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» Dollar Collapse

  • We’re All Hedge Funds Now, Part 2: Tech Startups an...
    By on March 28, 2015 | No Comments  Comments
    Watching formerly risk-averse investors adapt to a negative interest rate world is almost as much fun as watching Europe try to keep Greece and Germany in the same financial family. In each case, success depends on all the parties becoming something they really don’t want to be. On the negative in...
  • We’re All Hedge Funds Now
    By on March 26, 2015 | No Comments  Comments
    As negative interest rates spread from Switzerland, Japan and Germany to the rest of the developed world, people with money to invest face some life-defining choices. Retirees who need to generate 6% to avoid dipping into principal can’t get there with bank CDs. Pension funds that have promised an...
  • How Low Can The Euro Go? (Or Is That The Wrong Questi...
    By on March 15, 2015 | No Comments  Comments
    The euro is tanking again, as the ECB starts buying bonds for its long-promised “whatever it takes” QE program. Today’s exchange rate move is dramatic enough to generate headlines like this, from Forbes: Euro Nears Parity With U.S. Dollar And the decline is accelerating: What we’re seeing h...
  • Aftershocks, Part 1: That Austrian Bank
    By on March 13, 2015 | No Comments  Comments
    Sometimes little things are the start of much bigger things. Probably the most famous historical example of this is the June 1914 assassination of an Austrian archduke who, it’s safe to say, 99% of the world had neither heard of nor cared about. But the aftershocks of the deed produced the biggest...
  • Apple iWatch and Some Crazy Gold Numbers
    By on March 10, 2015 | No Comments  Comments
    As Apple starts selling its new smart watch there are some, well, crazy-sounding predictionscirculating about the amounts of gold the company might soon be buying. The math goes like this: Each gold version of the watch will contain around two ounces, and the company might sell 10 million of them a ...
  • Lowest Interest Rates EVER!
    By on March 2, 2015 | No Comments  Comments
    Business Insider’s Myles Udland just posted a chart, drawn from research by the Bank of England, showing interest rates for the past 3,000 years. And for all those who’ve been feeling like today’s “new normal” is actually profoundly abnormal, here’s your proof. It turns out that interest...
  • Another Reason To Worry About The Stock Market!
    By on February 26, 2015 | No Comments  Comments
    The world is full of “carry trades” these days, and that’s a really bad thing. In general terms, a carry trade involves someone borrowing money cheaply in one currency or market and investing the proceeds in something else that offers a higher yield. The strategy is profitable as long as the c...
  • If Debt Was The Problem…
    By on February 26, 2015 | No Comments  Comments
    Confounded Interest just posted a nice summary of a McKinsey report on the growth of global debt during what some persist in calling the “great deleveraging.” Turns out that since the crisis of 2008, debt has actually risen by $57 trillion, and the ratio of debt to GDP is up 17 percentage points...
  • Too Many Houses, Not Enough Jobs
    By on February 25, 2015 | No Comments  Comments
    This week’s existing home sales report was down another 4.9% to an annual rate of 4.82 million units, the lowest in nearly a year. And this, remember, is in the sixth year of a recovery with reported unemployment below 6% and the Fed preparing to raise interest rates to head off incipient ove...
  • This Is What It Means To Lose A Currency War
    By on February 1, 2015 | No Comments  Comments
    The term gets tossed around a lot, but the meaning and consequences of a “currency war” aren’t intuitively clear to most people. Especially confusing is the idea that you lose the war when your currency goes up. The suddenly very strong dollar, for instance, should, one would think, be a good...
  • This Is What Gold Does In A Currency Crisis – E...
    By on January 25, 2015 | No Comments  Comments
    Today the European Central Bank acknowledged that the currency it manages is being sucked into a deflationary vortex. It responded in the usual way with, in effect, a massive devaluation. Eurozone citizens have also responded predictably, by converting their unbacked, make-believe, soon-to-be-worth-...
  • Can You Just Surrender In A Currency War?
    By on January 21, 2015 | No Comments  Comments
    Switzerland, as everyone knows by now, has slipped out the back door of the drunken orgy that is the modern financial system. And the other revelers are wondering if it’s time to find their own clothes and start tiptoeing towards the exit. Because the Swiss have such a big “mind share” in the ...
  • Germany Caves On Greek Debt, Italy Takes Note
    By on January 11, 2015 | No Comments  Comments
    Global financial markets breathed a sigh of relief today on news that Germany might cut Greece some slack after the latter elects an anti-austerity government: Greek Debt-Relief Talks Possible After Vote, Germans Say Germany is leaving the door open to discussing debt relief with Greece’s next go...
  • Wow, They Really Are Tapering!
    By on January 5, 2015 | No Comments  Comments
    In the sound-money community there is universal skepticism about the Fed’s plan to stop monetizing the world’s debt. Hardly anyone thinks they’ll go through with it and absolutely no one thinks they’ll succeed if they do. But the Fed is acting like it’s serious. Take a look at the monetary...
  • Scenes From a (Suddenly) Nude Beach
    By on January 3, 2015 | No Comments  Comments
    Warren Buffett’s classic observation that “You only see who’s swimming naked when the tide goes out” is being tossed around more frequently these days, as the world gets yet another deflation scare. Zero Hedge just published a great piece on this topic, which should be read in its entirety. ...
  • 2014 In Review: How Could Gold Bugs Have Been So Wron...
    By on December 30, 2014 | No Comments  Comments
    Twelve short months ago, the immediate future looked like a lock. Overvalued equities had to fall, ridiculously-low interest rates had to rise, and beaten-down precious metals had to resume their bull market. The evidence was overwhelming. Debt in the developed world had risen to $157 trillion, or 3...