The Euro Could Disappear In 10 Years – BlackRock CE

The euro could be in danger of disappearing within the next decade if France does not continue pushing economic reforms, BlackRock Capital boss Larry Fink said Tuesday. Fink expressed his concern about the health of one of Europe’s largest economies at The New York Times’s DealBook Conference, mentioning France’s recent downgrade by Standard & Poor’s. “I don’t think […]

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ECB Cuts Key Rate to Record Low to Fight Deflation Threat

The European Central Bank cut its benchmark interest rate to a record low after a drop in inflation to the slowest pace in four years threatened its mission to keep prices stable. Policy makers meeting in Frankfurt today reduced the main refinancing rate by a quarter point to 0.25 percent. The decision was predicted by […]

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Three Key Indicators Say U.S. Economy in Trouble

The mainstream and politicians tell us the “wounds” of the financial crisis are over and the U.S. economy is in recovery mode. This simply isn’t true. A few of the key indicators I follow to see where an economy stands are personal income, consumer demand, and businesses’ activity. All three of these indicators are telling me the […]

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Don’t Worry – The Government Says That The Inflation You See Is Just Your Imagination

If you believe that there is high inflation in the United States, you are just imagining things.  That is the message that the U.S. government and the Federal Reserve would have us to believe.  You might have noticed that the government announced on Wednesday that the cost of living increase for Social Security beneficiaries will only […]

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Measured Against Gold, US Dollar Purchasing Power Drops By 99.9%

While it’s clear none of us will live to see the next 300 years, the next 30 should be quite interesting. As the world continues forward on a pathway of zero interest rates and zero global “hard-money” backing—further monetary expansion should (over time) push this chart reading closer down to that same number of “zero”. […]

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Central Banks Drop Tightening Talk as Easy Money Goes On

The Bank of Canada’s dropping of language about the need for future interest-rate increases and today’s decisions by central banks in Norway, Sweden and the Philippines to leave their rates on hold unite them with counterparts in reinforcing rather than retracting loose monetary policy. The Federal Reserve delayed a pullback in asset purchases, while emerging markets from Hungary to Chile cut […]

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Draghi Said to Ask ECB Panel to Weigh Liquidity Options

“Mario Draghi has asked a European Central Bank panel to study options for new bank funding measures, as policy makers try to figure out how to deal with any future liquidity shortages, two euro-region central bank officials said.”   Continue reading on bloomberg.com

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Draghi Seen Putting Words Before Action on ECB Policy

“Mario Draghi is likely to rely on the power of his voice rather than new policies to steer Europe’s banks through the early stages of an economic recovery. The ECB president will hold off from pumping more cash into the currency bloc’s financial system as long as the threat of action keeps market interest rates […]

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Balance Sheet Liquefaction And The Race For Precious Metals

  The Fed seems to be stuck because of housing market weakness and its associated mortgage backed securities. The repo market appears to be where the stress is most threatening, though hidden from view. These trillion dollar daily transactions are the lifeblood of world financial markets. Furthermore, the size of global financial markets has become […]

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Deflation, Inflation Both Inevitable Outcome of Fed Actions

Deflation or inflation? Which lies ahead seems to be the question, as the Federal Reserve Bank continues to inflate, adding to the currency supply at a pace of $85 billion each month. But after blowing a huge bubble, isn’t it eventually liable to pop, deflating? As Mark Jeftovic wrote at Wealth.net, “most people think that prices slowly, […]

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