S&P cuts Japan rating outlook to negative

Standard & Poor’s cut its outlook on Japan’s sovereign rating to negative from stable Wednesday to reflect the potential for a downgrade if the country’s fiscal situation deteriorates more than expected in the wake of last month’s disaster.

Peter Schiff - Fed’s Actions Cause Massive Gold & Silver Buying

With gold and silver taking off to the upside after the Fed released its statement, today King World News interviewed Peter Schiff, Founder of Europacific Capital. When asked about the rise in gold and silver after the Fed statement Schiff replied, “Ben Bernanke may deny that there is a causal relationship between his monetary policy and rising prices but the market knows differently. In fact when Ben Bernanke denies the relationship, then the expectation is that he is going to continue on his current monetary policy course which is the green light to buy gold, buy silver, buy oil, buy commodities, sell the dollar and that’s exactly what’s happening. That’s why the dollar is hitting new lows today.”

IMF Forecast: Can China Really Overtake the U.S. Economy by 2016?

According to the International Monetary Fund (IMF) "World Economic Outlook," China's output will surpass that of the United States in 2016 - only five years from now. But don't worry. The IMF calculation is based on "purchasing power parity" (PPP), which does not reflect real money. It relies on projecting China's stellar growth rates five years into the future. And it relies on Chinese official statistics, which are more than a little questionable. (In fact, after the media storm that resulted, the IMF apparently even soft-pedaled its prediction that China would leapfrog the United States in just five years; in a subsequent interview, an IMF spokesman reportedly said that, by non-PPP measures, the U.S. economy "will still be 70% larger by 2016." A recent World Bank forecast concluded that China could overtake the United States by 2030.) This prediction - and the attention it continues to draw - serves a useful purpose, particularly if it's given the scrutiny that it deserves. For global investors with China-based holdings, it reminds us of that country's long-term potential - and the fact that such potential is always tempered by near-term risk. For the rest of us, it reminds us that China's ascendance is inevitable - in fact, is already happening - and will be with us for a long time, even if that Asian giant isn't immediately going to overwhelm the rest of the world. And for our elected leaders in Washington, the IMF report - false alarm or not - should serve as a wakeup call to attack and address the many problems that threaten this country's global leadership.

US recovery fears push pound to 17-month high against dollar

The pound touched a 17-month high against the dollar as the world's reserve currency slumped on fears about the US economy's recovery.

Property powerhouses Hammerson and Segro say demand remains 'fragile'

Two of the UK's biggest property companies have provided fresh warnings about the health of the economy after reporting that business demand for new commercial space remains fragile.

Eurozone inflation rises again

Inflation across the eurozone has hit a two-and-a-half-year high, increasing the likelihood of another rise in interest rates despite the pressure it puts on the region’s weaker economies.

The International Monetary Fund has just dropped a bombshell, and nobody noticed.

According to the latest IMF official forecasts, China's economy will surpass that of America in real terms in 2016 — just five years from now. Brett Arends looks at the implications for the U.S. dollar and the Treasury market.

Gold Silver vs 50 historical bubles

$50 silver: sell, sell, sell?

$49.45 an ounce. That's the high that silver reached in 1980, when the now infamous Hunt Brothers tried to corner the market. That high has looked down on silver for more than a generation, isolated and dominant, like a fantasy tyrant in an impenetrably high tower. But on Monday morning, while most people in the UK were lying in bed asking themselves, 'did I really need to eat so much chocolate?', the troops finally made it to the summit once again. $49.50 was tested. But the advance was beaten off easily, with a lazy, contemptuous waft of the hand. We are now at a huge inflection point for silver, so let's discuss what might come next.

The Death of the Dollar: Will the Fed Kill the Greenback at Tomorrow's FOMC Meeting?

U.S. Federal Reserve policymakers meet today (Tuesday) and tomorrow (Wednesday) in a two-day meeting that could determine the fate of the U.S. dollar. Money Morning columnist Martin Hutchinson is betting that U.S. central bankers won't boost rates, a failure that could help bring about the long-term death of the dollar as a viable global currency.

A New Dot-Com Bubble? Frothy Valuations for Facebook and Groupon are Sparking Worries

With valuations of Web-based companies like Facebook Inc. and Groupon Inc. zooming ever higher, questions have been raised over what these companies are truly worth and whether we're seeing the early stages of a new dot-com bubble. "The markets are showing signs of speculative froth," Martin Sorrell, chief executive officer of marketing giant WPP PLC (Nasdaq ADR: WPPGY), told the trade journal Information Age in a recent interview. And the social media companies seem to be whipping up the bulk of that froth.

