The beginning of the 21st century was full promise for Brazil. This was going to be the time when the country would move from being an emerging market to the status of developed first world nation, within the first two decades. Economic growth accelerated from 3% in 2002 to 6% by 2007. After a brief interruption as a result of the financial crisis and resulting economic downturn in 2009, growth surged in 2010 approaching 8%. Foreign investment was pouring in. The boom in […]
Global Investing Blog
The Next Round Of Quantitative Easing In The United States Is Coming Soon
As the controversy about raising interest rates slightly continues to dominant the headlines and investors worry about the impact this would have on the markets, little attention is being given to the rapid slowdown in global growth. In the developed world only two countries are making plans to raise interest rates in 2015. Both the United States and the United Kingdom believe it is time to move away from historic low rates, that have created numerous distortions in their domestic economies. Although […]
The Bear Market Is Almost Here
The bear began to circle global markets last Tuesday, which proved to be the beginning of a major downturn. By the end of the trading week stocks and equities would be officially in correction territory, having lost 10.1% valuation since last May. In the United States the DJIA (Dow Jones Industrial Average) alone lost 5.8% in four days. Markets abroad were no better, with both Asia and Europe reporting big declines. Investors were optimistic that the new week would bring recovery. Their […]
The Economy Of Japan Remains Mired In Recession
Despite the massive quantitative easing and stimulus spending the country of Japan remains mired in recession. The economy shrank at an annualized pace of 1.6% from April to June. Consumers are cutting back on spending and exports seem to be in a new slump, as the world economy slows further. The question for the reformist government of Japan is what to do next, to rekindle growth and investment in the world’s second largest developed economy? Japan is the third largest economy in […]
Russia Moves To Expand War In Europe
Although the war in eastern Ukraine has been simmering for months, the escalation in violence is continuing as summer turns into fall. There has been a false sense of complacency in the West, that the situation on the ground has been frozen and that the danger of a major war has been mostly averted. Nothing could be further from the truth. President Vladimir Putin from Russia knows his window of opportunity is closing and that he must move forward, to achieve his […]
The Global War In Currency Escalates As China Devalues Yuan
This week saw an escalation in the global currency war when China decided to embark on a major devaluation. The immediate result was a 1.8% drop in the yuan on Tuesday against the American dollar and 2.2% in relation to the Euro. It was the largest single day plunge for the currency in decades. On Wednesday, Chinese authorities allowed the yuan to drop even further, bringing the total depreciation equal to about 4% against the dollar. A third cut will be coming […]
The Global Devaluation In Currency Intensifies
The devaluation of global currencies is accelerating. Emerging nations around the world are being being devastated by the flight of investors from less stable currency to the major reserve currencies of the world. Confidence is rapidly eroding in the domestic currencies in some of the leading nations across Asia and Latin America. The flight to the more stable currencies like the Euro and especially the American dollar, is intensifying. The reasons for the erosion of national currencies in emerging nations are not […]
The Present Market in Gold And Silver Is A Ponzi Scheme
For investors the present marketplace for gold and silver and other precious metals, has lost any real connection to the regular forces of supply and demand. The issuance of paper gold and silver has allowed a separation from market forces. It has divorced the true monetary values from the quantities of precious metals that are actually in existence. This has vastly inflated the supposed supply, thus putting a downward pressure on price. The reality is that there is far less physical gold […]
Germany The Bank And Linchpin Of Europe
In the later part of the 19th century the German Empire was the leading power on the continent of Europe, both militarily and economically. Britain alone could challenge Imperial Germany, due to the strength of the Royal Navy and the resources that this island kingdom could bring to bear. The British Empire ruled the seas, but the Germans had the strongest single army in Europe. As the 20th century dawned it was clear that the economies of Germany and the United States […]
The Long Economic Turbulent Summer of 2015
The world is now witnessing the limits to government manipulation of the markets and the economy at large. The meltdown in China’s Shanghai Composite Index with a single day loss on Monday of 8.5%, is the second largest in a decade. The Shenzhen lost 7% of it value as well. The fall is a direct result of the 0.3 drop in industrial profits last month. It is a sign that the Chinese economy the second largest in the world, is not heading […]