Reaching an agreement on Greece’s bailout is beyond the 11th hour. It’s striking midnight. Monday all eurozone presidents and prime ministers have been summoned to meet in Brussels in a final attempt to resolve Greece’s bailout stand-off. This confab is necessary because the finance ministers of the currency union failed to reach an agreement earlier
In a video interview with Barron’s editor Jack Otter, famed Swiss investment advisor, fund manager and publisher of the Gloom Boom & Doom Report Marc Faber gives his economic views for 2015.
As European Central Bank President Mario Draghi has been promising (threatening?) for more than a year, the ECB finally is about to begin a quantitative easing program. The program most likely will run for two years.
“The slump in global oil prices,” reports the Financial Times (1/6/15), bolsters “the case for an ambitious programme of government bond buying by the European Central Bank.” In Germany, the Eurozone’s largest economy, consumer prices in December rose only 0.1 percent versus 0.5 percent the year to November.
The foundation is being laid for massive worldwide inflation. Expansive money creation programs in the world’s major economies have been under way for years, now the Eurozone is about the rejoin the game.
China is the latest to join the money printing binge, this time printing the equivalent of $81 billion. The goal: to fillip an economy that grew in August at “only a 6.9 percent” annualized rate. If the US economy were growing at 6.9 percent, the Dow would be at 25,000. The world’s central bankers are
Fears of financial crises aside, the primary reason for owning gold is as a hedge against inflation, inflation being defined as an increase in the money supply. As more money is printed, the dollar loses value and prices rise. A excellent example of this principle is the menu at an iconic restaurant in Phoenix, Durant’s.
In July 2012, Mario Draghi, president of the European Central Bank, steadied European money markets simply by saying, “. . . the ECB is ready to do whatever it takes to preserve the euro. And believe me, it will be enough.” Apparently, simply promising to do whatever it takes was enough because the ECB had
The US Justice Department recently announced–with much bravado–that BNP Paribas, a major French bank, had agreed to pay a record penalty of $8.9 BILLION for transferring money on behalf of Sudan and other countries sanctioned by the United States. The fine is more than triple the amount paid collectively by six other banks for similar
A precious metals wholesale trader issued a commentary on the metals’ price decline this week. He cited three reasons for the drop: 1) calmer voices about Ukraine, 2) higher than expected durable goods orders, and 3) improved consumer sentiment.