America appears to be sleepwalking towards disaster – does no one care?

So let me get this straight. The Standard and Poor's rating agency last week took the historic step of putting the US government's AAA credit rating on "negative watch".

Why Jaguar gives us reasons to be cheerful

Many years ago, when the Bay City Rollers were still described as "heart-throbs" and Margaret Thatcher had just replaced Edward Heath as Conservative Party leader, there was a joke in America about Jaguar cars.

Millions of internet users hit by massive Sony PlayStation data theft

Sensitive personal details of tens of millions of internet users have been stolen by hackers in one of the biggest ever cases of data theft, it has emerged.

Bernanke May Reinvest Maturing Debt to Avoid ‘Cold Turkey’ End to Stimulus

Federal Reserve Chairman Ben S. Bernanke may keep reinvesting maturing debt into Treasuries to maintain record stimulus even after making good on a pledge to complete $600 billion in bond purchases by the end of June.

Leader of Big Mortgage Lender Guilty of $2.9 Billion Fraud

The founder of what was once one of the nation’s largest mortgage lenders was convicted of fraud on Tuesday for masterminding a scheme that cheated investors and the government out of billions of dollars. It is one of the few successful prosecutions to come out of the financial crisis.

Deutsche Bank’s $4 Billion Las Vegas Bet

The names of the biggest players in gambling — Wynn, Caesars, MGM — dominate the neon-drenched skyline of the Las Vegas Strip. But the owner of the most expensive casino ever built in this hedonistic city, Deutsche Bank, is not announcing its arrival in lights.

Morgan Stanley fund fails to repay debt on Tokyo property

A Morgan Stanley property fund failed to make $3.3 billion in debt payments by a deadline on Friday, handing over the keys to a central Tokyo office building to Blackstone (BX.N) and other investors, the largest repayment failure of its kind in Japan.

China Raises Reserve Ratio to Curb Inflation as Zhou Pledges More to Come

China's central bank Governor Zhou Xiaochuan. Photographer: Feng Li/Getty Images April 15 Green Interview on China's Economy, Interest Rate Play Video April 15 (Bloomberg) -- Stephen Green, head of Greater China research at Standard Chartered Plc, discusses China's economy and the outlook for interest rates. Green speaks from Shanghai with Deirdre Bolton on Bloomberg Television's "InsideTrack." (Source: Bloomberg) Chinese Premier Wen Jiabao Chinese Premier Wen Jiabao. Photographer: Feng Li/Pool/Getty Images China increased banks’ reserve requirements to lock up cash and cool inflation, and central bank Governor Zhou Xiaochuan said monetary tightening will continue for “some time.”

an Hatzius Friday Night Bomb: "We Are Downgrading Our Real GDP Growth Estimate To 1¾% From 2½%"

Nobody could have seen this coming: "With most of the news on first-quarter growth now in, the GDP “bean count” looks even softer than it did a couple of weeks ago. The most recent disappointments have come on the export side—with trade now set to subtract significantly from growth in the quarter—and from inventories. Consequently, we are downgrading our real GDP growth estimate to 1¾% (annualized), from 2½% previously (and from 3½% not too long ago)." Some other things nobody will be able to predict: Hatzius dropping full year GDP from 4% to 2.25%; Goldman's downgrade of precious metals, Kostin's 2011 S&P 500 price target reduction by 20%, and Goldman getting its New York Fed branch to commence monetizing $1.5 trillion in debt some time in October.

Will Silver Surge Following The Nationalization Of Bolivia's Silver Mines By Embattled President Evo Morales?

Two weeks ago the precious metals space was closely following the fate of Sumitomo's San Cristobal mine, where a long strike had paralyzed work at the world's third largest producer of silver and sixth-largest producer of zinc. While the strike was eventually resolved with concession to the domestic workers, a far more troubling report from Bolivian daily La-Razon states that Bolivia's president Evo Morales is now planning on expropriating zinc, silver and tin mines sold off by previous governments. Bloomberg reports that "Morales will announce a decree May 1 to “dismantle the privatization model,” said Nicolas Fernandez, a spokesman for state mining company Corp. Minera de Bolivia, known as Comibol.

BofA CEO: Owners shouldn't look at home as an asset

Homeowners may need to look elsewhere for long-term investment returns as housing prices in some areas may not rebound long-term, Bank of America Corp Chief Executive Officer Brian Moynihan said on Tuesday.

Emerging Markets Forecast: Which Ones to Hold, and Which Ones to Fold

Late last year, as part of Money Morning's "Outlook 2011" economic-forecast series, I suggested investing in emerging markets that were relatively cheaply priced, and whose economies seem poised to do well in 2011.

