• Tag Archives Money
  • Are The ‘Toxic’ Democrats Destined To Become A Permanent Minority Party?

    It has become exceedingly clear that the Democratic Party is in deep trouble. Close to 55 million dollars was spent on the race in Georgia’s sixth congressional district, and that shattered all kinds of records. Democrat Jon Ossoff was able to raise and spend six times as much money as Karen Handel and yet he still lost. This was supposed to be the race that would show the American people that the Democrats could take back control of Congress in 2018, and so for the Democrats this was a bitter failure. The Democratic Congressional Campaign Committee actually injected almost 5 million dollars into the race themselves, and Planned Parenthood threw in another $700,000. But after all of the time, effort and energy that was expended, Handel still won fairly comfortably.
    The Democrats are trying to spin this result as some sort of ‘moral victory’, but as Dan Balz of the Washington Post has pointed out, there are ‘no moral victories in politics’…

    This post was published at The Economic Collapse Blog on June 21st, 2017.


  • Anti-Gold Propaganda Flares Up

    Predictably, after the gold price has been pushed down in the paper market by the western Central Banks – primarily the Federal Reserve – negative propaganda to outright fake news proliferates.
    The latest smear-job comes from London-based Capital Economics by way of Kitco.com. Some ‘analyst’ – Simona Gambarini – with the job title, ‘commodity economist,’ reports that ‘gold’s luck has run out’ with the 25 basis point nudge in rates by the Fed. She further explains that her predicted two more rate hikes will cause even more money to leave the gold market.
    Hmmm…if Ms. Gambarini were a true economist, she would have conducted enough thorough research of interest rates to know that every cycle in which the Fed raises the Funds rate is accompanied by a rise in the price of gold. This is because the market perceives the Fed to be ‘behind the curve’ on rising inflation, something to which several Fed heads have alluded. In fact, the latest Fed rate hike, on balance, has lowered longer term interest rates, as I detailed here: Has The Fed Really Raised Rates?

    This post was published at Investment Research Dynamics on June 21, 2017.


  • Keep Your Cash Compounding With This Strategy – Patrick Donohoe Interview

    The following video was published by FutureMoneyTrends on Jun 21, 2017
    Patrick Donohoe joins us in today’s insightful interview to discuss compounding money and long term thinking by using wealth growing strategies.
    We also find out what makes Paradigm Life unique compared to competitors and what added help Clients can expect to receive.


  • Could Recent FANG Weakness Be Signaling the End of the Bull Run?

    As we survey the financial markets and global economic backdrop, it appears that a change in the wind could be slowly taking place. Across the tides of global capital markets, a chillier wind may be starting to blow, ushering in what could soon be some sweeping changes in the major trends for primary capital markets. In China, the air of debt deleveraging seems to be taking root, with tightness in the money markets, bond market collapses, bond market closures, and inverted yield curves. In addition, there are also widespread rumors surrounding the viability of an assortment of wealth management products that have embedded duration mismatch problems baked into the cake.
    Here at home in the USA, boom times remain in full swing with stock market averages busting out to new highs seemingly day-after-day. Yet, behind the bullish headlines, there seems to be developing a clear pattern of parabolic (terminal) excess within the technology space, a pattern familiar to those market watchers who recall 1999 and 2008.
    Sure enough, for the most part, today’s current valuation metrics for technology stocks are nothing close to the fantasy price-to-eyeball ratios that seemed to capture the imagination of so many when the first internet boom developed in the late 1990s and peaked in March 2000. Yet, today’s market harkens back to a blend of the pre-tech wreck mania vertical blow off patterns and the famous Nifty 50 market of the early 1970s.

    This post was published at FinancialSense on 06/21/2017.


