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Tag Archives: default

In Next Crisis, Gold Won’t Drop Like 2008, Report 19 August 2018

Last week, we discussed the tension between forces pushing the dollar up and down (measured in gold—you cannot measure the dollar in terms of its derivatives such as euro, pound, yen, and yuan). And we gave short shrift to the forces pushing the dollar down. We said only that to own a dollar is to be a creditor. And if the debtors seem in imminent danger of default, then creditors should want to escape this risk. The dollar is not redeemable so there is no way to be paid in full for the debt...

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Canadian Homeowners Take Out HELOCs To Fund Subprime Purchases

Authored by Steve Saretsky via VanCityCondoGuide.com, The HELOC (Home Equity Line of Credit) has been a blessing and a curse for Canadian households. While it has helped spur house prices and simultaneously provided consumers the ability to tap into their new found equity, it has also crippled many Canadian households into a debt trap that seems insurmountable. Between 2000 and 2010, HELOC balances soared from $35 billion to $186 billion, according to the Financial Consumer Agency of Canada,...

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China Launches World’s First All-Electric Cargo Ship

Authored by Zainab Calcuttawala via OilPrice.com, Tesla is not the only one bringing electric engines to cargo transport. China just launched its first all-electric cargo ship, which will travel 50 miles at a top speed of 8 miles per hour on a single charge. Though it will be able to carry 2,200 tons of cargo with every haul, that battery capacity is barely enough to fulfill any transatlantic shipments. It will take just two hours to recharge, which is about as much time the vessel needs to...

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Crypto-Cornucopia Part 1 – Bitcoin Is A Trust Machine

Authored by Dr. D via Raul Ilargi Meijer's The Automatic Earth blog, Bitcoin is all the rage today, and as it crosses over $10,000, a 10-bagger for the year, we should look at what it is, what it isn’t, and why it’s become so popular. Note my observations are those of a layman – which may be more useful than those of a programmer – but also those of a skeptic, which I’ll get to at the end. First, what is Bitcoin? Well, the idea of digital money goes back to the first digits, financial...

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Can A 16 Year Old Math Genius And Semi-Naked Women Sell The First Ever ICO Tranche

As a product, we may have just encountered the most brilliant Initial Coin Offering ever. As a marketing ploy meant to reach the broadest number of financially astute investors who are just dying to see a quadruple-digit IRR on their prudent investment, this is certainly the pinnacle of genius. We are still in awe of this "press release" which in addition to everything else, and there's plenty, features two semi-naked women, which hits all the right spots for ICO investors: after all "it’s...

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BIS Issues An Alert: Tightening “Paradoxically” Leading To Excessive Risk Taking; Reminds What Happened Last Time

Valuations in asset markets are “frothy” and investors are basking in the “light and warmth” of the “Goldilocks economy”, believing that nothing can upset a future of “sustained growth and low interest rates”. We observe a heavy dose sarcasm from the media briefing coinciding with the Bank for International Settlements’ (BIS) latest quarterly review. Specifically, we wonder why is it always the BIS which warns its central bank members and investors about the risk of an approaching financial...

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Moody’s To State & Local Governments – Prepare For Climate Change Or Lose Access To Cheap Credit

The 2017 Atlantic hurricane season, which officially began on June 1 and ends today, featured the highest number of major hurricanes since the 2005 season and was only the second time that two Category 5 hurricanes made landfall. However, it was by far the costliest hurricane season on record, with a preliminary total of $368.7 billion in damages, more than twice the cost in 2005. Nearly all of the damage resulted from the season’s three major hurricanes, Harvey, Irma and Maria. Yesterday,...

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Eat Gold

Submitted by BullionStar.com A popular phrase in segments of the mainstream financial media is that “You Can’t Eat Gold”. We don’t know who first uttered this comment, but it was more than likely a talking-head or Wall Street analyst on CNBC or Bloomberg. The disparaging claim seems to be based on concluding that in a financial or monetary crisis, if you own gold, that “You Can’t Eat It”. And so, according to the logic of whoever came up with the phrase, this would make gold useless during a...

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“It’s All One Single, Giant $22 Trillion Position”: How Market Risk Became Systemic Risk

As excerpted from Fasanara Capital’s “Positive Feedback Loops and Financial Instability: the blind spot of policymakers.” The next time a Fed chair or macroprudential regulator argues that “there is no leverage in the market”, send them this. QE and NIRP have two predominant effects on markets: (i) relentless up-trend in stocks and bonds (the ‘Trend Factor’), dominated by the buy-the-dip mentality, which encapsulates the ‘moral hazard’ of investors knowing Central Banks are prompt to come to...

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Doug Casey On The New Fed Chair

Authored by Doug Casey via CaseyResearch.com, Ahead of his confirmation hearing tomorrow, a few words are in order about the likely new Chairman of the Federal Reserve, Jerome Powell. I don’t know the man personally. Not that it would make any difference; denizens of the swamp within the Beltway usually present well, and a brief meeting rarely allows you to penetrate someone’s social veneer. But I’m pretty confident that if we dined together it would be tense and unpleasant. We’d have no...

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