Archive for June, 2009

WHERE IS THE GOOD NEWS?

Friday, June 26th, 2009

The only reason why there has been an air of optimism in the world economy in the last couple of months is that the bearers of these false rumours of recovery all have a vested interest. They are either government officials who consistently mislead the people, bankers who are the principal beneficiaries of the dollar trillions printed  or they are investors in the stockmarket who hope to recover their losses.

Anyone who speaks to the man in the street will get a totally different message. Speak to the hundreds of thousands who are losing their jobs every week in the world, speak to the taxi driver, speak to the man with
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GOLDEN SHOOTS

Friday, June 19th, 2009

No green shoots
There are no green shoots. Every single piece of economic and market news we observe confirms our view that the current optimism in the world economy is purely based on sentiment and not on facts.

The current corrective rallies in world stockmarkets were forecast by us in our January Newsletter. Corrective rallies create false optimism and hope. This is what we are seeing currently.

So, what indicators are telling us that things are going to get a lot worse:

Unemployment is increasing rapidly in all countries
Government deficits are rising at an accelerating pace
Many local governments, counties and cities are virtually bankrupt
Household finances are worsening rapidly
Bank balance sheets are as leveraged and
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A RECIPE FOR DISASTER

Friday, June 12th, 2009

Take the following ingredients:

A banking system which is on the verge of collapse
Add a few $ trillion of government liquidity and guarantees
Inject $ 100’s of billions in loans and capital
Keep all the bank management that have caused the crisis
Pay them astronomical bonuses because otherwise they might be snapped up by a bankrupt competitor
Change the method for valuing the banks toxic and worthless assets so that they can publish hocus pocus  increases in profits
Construct a stress test that all banks can pass, some with minor capital injection

Let some of the banks repay the government money to make the markets believe that the banking system has been saved and is sound

And what
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NO COUNTRY HAS EVER ABOLISHED POVERTY BY PRINTING PAPER

Thursday, June 4th, 2009

No country has ever abolished poverty by printing paper
by Egon von Greyerz

We have consistently warned investors that the USA and many other countries including the UK will have a hyperinflationary depression in coming years. In this Newsletter we discuss why hyperinflation will happen. We also look at why government debt will grow exponentially in the next few years and discuss who is going to repay the additional $30-50 trillion that the world is likely to print since this crisis started?
Hyperinflationary Scenario Confirmed
We are primarily discussing the USA in this Newsletter, but most of the discussion also applies to the UK and many more countries.
Our three most important indicators
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