Economy

China’s Official Press Agency Calls For New World Order And New Reserve Currency

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– China’s Official Press Agency Calls For New Reserve Currency, And New World Order (ZeroHedge, Oct 13, 2013):

We assume it is a coincidence that on the day in which we demonstrate China’s relentless appetite for gold, driven by what we and many others believe is the country’s desire to have a call option on a gold-backed reserve currency when the time comes, just posted in China’s official press agency, Xinhua, is an op-ed by writer Liu Chang in which he decries the “US fiscal failure which warrants a de-Americanized world” and flatly states that the world should consider a new reserve currency “that is to be created to replace the dominant U.S. dollar, so that the international community could permanently stay away from the spillover of the intensifying domestic political turmoil in the United States.”

Read moreChina’s Official Press Agency Calls For New World Order And New Reserve Currency

“A Corporate Trojan Horse”: Obama Pushes Secretive TPP Trade Pact (‘NAFTA On Steroids’), Would Rewrite Swath of U.S. Laws

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– “A Corporate Trojan Horse”: Obama Pushes Secretive TPP Trade Pact, Would Rewrite Swath of U.S. Laws (Democracy Now, Oct 11, 2013):

As the federal government shutdown continues, Secretary of State John Kerry heads to Asia for secret talks on a sweeping new trade deal, the Trans-Pacific Partnership. The TPP is often referred to by critics as “NAFTA on steroids,” and would establish a free trade zone that would stretch from Vietnam to Chile, encompassing 800 million people — about a third of world trade and nearly 40 percent of the global economy. While the text of the treaty has been largely negotiated behind closed doors and, until June, kept secret from Congress, more than 600 corporate advisers reportedly have access to the measure, including employees of Halliburton and Monsanto. “This is not mainly about trade,” says Lori Wallach, director of Public Citizen’s Global Trade Watch. “It is a corporate Trojan horse. The agreement has 29 chapters, and only five of them have to do with trade. The other 24 chapters either handcuff our domestic governments, limiting food safety, environmental standards, financial regulation, energy and climate policy, or establishing new powers for corporations.”

Read more“A Corporate Trojan Horse”: Obama Pushes Secretive TPP Trade Pact (‘NAFTA On Steroids’), Would Rewrite Swath of U.S. Laws

Credit Suisse Report: In Russia, 110 People Own 35% Of Wealth

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A report released Wednesday said global wealth has fully recovered, but income inequality remains high. In Russia, 110 people own 35% of the country’s wealth, the report says. (Credit Suisse)

– In Russia, 110 people own 35% of wealth, report says (Los Angeles Times, Oct 9, 2013):

Global wealth levels have set records, but in Russia, the explosion in wealth has given way to the highest income inequality level, a new report showed.

In Russia, just 110 people own 35% of the country’s wealth, according to a report released Wednesday by Credit Suisse.

The country (population 139 million) has the highest wealth inequality in the world, save for a few Caribbean islands, the report said.

Read moreCredit Suisse Report: In Russia, 110 People Own 35% Of Wealth

Google Is Going to Include Your Face in Its New Ads

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– Google Is Going to Include Your Face in Its New Ads (Businessweek, Oct 11, 2013):

Google (GOOG) is tinkering with the ever-delicate balance between selling advertisements and creeping its users out. On Friday the company said it would begin including recommendations that Google+ users make in advertisements. The new policy kicks in on Nov. 11.

Here’s how it works: You use Google+ to rate some product or service. It turns out the company behind that product wants to advertise on Google. When the company purchases an ad, your friends will see a version that includes your photo along with what you said about the product.

