China Needs A Debt Confiscating Inflation
Take a look at this chart below: From 1985 to 1995, on average, real loan rates in China were negative in real terms. This has a lot to do with why a debt problem in China was avoided despite capital...
View ArticleChina Could Be The Factor That Drives Gold In 2014
No question the yellow metal has been a maddeningly frustrating asset class. Despite many tantalising glimpses that it seems ready to explode northward in price, something (or someone?) has kept it...
View ArticleWhy Did Germany Accept The Euro In The First Place?
Many people, particularly within Germany, have begun to wonder whether monetary union is worth the price being asked of Berlin. In fact, given the huge success of the post-WWII German economy, the...
View ArticleThe Great Capitulation Is Upon Us
Judging from the year end action of the various markets, we are now in a phase of great capitulation. Everyone now assumes the economy is doing better and escape velocity is at hand. All the hedge...
View ArticleIs The US Economy In Good Shape?
Four years after the Great Recession ended, the recovery is gaining steam. But is the economy in good health? The data continues to perplex and confuse. For every good piece of data, there appears to...
View ArticleEurope’s New Deal Must Come Now
Europe was the cradle of democracy. Yet it now risks being its grave. In responding to the Eurozone crisis governments have salvaged banks from speculative folly rather than safeguarded employment and...
View ArticleEmerging Markets Starting Competitive Currency Wars
First the Turkish lira, then the Argentinean peso plunged, and now the Asian currencies are all starting to weaken. The “fruits” of Abenomics perhaps? Other than the gold market, no one is pointing out...
View ArticleWhat Gold Price Do The Miners Really Need To Make Money?
Australia’s top gold miner Newcrest reported profits of AUD207m in H2. Net profit fell 88% and net debt rose 9% to AUD4.5bn. It aims to achieve positive free cash flow this year assuming gold averages...
View ArticleChina Is Joining The International Currency Wars
The yuan, also known as the renminbi, has fallen to its weakest level in seven months and represents a reversal of the practice for most of last year when the central bank kept pushing the yuan higher...
View ArticleChina’s Credit Crunch Spreads
Chinese production side indicators keep slipping. Electricity, industrial value added, and freight are more consistent with 6.5% annual growth than 3Q’s reported 7.3%. The shortfall is modest but...
View Article
