The Economy

The Financial Facts of Life

Thumbnail image for The Financial Facts of Life

I have taken a clip from an article by Porter Stansberry because it sets out what is happening in the global economy very clearly. These are the financial facts of life. Do not listen to our politicians and bankers, they are part of the wealthy elite who are trying to keep the system, that furnishes [...]

Read the full article →

The Coming Collapse – A 4 Point Plan

Thumbnail image for The Coming Collapse – A 4 Point Plan

Here is a 4 point plan for the coming collapse. Do you doubt that a collapse is coming?  Consider this: the US dollar is in deep trouble – they are borrowing trillions of dollars to pay their bills, with no hope of ever repaying their debt.  They represent 25% of world trade, are sliding back [...]

Read the full article →

What has happened to our banks?

Thumbnail image for What has happened to our banks?

What has happened to our banks? After 25 years in corporate banking, I left Barclays Bank on 30 June 2001 – almost exactly 10 years ago now. I am now ashamed to admit that I was ever in banking. At the time, I was stressed out and deeply disappointed by the direction that banking was [...]

Read the full article →

Why Our Government, Banking System & Way Of Life Are A Fraud

Let me explain why I think our government, banking system and way of life are a fraud.  A fraud for which we, and the next generation, will pay a terrible price. Ever since Richard Nixon took the US dollar off the gold standard in 1971 to finance the Vietnam war, the life-styles of the developed [...]

Read the full article →

Hyperinflationary Depression Nears

Thumbnail image for Hyperinflationary Depression Nears

A hyperinflationary depression nears according to John Wilson of Shadowstats.com. Today John Wilson has released his 2011 update of his Hyperinflation Special Report.  There are no real surprises compared to his previous reports – in other words, the predictions made in his previous reports of an imminent hyperinflationary depression are playing out. As consumers, we [...]

Read the full article →

Sterling Depreciation: Has The Value Of Sterling Really Depreciated That Much?

Today I am asking myself the question ‘Has sterling depreciation really been that high?’ Physical gold and silver are traditionally seen as stores of wealth – in other words their purchasing power have remained relatively stable for many centuries.  It is the store of value that man has constantly turned to in times of trouble [...]

Read the full article →

The Earthquake In Japan

Thumbnail image for The Earthquake In Japan

The earthquake in Japan is long overdue and has been predicted for many years following the last big one in 1923.  It brings to mind an article that I read around 10 or 15 years ago. This article predicted a large earthquake in Tokyo and discussed the potential consequences of such an earthquake.  It emphasised [...]

Read the full article →

Is Gold Over-valued At Over $1,400?

Thumbnail image for Is Gold Over-valued At Over $1,400?

Is gold over-valued at over $1,400 per ounce?  This is a legitimate question given that it has risen in value by 5 times in the last 10 years since Gordon Brown sold off a significant portion of our gold reserves. I have shifted most of my family’s investments out of cash and shares into gold [...]

Read the full article →

The US Economic Crisis Continues To Unfold

Thumbnail image for The US Economic Crisis Continues To Unfold

As the US economic crisis continues to unfold, it is perhaps surprising that the gold price has temporarily dipped. However, I fully expect the gold price to rise again soon. What reasons do I have for thinking that the US economic crisis is far from over? Well consider these facts: The gold price has risen [...]

Read the full article →

If The Dollar Collapses, What Price Sterling?

Thumbnail image for If The Dollar Collapses, What Price Sterling?

I’m currently asking myself the question ‘If the dollar collapses, what price sterling?’ On the day that the Chancellor announces his spending review, I am asking myself if it is all a case of ‘too little, too late’. In fact it may all be an academic exercise because if the United States lapses into hyper-inflation, [...]

Read the full article →

The End Game Moves Closer – You Have Been Warned

Thumbnail image for The End Game Moves Closer – You Have Been Warned

The end game in the credit crunch has not yet been played out.  You have been warned! Let me point you to some evidence that all is not well in global financial markets: QE2 (and I don’t mean the luxury liner!) is fast approaching for the US and the UK.  A second round of quantative [...]

Read the full article →

Is The UK A Bankrupt Nation?

For some time I have been advocating that my readers invest in gold as a hedge against our bankrupt nation. For times immemorial, gold has globally been seen as a store of value. Our currency used to be backed by gold i.e. the central bank held gold bullion in reserve to back their production of  [...]

Read the full article →

Passing The Point Of No Return

Hyperinflation – when you need a wheelbarrow to transport your cash In business you know that you may be passing the point of no return when you cannot meet your bills as they fall due. Where an economy is concerned, it is possible to print more money to fill the funding gap.  The problem is [...]

Read the full article →

What Does A Business Strategy Consultant Do About Hyperinflation?

Hyperinflation – when you need a wheelbarrow to transport your cash Business Strategy Consultant John Williams of Shadow Stats has updated his report about his prediction for hyperinflation in the US. John now believes hyperinflation, leading to a great depression, will take place within the next 5 years – previously his forecast was within 8 [...]

Read the full article →

The Immutable Laws of Solvency

We need to cut up our credit cards now! When I was in corporate banking, the definition of solvency that I used was ‘the ability to meet your debts as they fall due.’ This means that avoiding insolvency depends upon: the ability to meet all your expenses from current cashflow or that you have headroom [...]

Read the full article →

UK House Prices Are Overdue A Correction

More expensive credit = lower house prices I constantly under-estimate the power of this Labour government to rig the markets and the economy – always at enormous cost to the tax-payer. This extract from Money Week sets out how they have rigged the UK property market to cushion the impact of the latest recession. But [...]

Read the full article →

McKinsey: Unbelievable Pain Is On The Way

Take a look at Slides 1,3,5,6,8 and particularly 14 in this presentation by McKinsey. It is clear that as a percentage of GDP the UK is one of the highest leveraged economies in the world (- only Japan comes close): Whilst Banks have deleveraged, it is clear that a lot more deleveraging has yet to [...]

Read the full article →

House Prices In The UK Are About To Get Worse

Why do I think house prices are about to get worse when today we have had news that the recession is officially over ( – a pitiful 0.1% growth!). Firstly, the housing market in the UK remains 29% overvalued on a price to rental basis according to the Economist: Second, in 2008 the interest rates [...]

Read the full article →

The US Housing Market

House under construction from Crestock Stock Images This is an extract from an article: On Jan. 12, Amherst Securities published a study on the estimated losses Fannie and Freddie will absorb as foreclosures flow through the credit loss pipeline in the coming years. Using a database of 29 million active prime mortgages from First American [...]

Read the full article →

Weapons Of Mass Destruction

I am reading an interesting book called ‘F.I.A.S.C.O.’ by Frank Partnoy.  (Ironically, I bought the book in Borders closing down sale for around 20% of the normal price.) It recounts Franks experiences of working for Morgan Stanley as a derivatives trader on Wall Street. Simply put, a derivative is a either a right to buy [...]

Read the full article →

← Previous Entries