Archive - September, 2010

Really Just One Big Version of Zimbabwe

September 30, 2010 in Economics with 0 Comments

Listening to Ben Davies (of Hinde Capital Management) on King World News, and transcribed this interesting tidbit:

Unfortunately, what people fail to realize today is that the world is really just one big version of Zimbabwe.

Zimbabwe was a microcosm of what we have now. If you notice, every country, almost bar none, has debts that they are unable to repay. And I don’t think people understand that.

The consequences of which we either restructure them, or we have an implicit default which… in our opinion, involves reflation. And as we can see, every government, every country, is embarking on the creation of currency, to devalue their currency…

U.S. Dollar Is ‘One Step Nearer’ to Crisis as Debt Level Climbs, Yu Says – Bloomberg

September 29, 2010 in News with 0 Comments

The U.S. dollar is “one step nearer” to a crisis as debt levels in the world’s largest economy increase, said Yu Yongding, a former adviser to China’s central bank.

Any appreciation of the dollar is “really temporary” and a devaluation of the currency is inevitable as U.S. debt rises…

“Such a huge amount of debt is terrible,” Yu said. “The situation will be worsening day by day. I think we are one step nearer to a U.S.-dollar crisis.”

Yu also said China is worried about the safety of its foreign-exchange reserves including those invested in U.S…

China, the biggest foreign investor in U.S. government bonds, cut its holdings by about 10 percent to $846.7 billion in the 12 months ended July, according to the Treasury Department.

U.S. Treasuries fail to provide safety or liquidity in managing China’s $2.45 trillion foreign-exchange reserves, Yu said in an e-mail in August.

via bloomberg.com

So all those hillsmen in Idaho, with their Colt 45s and boxes of krugerrands… – Telegraph Blogs

September 28, 2010 in Gold & Silver with 0 Comments

So all those hillsmen in Idaho, with their Colt 45s and boxes of krugerrands, who sent furious emails to the Telegraph accusing me of defending a hyperinflating establishment cabal were right all along. The Fed is indeed out of control.

via blogs.telegraph.co.uk

Savers told to stop moaning and start spending – Telegraph

September 28, 2010 in Economics with 0 Comments

Savers should stop complaining about poor returns and start spending to help the economy, a senior Bank of England official warned today.

via telegraph.co.uk

Just in case you didn’t already think that the world’s bankers have completely lost their minds.

Bar Stool Economics

September 27, 2010 in Taxes with 0 Comments

The people who pay the highest taxes get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up anymore. In fact, they might start drinking overseas where the atmosphere is somewhat friendlier.

via doc.cat-v.org

Brief. Thought-provoking. Give the full article a read.