You may never heard of this metal – but it could make you a fortune

Have you ever heard of the metal, beryllium? I don't think I had until a few weeks ago. It's extremely light, extremely useful and, as I've been discovering, it's an extremely important strategic metal. So today, I want to take a look at the beryllium story.

Forget America's credit rating - Europe is the one to watch

Yesterday was eventful, to say the least. The headline-grabber was the warning shot on US debt from credit ratings agency S&P. S&P switched the outlook for the US's AAA-credit rating to 'negative', and said that politicians would need to come up with a serious plan to sort the nation's finances within the next two years. S&P was only stating the obvious. But the deadline was a little tighter than perhaps expected. And with Democrats and Republicans fighting it out ahead of next year's election, it might be a tall order to find a plan that everyone can agree on. However, while the US news grabbed the front pages, the real culprit behind the market jitters lay much closer to home. The eurozone crisis looks like it's turning nasty again.

Slow Economic Growth and High Inflation Mean It's Time for "Price Maker" Stocks to Shine

With slow economic growth and high inflation looming on the economic horizon, investors turn to earnings reports for a clue as to whether their favorite companies can handle what's ahead. First-quarter earnings season started with a bang this week with reports from major technology, basic materials and financial companies that mostly underwhelmed the crowd. The major averages closed the week right about where they started after rallying from a sizeable dip in the middle.

Why valuations matter in US and China's tale of two economies

The two biggest economies in the world could hardly look more different this week.

GE signals need for US to relax its regulatory stranglehold

World markets took a hit earlier in the week when Standard & Poor's warned the US that its "AAA stable" credit rating was under threat.

GDP: If we just hold our nerve, the tills will ring

Next week’s GDP figures may not be as healthy as hoped, but the Coalition should not change tack, writes Jeremy Warner.

The 'other' housing market, where house prices have regressed 60pc

An apartment on London's Hyde Park recently changed hands at an astonishing £136m.

US and EU political resolve cracks in the face of fiscal ruin

Credit rating agencies should never be taken too seriously, but for Standard & Poor's to put the United States on "negative outlook" is none the less something of an event.

Gold or Silver?

Which would you rather buy right now, gold or silver?

Jim Grant - US Will Resolve Debt by Returning to Gold Standard

With so much turmoil going on around the globe, King World News interviewed one of the legends in the business, Jim Grant, Founder of Grant’s Interest Rate Observer. When asked about the Fed’s arrogance Grant responded, “I think there’s an intellectual cock-sureness that has no grounding. When you listen to Ben Bernanke as he held forth on Sixty Minutes at the end of last year assuring the journalist doing the interview that he, Bernanke, was 100% sure, 100% certain of what he could do, you cringe because nobody is 100% sure of anything in this world.”

Gold and silver market trends for 2010-GFMS

Demand for gold bars grew strongly last year, helping lift overall physical investment despite weaker inflows into exchange-traded funds, metals consultancy GFMS said in its annual Gold Report on Wednesday.

U.S. Economic Optimism Plummets in March

Americans' optimism about the future direction of the U.S. economy plunged in March for the second month in a row, as the percentage of Americans saying the economy is "getting better" fell to 33% -- down from 41% in January. It is also down three points from the 36% of March 2010.

Does Glencore's float mark the top of the commodities boom?

Giant commodities trader Glencore has confirmed that it's planning to list on the London and Hong Kong stock exchanges. The Swiss group hopes to sell up to $11bn of shares (most of it in London), with prices set to be announced in the middle of next month. It's set to be the biggest initial public offering (IPO) in the world this year – and the UK market's biggest ever. There's one glaringly obvious question that any contrarian investor will ask themselves when a big company like this decides to go public. Does this mark the top of the market?

Deutsche Bank eyes US revamp to avoid raising extra capital

Deutsche Bank is said to be planning a reorganisation of its US operations to avoid the possibility of having to raise billions of dollars in extra capital.

Motor insurance premiums up by 40 per cent in a year

The cost of motor insurance has risen by a record 40 per cent in the past 12 months because of ambulance chasing lawyers and fraudulent claims, the AA has found.

House prices are falling faster in Britain than Spain

House prices at the bottom end of the market are now falling faster in Britain than Spain, according to a comprehensive survey of the biggest house price indices. But house prices continue to rise at the top end of the market, with an average increase of 3.4pc over the last year among the most expensive fifth of properties. By contrast, the cheapest fifth of properties saw prices fall by 5.1pc over the year, compared to a 1.9pc decline over the same period in Spain.

