There is an international financial storm that is rapidly gaining strength. Where and when it makes landfall, it will topple an already unstable and overextended banking system. The amount of international debt has now surpassed $200 trillion USD (United States Dollar) and is rising fast. Instead of permitting the last global contagion in 2008 and 2009, to provide some market correction to a bloated and unsteady framework, policy makers decided on an alternative. They would flood the world with liquidity and it […]
Global Investing Blog
Sweden Enters The Race To The Bottom In Ongoing Currency War
Sweden has entered the spreading currency war by cutting interest rates from 0% to -0.1% and launching its own version of quantitative easing (QE). As the central bank of the country the Riksbank was announcing the new monetary initiative, politicians inside the country cheered on the effort to stimulate new growth and investment in Sweden. It seems that every country around the world is joining the effort of devaluation in a race to the bottom. At this point, one might begin to […]
The End Of An Era In Venezuela
The end is near for the Bolivarian Revolution in Venezuela after a disastrous 16 years. The country now faces bankruptcy, after destructive economic policies that have taken a resource rich nation to the edge of ruin. The government is finally running out of financial resources to simply paper over the nonsensical fiscal actions, taken by former President Hugo Chavez and his successor Nicolas Maduro. Ideology and politics always triumphed over economic common sense in this collectivized experiment, which is now mercifully coming […]
Time For Greece To Leave The Euro?
Many international investors continue to ask the question whether Greece will actually leave the Euro? A newly installed leftist government in Greece, does not change the dire fiscal circumstances that the country finds itself in. At the end of the month the current financial aid package ends and Greece will need to renegotiate the crushing debt, that the country has accumulated over decades of profligacy. The open secret that no one wants to acknowledge, is that Greece is essentially bankrupt. The country […]
The Economic Impact Resulting From An Escalation Of War In The Middle East
The escalating war in the Middle East is having a rising impact on the global economy. Two recent events which include the retaliation of Jordan against ISIS (Islamic State of Iraq and Syria) and the collapse of the central authority in Yemen, are both escalations in a spreading contagion of war. The growing anxiety in Israel that Iran is on the verge of acquiring a nuclear device and the unwillingness of the United States and Europe, to roll back the terrorist state […]
A Resurgent United States Dollar: The Return Of The King
Internationally the dollar has become resurgent in the face of a collapsing commodities market and a decline in national currencies almost everywhere. It still does not mean the United States dollar (USD) as the world’s reserve currency, is not in danger itself. Years of quantitative easing (QE), historically low interest rates and incredible amounts of debt, have taken their toll on the American dollar as well. Yet, the dollar has increased 19% in value since last July. This is an enormous increase […]
The Financially Irresponsible American Government Under President Obama
For investors the strength of the dollar and economy are important reasons to invest in the United States. What is troubling at the same time, is the irresponsible actions of the American government under President Obama. The national debt is now in excess of $18 trillion USD (United States Dollar) and increasing at an alarming rate. President Obama is on track to increase the level of indebtedness more than all former presidents from George Washington to George W. Bush combined. To present […]
The World’s Central Banks: Waning Power And Deceit
If there are any investors that still believe that the Central Banks of the world are in a position to provide stability and security to the financial and equity markets, one only has to watch what recently occurred in Switzerland. Despite assurances that the Swiss franc would maintain the peg to the Euro at a rate of 1:20 to 1 respectively, the Swiss Central Bank in the end threw in the towel and allowed a massive appreciation of their currency. The central […]
The Onset Of The Currency Wars
The onset of the currency wars has commenced. All around the world, nations are lowering the value of their money. First Japan, followed by the United States and the United Kingdom have all engaged in quantitative easing (QE) and the lowering of interest rates to historic lows. In the last two weeks the Euro plunged in value against the dollar to a 11 year low with the onset of QE there, after first lowering the rates of interest to negative levels in […]
The Arrival Of Quantitative Easing In Europe
Europe will begin a full fledged version of quantitative easing beginning in March of this year. To many in the markets it comes as a relief. They have allowed themselves to believe that expanding the money supply through the purchasing of government debt, will bring back growth to the staggering continent. The hope is that this infusion of new money will stimulate the economy enough, to allow a return of the lost prosperity of a bygone era. The policy makers of Europe […]