Inflation is back, thanks to the past few years’ exuberant borrowing and currency creation. Meanwhile, populist politicians are gaining traction in Europe, threatening both the European Union and the eurozone. The world has never seen this combination of excessive financial leverage and widespread political upheaval, so expect the next few years to be bad for […]
A new president means that some things are about to change. But the things that won’t change are vastly more important. Debt, for instance, will continue to soar, which means financial instability will only intensify. And the business cycle will do its thing regardless of who’s in office — which means a downturn is coming. […]
It’s rare for the world to worry about Italy. But Sunday’s referendum has the global Establishment on the edge of its seat. The worst case scenario — from the Establishment point of view — is the vote going against the government, causing the Prime Minister to resign and be replaced by an anti-euro, anti-EU party […]
Between political instability and financial misrule, 2017 looks ripe for another financial crisis. Gold is the best protection.
Deutsche Bank, Commerzbank, the Italian banks…it’s getting ugly across the pond, and the worst is yet to come. Here’s a brief look at the reasons why, including derivatives, ridiculous capital rules, dumb lending practices and, of course, negative interest rates. If you’re looking for short sale candidates, Europe’s banks should be on the list.
Last week the Fed found out what will happen if it raises rates: The global financial markets will melt down. So this morning a new member of the central bank’s seemingly endless army of talking heads said some soothing words, which stabilized the US stock prices. Now the question is when the Fed will finally […]
The world’s central banks clearly have no idea what they’re doing. Yet they keep on making threats, promises and predictions, most either nonsensical or contradictory, while acting in ways that make their countries’ problems worse rather than better. The end of their credibility is in sight.
In normal times, some asset classes are expensive others are cheap, making it easy to use historical relationships to decide where to invest. That’s not the case today. Every major asset category, including stocks, bonds and even precious metals, are looking at best temporarily overbought by past standards, and at worst (in the case of […]
Terrorists and other crazies have figured out that they don’t need guns. Trucks, axes and machetes will do just fine. Meanwhile, political parties around the world are imploding or otherwise descending into chaos. Welcome to the new normal, where excessive debt makes the old ways of muddling through impossible. Advice on how to invest for […]
Brexit looked like the end of the world — until people figured out that central banks would have to ease in response. Then markets turned positively jubilant with US stocks, for example, hitting record highs. The result: A world of mounting debts, weekly terrorist attacks and even military coup attempts alongside financial assets priced for […]
Expect the UK to drop out of the headlines as it chooses new leaders and untangles itself from the EU. The big news going forward will be the trend Brexit started, as other European countries consider their own variations on the “leave” theme — with all that that implies for interest rates, bank stocks and […]
John Rubino and Financial Survival Network’s Kerry Lutz on why the gold bull market has legs and how to play it. Also why Libertarians will have at least one thing to celebrate after November’s election, when California legalizes marijuana.
Watch Brexit, the Movie, to understand why Britain might just leave the EU — and why other members should leave as well. Meanwhile, the Saudis are apparently out of money, the bricks and mortar retailers are out of customers and Wall Street bankers are looking at mass unemployment. Brutal times for obsolete institutions!
Macy’s reports horrendous earnings and Italian banks finally reveal their non-performing loans. Share prices plunge accordingly. China, meanwhile, admits that it’s over-leveraged and promises to stop borrowing. In other words, wherever you look, a global slowdown is coming and a massive currency devaluation will soon be the only politically feasible solution.
China’s most recent borrowing binge didn’t work, while Japanese and European negative interest rates sent their currencies up rather than down. The result: Global growth is slowing and governments are panicking. Look for fiscal stimulus to pick up the slack in the year ahead — that is, bigger deficits, more government borrowing and maybe even […]