Threats to the world economy: in charts

n its latest Global Financial Stability Report, released on Wednesday, the International Monetary Fund said risks to global financial stability have declined since October 2010. However, it warned that sovereign and banking system risks still remain high, and are lagging the overall economic recovery.

Will the gold standard ever make a comeback?

What we use as money today is either issued by governments, or created by banks through the issuance of debt. The status of money is protected by the law – we must use what we use as money – and by the fact that taxes are levied in this money. But underneath it all, there's nothing there – nothing tangible anyway. It's just a law, a man-made law. It's not even a proper promise. The writing you see on a £20 sterling note – 'I promise to pay the bearer on demand the sum of twenty pounds' – is in effect a promise to pay something that doesn't exist. It's a great big load of old baloney. Modern money is a man-made phenomenon, responsible in my view – though rarely held culpable – for many of the economic problems the world faces today. But nature has provided an alternative.

Jamie Dimon: Regulators must do what's good for the US, not Europe

Jamie Dimon: Regulators must do what's good for the US, not Europe

Banks facing $3.6 trillion 'wall of maturing debt', IMF Global Financial Stability Report says

Debt-laden banks are the biggest threat to global financial stability and they must refinance a $3.6 trillion "wall of maturing debt" which comes due in the next two years, the International Monetary Fund said in its Global Financial Stability Report.

China inflation threat underestimated

China is poised to become an "exporter of inflation to the rest of world", according to Legal & General Investment Management (LGIM), which warned that the threat from rising prices in the world's second-biggest economy is underestimated.

Stiglitz Calls for New Global Reserve Currency to Prevent Trade Imbalances

The world economy needs a new global reserve currency to help prevent trade imbalances that are reflected in the national debt of the U.S., said Nobel-prize winning economist Joseph Stiglitz. A “global system” is needed to replace the dollar as a reserve currency and help avoid a weakening of U.S. credit quality, said Stiglitz, a professor at Columbia University in New York. The dollar fell to an almost 15-month low against the euro last week, and the U.S. trade deficit widened more than forecast in January to the highest level in seven months.

Exclusive: Bill Gross Is Now Short US Debt, Hikes Cash To $73 Billion, An All Time Record

A month ago, Zero Hedge first reported that Bill Gross had taken the stunning decision to bring his Treasury exposure from 12% to 0%: a move which many interpreted as just business, and not personal: after all Pimco had previously telegraphed its disgust with US paper, and was merely mitigating its exposure. This time, in another Zero Hedge first, we discover that it is no longer business for Bill - it has now become personal (and with an attendant cost of carry). In March, Pimco's flagship Total Return Fund (TRF) has now taken an active short position in US government debt: -3% on a Market Value basis (or $7.1 billion), and a whopping -18% on a Duration Weighted Exposure basis. And confirming just what PIMCO thinks of US-related paper is the fact that the world's largest "bond" fund now has cash, at a stunning $73 billion, or 31% of all assets, as its largest asset class on both a relative and absolute basis.

Debt Jumped $54.1 Billion in 8 Days Preceding Boehner-Obama Deal to Cut $38.5 Billion for Rest of Year

The federal debt increased $54.1 billion in the eight days preceding the deal made by President Barack Obama, Senate Majority Leader Harry Reid (D.-Nev.) and House Speaker John Boehner (R.-Ohio) to cut $38.5 billion in federal spending for the remainder of fiscal year 2011, which runs through September.

Two 'boring' funds in the Buffett mould

Back in 2005, after a visit to Warren Buffett's shareholders' meeting, I wrote an article in which I was mildly critical. I called the event "boring and irritating". I said I loathed the folksy atmosphere Buffett and his sidekick Charlie Munger created. I just didn't buy into the whole plain-speaking, home town-living, wise-cracking, coke-swigging PR picture – or the pressure to buy Buffett products (jewellery, furniture, steak...).

UK banking shake-up needs more work

Whitewash, or regulatory over-reaction? It is possible to see the Independent Commission on Banking's interim report in either light, depending on your point of view. But actually, the ICB has managed to avoid both these outcomes.

Percent of Households Filing an Income Tax return

Percent of Households Filing an Income Tax Return

US Housing Prices- Nominal and real Growth

U.S. Housing Prices

Cosmic Shifts

The series of recent Japanese tragedies is unprecedented and the consequences will also be unprecedented. The re-booting and rebuilding of the Japanese economy will require, and be achieved with, breathtaking increases in money supply. The global drift towards hyper-inflation will accelerate. Right or wrong, the world’s nuclear industry has received a ten year setback. The fact that the earthquake actually caused a terrestrial shift in the location of the country by a few metres is very thought-provoking. And the noteworthy courtesy and industry, not to mention stoicism, of the Japanese people are remarkable. In time it’s hard not to see them emerging the stronger as a result of these tragedies.

