Economic Collapse

This is a great article by Alar Tamming, Tavex, Estonia and Dr. Krassimir Petrov, Ahlia University, Bahrain on the situation we are in right now minus all the mass-media propaganda. Their cannot be a “jobless recovery”, you can’t print your way out of this mess. Keynesianism is wrong at the core, no matter what bureaucrats, politicians, journalist or bankers tell you. The printing of money of Central Banks around the world has gone parabolical and the paper will return to its intrinsic value of zero. Read the rest of this entry »

It has begun. The EU-bailout levys will soon be opened. Quantitate easing programs a la Bank of England and the Federal Reserve will be adopted by the ECB. Who is next? Spain? Portugal? This is the beginning of the end of the Euro. All fiat currencies will fall with the US Dollar and the Euro in terms of gold - the only real money. If you are still in trading mode, get into wealth protection mode now.

The Wall Street Journal: EU Leaders Agree on Greece Support

Since the Commercial Real Estate Mortgage bubble has begun to pop with the bankruptcy of Capmark that I wrote about yesterday I thought I’d give you some background to the events unfolding before our very eyes beginning now. These mortgages are given by lenders to companies building and operating commercial buildings such as malls, offices, hotels etc. With a declining economy these companies find it increasingly difficult to pay interest on their loans as income from rents keep falling. Consider these statistics from this month of October 2009 reported by facilitiesnet.com:

U.S. Office Vacancy Rates Continue Climb, But Are Slowing
“The office vacancy rate increased, by 60 basis points (bps), to 16.1 percent, at the end of the third quarter. Although this was the eighth consecutive quarter of rising vacancy rates, it was lower than the 80-bps increase in 2Q 2009 and was the slowest pace of increase since 4Q 2008.
The national industrial availability rate increased 50 bps to 13.5 percent in 3Q 2009. This result marks the 8th consecutive quarter of rising availability. The vast majority of industrial markets experienced rising availability, with 56 out of 61 major markets showing increases from the previous quarter.”

Read the rest of this entry »

Derivatives now 29 times the GDP of the world… What happens to bubbles?

Federal Reserve Will Fail With Quantitative Easing

Quantitative easing; everybody is doing it like the Bank of England, Japan and even Switzerland. Quantitative easing is a tool of monetary policy. The effect is an increase in the quantity of currency without regard to maintaining its quality.

http://www.runtogold.com/2009/03/federal-reserve-will-fail-with-quantitative-easing/