How Rothschild Sees The Future

Rothschild has identified four different scenarios that, in their view, are the most likely to occur. The series of scenarios for GDP growth and inflation in the main western economies, Japan and China may guide investor thinking but their somewhat ominous conclusion is worth bearing in mind: “Further monetary ‘experiments’ are becoming less probable. However, significant imbalances […]

Anti rich sentiment growing globally

GIH: The sentiment against the so called 1% is growing, as the gap between the ‘rich’ and ‘superrich’ has gone parabolic.  The majority of the world’s wealth is now concentrated in the hands of a few thousand people.  Questions are now being raised about how they are helping the economy, as the velocity of money […]

World Bank Ex-Chief Economist Calls For End To Dollar As Reserve Currency

In the past we have discussed at length the inevitable demise of the USD as the world’s reserve currency noting that nothing lasts forever. [10] However, when former World Bank chief economist Justin Yifu Lin warns that “the dominance of the greenback is the root cause of global financial and economic crises,” we suspect the world will begin […]

FOMC Ignores EM Crisis, Tapers Another $10 Billion – December Statement Redline

GIH: $10 Billion in more taper from the Fed, indicates further tapering.  A bold move against the backdrop of the crisis in emerging market currencies, which caused a stock market sell off and EM Currency sell off.  Unlike many market analysts, The Fed “Sees Growth”:

WASHINGTON — The Federal Reserve announced Wednesday another $10 billion cut […]

A Stunning Development In China-US Wage Parity

GIH:  Chinese companies are now considering manufacturing in the US due to competitive wage costs!

In just over an hour Apple will report earnings which are expected to be a sole silver lining among the otherwise dreary retail landscape of the fourth quarter. However, those curious for an advance glimpse of what AAPL’s margins may be […]

Perfect Storm: energy, finance and the end of growth

The following leading analysis is a well-documented objective view from a historical perspective, outlining the global challenges we face as we head into the new paradigm of modern society.  Tullett Prebon is one of Britain’s oldest money brokers, this report is prepared by their chief analyst.  download Perfect Storm here

Click for larger view of Summary
download […]

20 Early Warning Signs That We Are Approaching A Global Economic Meltdown

GIH: The global economy is showing signs of being on the verge of a global meltdown as we have been expecting for some time.  Emerging markets collapsed over the week last week, with social unrest, nervous investors, capital controls, and a possible bank run in China.  The world is interconnected in so many ways that […]

No Inflation Friday

GIH: One of the biggest lies told to the general economic public is that of inflation – it’s a hidden tax, under reported, and widely misunderstood.  It’s not a simple mechanism, so don’t use this as an excuse to buy real estate or other assets of little intrinsic value.  Inflation creates bubbles, causes prices to […]

China’s First Default Is Coming: Here’s What To Expect

GIH: China’s economy is experiencing it’s first capitalist growth pains.  With the rapid expansion of the middle class and a growing financial sector, including their own shadow / private banking sector, it’s not a surprise that a financial company issuing debt is on the precipice of default, coinciding with the Chinese new year.

As we first […]

85 richest people own as much as bottom half of population, report says

GIH: A new report shows that the 85 of the world’s richest people own the same amount of wealth as the bottom half of the population, or several billion people.  Of course, this is wealth that is accounted for, it may be a much wider gap considering the shadow banking system, private offshore anonymous trusts, […]

Anti-Fed Revulsion, And A Plunge In The S&P To 450

Looking at the present financial situation from a historical, social perspective, indicates (based on history) that there will be a severe blowback from the QE program.  But unlike other examples provided in the below analysis (such as WW2 spending) QE is nearly completely artificial.  During WW2 spending was driven by manufacturing and war logistics.  QE […]

Fed’s Fisher Says “Investors Have Beer Goggles From Liquidity”

The Fed’s Fisher provides an intimate insight into the thinking of a Fed President.  In well crafted Fed speak, he warns of a potential market decline because it will be impossible for the Fed to continue with the QE indefinitely.  But there are larger economic impacts much more significant than the stock market, such as […]

America’s Dwindling Economic Freedom

A combination of factors in the US are putting the American economy at a huge disadvantage.  The following report looks at how freedom affects the economy.  As the US is becoming a police state, with highly regulated financial markets, it can only create additional costs and discourage new investment.  With the possibility of the internet, […]

Baltic Dry Index Collapses 35% – Worst Start To Year In 30 Years

The Baltic Dry Index is one of the only significant indexes of the ‘real’ economy, as it measures the transport of physical goods.  While the US stock markets are near their all time highs, the shipment of real physical goods is down 35%, the worst start to the year in 30 years. From Zero Hedge:

When […]

95% Of Total Consumer Credit Lent In Past 12 Months Is For Student And Car Loans

From Zero Hedge:

Another month, another disappointment for all those who hope the consumer will finally “charge it.” In November, consumer credit was expected to grow by $14.25 billion, instead it rose by $12.318 billion. However, it was once again the components that were key, because while $11.9 billion or the vast majority of November’s credit […]

Fed’s Bill Dudley: The Fed Doesn’t Fully Understand How QE Works

The Fed’s Bill Dudley admitted what many of us already suspected.  The Fed has no clue how QE would affect the markets.  Such a statement from a high level Fed official is unusual, and a very telling sign.
From Zero Hedge:
Well, it took three years, but finally the Goldman Sachs-based head of the New York Fed, […]

Neofeudal financialization – what’s real and what’s not

Most investors and traders are constantly analyzing data, and painting the economic picture based on it.  But far too often we forget what’s creating the data.  Economics is a measure of the real economy, which is driven by real forces.  Monopolies are one thing to study, but how do monopolies or oligopolies exert their economic […]

The IMF wants you to pay 71% income tax

When the IMF suggests increases in tax rates potentially as high as 71%, we should listen.  The IMF has been at the forefront of global financial political agendas such as the one world currency (SDRs), default of the USD from the Gold standard (thus creating Forex market), and the backing of international ‘death’ loans as […]

The Pathology of the Rich – Chris Hedges on Reality Asserts Itself

Paul Jay, Senior Editor, TRNN: Welcome to The Real News Network. I’m Paul Jay in Baltimore. And welcome to Reality Asserts Itself. A few weeks ago, we did a series of interviews with Chris Hedges, and one of the things we talked about was the weakness of the left, the weakness of the people’s movement, if […]

Future of Eurozone looking bleak without reforms

Europe’s prospects continue to look bleak.  With some youth unemployment rates around 50%, it’s hard to imagine how a new generation of European workers will participate in any recovery.  Europe’s overall unemployment figures are still well higher than in the US, even considering that US numbers are not a true reflection of real unemployment in […]