  • 69 Percent Of Americans Do Not Have An Adequate Emergency Fund

    Do you have an emergency fund? If you even have one penny in emergency savings, you are already ahead of about one-fourth of the country. I write about this stuff all the time, but it always astounds me how many Americans are literally living on the edge financially. Back in 2008 when the economy tanked and millions of people lost their jobs, large numbers of Americans suddenly couldn’t pay their bills because they were living paycheck to paycheck. Now the stage is set for it to happen again. Another major recession is going to happen at some point, and when it does millions of people are going to get blindsided by it.
    Despite all of our emphasis on education, we never seem to teach our young people how to handle money. But this is one of the most basic skills that everyone needs. Personally, I went through high school, college and law school without ever being taught about the dangers of going into debt or the importance of saving money.
    If you are ever going to build any wealth, you have got to spend less than you earn. That is just basic common sense. Unfortunately, nearly one out of every four Americans does not have even a single penny in emergency savings…
    Bankrate’s newly released June Financial Security Index survey indicates that 24 percent of Americans have not saved any money at all for their emergency funds.
    This is despite experts recommending that people strive for a savings cushion equivalent to the amount needed to cover three to six months’ worth of expenses.

    This post was published at The Economic Collapse Blog on June 20th, 2017.


  • 100 Million Dead In US

    Go ahead folks, read this one.
    Accordingly, I must communicate to you at this time the full extent of our dire fiscal straits and the potential disruptions that we face in addressing even our most critical core responsibilities going forward into the new fiscal year. My Office has very serious concerns that, in the coming weeks, the State of Illinois will no longer be able to guarantee timely and predictable payments in a number of areas that we have to date managed (albeit with extreme difficulty) despite an unpaid bill backlog in excess of $15 billion and growing rapidly.
    We are effectively hemorrhaging money as the state’s spending obligations have exceeded receipts by an average of over $600 million per month over the past year. (ed: That’s $7.2 billion/year)
    My cause for alarm is rooted in the increasing deficit spending combined with new and ongoing cash management demands stemming from decisions from state and federal courts, the latest being the class action lawsuit filed by advocates representing the Medicaid service population served by the state’s Managed Care Organizations (MCOs). As of June 15, the MCOs, and their provider networks, are owed a total of more than $2.8 billion in overdue bills at the Comptroller’s Office. There is no question that these obligations should be paid in a more timely manner and that the payment delays caused by the state’s financial condition negatively impact the state’s healthcare infrastructure. We are currently in court directed discussions to reach a workable and responsive payment schedule going forward, but any acceleration of the timing of those payments under the current circumstances will almost certainly affect the scheduling of other payments, regardless of other competing court orders and Illinois statutory mandates.

    This post was published at Market-Ticker on 2017-06-21.


  • “Brazil Now Facing A Major Crisis”: Police Says It Has Evidence President Temer Received Bribes

    Update: and right on time, the Brazilian house speaker confirmed that the worst case scenario – for Temer – is on the table:
    BRAZIL NOW FACING MAJOR CRISIS: HOUSE SPEAKER MAIA BRAZIL JUDGE REJECTS TEMER CRIMINAL COMPLAINT VS JBS’S BATISTA * * *
    Almost exactly one month after Brazil’s stock market crashed, and the Real plunged after the country’s never-ending political drama made a triumphal return following accusations that president Michel Temer had encouraged a “hush money” bribe to former House Speaker Eduardo Cunha in return for not getting dragged into the Carwash scandal, on Tuesday afternoon, Brazil’s federal police force said it has found evidence that the embattled president received bribes to help businesses, Brazil’s O Globo reported.

    This post was published at Zero Hedge on Jun 20, 2017.


  • Money Supply Growth Fell to a 104-Month Low in May

    Last month, the money supply growth rate in the United States fell to a 104-month low, rising by 5.91 percent. This is the lowest growth rate recorded since July 2008 when the growth rate was 5.24 percent.
    Given the imprecise nature of these estimates, however, it is fair to say that the rate of growth is essentially unchanged since March, and for the past three months, money supply growth has been at eight-year lows.
    In March, we reported that money supply growth had fallen to a 103-month low. In April, the growth rate increased slightly to 6 percent, but fell again in May.
    The M2 measure also showed a downward turn in recent months, although not to the same extent as the “Austrian” measure. In May, however, M2 growth had moderated to the point of matching our money-supply growth measure with both now being at 5.9 percent.

