While the Federal Reserve and European Central Bank’s message on rate cuts appears clear as they reiterate their commitment to reducing inflation, the market expects between five and six rate cuts, between 125 and 150 basis points , the next twelve months. This shows us the tendency of investors to overlook bubbles. We live in …
Category: PUBLICATIONS
Where is the “smart money” looking for refuge while Wall Street is at historic highs?
Wall Street may be at all-time highs, but “behind the lines,” there’s a mass exodus from bonds, a frenzy for gold, and a dollar selloff. “Smart money” is looking for safe havens. And all this while the markets worldwide are experiencing, more or less, a santa rally, giving the message that everything is fine. But …
The Governments Total War against Gold
Gold has been a reliable means of payment in cultural and religious communities for thousands of years. As early as 1200 BC, the Chinese were already using gold as a medium of exchange (Source: Anthony C. Sutton “The War on Gold”). In stark contrast to gold, Sutton illuminates the devastating effect on economies of unbacked …
The Challenges that the US Economy will face in 2024
US economic data show fiscal derailment as debt servicing costs rise, which will cast doubt on US geopolitical commitments to Ukraine and Israel, but also set the stage for tax hikes and deflation pressure on stock prices. This highlights that in 2024 the focus will not be on the question of rising interest rates – …
What do we expect about Stocks, Bonds and Gold for 2024?
Companies faced the spike in inflation to boost their profit margins – a phenomenon known as greed inflation. As a result, consumer prices have probably risen more than warranted, with cash hoards built up thanks to the expansionary fiscal policy of governments around the world during the pandemic making consumers less price-sensitive. Margins rise again …
Argentina: Issuing Perpetual Bonds for ‘Haircuts’ Without ‘Haircuts’
The tool of perpetual bonds to service the debt of the perpetually sick and asthmatic Argentina is intended to be used by the President of Argentina, Javier Millay. More specifically, the Argentine president by issuing perpetual debt seeks to repay a $16 billion bond – money that had been used to renationalize the country’s public …
How are Bubbles created in the Economy? – why were the Economies over-indebted? What is the correct solution?
How and why are bubbles created in the financial system? Is it a random error in the path or a structural element of the circumvention of the rules of the functioning of the market? The capitalist economic system has an inherent tendency to develop instability that results in a severe economic crisis. The main mechanism …
How healthy is the Global Banking “system”?
Markets are still digesting the fallout from the failure of Silicon Valley Bank, the second largest bank failure in US history and the biggest collapse since the 2008 financial crisis, which was quickly followed by the collapse of New York’s Signature Bank, when suddenly what seemed to be just a problem of mid-sized American banks …
The big risks that threaten the Markets for 2024
The pursuit of prediction verification is like a game, because rare and catastrophic extreme events are unpredictable. Therefore, it is better to approach accepting in advance the reality of market risks and to prepare for their possible appearance. 1. Expansion of the conflict in the Middle East After the Hamas attack on Israel on October …
The FED serves Wall Street (and capital gains taxes), not the Real Economy
Nobody likes tough macro events, especially during the holiday season, but some things need to be said, according to Trust Economics. As you know, US Federal Reserve Chairman Jerome Powell has promised that 2024 will be the year of interest rate cuts. In this regard, it should be pointed out that Powell is neither a …