Read moreGoogle Is Going to Include Your Face in Its New Ads

Marc Faber Blasts ‘A Corrupt System That Rewards Stupidity’

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– Marc Faber Blasts “A Corrupt System That Rewards Stupidity” (ZeroHedge, Oct 11, 2013):

 

Authored by Marc Faber, originally posted at The Daily Reckoning blog,

For the greater part of human history, leaders who were in a position to exercise power were accountable for their actions. If they waged wars or had to defend their territories from invading hostile forces, they frequently lost their lives, territories, armies, power and crowns. I don’t deny that some leaders were irresponsible, but in general, they were fully aware that they were responsible for their acts and, therefore, they acted responsibly.

The problem we are faced with today is that our political and (frequently) business leaders are not being held responsible for their actions. Thomas Sowell sums it up well:

“It is hard to imagine a more stupid or more dangerous way of making decisions than by putting those decisions in the hands of people who pay no price for being wrong.”

When political leaders or economic policymakers are seen to fail, the worst that will happen to them is that they won’t be re-elected or reappointed. They then become a lobbyist or an adviser or consultant, and give speeches, earning in the process a high income on top of their pension.

Read moreMarc Faber Blasts ‘A Corrupt System That Rewards Stupidity’

Here Is What The Federal Reserve’s Advisors Really Think About The US Economy

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– Here Is What The Fed’s Advisors Really Think About The US Economy (ZeroHedge, Oct 11, 2013):

Five months ago, in May, in a release that stunned markets, the Federal Advisory Council (FAC) which is composed of twelve representatives of the banking industry (including the CEOs of Morgan Stanley, TD Bank, State Street, PNC, BB&T, First Horizon, Commerce Bank and Discover), and which “consults with and advises the Board on all matters within the Board’s jurisdiction” said something very disturbing: the truth.

To wit: “There is also concern about the possibility of a breakout of inflation, although current inflation risk is not considered unmanageable, and of an unsustainable bubble in equity and fixed-income markets given current prices.”

Read moreHere Is What The Federal Reserve’s Advisors Really Think About The US Economy

If We Are In An Economic Recovery Why Are Major Corporations Firing Thousands?

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– IF WE ARE IN AN ECONOMIC RECOVERY WHY ARE MAJOR CORPORATIONS FIRING THOUSANDS? (The Burning Platform, Oct 11, 2013):

We already have declining real wages. Small businesses are geting wiped out by taxes, regulations, and Obamacare. These mega-corporations are firing thousands. Retail and restaurant sales are plunging. Consumers are scared straight and are reducing credit card debt. Government spending in states and localities is declining because they are required to balance their budgets. The Boomers are old, with no savings. They can no longer live in a delusionary credit bubble. Sounds like a reason to buy stocks.

Ten American Companies Cutting the Most Jobs

October 9, 2013 by 247alex

Planned job cuts in the third quarter rose 25% from a year ago. With September jobs cuts up 19% from last year, it represented the fourth month in a row in which job cuts were higher than the same month last year. Despite the current trend, employers are on pace to cut roughly the same number of jobs that were cut last year.

According to data compiled by Challenger, Gray & Christmas, 10 companies alone have announced close to 75,000 job cuts this year, combined. This represents nearly 20% of all the announced cuts in 2013.

Read moreIf We Are In An Economic Recovery Why Are Major Corporations Firing Thousands?

Peter Schiff On The Debt Ceiling Delusions

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– Peter Schiff On The Debt Ceiling Delusions (ZeroHedge, Oct 11, 2013):

Submitted by Peter Schiff via Euro Pacific Capital,

The popular take on the current debt ceiling stand-off is that the Tea Party wing of the Republican Party has a delusional belief that it can hit the brakes on new debt creation without bringing on an economic catastrophe. While Republicans are indeed kidding themselves if they believe that their actions will not unleash deep economic turmoil, there are much deeper and more significant delusions on the other side of the aisle. Democrats, and the President in particular, believe that continually taking on more debt to pay existing debt is a more responsible course of action. Even worse, they appear to believe that debt accumulation is the equivalent of economic growth.