    This post was published at Ludwig von Mises Institute on June 21, 2017.


  • Illinois Comptroller: “The State Can No Longer Function, We Have Reached A New Phase Of Crisis”

    With just 10 days to go until Illinois enters its third year without a budget, resulting in the state’s imminent downgrade to junk status and potentially culminating in a default for the state whose unpaid bills now surpass $15 billion, Democratic Illinois Comptroller Susana Mendoza issued a warning to Illinois Gov. Rauner and other elected officials on Tuesday, saying in a letter that her office has “very serious concerns” it may no longer be able to guarantee “timely and predictable payments” for some core services.
    In the letter posted on her website, Mendoza who over the weekend warned that Illinois is “in massive crisis mode” and that “this is not a false alarm” said the state is “effectively hemorrhaging money” due to various court orders and laws that have left government spending roughly $600 million more a month than it’s taking in. Mendoza said her office will continue to make debt payments as required, but indicated that services most likely to be affected include long-term care, hospice and supportive living centers for seniors. She added that managed care organizations that serve Medicaid recipients are owed more than $2.8 billion in overdue bills as of June 15.
    “The state can no longer function without a responsible and complete budget without severely impacting our core obligations and decimating services to the state’s most in-need citizens,” Mendoza wrote. “We must put our fiscal house in order. It is already too late. Action is needed now.”
    Unveiling the most dire langage yet, in her letter Mendoza said “we are now reaching a new phase of crisis” perhaps in an attempt to prompt the Democrats and Republicans to sit down and come up with a comrpomise:

    This post was published at Zero Hedge on Jun 20, 2017.


  • Argentina issues 100-year bond. What could possibly go wrong?

    Apparently while I was in the air yesterday flying between Asia and Europe, the financial system proved once again that it believes in magic beans.
    The latest absurdity is that the government of Argentina sold $2.75 billion worth of bonds yesterday afternoon.
    It’s not strange or unusual for a government to sell bonds; it happens multiple times across the world nearly every single day of the year.
    What’s totally insane about yesterday’s bond sale in Argentina, though, is the duration of these particular bonds.
    Remember that a bond is similar to a loan; as an investor, you’re basically loaning money to whichever government issues the bond.
    And, like a loan, a bond has a maturity date – the date at which the government is supposed to pay you back the ‘face value’ of the bond.
    often have a 3-7 year term. Student loans can easily go 10 or 15 years. A home mortgage can last 30 years.
    It’s the same with government bonds, which often have a term up to 30 years.

    This post was published at Sovereign Man on June 20, 2017.


  • Amid Dreary Landscape, Event Funds Stage A Comeback

    The US hedge fund industry is in rough shape as the Federal Reserve’s lift-all-boats monetary policy has made it increasingly difficult to beat the market. US hedge funds endured nearly $100 billion in redemptions last year, as only 30% of US equity funds beat their benchmarks. But as confidence in traditional stock pickers dwindles, so-called ‘event-driven’ funds are attracting renewed interest in investors, particularly in Europe, where near-zero rates and relatively attractive valuations are expected to stoke a boom in M&A activity, Bloomberg reports.

    After these funds experienced some high-profile stumbles in recent years – one such fund managed by John Paulson’s Paulson & Co. posted a 49% loss and endured billions of dollars in redemptions – some Europe-based funds are seeing billions in inflows. Kite Lake Capital Management, Everett Capital Advisors and Melqart Asset Management have garnered billions in fresh investor capital over the past two years.
    ‘Kite Lake Capital Management almost doubled client assets this year, while Everett Capital Advisors nearly tripled its funds since launching in January 2016. The money overseen by Melqart Asset Management has grown 12-fold since the firm started less than two years ago. The three event-driven funds have $1.5 billion in combined assets and invest across Europe, where an increasingly buoyant economy and record-low interest rates are boosting dealmaking. Their resurgence is part of a comeback effort by a hedge-fund industry that’s only now starting to recover from a wave of investor redemptions and years of disappointing returns.

