The Bear's Lair: Governments can't spend their way out of trouble

November 10, 2014

Japan caused a euphoric rise in global stock markets last week by raising the cap on its "quantitative easing" purchases of government bonds to 80 trillion yen a year ($720 billion, some 14% of Japan's GDP.) Yet even with the huge "stimulus" and the declining yen to which it has led, Japan can still barely get its GDP growth rate up to 1%, while its budget deficit is some 8% of GDP. Other countries have tried similar approaches to stimulating their economy and have similar problems. Keynesian public spending stimulus, touted recently by the IMF as the solution to the problem of global economic sluggishness, isn't working. It's worth pondering why not.

The Bear's Lair: The ultimate in foolish leverage

April 7, 2014

The Financial Times revealed this week that trades in index credit default swap (CDS) options had managed to avoid being listed on exchanges, with all the transparency requirements that brings, instead being allowed to continue trading on an over-the-counter basis.

Top Ten Signs Precious Metals Stocks May Have Seen A Bottom

March 25, 2014

By Lila Murphy

Greetings readers.  It’s been a while since I have written in this space as I have mostly believed that I didn’t have much to say that had not already been said about the precious metals space and how positively dismal things had become.

Obama Care and Inflation to the Rescue?

November 5, 2013

By Michael Pento 

Rising debt and weaker profit margins do not portend a rosy future.

Emerging Market Crisis—Redux?

October 21, 2013

By Satyajit Das 

EM represent 60-70% of global economic growth since 2008; their slowdown will rapidly affect developed economies.

The New Economic Nationalism and the Great Game

October 9, 2013

By Satyajit Das

The drift to closed economies and the possibility of Chindia.

The Credit Crisis: Five Years Past or Five More in the Making

September 19, 2013

By Michael Pento  

The Great Recession should not be thought of as something behind us.

Will the Last Person to Exit the Treasury Market Please Turn Out the Lights

August 30, 2013

By Michael Pento  

When the Fed stops buying Treasuries, foreign and domestic investors will do so as well.

Greece Highlights Germany's EU Dilemma

August 27, 2013

By John Browne   

Revelations reveal a wide gap between economic reality and the sunny face of EU optimism.

Second Half Recovery Predictions Fail Again

August 12, 2013

By Michael Pento  

The market eventually will eschew our debt and currency.

Housing Recovery in Jeopardy

July 31, 2013

By Michael Pento  

Expect hundreds of thousands of foreclosed properties to hit the market in the near future.

“Oh Lord! Please Let Me Be Misunderstood"–A Guide to Central Bankspeak

July 25, 2013

By Satyajit Das  

Negotiating treacherous financial markets now requires more knowledge of semiotics than economics.

Turning Japanese

July 8, 2013

By Satyajit Das 

The song aptly captures the trajectory of the global economy, as well as individual economies such as China.

Crushing the Middle Class

June 11, 2013

By John Browne  

To what end are governments discouraging savers and small businesses?

The End of Growth?

June 10, 2013

By Satyajit Das  

If government intervention offered universal economic cures, Japan’s economic problems would have been solved years ago.

Low Interest Rate Addictions

June 4, 2013

By Michael Pento

Once the interest rate “pin” is pulled, the entire house of cards will collapse.

It's Raining Yen (and Dollars and Pounds etc.!) Hallelujah!

May 23, 2013

By Satyajit Das  

Ultimately, a policy of devaluation to attain prosperity is flawed.

Bubbles Inflating Faster Than GDP

May 14, 2013

By Michael Pento   

Three reasons why an economy soaked in debt grows only bubbles.

Gold Recovers Amid Uncertainty

May 3, 2013

By John Browne  

The weight of history will eventually come down against paper.

GDP Bag of Tricks

April 30, 2013

By Michael Pento

Our leaders in Washington have overlooked the most important point, as they so often do.

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