If Republicans were to inexplicably prevail, and the federal government were to cut spending so that its expenditures matched its tax revenues (a truly radical idea) the country’s financial mess would be laid bare. The government would have to weigh the relative costs and benefits of making interest payments on Treasury debt (primarily to foreign creditors) or to trim entitlements promised to U.S. citizens. But those are choices we will have to make sooner or later anyway. In fact we should have dealt with these issues years ago. But generations of mechanistic debt ceiling increases have allowed us to perpetually kick the can down the road. What could possibly be gained by doing it again, particularly if it is done with no commitment to change course?

The Democrats’ argument that America needs to pay its bills is just hollow rhetoric. Paying off one’s Visa bill with a new and bigger MasterCard bill can’t be considered a legitimate payment of debt. At best it is a transfer. But in the government’s case, it doesn’t even qualify as that. Treasury debt is primarily bought by the Fed, foreign central banks, and major financial institutions. None of that will change with a debt ceiling increase. We will just go to the same people for greater quantities. So it’s like paying off your Visa card with a bigger Visa card.

Read morePeter Schiff On The Debt Ceiling Delusions

Goldman Sachs ‘Whistleblower’ Carmen Segarra Sues NY Fed For Wrongful Termination

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Carmen Segarra outside the Federal Reserve Bank of New York, on Oct. 10, 2013. In a wrongful termination lawsuit, Segarra says she was fired by the Fed after she refused to change a finding Goldman Sachs had inadequate controls over conflicts of interest.

– Goldman “Whistleblower” Sues NY Fed For Wrongful Termination (ZeroHedge, Oct 10, 2013):

After seven months of investigating Goldman Sachs’ legal and compliance divisions, former NYFed examiner Carmen Segarra found numerous conflicts of interest and breach of client ethics (specifically related to three transactions – Solyndra, Capmark, and the El Paso / Kinder Morgan deal) that she believed warranted a downgrade of Goldman’s regulatory rating. Her bosses were not happy, concerned that this action would hurt Goldman’s ability to do business, and, she alleges, they urged her to change her position. She refused, and as Reuters reports, she was fired and escorted from the building. “I was just documenting what Goldman was doing,” she said. “If I was not able to push through something that obvious, the [NY Fed] certainly won’t be capable of supervising banks when even more serious issues arise.”

Via Reuters,

A former senior bank examiner at the Federal Reserve Bank of New York filed a wrongful termination lawsuit on Thursday, saying she was fired after refusing to alter a critical examination of Goldman Sachs Group Inc.

Read moreGoldman Sachs ‘Whistleblower’ Carmen Segarra Sues NY Fed For Wrongful Termination

Federal Reserve Bank Of New York Fired Examiner Who Took On Goldman Sachs

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Carmen Segarra outside the Federal Reserve Bank of New York, on Oct. 10, 2013. In a wrongful termination lawsuit, Segarra says she was fired by the Fed after she refused to change a finding Goldman Sachs had inadequate controls over conflicts of interest. (Nabil Rahman for ProPublica)

– NY Fed Fired Examiner Who Took on Goldman (ProPublica, Oct 10, 2013):

In the spring of 2012, a senior examiner with the Federal Reserve Bank of New York determined that Goldman Sachs had a problem.

Under a Fed mandate, the investment banking behemoth was expected to have a company-wide policy to address conflicts of interest in how its phalanxes of dealmakers handled clients. Although Goldman had a patchwork of policies, the examiner concluded that they fell short of the Fed’s requirements.

That finding by the examiner, Carmen Segarra, potentially had serious implications for Goldman, which was already under fire for advising clients on both sides of several multibillion-dollar deals and allegedly putting the bank’s own interests above those of its customers. It could have led to closer scrutiny of Goldman by regulators or changes to its business practices.

Before she could formalize her findings, Segarra said, the senior New York Fed official who oversees Goldman pressured her to change them. When she refused, Segarra said she was called to a meeting where her bosses told her they no longer trusted her judgment. Her phone was confiscated, and security officers marched her out of the Fed’s fortress-like building in lower Manhattan, just 7 months after being hired.