    This post was published at Zero Hedge on Jun 20, 2017.


  • 10 Fold Increase in Cryptocurrencies by Year-End | BrotherJohnF

    The following video was published by SilverDoctors on Jun 19, 2017
    Money is rushing into cryptocurrencies, but are the biggest moves yet to come? John from the Silver for the People blog would not be surprised if the cryptocurrencies sector increased ten-fold by the end of 2017.
    Can cryptocurrencies be stopped? John says individual cryptocurrencies might fail, but cryptocurrencies in general will survive. Cryptocurrencies may become the world’s most popular money, John says.


  • Chapter 18: Production and Distribution

    Christian Economics: Teacher’s Edition
    About that time there arose no little disturbance concerning the Way. For a man named Demetrius, a silversmith, who made silver shrines of Artemis [Diana], brought no little business to the craftsmen. These he gathered together, with the workmen in similar trades, and said, ‘Men, you know that from this business we have our wealth. And you see and hear that not only in Ephesus but in almost all of Asia this Paul has persuaded and turned away a great many people, saying that gods made with hands are not gods. And there is danger not only that this trade of ours may come into disrepute but also that the temple of the great goddess Artemis may be counted as nothing, and that she may even be deposed from her magnificence, she whom all Asia and the world worship.’ When they heard this they were enraged and were crying out, ‘Great is Artemis of the Ephesians!’ (Luke 19:23 – 28)
    AnalysisDemetrius understood the economic law of supply and demand. He understood that demand for his silver shrines was based on widespread faith in the supernatural power of Artemis-Diana, the goddess associated with the city of Ephesus. The temple was known across the Mediterranean. It is numbered among the legendary seven wonders of the world. This demand for household shrines, meaning idols, was under assault from Paul, who was preaching salvation through faith in Jesus Christ, who was God incarnate. If the new faith spread, it would put Demetrius out of business.
    He called together other craftsmen who supplied him with products. He warned them that their businesses were at risk, just as his was. He sold to final users. He bought support materials from these craftsmen. He understood that maintaining consumer demand was the key. If the producers were not successful in persuading buyers to buy the products of their hands, they would have to go into another market. They would still be competent craftsmen, but they would have to leave their profitable niche markets associated with the goddess, and produce silver goods that were less in demand. Their income would necessarily fall.
    Demetrius understood that consumers direct production, not producers. Consumers own money. They can buy almost anything that is for sale. Producers must subordinate their skills to consumers if they expect to get paid.

    This post was published at Gary North on June 19, 2017.


  • Is Amazon/Whole Foods This Cycle’s AOL/Time Warner – A Sign That The Party’s Over?

    Towards the end of the 1990s tech stock bubble, ‘new media’ – i.e., the Internet – was ascendant and old media like magazines, newspapers and broadcast TV were yesterday’s news. This was reflected in relative stock valuations, which gave Internet pioneer AOL the ability to buy venerable media giant Time Warner for what looked (accurately in retrospect) like an insane amount of money.
    Now fast forward to 2017. Online retailing is crushing bricks-and-mortar, giving Amazon all the high-powered stock it needs to do whatever it wants. And what does it want? Apparently to run grocery stores via the acquisition of Whole Foods, the iconic upscale-healthy food chain.
    The two deals’ similarities are striking, but before considering them here’s a quick AOL/Time Warner post-mortem:
    15 years later, lessons from the failed AOL-Time Warner merger
    (Fortune) – The landscape of mergers and acquisitions is littered with business flops, some catastrophic, highly visible disasters that were often hugely hyped before their eventual doom. Today marks the 15th anniversary of one such calamity when media giants AOL and Time Warner combined their businesses in what is usually described as the worst merger of all time. But what happened then will happen again, and ironically for the exact same reasons.

    This post was published at DollarCollapse on JUNE 19, 2017.


  • Mark Hanson: Housing Bubble 2.0 – The End Is Nigh?

