Macro Considerations

The macro picture remains largely unchanged. Janet Yellen is expected to lead the Federal Reserve into a new phase by beginning to taper its long-term asset purchases early next year. The ECB is expect to move in the other direction, leaning against th… [...]

Metallic Money (Gold/Silver) vs. Credit Money: Know The Difference

Submitted by Charles Hugh-Smith of OfTwoMinds blog, Longtime correspondent Jeff W. succinctly explains the difference between metallic money (gold and silver) and credit money. You've probably read many articles about money–what it is (store of va… [...]

Frontrunning: November 29

So much for the euphoria: Stores open early on Thanksgiving but shoppers in no rush (Reuters) Get to work Mr. Chairwoman: Do-Nothing Congress Dithers on Budget as Deadline Nears (BBG) FX to Libor Probes Leave U.K. Traders Looking for Lawyers (BBG) Pro… [...]

Today’s Wealth Destruction Is Hidden By Government Debt

Submitted by Philipp Bagus via the Ludwig von Mises Institute, Still unnoticed by a large part of the population is that we have been living through a period of relative impoverishment. Money has been squandered in welfare spending, bailing out banks o… [...]

DOJ Announces $13 Billion "Largest Ever" Settlement With JP Morgan

To the DOJ, a $13 billion receipt is the “largest ever settlement with a single entity.” To #AskJPM, a $13 billion outlay is a 100%+ IRR. And perhaps more relevant, let’s recall that JPM holds $550 billion in Fed excess reserves, on which it is paid 0…. [...]

MF Global Admits Liability; Will Pay $1.2Bn Restitution & $100MM Penalty

The CFTC has won a consent order against MF Global requiring it to pay $1.212 billion in restitution to customers and a further $100 million civil penalty: *MF GLOBAL TO PAY $1.2 BLN RESTITUTION, $100M PENALTY *CFTC:PENALTY TO BE PAID AFTER MF FULLY P… [...]

The Thermidor: Push Back Against Germany

European officials found a compromise between those wanting to allow the ESM to recapitalize banks directly, until the bank financed resolution funds has adequate resources, and those that who were opposed.  German opposition was most vocal and th… [...]

Frontrunning: November 18

What can possibly go wrong: Tepco Successfully Removes First Nuclear Fuel Rods at Fukushima (BBG) Japan’s Banks Find It Hard to Lend Easy Money (WSJ) U.S. Military Eyes Cut to Pay, Benefits (WSJ) Airbus to Boeing Cash In on Desert Outpost Made Field o… [...]

Macro Musings

The investment climate is characterized by the continued accommodative monetary stance by the three key central banks, the Federal Reserve, the European Central Bank and the Bank of Japan. Although there is a slew of economic data that will be released… [...]

Nobel Winner Dares To Go There: "No Reason To Fear Deflation… Greece May Benefit From Gold Standard"

“Historically, there is no reason to fear deflation,” Nobel Laureate Thomas Sargent explains to Germany’s, “we all benefit from lower prices.” Crucially, he continues, “countries with declining prices, such as Greece, must improve the competiti… [...]