“They wanted me to falsify my findings,” Segarra said in a recent interview, “and when I wouldn’t, they fired me.”

Read moreFederal Reserve Bank Of New York Fired Examiner Who Took On Goldman Sachs

JPMorgan Hammered By Massive $9.2 Billion In Legal Expenses, Posts First Loss Under Jamie Dimon; Takes $1.6 Billion Reserve Release

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More details full earnings release here:

– JPM Hammered By Massive $9.2 Billion In Legal Expenses, Posts First Loss Under Dimon; Takes $1.6 Billion Reserve Release (ZeroHedge, Oct 11, 2013):

So much for the JPM “fortress balance sheet.” Moments ago the bank which 18 months ago stunned the world with the biggest prop trading loss in history, just reported its first quarterly loss under Jamie Dimon, missing expected revenue of $24 billion with a print of $23.88 billion, but it was net income where the stunner was in the form of a $0.4 billion net income. The reason: the fact that from the government’s best friend, Jamie Dimon has become the punching bag du jour, and having to pay $9.15 billion in pretax legal expenses, the biggest in company history.

Quote Jamie Dimon:

While we had strong underlying performance across the businesses, unfortunately, the quarter was marred by large legal expense. We continuously evaluate our legal reserves, but in this highly charged and unpredictable environment, with escalating demands and penalties from multiple government agencies, we thought it was prudent to significantly strengthen them. While we expect our litigation costs should abate and normalize over time, they may continue to be volatile over the next several quarters.

Speaking of “strong underlying performance”, considering that the other key component of Q3 net income was a whopping $1.6 billion in loan loss reserve releases, one wonders just how truly strong Q3 earnings really were. But of course, this being Wall Street, all negative news is “one-time” and to be added back. Which is why JPM promptly took benefit for all charges, which means adding back the $7.2 billion legal expense and $992 MM reserve release after tax benefit. In short: of the firm’s $1.42 in pro forma EPS, a whopping $1.59 was purely from the addback of these two items.

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– JP Morgan reports third-quarter loss after ‘painful’ $9.2bn legal costs (Guardian, Oct 11, 2013):

Embattled chief executive Jamie Dimon says otherwise strong performance has been ‘marred by a large legal expense’

Excluding the one-time costs, JP Morgan’s earnings were $5.8bn, or $1.42 a share.

America’s biggest bank, JP Morgan, has plunged to a loss in the third quarter of 2013 after being weighed down by legal expenses of $9.2bn (£5.8bn).

Jamie Dimon, the bank’s chairman and chief executive, called the loss “painful”. “We are just trying to improve and move on. Remember, these things are related to multiple year events. Remember, we didn’t lose any money during the crisis,” he told analysts on a conference call.

Read moreJPMorgan Hammered By Massive $9.2 Billion In Legal Expenses, Posts First Loss Under Jamie Dimon; Takes $1.6 Billion Reserve Release

The Biggest Banking Disconnect Since Lehman Hits A New Record

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–  The Biggest Banking Disconnect Since Lehman Hits A New Record (ZeroHedge, Oct 10, 2013):

As regular readers know, the biggest (and most important) disconnect in the US banking system is the divergence between commercial bank loans, which most recently amounted to $7.32 trillion, a decrease of $9 billion for the week, and are at the same the same level when Lehman filed for bankruptcy having not grown at all in all of 2013 (blue line below), and their conventionally matched liability: deposits, which increased by $60 billion in the past week to $9.63 trillion, an all time high. The spread between these two key monetary components – at least in a non-centrally planned world – which also happen to determine the velocity of money in circulation (as traditionally it is private banks that create money not the Fed as a result of loan demand) is now at a record $2.3 trillion.