    The incredible essay below is reproduced here with permission by Dr. Hunt for Epsilon Theory. If Dr. Hunt is even moderately accurate, which I believe he is, the housing market headwind on deck could be every bit as powerful as what hit at the end of Bubble 1.0.
    Bottom line: The Fed, during Obama, did everything in its power to surge all asset prices – stocks, bonds, real estate, collectables, et al – with no regard for its own guidance, as to when it would take its lead-foot off the accelerator. Now, under Trump, they are doing the exact opposite; looking ‘through’ all the obvious coincident and near/mid term, economic weakening trends in an effort to raise rates as quickly as possible. If, the past 8-years of a Fed in Armageddon-mode created the ‘everything bubble’ (hat-tip Wolf Richter), what will shifting monetary policy into reverse do to said asset price levels?
    Back in Bubble 1.0, the helium came out of house prices when the ‘unorthodox credit and liquidity’ was forced out of the markets all at once precipitated by the mortgage credit market implosion. Quickly, house prices ‘reattached’ to end-user, shelter-buyer employment, income, and credit fundamentals…or, to what end-user, shelter-buyers could really buy using a traditional, 30-year fixed rate mortgage, and a truthful loan application, which was about 30% less.
    What’s really the difference between the ‘unorthodox credit and liquidity’ coming out back then and coming out now from a Fed in reverse? House prices didn’t surpass their 2007 peaks because everybody is working, making more money (with the exception of those in the footprint of tech bubble 2.0). They have been goosed for years by unorthodox demand using unorthodox credit and liquidity (i.e., investors, speculators, flippers, floppers, foreigners, money launderers, options, etc etc) just like in Bubble 1.0.

    This post was published at Zero Hedge on Jun 19, 2017.


  • SWOT Analysis: Is India’s Gold Market Recovering?

    Strengths
    The best performing precious metal for the week was gold, off just 1.02 percent despite a Fed rate hike. The Fed may not be in a position to continue with multiple rate hikes. Mike McGlone, BI Commodity Strategist, points out the current situation that both crude oil futures and Treasury bond yields are falling. Since 1983, the Fed has never sustained a rate hike cycle while both crude and Treasuries are falling. Gold has risen from a three-week low as investors digest the latest rate hike and anticipate the probability of additional rate hikes, reports Bloomberg. Suki Cooper, an analyst with Standard Chartered, writes, ‘If the market starts pricing in the end to the current hiking cycle, this would remove a major headwind for gold and allow prices to breach the stubborn $1,300 threshold in a sustained move higher.’ Bloomberg reports that public sector investors increased their net gold holdings to an estimated 31,000 tons last year, an increase of 377 tons. This is the highest level since 1999. Weaknesses
    The worst performing precious metal for the week was silver with a loss of 2.90 percent. Money managers cut their net-long by about 10 percent this past week. For the second week in a row, gold traders and analysts surveyed by Bloomberg are bearish. This is the first time survey results have indicated two-week run of bearish outlook since December. Gold futures have had the longest losing streak in three months, as investors have anticipated the Fed’s actions this week. Bullion futures for August delivery closed down for the fourth straight session earlier this week.

    This post was published at GoldSeek on Monday, 19 June 2017.


  • Suicide Over European Banking Crisis

    The European ‘bail-in’ rules have been cheered claiming taxpayer money will be spared. However, many seniors bought bank bonds for their retirement. In the rescue of the small Banca Popolare d’Etruria, a retiree who had lost more than 100,000 euros worth of bonds lost everything and committed suicide. There have been many such events that do not always make the press. In Italy, the death of a pensioner who also committed suicide after losing his life savings as a result of a controversial move by the government to rescue four banks. The 68-year-old hung himself at his home in Civitavecchia, a port town near Rome, after the so-called ‘save banks’ plan wiped out 100,000 in savings held at Banca Etruria, one of the four lenders included in the government rescue deal announced on November 22nd, 2015. There was the 23-year old who committed suicide over 8000 in debts for student loans. A Greek pensioner who was 77-years old committed suicide in central Athens shooting himself with a handgun just several hundred meters from the Greek parliament building in apparent despair over his financial debts.

