogers #Quotes 

I think that, to be quite honest. I, as an investor, it concerns me that, for instance, the government appoints principally people connected to Mr Thaksin for, say, Thai [Airways] International.

As an investor, to me, it sounds very strange that people who run large companies are appointed by the government and that the government then favours people that are supportive of them. There is |still a lot of so-called cronyism. In other words, I have political power and you’re a businessman or you are someone who was at the party before and I give you a good job and the position of power.

The purchasing power of money has depreciated a lot, and maybe the gold is still cheap. I will never sell my gold.

Now I happen to believe if you have money on deposit in Thai banks, it’s much safer than if you have deposits with Citigroup, UBS, Royal Bank of Scotland and so on, because Thai banks don’t have huge derivative portfolios. JPMorgan, they have trillions of dollars in derivatives. Nobody knows how to value this ‘garbage’.

Thai property was still reasonably priced when compared with real estate in other parts of the world. He said he had invested in some Thai stocks, including Bumrungrad International Hospital, Bangkok Dusit Medical Services, CP All, Charoen Pokphand Food, and some companies related to telecommunications and real estate.


- Marc Faber. The Nation a Thai Newspaper.

1 year ago
#Marc Faber #Quotes 

Gold has a huge rally from around – the low was a 1522 last December and we are now over 1700 and I think we need a correction here. In fact, I am now bearish about practically all assets near term I think we’re entering a correction time where there will be some disappointments, where stock markets, from the recent times can easily drop 20%.

I think some people in the US, actually the ECRI already say that the US is in a recession. But of course we have to consider the following, an economy is a very large vessel, there are different sectors. And some sectors are improving like housing in the U.S. is improving. The problem with improvement in housing is that stocks have already gone up very substantially, they more than tripled from their low. And so we are ahead of ourselves. The Greek stock markets from its low is up more than 60%, so a 20% correction is nothing unusual.


- Marc Faber. Fox Business News.

2 years ago
#Marc Faber #Quotes 

Great societies and great economies throughout history were based on saving and investing. Look at the countries that have been doing very well in Asia in the past 30 or 40 years. They are countries with very high saving rates. People saved and invested and put their money into productive capacity. They built for the future. That’s how countries became great and successful nations. You don’t become a great and successful nation based on consumption. You may have a wonderful time. You may love to go to the disco every Saturday night and the beach but that’s not the way to go a successful economy for the long term, even Karl Marx said to build asset you have to build capital.


- Jim Rogers. RSBF 2012.

2 years ago
#Jim Rogers #Quotes 

There is not much global growth at the present time that’s the problem , because money does not flow into economic activity it flows into asset prices , into speculation and yes we have diverging move between equities and other asset prices and economic activity with economic activity worldwide being depressed. The money (from monetary easing) does not flow into economic activity, it flows essentially into asset prices, into speculation.

We have the money printing today which we did not have before and so it is very difficult to predict because it is a political decision, all I can say is if you look at history the most powerful people were usually in the end killed or hanged or crucified and the central bankers today are the most powerful people, so you could imagine what I am thinking about the central banks and what their leading employees will eventually happen to.

We don`t know when it will burst, but I could imagine that every inflation eventually came to an end. Consumer price inflation of the 1970`s came to an end, the asset inflation in equities, notably the Nasdaq in 2000 came to an end, then the commodities boom in 2007/2008 came to an end, the housing bubble came to an end.

Seems that all the money is flowing essentially into the hands of well-to-do people in the financial sector. I could imagine a situation where suddenly well-to-do people will suffer the most, either through increased taxation or a decline in asset prices.

Basically, if you are over-indebted, the one solution is to bring down debt but by extending more debt and encouraging more consumption, you do not do that. You just postpone the problem. You do not resolve it and in my view, the problem with money printing is that the money that is being printed or dropped as Mr Bernanke said from helicopters does not flow evenly to everybody and does not left all crisis at the same rate.


- Marc Faber. FNN Australia.

2 years ago
#Marc Faber #Quotes 

As I wrote 2 years ago Indonesia deserves more than Russia to be a member of the BRICs. Stable democracy, strong growth, sound macro policy.

I spoke today at the NYSE at the Indonesia Investment Day. The country’s growth is accelerating while that of BRICs & other EM is slowing.


- Nouriel Roubini.

2 years ago
#Nouriel Roubini #Quotes 
Depressed Commodities

When I want to invest in commodities, I start by looking at the things that are the more depressed. Soy beans have been making all time high or near all time highs. I do not like to buy things making all time high. I prefer to look at things that are still haven’t moved. Sugar, for instance, is 65~70 percent below its all time high. I am not suggesting you buy sugar. I am just suggesting if I were an investor looking to invest in agriculture or any commodity, I would start by looking at the things that are still depressed. Sugar is down 65~70 percent from where it was 38 years ago that’s astonishing.


- Jim Rogers. CNBC India.