Which, of course, also happens to be the amount of reserves the Fed has injected into the system (i.e., how much the Fed’s balance sheet has expanded) since the great experiment to bailout the US financial system started in September 2008, in which Ben Bernanke, and soon Janet Yellen, stepped in as the sole source of credit money. The only difference is that while the Fed is actively pumping bank deposits courtesy of the fungibility of reserves, loan are unchanged.

For those who still don’t understand the identity between Fed reserves and bank deposits, here is Manmohan Singh with the simplest explanation on the topic:

Read moreThe Biggest Banking Disconnect Since Lehman Hits A New Record

JPMorgan Money Market Funds Join Fidelity, Sell Treasury Bills ‘In Light Of Possible U.S. Government Default’

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– JP Morgan Money Market Funds Join Fidelity, Sell Bills “In Light Of Possible U.S. Government Default” (ZeroHedge, Oct 10, 2013):

Yesterday, it was Fidelity who in conducting its fiduciary duty, announced it was getting out of any and all near-term risky Bill insturments, namely those that mature just around the time of a possible technical debt default. Today, while the stock market was soaring on hope that a Washington debt ceiling deal was imminent, it was another firm that was quietly doing the opposite, and was taking “action in light of a possible US government default), and as highlighted earlier when we showed the ongoing divergence between stocks and Bills, was quietly “boosting” liquidity (i.e. selling short-term securities) in order to avoid breaking the buck (which as we also learned yesterday had been breached by not only the Reserve fund but by 28 other heretofore unknown money market funds). The firm: JPMorgan.

From JPMorgan’s Investment Management (JPMIM) group:

J.P. Morgan takes action in light of possible U.S. Government default

Read moreJPMorgan Money Market Funds Join Fidelity, Sell Treasury Bills ‘In Light Of Possible U.S. Government Default’

‘Somebody In Government Is Afraid Of What Is Coming’ (Video)

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… or just preparing for what has been planned & plotted many, many, many years ago.

– McGrath: “Somebody In Government Is Afraid Of What Is Coming” *Video* (SHFTplan, Oct 9, 2013):

While the average American may have been convinced that the economy is recovering and happy days are dead ahead, few are talking about the reality of what’s going on behind the scenes. They act as if the crisis of 2008 has long passed, and whatever was responsible for it has now been solved through massive trillion dollar bailout injections.

Most fail to realize how serious of an issue we faced just five years ago, and even fewer understand how close we are to a collapse so incredibly horrific that it could change the very landscape of this country.

For those paying attention to the warning signs, it should be clear that something isn’t right.

Read more‘Somebody In Government Is Afraid Of What Is Coming’ (Video)

How Brazil’s Middle Class Dream Became A Debt-Fuelled Nightmare

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– How Brazil’s Middle Class Dream Became A Debt-Fuelled Nightmare (ZeroHedge, Oct 9, 2013):

Quick: which BRIC nation has the highest consumer loan default rate?

If you said China, India or Russia, you are wrong. Actually, if you said China you are probably right, but since absolutely all economic “data” in China is worthless, manipulated propaganda, only a retrospective post-mortem after the Chinese credit, housing, commodity, consumption bubbles have all burst will we know the answer. So excluding China, which country’s consumers after a multi-year shopping spree funded entirely on credit, are suddenly suffering the epic hangover of soaring non-performing loans as they suddenly find themselves unable to even pay the interest on the debt? Just ask former billionaire Eike Batista whose OGX oil corporation is days away from filing bankruptcy. The answer, with 5.6% of all loans in default, above Russia, South Africa, Mexico, Turkey and India, is Brazil.

It is this same Brazil, where years of credit-driven expansion have resulted in rampant, 6% inflation, which moments ago forced the central bank to once again hike its key policy rate by another 50 bps to 9.50% in an attempt to halt surging prices and contain the flood of liquidity, both foreign and domestic.

