Over the past few decades while the economic power of the Chinese has grown exponentially, many observers have been surprised by the relative willingness of China to operate within the financial and economic framework established by the dominant Western order. But it...
British Election: Repercussions for America
The British General Election, on May 7th, was an epic in two respects. First, in spite of polls forecasting a hung parliament, David Cameron’s Conservative Party was given unexpectedly large support, winning 331 seats, or 51 % for an overall majority of four, and...
Geopolitics Will Trump Economics in Greece
Based on the continued failure of the negotiating parties to make any substantive progress in the talks over Greek debt payments, the financial world is tied up in knots over a possible Greek exit from the European Union. The uncertainty has manifested in both high...
Global Stakes for the Brexit Vote
On February 20th, UK Prime Minister David Cameron announced that the ‘in/out EU referendum’ he had promised in the campaign for the last parliamentary vote would finally take place on June 23rd. The outcome of the long-promised vote could have a tremendous impact not...
Through the Looking Glass on Rates
On January 29th, Japan’s central bank governor, Haruhiko Kuroda, announced that the Bank of Japan would introduce a Negative Interest Rate Policy, or NIRP, on bank reserve deposits held in excess of the minimum requisite. The European Central Bank, and central banks...
An Escalating War on Cash
Investors should be aware of such possibilities and consider whether to hold cash and precious metals prudently outside the banking system. Better to be even months too early than a second too late should we be left facing a bank’s closed doors.
Lifting Sanctions on Iran a Mixed Bag
From a financial perspective, the New Year has been anything but happy. As of January 20th, the S&P had fallen over 9% since the beginning of the year, to levels not seen since 2014,reflecting a loss of some $2 trillion in market value. Compounding matters was the...
Feeling Abandoned, Saudi Arabia Ups the Ante
Last week a major diplomatic crisis developed between Saudi Arabia and Iran over the Saudi execution of Nimr al Nimr, a charismatic Shiite cleric and anti-Sunni political activist. Nimr’s execution was an important political decision. On its face, it served to...
China Takes a Big Step Forward
On November 30th the International Monetary Fund (IMF) announced that it would admit China’s Renminbi currency, commonly known as the Yuan, to the select basket of reserve currencies that make up its Special Drawing Rights (SDR’s). Having been stalled by U.S....
European Union Challenged from Right and Left
The heinous ISIS attack in Paris is a game changer in Europe. In addition to the horrific amount of individual casualties, the attack has also threatened severe damage to the long term survivability of the European Union as a political entity. Based on the...
Reshuffling the Deck in the Mideast
The U.S. presence in the Middle East, which for years provided some control over one of the world’s most volatile regions, appears to have dissolved into chaos. By removing Saddam Hussein from power, the U.S. removed his tyrannical but stabilizing hand from the powder...
The Nuclear Deal is Mostly about Oil
No one knows what such a Middle East will look like. But given the volatility of the region, change is unlikely to be pretty.
Geopolitics Trumps Economics in Greece
Despite Greece’s almost complete lack of financial integrity, neither NATO nor the EU can afford the political cost of a Greek exit from the EU.
GE’s Restructuring Pleases Investors and Avoids Other Risks
On April 10, General Electric, which for 123 years has been one of America's best known and most highly respected companies, announced a radical return to its basic industrial roots. After years of disappointing share performance, and a campaign of criticism by...
Greek Problems Born from Socialism
The real issue is whether Greece’s decades-long experiment with failed debt-financed socialism will be allowed to survive much longer.
Greece Dependency Has Created Dangerous Illusions
Once again the crisis in Greece is threatening the unity of the entire euro zone.
The Hidden Perils of Low Interest Rates
Investors may continue to benefit for some time from the consistent boosting of financial markets by central banks. However, the longer a major correction or even a crash takes to develop, the more sudden, deep and devastating it may be.
Cameron Uses EU Fine to Bolster Support
As recession threatens throughout the Continent, the calls for governments to unleash more socialist-style spending have increased.
Turkey’s Position on ISIL Misunderstood
It is tempting for Western observers to view Turkey’s reluctance to join the fight as a mark of disloyalty to NATO and as a sign that the alliance is mostly about convenience. This view may be too simplistic.
Is Inequality Caused by Capitalism or Statism?
Capitalism creates through freedom; the state destroys via regulation; capitalism gets the blame.
Voice of Capitalism
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