"The risk of not stimulating is stagflation at a spiritual level. The risk of stimulating is stagflation at a spiritual level. The risk of doing nothing is both an economic and currency collapse of biblical proportions.
This is what the three illustrations of the skier teach. Should the Fed lose control of this, which is predictable, then currency induced cost push inflation would take gold to Martin Armstrong’s $12,500.
The odds are 70/30 right now that hyperinflation occurs. That takes gold over $1650. If the odds shift then gold starts a run to balance the International Balance Sheet of the USA and will secure Martin Armstrong’s target of $12,500."
Mr J E B Sinclair
www.jsmineset.com
Monday 30 May 2011
Derivatives - financial instruments, multiples of the real economy!
Mobius Says Fresh Financial Crisis Around Corner Amid Volatile Derivatives
By - May 30, 2011
Mark Mobius, executive chairman of Templeton Asset Management’s emerging markets group, said another financial crisis is inevitable because the causes of the previous crisis haven’t been resolved.
“There is definitely going to be another financial crisis around the corner because we haven’t solved any of the things that caused the previous crisis,” Mobius said at the Foreign Correspondents’ Club of Japan in Tokyo today in response to a question about price swings. “Are the derivatives regulated? No. Are you still getting growth in derivatives? Yes.”
The total value of derivatives in the world exceeds total global gross domestic product by a factor of 10, Mobius said. With that volume of bets in different directions, volatility and equity market crises will occur, he said.
The global financial crisis three years ago was caused in part by the proliferation of derivative products tied to U.S. home loans that ceased performing, triggering billions of dollars in writedowns and leading to the collapse of Lehman Brothers Holdings Inc. in September 2008. The MSCI World (MXWO) Index tumbled 38 percent in the six months after Lehman’s collapse. The freezing of global credit markets caused central banks around the world to pump cash into the financial system to encourage lending.
The largest U.S. banks have grown larger since the financial crisis, and the number of “too-big-to-fail” banks will increase by 40 percent over the next 15 years, according to data compiled by Bloomberg.
“There is definitely going to be another financial crisis around the corner because we haven’t solved any of the things that caused the previous crisis,” Mobius said at the Foreign Correspondents’ Club of Japan in Tokyo today in response to a question about price swings. “Are the derivatives regulated? No. Are you still getting growth in derivatives? Yes.”
The total value of derivatives in the world exceeds total global gross domestic product by a factor of 10, Mobius said. With that volume of bets in different directions, volatility and equity market crises will occur, he said.
The global financial crisis three years ago was caused in part by the proliferation of derivative products tied to U.S. home loans that ceased performing, triggering billions of dollars in writedowns and leading to the collapse of Lehman Brothers Holdings Inc. in September 2008. The MSCI World (MXWO) Index tumbled 38 percent in the six months after Lehman’s collapse. The freezing of global credit markets caused central banks around the world to pump cash into the financial system to encourage lending.
The largest U.S. banks have grown larger since the financial crisis, and the number of “too-big-to-fail” banks will increase by 40 percent over the next 15 years, according to data compiled by Bloomberg.
http://www.bloomberg.com/news/2011-05-30/mobius-says-fresh-financial-crisis-around-corner-amid-volatile-derivatives.html
Tuesday 10 May 2011
An hour - well worth it!
An excellent video explaining the problems of the monetary system...in a very enthusiastic way!
a Great education!
http://www.goldmoney.com/gold-research-videos.html
Jesús Huerta de Soto, author of the thought-provoking book on economics 'Money, Bank Credit and Economic Cycles'
a Great education!
http://www.goldmoney.com/gold-research-videos.html
Jesús Huerta de Soto, author of the thought-provoking book on economics 'Money, Bank Credit and Economic Cycles'
Gold at $1,510 and Silver at $38.25 today after a very bad week and half...
Mr Gold is taking it in his stride!...
Today’s action totally eliminates any and all remaining concerns for the price of gold. Today’s action lights up the $1764 Angel in gold.
Technical damage always requires technical repair. That type of price action is a perfect set up for a major launch of the gold price in June.
Relax and enjoy your protection and insurance positions.
Regards,
Jim
Today’s action totally eliminates any and all remaining concerns for the price of gold. Today’s action lights up the $1764 Angel in gold.
Technical damage always requires technical repair. That type of price action is a perfect set up for a major launch of the gold price in June.
Relax and enjoy your protection and insurance positions.
Regards,
Jim
it's good to be on top!...
Goldman Sachs Traders Lost Money on One Day in First Quarter
By Christine Harper
After losing money on 13 days in the fourth quarter, Goldman Sachs’s traders lost between $25 million and $50 million on one occasion in the first quarter, according to the New York- based firm’s quarterly filing with the Securities and Exchange Commission. They generated more than $100 million on 32 days out of 62 total days, the filing showed.
Goldman Sachs’s performance beats Morgan Stanley, whose traders lost money on three days and made more than $100 million on 10 days, according to a filing yesterday. It falls short of JPMorgan Chase & Co. and Bank of America Corp., which both reported zero days of losses in the quarter.
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