Acute uncertainty
In Europe, there recently were comprehensive attempts at stabilization, but the huge structural uncertainties that have beset the EU for some time were left unaddressed.
Peter C. Cavelti
Gold continues to be in a sweet spot.
And as to central banks, we believe they are far more likely to add to gold reserves than dispose of them.
Currencies of most Major Economies
Governments have created money on such a scale that the currencies of most major economies are inherently untrustworthy. Moreover, governments from the U.S. to Europe to Japan have vowed to fight further threats to their economies with quantitative easing, i.e the creation… Read More »Currencies of most Major Economies
The Fortune of the United States
The fortune of the United States during the postwar period has been that whatever chaos ill-guided policies in Washington created, Europe and Japan could be counted on to do even worse. And so it is again this time. The European banking system… Read More »The Fortune of the United States
Even more Bullish on Gold
We are becoming even more bullish on gold. The main reason is that the global economic situation continues to deteriorate—most industrialized nations are now all in a horrendous fiscal mess, which is likely to get… Read More »Even more Bullish on Gold
Meltdown in Financial Markets
The meltdown in financial markets does not come as a surprise to our clients. But it is nonetheless tragic. The reckless practices by U.S. and European banks will now lead to the wholesale destruction of those who behaved… Read More »Meltdown in Financial Markets
Far too Leveraged
Banks are far too leveraged, mostly so in the United States and Britain. Also at tremendous risk are the large Swiss banks, whose balance sheets surpass the GDP of the country. The safest banking system… Read More »Far too Leveraged
A major financial dislocation appears imminent
A major financial dislocation appears imminent. I have extensively written about the three catalysts that could unleash calamity: -the reckless granting of low quality real estate loans;-the intransparency of trillions of dollars in outstanding derivatives;-and the lack… Read More »A major financial dislocation appears imminent
Avoid debt wherever you can
Avoid debt wherever you can. The “debt is your friend” mantra that characterized much of the past fifty years is about to end. The new reality will be “debt destroys!” And, while I’m at it, avoid real… Read More »Avoid debt wherever you can
Why Hold a Cash Position?
The most frequent question I receive from clients is this: “Why hold a cash position?” Unfortunately, today’s investor is so used to large and trouble-free returns that the idea of capital preservation is scoffed at.… Read More »Why Hold a Cash Position?
The Hostile World
Part 2
Declining birthrates in many nations will have a devastating effect on living standards and government finances, especially in the nations and regions with the most unhealthy demographic profiles: Japan, Russia and most of Europe. The generational implications are equally alarming, as fewer young people will be responsible for supporting a larger number of seniors.
The Hostile World,
Part 1
We explore why the growing U.S. military engagement in the Middle East will guarantee massive instability for many years to come, sporadically dislocating financial markets, impairing economic growth and curtailing our civil liberties.