Once again the crisis in Greece is threatening the unity of the entire euro zone.
Investors may continue to benefit for some time from the consistent boosting of financial markets by central banks. However, the longer a major correction or even a crash takes to develop, the more sudden, deep and devastating it may be.
As recession threatens throughout the Continent, the calls for governments to unleash more socialist-style spending have increased.
It is tempting for Western observers to view Turkey’s reluctance to join the fight as a mark of disloyalty to NATO and as a sign that the alliance is mostly about convenience. This view may be too simplistic.
Capitalism creates through freedom; the state destroys via regulation; capitalism gets the blame.
When the former Soviet Union collapsed almost 25 years ago, most global strategic forecasters assumed that the U.S. would adapt pragmatically to her new status of sole world superpower. Instead she has pursued a variety of misguided nation-building adventures and has largely shrunk from her primary responsibility of neutralizing the ambitions of petty dictators around […]
Putin may see six major geo-political weaknesses in the U.S. position.
All that glitters is not gold.
Many have understandably sensed that central banks may well have acted to allow bullion banks to take out massive naked short positions in precious metals in order to drive down the price.
To an extent that reveals a thorough misunderstanding of the market forces, the financial media has failed to consider the different motivations and beliefs that drive the different types of investors who are active in the gold market. By treating the gold market as if it were comprised of just one type of investor, analysts […]
Currently, central banks around the world are walking in lock step down a dangerous path of money creation. Led by the Federal Reserve and the Bank of Japan, economic policy is driven by the idea that printed money can be the true basis of growth. The result is an unprecedented global orgy of currency creation. […]
The selloff in gold that captured the world’s attention in mid-April has revealed some truths about how the market trades and the sentiments of many of the investors who have piled into the trade over the past few years. While the correction does highlight a higher degree of uncertainty than many of the most ardent […]
Remarks by members of the European Union’s elite suggesting that banking deposit seizures may become standard practice appear to have heightened the risk of a European bank run and perhaps even a catastrophic collapse of the euro. Any threat to the euro is a threat to the European public’s conception of the Union’s manifest destiny. […]
The past few months illustrate a serious spread of Bernanke’s policies across the entire developed world.
Currency devaluation is not a winning strategy, especially for a country with a strong balance sheet.
Although it was barely noticed by the American press, on January 22nd, EU finance ministers approved a new “Financial Transactions Tax” (FTT) that has implications for market competitiveness around the world. The move was conceived as a Franco-German initiative and was supported by seven other EU nations, including the entire bloc of highly indebted southern tier […]
Last week the Bundesbank (the German central bank) surprised markets around the world by announcing that it will repatriate a sizable portion of its gold bullion reserves held in France and the United States. To many, the news from the world’s second largest holder of gold signaled a growing, if clandestine, mistrust among central banks, […]
Over the past two months, Europe’s problems seem to have disappeared from the headlines. However, the new French Socialist government is pushing ahead with policies that favor significantly higher government spending, greater regulation of business and commerce, and severely higher taxes on high earners. The long term effects of these policies, which I believe will […]