Read moreHow Brazil’s Middle Class Dream Became A Debt-Fuelled Nightmare

Hedge Fund Manager Kyle Bass Warns: ‘There Is No Way To Protect Yourself If US Treasuries Default’ (Video)

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Flashback:

– Hedge Fund Manager Kyle Bass: Senior Obama Administration Official Said: ‘We’re Just Going To Kill The Dollar’ (Video)

– Kyle Bass Warns “There Is No Way To Protect Yourself If US Treasuries Default” (ZeroHedge, Oct 9, 2013):

“If the politicians lead us into a ‘prioritization of payments’ situation for Treasury Secretary Lew or an actual missed payment, there is nothing you can do to protect yourself from that!” are the ominous words that Kyle Bass uses to describe the farce that is rapidly approaching (and for now being ignored by stocks). Bass went on to pull no punches in his “disappointment” in JCPenney’s performance (and dilution) coming as close as he can to saying “sell.” But his piece de resistance was a dismal destruction of any silver lining for Puerto Rico and the significant implications that will have on Muni bonds in general.

On Default risk and “Un-hedgeable” implications:

On JCPenney – “Disappointed” – “didn’t belive they needed to raise the capital… and now they have diluted us over 30%”

On Puerto Rico and the threat to the entire Muni market – “you look at their finances and you can only say – I have no clue how this can exist for very much longer”

Must-Listen: Ron Paul’s 2006 Speech: ‘The End Of Dollar Hegemony’ (Video)

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– Ron Paul Redux: “The End Of Dollar Hegemony” (ZeroHedge, Oct 9, 2013):

In a little-known 2006 speech (in the US, though widely known around the world), entitled “The End of Dollar Hegemony,” Ron Paul discusses the breakdown of the Bretton Woods system – which most people know about – and the de-facto system that replaced it – which most people do not know about. As Casey Research’s Nick Giambruno notes it is a must listen with the most important part of the speech where Paul discusses the petrodollar system, a primary factor in maintaining the dollar’s role as the world’s premier currency after the breakdown of Bretton Woods.

The End of Dollar Hegemony Part 1

The End of Dollar Hegemony Part 2

The End of Dollar Hegemony Part 3

Via Nick Giambruno of Casey Research,

The speech is an absolute must-listen…

…

The most important part of the speech is where Paul discusses the petrodollar system, a primary factor in maintaining the dollar’s role as the world’s premier currency after the breakdown of Bretton Woods.

“It all ended on August 15, 1971, when Nixon closed the gold window and refused to pay out any of our remaining 280 million ounces of gold. In essence, we declared our insolvency and everyone recognized some other monetary system had to be devised in order to bring stability to the markets.

Amazingly, a new system was devised which allowed the US to operate the printing presses for the world reserve currency with no restraints placed on it—not even a pretense of gold convertibility, none whatsoever! Though the new policy was even more deeply flawed, it nevertheless opened the door for dollar hegemony to spread.

Read moreMust-Listen: Ron Paul’s 2006 Speech: ‘The End Of Dollar Hegemony’ (Video)

Obama Nominates Janet Yellen To Be Next Federal Reserve Chair (Video)

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Related info:

– Janet Yellen: What A Horrifying Choice For Fed Chairman She Would Be

– Obama announces Janet Yellen as nominee to be next Fed chair (Reuters, Oct 9, 2013):

President Barack Obama nominated Janet Yellen to be the next chair of the Federal Reserve Board on Wednesday and said she is a proven leader who knows how to build consensus in managing the Fed’s dual mandate of controlling inflation and increasing employment.

At a White House event, Obama also paid tribute to current chair Ben Bernanke, whose term on the board ends in January. Obama urged the Senate to confirm Yellen as soon as possible.

Obama called Bernanke a voice of wisdom during a time of market volatility who helped repair the U.S. economy from the worst recession since the Great Depression.

Former President Jimmy Carter: Middle Class Today Resembles Past’s Poor (Video)

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– Carter: Middle class today resembles past’s poor (USA Today, Oct 7, 2013):

OAKLAND, California (AP) — Former President Jimmy Carter said Monday that the income gap in the United States has increased to the point where members of the middle class resemble the Americans who lived in poverty when he occupied the White House.

