New lists coming out of systemically important banks and non-banks. Your investor funds in “unsystemically important” entities will be “bailed in”. Click here. It’s all here, exactly what will happen in the next leg down of the global debt collapse.
Click here for Martin Armstrong’s latest blog post entitle Real Estate and Currency dated May 20, 2013. Another thing to consider in Real Estate investing moving forward. Good post.
Click here for Martin’s take on the Fed’s push upward of the Dollar, whether that was their intention or not. From May 13th.
Probably why Ben is leaving in 2014….
And here for the impact of higher interest rates.
From the link above:
The realization that the expansion of the money supply by the Fed has failed to create inflation has befuddled every standard domestic economic theory. They have failed to graduate to the global level where they must realize that the dollar has emerged as a international currency going beyond a mere reserve currency becoming the currency of choice since there is no rational alternative. The expansion of the money supply by the Fed has been absorbed globally. The idea of stimulating through purchasing government bonds that in theory would put money into the system has failed to comprehend that 40% of the bonds are held by foreign entities. Thus, the old theories are just antiquated and have led to a massive level delusion everywhere from economics, share markets, gold, to interest rates.
Interest rates under domestic theory will have to rise to save pension funds. The Fed will not see the global implications and the huge dollar shorts and a rise in rates will spark a massive short-cover rally in the dollar. With the German elections looking more perilous by the day come September, the future going into 2016 could be a massive rally in the dollar coupled with rally in the Dow Jones Industrials that could reach 17330, 18900, or 23,388 by 2015.75. If the central bankers screw it up as usual, they could create a Japanese type bubble on this one.
Latest from Market Shadows. Click here.
Groovygirl thought this picture of the US Dollar (via zerohedge) and how our tax dollars are spent was very informative on many levels. Click here.
- Clearly shows what will get squeezed first, the two biggest spenders.
- 6% net interest may be the current stat but it is optimistic for the future.
- An increase in taxes can not sustain the US dollar or US debt.
LEAP 2020 has just issued its newest publication, GEAB N 73, dated March 16, 2013. They have a free, and very detailed, summary. Click here.
Between short-term economic indicators which describe only what occurred in the week, others which are manipulated by governments to reflect the message they want to give, and finally others which no longer have any relevance in today’s world, economic reality is at the very least very badly portrayed, even disguised, by these figures followed however by businesses, banks, and even countries. As an example, only currency exchange rate variations make it no longer possible to say if it’s Brazil or the United Kingdom which is the sixth largest world power. This statistical fog prevents dependable navigation which is paramount in these times of crisis ». Whether it be the fruit of intentional manipulation by the players in their efforts to survive or the result of the extreme volatility of the bases for calculation (such as currency values and the US dollar in particular), this trend is, in fact, confirmed.
Adam Taggart had a great post on peakprosperity.com about the squeezed and disappearing saver. In a global economy run on debt, a disappearing saver will limit any recovery as debt collapses and there is no capital to build and sustain the current economic situation. It is a slow train wreck.
And the truth is: The three adult generations in the U.S. are suffering, and their burdens are likely to increase with time. Each is experiencing a squeeze that is making it harder to create value, save capital, and pursue happiness than at any point since WWII. At that point, we were a creditor nation with an economy exploding into dominance on the world stage. Now, however, the U.S. is the largest debtor nation and our economic hegemony is increasingly at siege across a number of fronts.
A continuation of the status quo is a decision to sleepwalk face-first into the constraints hurtling towards us.
Instead, shouldn’t we stop fooling ourselves and ask: What should we be doing differently?
China investor looking to buy stake in NYC GM Building. Click here. Expect much more of this.