2 years ago
#Jim Rogers #Quotes 

I own corporate bonds and I recently, as I wrote, I pulled some bonds from Kazakhstan because Kazakhstan economically is a much sounder country than the United States or any European country. But it is in small doses. I wouldn’t put all of my money in corporate bonds. They have an equity character. I also own equities still in Asia and as I pointed out already four months ago for the first time in my life I bought equities in Portugal, Spain, Italy and France because they were unbelievably distressed. I think what people overlook today is they look at markets but they don’t look at what happens within the market. In the last 12 to 18 months the U.S. has massively outperformed European markets, Asian markets with a few exceptions and now some markets are relatively depressed. I could argue the Chinese stock market is now relatively depressed. So the asset allocators may move some money in Chinese stocks and then they can rally 10 percent to 20 percent.

I think there is a huge misconception and fallacy that money printing can actually improve the rate of employment because the money flows down into the system. It goes first into the banking system and into financial institutions, into the pockets of well-to-do people. If you drop money into my pockets and you have at the same time increased government involvement in the economy and we have the government growing with its regulation and legislation that stifles economic development. I don’t want to build a new business. But what I may do is look around the world, where are the distressed assets. So I will go and buy existing assets, takeovers. But takeovers don’t add to employment. They destroy employment. Secondly, I would just like to mention one thing. This money printing business, they have been saying that for the last 15 years that bailing out LTCM were necessary. Then they say the NASDAQ collapsed after March of 2000. We need to create another bubble, print money. They created a gigantic credit bubble and the misery that we have today.


- Marc Faber. Businessinsider.

2 years ago
#Marc Faber #Quotes 
Bubble Movie: Jim Rogers Feature

It is ludicrous that you have these people in Washington who are quote saving the world but these are the people who few of them saw the problems coming. Few of the people running Wall Street companies saw the problem coming and yet they all walked away with tens of millions of dollars.

The guy who ruined Merrill Lynch is now extremely wealthy man.
The man who ruined Citibank is now an extremely wealthy man.
The guy who was the head of US Stock Exchange walked away with hundreds of millions of dollars.

It’s absolutely outrageous what these people got away with and now they are still turning around. I mean you go down to Washington. The people who caused the problem, Bernanke, Greenspan… the guys at the federal reserve are now supposedly saving us from the problems, they are making the situation worse. They never saw it coming in the first place. They didn’t understand it. They don’t understand it and now they are making it worse.

Everybody is in favor of prosperity a chicken in every pot. Everybody should be a homeowner. All politicians do whatever they can to make sure we all own a house. Unfortunately, if you get somebody who has to pay for this, usually when they forget that somebody has to pay for it, we all end up having to pay for it and in this particular case, we all end up having to pay a lot for their foolishness.


- Jim Rogers. The Bubble Movie.

2 years ago
#Jim Rogers #Quotes 
How to Protect Your Family - QE3 Proves Zombie TBTF Banks are Getting Sick

Even though the FDIC can get huge loans from the Treasury and can obtain capital in other ways, when one too-big-to-fail zombie mega bank goes down, hundreds of billions of deposits will need to be insured, a tidal wave over the system.


- Mike Maloney.

(Source: wealthcycles.com)

2 years ago
#Mike Maloney #Quotes 

Meanwhile, Brazil, India, Russia, and other emerging economies are playing the same game. Many have not adjusted as advanced economies’ weakness reduces the room for export-led growth; and many delayed structural reforms needed to boost private sector development and productivity growth, while embracing a model of state capitalism that will soon reveal its limits. So the recent slowdown of growth in emerging markets is not just cyclical, owing to weak growth or outright recession in advanced economies; it is also structural.

In China, a hard economic landing looks increasingly likely as the investment bubble deflates and net exports shrink. Meanwhile, the reforms necessary to reduce savings and increase private consumption are being delayed. As in Europe and the US, the worst will be avoided in 2012 only by kicking the can down the road with more monetary, fiscal, and credit stimulus. But a hard landing becomes more likely in 2013, as the stimulus fades, non-performing loans rise, the investment bust accelerates, and the problem of rolling over the debts of provincial governments and their special investment vehicles can no longer be papered over. And, given a new leadership’s caution as it establishes its power, reforms will occur at a snail’s pace, making social and political unrest more likely.

Ineffective governments with weak leadership are at the root of the problem. In democracies, repeated elections lead to short-term policy choices. In autocracies like China and Russia, leaders resist the radical reforms that would reduce the power of entrenched lobbies and interests, thereby fueling social unrest as resentment against corruption and rent-seeking boils over into protest.

Financial markets have rallied since July on the hope that the global economic outlook will not worsen, or, if it does, that central banks stand ready to backstop economies and markets with additional rounds of liquidity provision and quantitative easing. So, not only has good—or better-than-expected—economic news boosted the markets, but even bad news has been good news, because it increases the probability that central-banking firefighters like U.S. Federal Reserve Chairman Ben Bernanke and European Central Bank President Mario Draghi will douse the markets with buckets of cash.