Read moreFormer President Jimmy Carter: Middle Class Today Resembles Past’s Poor (Video)

For The First Time On Record, The US Government Is ‘Riskier’ Than US Banks

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– For The First Time On Record, The US Government Is ‘Riskier’ Than US Banks (ZeroHedge, Oct 8, 2013):

During the European crisis, we saw sovereign debt yields rising way above their domestic banking sector’s yields as investors feared systemic crisis and technical flows dominated the price action amid aggressive hedging. Now, with Washington looking increasingly likely to crash upon the shores of a US Treasury technical default, for the first time on record the yield on short-term Treasury-Bills is above the yield on US interbank loans. T-Bill yields (the US government’s “risk”) have surpassed short-term LIBOR (US Banks’ “Risk”)… must be a good reason to BTFATH…

Read moreFor The First Time On Record, The US Government Is ‘Riskier’ Than US Banks

Hilarious Charts Of The Day: IMF’s ‘Growth Forecasts’ Over Time

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– Hilarious Charts Of The Day: IMF’s “Growth Forecasts” Over Time (ZeroHedge, Oct 8, 2013):

The chart below, showing the historical change in the IMF’s periodic revisions of world growth and revised for today’s just released latest World Economic Outlook, shows that much taxpayer money can be saved if the monetary fund’s staff was replaced with dart-throwing chimps.

That the IMF saw 2013 world growth at 4.1% when the S&P500 was at 1,400 and now that it sees 2013 growth at the lowest ever in the series, 2.9%, when the S&P500 is just a whisker off its all time high is without comment.

* * *

Some other funny charts.

US growth forecasts over time – mind the 2012 GDP-boosting revision:

Read moreHilarious Charts Of The Day: IMF’s ‘Growth Forecasts’ Over Time

Warren Buffett’s Bailout Bonanza

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– Buffett’s Bailout Bonanza (ZeroHedge, Oct 7, 2013):

In the past we have tried to show the growing divide between the haves and the have-nots in the US. Whether through this morning’s “aggregate” Main Street vs Wall Street chart or various anecdotal indicators of diverging confidence. However, no one signifies the beneficiaries of the status-quo-sustaining government bailouts and stimulus better than Warren Buffett (who now, like Obama, sees stocks are full valued). The following chart shows just how well one can do with a few billion in your pocket and an ear for what the Government will do.

Gold: The Real Change To Watch Out For

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World’s biggest gold coin

– The real change to watch out for (Sovereign Man, Oct 4, 2013):

It takes a lot of courage to go against the crowd.

Whether in investing, or acknowledging that your country is heading towards an epic fiscal crisis, it isn’t easy to stand alone… especially when everyone else is betting the other way.

Have you ever noticed, for example, that investors are often only interested in buying some stock or asset when its price is going up?

Read moreGold: The Real Change To Watch Out For

Families Hoard Cash 5 Years After Crisis

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From the article:

“The implications are huge: Shunning debt and spending less can be good for one family’s finances. When hundreds of millions do it together, it can starve the global economy.“

What (kind of) economy (is that)?

In my opinion bonds are a terrible investment.

Got PHYSICAL gold and silver (to protect your assets)?

– AP IMPACT: Families hoard cash 5 yrs after crisis (AP, Oct 6, 2013):

NEW YORK (AP) — Five years after U.S. investment bank Lehman Brothers collapsed, triggering a global financial crisis and shattering confidence worldwide, families in major countries around the world are still hunkered down, too spooked and distrustful to take chances with their money.

An Associated Press analysis of households in the 10 biggest economies shows that families continue to spend cautiously and have pulled hundreds of billions of dollars out of stocks, cut borrowing for the first time in decades and poured money into savings and bonds that offer puny interest payments, often too low to keep up with inflation.

Read moreFamilies Hoard Cash 5 Years After Crisis