    This post was published at Armstrong Economics on Jun 19, 2017.


  • China’s “Ghost Collateral” Arrives In Canada, “Heralding A Crisis”

    Two weeks ago, a key China-linked concern that made headlines back in 2013 and 2014 reemerged after an extensive analysis by Reuters reporter Engen Tham found that China’s “ghost collateral” problem, or collateral that was either rehypothecated between two or more loans, or simply did not exist, had not only not gone away but was still as prevalent as ever if not worse.
    The report, a continuation of extensive reporting conducted on this site, said that 60% of all loans issued in China’s system are backed by property, and that China’s property values are ‘wildly misleading, which is part of the reason that China’s credit rating was recently downgraded.” Reuters reported that Chinese lenders are prone to fraud with loan officers turning a blind eye to the quality of collateral and knowingly accepting dubious and even fraudulent documents.
    Now, in a follow up by the Vancouver Sun’s Sam Cooper, the real estate reporter explains that China’s “ghost collateral” problem has jumped across the Pacific and is threatening the Canadian banking system.
    As Cooper notes, “as a result of the flood of money pouring from Mainland China into Vancouver real estate in recent years, some financial experts say they believe Canadian banks are directly exposed to shadow lending in China and the risks of so-called ‘ghost collateral’, collateral that may not exist or is used continuously to secure loans for multiple borrowers.”
    And the stunner: “Postmedia confirmed that Canadian banks are allowed by the federal regulator, the Office of the Superintendent of Financial Institutions, to accept collateral from China to secure real estate mortgages in B. C.”

    This post was published at Zero Hedge on Jun 18, 2017.


  • Chapter 17: Consumption and Budgeting

    Christian Economics: Teacher’s Edition
    For which of you, desiring to build a tower, does not first sit down and count the cost, whether he has enough to complete it? Otherwise, when he has laid a foundation and is not able to finish, all who see it begin to mock him, saying, ‘This man began to build and was not able to finish’ (Luke 14:28 – 30).
    AnalysisHere is the economic principle: count the cost. It applies to every area of life, not just economics. Why? Because we possess limited resources. This is most clearly the case in economic affairs. Here, accounting techniques are basic to our lives as producers and also as consumers. Most people have more things they would like to buy than money to buy them. Here is a familiar statement: ‘Human wants are infinite, but resources are finite.’ This is incorrect. We are creatures. Creatures are not infinite. Wants are therefore finite, but their prices exceed the money that most people have to satisfy them.
    The Bible teaches that a good way to deal with scarcity is to limit our wants. In a famous passage, Paul wrote:
    But godliness with contentment is great gain. For we brought nothing into the world, and we can take nothing out of it. But if we have food and clothing, we will be content with that. Those who want to get rich fall into temptation and a trap and into many foolish and harmful desires that plunge people into ruin and destruction. For the love of money is a root of all kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves with many griefs (I Timothy 6:6 – 10).
    This is the threat of mammon, which offers this promise: more. The confession of faith of the disciple of mammon is this: ‘more for me in history.’ This goal is not limitless wealth, for we are not infinite. Rather, the goal is indefinite wealth. It has no known limits. It therefore undermines contentment. It produces dissatisfaction.
    A budget is a confession of faith: there are limits. It acknowledges that means are limited, so therefore goals are limited. Means must match ends in every area of life, especially budgetary means. It is legitimate to have large goals, but the Bible teaches that these goals must be theocentric. ‘The kingdom of heaven is like a grain of mustard seed that a man took and sowed in his field. It is the smallest of all seeds, but when it has grown it is larger than all the garden plants and becomes a tree, so that the birds of the air come and make nests in its branches’ (Matthew 13:31b – 32). To seek sufficient capital to attain these large goals is legitimate. But covenant keepers must not substitute means for ends. They must not seek increased wealth for its own sake or for their sake. To do so is necessarily to declare the means as autonomous. Nothing is autonomous. God is the cosmic Owner.

    This post was published at Gary North on Gary North – June 17, 2017.