- Nouriel Roubini. Project syndicate.

2 years ago
#Nouriel Roubini #Quotes 

At the “Head” or start of the Hebraic year 5773, we have access to fresh revelation for the coming year: The Camels are Coming - A Year to Bridge the Past and the Future and Move from Recovery to Wholeness! This will be the year of Ayin Gimel (73). Gimel is the third letter of the Hebrew alphabet as well as the number 3, and originally pictured a camel. This is a year that we will be looking for the camels to come! This is a time to keep your feet moving and go beyond where you have been in the past, until you drink and eat of the produce of your promise! The Kingdom of God will become the greatest influence in the earth realm.

Cry out to Lord to…

See the Camels Coming to Bring the Rewards and Reimbursements for Our Sorrows!
Find Our Way of Escape from the Past!
Cross the Bridge of the Past and Enter the Glory of the Future!
Neutralize the Enemy’s Power, Recover Lost Strength, and Nourish Us into WHOLENESS!
See the Priesthood for this Hour Blossom!
Grow Up and Mature into One New Man!
Bring the Impoverished into a New Dimension of Prosperity!

- Chuck D Pierce.

2 years ago
#Chuck D Pierce #Quotes 
Federal Reserve’s BankNote Supply - Summer Outlook

Everyone understands that if $1 is printed and exchanged for an agreement to pay $1 + x% interest, additional dollars must be printed to pay the interest and allow for safe expansion of the system. This is how the Federal Reserve operates, and there is no mathematical question that the Fed will expand the supply of money.


- Mike Maloney.

(Source: wealthcycles.com)

2 years ago
#Quotes #Mike Maloney 
Operation Twists Only $267 Billion

The Federal Reserve Board of governors met today to decide and communicate monetary policy.

So what happened?

The Fed announced that they see unemployment rising. They previously predicted 7.8% for 2012 now changing that figure to 8.0%.

They have removed the phrase “labor market conditions have improved” from their statement.
Fed officials added that promoting a “sustained improvement in labor market conditions” could be justification for easing (in addition to promoting “a stronger economic recovery”).

Today’s statement also noted a downshift in consumption growth and a decline in price inflation.

So what does this mean?

We believe all of these statements and the incoming data are bullish for a significant new program announcement beyond the present maturity extension program (MEP) called Operation Twist 2 (OT2).

To extend maturities, the Fed sells shorter term bonds to primary dealers - too-big-to-fail banks - and buys longer term U.S. debt (owning more than 90%), calling it Operation Twist (Learn more about Operation Twist with our articles Private Bank Seeks to Monetize 2012 Treasury Bond Issuance…

The extension of Operation Twist is inconsequential. The markets had priced in real printing. This caused disappointment, but this disappoint will help lead the markets lower, which is exactly the excuse Ben Bernanke needs to fire up the printing press.


- Mike Maloney.

(Source: wealthcycles.com)

2 years ago
#Mike Maloney #Quotes 
Why Buy Gold Now?

We consider gold today not in a common top-10 list of why to own what humanity has spontaneously selected as money. Rather, we address why to swap your medium of exchange from paper currencies to gold right now. Here are some of the factors we will touch on:

Dollar’s loss of world reserve currency status: The extent to which the Fed’s banknote (the co-opted dollar) is no longer needed or demanded for use in global transactions.

What defines demand is the rate at which gold is adopted as an alternative to the dollar
Bankers fighting deflation.

Loss of World Reserve Currency Status.

Ever since Chinese President Hu Jintao emphasized in his 2011 visit to Washington that “the present U.S. dollar-denominated currency system [is] a ‘product of the past’ and highlighted moves to turn the yuan into a global currency,” the world has been watching.

We have not been left disappointed. Here are some of the most pertinent headlines impacting the demand for dollars overseas (no demand, and they eventually come home…):

2nd and 3rd largest economies bypass dollar; China and Japan directly trade currency.

Brazil and China agree on direct currency swap.

China and Russia drop dollar in bilateral trade.

China and Iran bypass dollar, plan barter for oil.

Iran and Russia replace dollar with rial and ruble in trade.

India and Japan sign new $15 billion currency swap agreement.

India joins Asian dollar exclusion zone, will transact with Iran in rupees.

Based on recent headlines alone, it appears that the vast majority of the manufacturing and solvent large economies that are not completely up to their ears in debt (Europe) have already begun the process of carefully diversifying out of dollars. There will be far less need for dollars in the future, and they will eventually return to our shores in a growing pool of paper, sending gold prices skyward.

Even to a casual observer, it’s obvious the world is not just talking about saying goodbye to dollars as a world reserve currency, but actively expanding the use of alternatives to dollars. As a result, it’s likely perceptions about the dollar’s future value could change rapidly.


- Mike Maloney.

(Source: wealthcycles.com)

3 years ago
#Mike Maloney #Quotes