Protected: Oregon Suffering a Structural Problem in its Economy
Charles Delvalle on Dec 21 2009 | Filed under: Economics
The Plague of the Black Debt
James Davidson on Dec 02 2009 | Filed under: Uncategorized
By James Dale Davidson
You don’t have to be a conservative, a liberal or anything at all to understand America as we know it is about to get flattened. The White House says the deficit will be $1.5 trillion—in 2010 alone. All up, the national debt is now racing past an astonishing $12 trillion.
In fact, if President Obama’s own economic projections are on target, he’s going to add $10 trillion on to the federal debt in the next 10 years.
That’s more than four times the deficits of George W. Bush’s presidency… and more than all of the other presidents – combined.
Whether you agree with them or not, or who you blame for them, one thing is clear, America is facing a fiscal train wreck—andit’s heading stragiht towards you. These are the largest deficits as a percentage of GDP since 1945, when the country was paying for World War II.
Bond Traders Veto Presidents
James Davidson on Dec 02 2009 | Filed under: Bonds, Economics
Bond traders aren’t elected, and they answer to nobody. But they possess knowledge about market prices around the world.
They move trillions of dollars a day. And that makes them very powerful.
When bond traders see that Obama and the Federal Reserve are really serious about bringing about inflation, they will dump hundreds of billions of dollars in US bonds.
Turning Chaos into Cash
James Davidson on Dec 02 2009 | Filed under: Uncategorized
Lord Rees-Mogg and I called our first book Blood in the Streets. Its subtitle was “Investment Profits in a World Gone Mad.” A lot of people thought we were overdoing it just a bit.
But consider the forecasts we made that came true:
- The Crash of 1987.
- The crash in Tokyo stocks and real estate, with losses in the trillions. (Our readers tripled their money on the fall in Japanese stocks… with a low-risk investment you could buy from any U.S. broker.)
- The end of the Soviet Union and the Cold War
- The fall of the Berlin Wall and German reunification
Economic Collapse on Cue
James Davidson on Dec 02 2009 | Filed under: Uncategorized
by James Dale Davidson
At Strategic Investment, our secret is the theory of “megapolitics.”
Megapolitics is a concept I developed with Lord Rees-Mogg in Blood in the Streets and The Great Reckoning: Protecting Yourself in the Coming Depression.
You don’t have to read the books to understand the main idea: The world is shaped by big, powerful forces or trends that nobody can control.
October 2009 Issue
Charles Delvalle on Oct 30 2009 | Filed under: Monthly Issues
It Ain’t Necessarily So…
You Have Been Deceived
About Global Warming
Time to Implement
The Strategic
“Little Ice Age Portfolio”
The chill is on: Unseasonably cold air will envelop much of the eastern half of the nation both Saturday and Sunday, with temperatures averaging anywhere from 10 to 30 degrees below normal. High temperatures will reach only the 40s and 50s across the upper Midwest, Great Lakes, Northeast, and Mid-Atlantic states each day.
-Doyle Rice, USA TODAY
“Congress has been badly misinformed about the so-called science that supports the claim that increasing CO2 levels will bring about catastrophic climate change…The idea that Congress can stop climate change would be just hilarious if the actions they propose were not so damaging to the American people and even more [damaging] to the poorer people of the world,”
- Dr. William Happer,
Cyrus Fogg Bracket Professor of Physics
Princeton University
September 2009 Issue
Charles Delvalle on Sep 28 2009 | Filed under: Monthly Issues
Surviving the Obama Depression:
Your Future of Blackouts and Shortages as the U.S. Becomes a Third World Country
The concept of contracts being enforced ended in this country in the fall of 2008 and early in the term of the radical socialist ninny in the White House. They screwed bond holders in the GM and Chrysler deals – broke contracts all over the place. This by our own gobmint. We are now indeed a third world country, where negotiating never ends.
– Rob Wilson, September 3 2009
The only element of a classical emerging market crisis that is missing from the US and UK experiences since August 2007 is the “sudden stop” – the cessation of capital inflows to both the private and public sectors. There has been a partial sudden stop of financial flows, both domestic and external, to the banking sector and the rest of the private sector, but the external capital accounts are still functioning for the sovereigns and for the remaining creditworthy borrowers. But that should not be taken for granted, even for the US with its extra protection layer from the status of the US dollar as the world’s leading reserve currency. A large fiscal stimulus from a government without fiscal credibility could be the trigger for a “sudden stop.”
– William Buiter, Financial Times
“Fiscal expansions in submerging markets;
the case of the USA and the UK”
August 2009 Issue
Charles Delvalle on Aug 28 2009 | Filed under: Monthly Issues
Chinese Stimulus, the Mirage of Recovery and the Double-Dip Depression
“China’s growth is getting back on track after being pulled down by the global export slump. It’s leading the turnaround in the global economy.”
– David Cohen, Action Economics
“There is only one vital time to wake up: and that is now.”
– Buddha
June 2009 Issue
Charles Delvalle on Jun 30 2009 | Filed under: Monthly Issues
The Plague of the Black Debt and Beyond
”And now,” observes Adam, “we must again try to discover what sort of world this is….”
Nathaniel Hawthorne
Here’s a question for you.
Which is more important in informing your success? Your character and determination? Or the timing and circumstances of the efforts you make to get ahead in the world?
In other words, would you be just as successful if you had been born in different year or another country? And how much do macroeconomic conditions determine the reward you earn from your efforts?
All of this is closely related to the paradox that depressions can provide an excellent setting to start a business, without necessarily providing a good environment for making money.