The global economy is entering a next "supercycle" phase that will generate inflation necessary for recovery, a strategist and protege of noted economist Nouriel Roubini told CNBC.
In this interview JIm discusses the IMF gold sales today and in the 70’s, China’s moves in the gold market, Greece and other EU problems and the accompanying QE, attacks on currencies and countries and the eventual end game, where he sees the US Dollar headed, suspicions of the Greek bond offering, mining company’s strategies and their cash position and much more.
(Reuters) - With economic policy stimuli already at full tilt, no government wants an overvalued exchange rate to slay recovery, and the rival "soft currency" needs are producing some elaborate rhetorical jousting.
Poor economic data in the US coupled with Europe's debt crisis are contributing to an increase of the risk of the US economy going through a double-dip recession, Nouriel Roubini, who predicted the 2007 financial crisis, wrote in a research paper.
A big “yeah right” to this story. China is screwed…yeah the gold market is too small, that’s because you can’t just print more and guess what they have $1.4 trillion in foreign currency reserves…you know fiat money…and only 1.8% of that in gold versus 10% that the rest of the world has…they can buy it here at these prices or later at possibly much higher prices…either way if they want to be a modern economic force and not watch their massive fiat foreign currency reserves be devalued away…they need it and they need it now….
The euro is under attack like never before, as the promises on which it was based turn out to be lies. Hedge funds are speculating against Greek debt, while euro-zone politicians work behind the scenes to cobble together rescue packages. But fundamental flaws in the monetary union need to be fixed if Europe's common currency is to survive.
Voters rejected the bill because “ordinary people, farmers and fishermen, taxpayers, doctors, nurses, teachers, are being asked to shoulder through their taxes a burden that was created by irresponsible greedy bankers,”
U.S. credit default swaps currently trade in euros. After all, if the U.S. defaults, who will want payment in devalued U.S. dollars? The euro recently weakened relative to the dollar, and market participants are calling for contracts that require payment in gold. If they get their way, speculators on the winning side of a price move will demand collateral paid in gold. The market can create an unlimited number of these contracts very rapidly. The U.S. wouldn't have to ever default to trigger a major disruption in the gold market. Spreads (or prices) on the credit default swaps could simply move based on "news," and demand for gold would soar.
As we reported last week, the cash levels in the mutual funds are near record lows. Stocks do not typically rally unless there is large scale buying. All well and good, but until selling volumes show up, the market can continue to drift higher, especially with the support of the monetary magicians and the Wall Street wi
Now, Harvard's Niall Ferguson, one of the world's leading financial historians, echoes Diamond's warning: "Imperial collapse may come much more suddenly than many historians imagine. A combination of fiscal deficits and military overstretch suggests that the United States may be the next empire on the precipice." Yes, America is on the edge.
Lost in the headlines over the dollar's resurgence in 2010 is the fact gold is still rising in most worldwide currencies. It is also still faring well in dollar terms. Gold is trading at around $1,120 per ounce, up about $60 in the last month. Frank Holmes, CEO and CIO of U.S. Global Investors, a long time gold bull sees no reason for this trend to end.
Dumping the so-called dirt bonds at a discount was a better bet, the Boston-based Metzold said, than taking over 218 empty acres (88 hectares) from the project’s builder and waiting for a real-estaterebound that may not come until the early 2030s, according to a Moody’sEconomy.com forecast.
NEW YORK (CNNMoney.com) -- The percentage of American workers with virtually no retirement savings grew for the third straight year, according to a survey released Tuesday.
Joseph Stiglitz explained to Maria Bartiromo why he thinks the Fed is desperately in need of reform. Basically, it comes down to the influence the banks have in selecting the Fed chairman. How can we expect effective regulation or fair financial rescues from men who owe their power to the heads of the biggest banks?
Jeffrey Nichols, senior economic adviser to Rosland Capital, talks with Bloomberg's Pimm Fox about the outlook for gold. Nichols also discusses his investment strategy for gold.
"The accounts of our governments are a scandal. They're complete scandalous and the U.S. is not an exception. It's just one of many governments whose accounts that tell us nothing about the true state of its finances and the long-term obligations association with that. We would never allow that with any private business."