Gold: 'This is the perfect storm'

Gold prices have hit a series of record highs this week, as a combination of inflation worries, a weaker U.S. dollar and geopolitical turmoil have weighed on investor confidence.

Euro Crisis.The World from Berlin 'Euro-Zone Leaders Need the Courage to Tell the Truth'

A day after Portugal formally requested aid from the European Union to help ease ongoing debt problems, Madrid on Friday insisted that it was "out of the question" that Spain would be next. German commentators aren't so sure, and say that it's time for European leaders to reveal the true extent of the problems.

Malls Face Surge in Vacancies

Even as the economy picks up steam, many of the nation's malls and shopping centers are suffering a hangover due to changing consumer habits and the fallout from a massive building boom. Mall vacancies hit their highest level in at least 11 years in the first quarter, new figures from real-estate research company Reis Inc. showed. In the top 80 U.S. markets, the average vacancy rate was 9.1%, up from 8.7%.

European Interest Rate Hike May Foretell Shift in Fed Policy

Stocks traded with all the precision of a baseball skipping into the Boston Red Sox outfield over the past week, which is to say it was pretty sloppy. The major equity averages settled near the flat line, but it was a mess getting there after the European Central Bank raised rates for the first time since mid-2008, there was a 7.1 magnitude aftershock in Japan, and Texas Instruments Incorporated (NYSE: TXN) bought a rival chip maker at incredible premium.

How to profit as US politicians fight over spending cuts

Phew. That was close. The US narrowly avoided a government shutdown this weekend. After much wrangling in Congress, the Republicans and the Democrats managed to agree a deal on spending cuts. So the government stays open – for now. But there’s a much bigger fight to come. And the end result could have a major impact on investors around the globe…

UK banks must ringfence retail arms, says the Independent Commission on Banking

British banks will have to have to separate their retail deposit and investment banking arms to ensure that ordinary savers’ money is not at risk in the event of a new crisis.

Interest rates 'to quadruple in a year', warns Bank of England policymaker Andrew Sentance

Families face interest rates quadrupling within a year, adding more than £100 a month to a typical household mortgage, a Bank of England adviser, Andrew Sentance, has warned.

UK disposable income falls to lowest since 1921

British household budgets face their biggest squeeze in 90 years, according to a leading economic consultancy.

ECB hikes rates, ready to move again if necessary

The European Central Bank raised interest rates for the first time since the 2008 financial crisis on Thursday and signaled it was ready to tighten policy further if needed to check rising prices.

Unreported Soros Event Aims to Remake Entire Global Economy

Two years ago, George Soros said he wanted to reorganize the entire global economic system. In two short weeks, he is going to start - and no one seems to have noticed. On April 8, a group he's funded with $50 million is holding a major economic conference and Soros's goal for such an event is to "establish new international rules" and "reform the currency system." It's all according to a plan laid out in a Nov. 4, 2009, Soros op-ed calling for "a grand bargain that rearranges the entire financial order."

Marc Faber - Mr. Bernanke is a Murderer of the Middle Class

Today King World News interviewed Barron’s roundtable member Dr. Marc Faber. When asked to compare the 70‘s cycle to the current one Faber responded, “Well I think we have had in the 70’s rapidly escalating commodity prices, and in some cases they went up much more than what we’ve seen so far in the last ten years. Of course the financial position of the US is much worse than what we had in the 70’s. In the 70’s, total credit as a percent of the economy was just at 140%, we’re now at 379% and we have the unfunded liabilities which we didn’t have at that time. So I would say the financial position of the US has continuously worsened over the last 30 years.”

Second Quarter Forecast: Three Predictions, Three Ways to Profit

With the first quarter of 2011 behind us, there's a lot to take away and learn from - especially when it comes to the direction of oil prices, interest rates and stocks. Granted, we're right now navigating one of the most uncertain periods in modern global history. But if you're a trader or an investor, knowing how markets have been reacting to recent news and events provides you with some valuable insights that you can use going forward.

The next big driver of gold's bull market – China's middle classes

There have been three main drivers to the secular bull market in commodities, be it copper, crude oil, or corn. First, a chronic lack of investment throughout the bear markets of the 1980s and 1990s has led to a shortage of supply. Second, this shortage of supply has come just as eastern Asia, particularly China, is modernising and rebuilding its infrastructure. And, third, our modern fiat system of money and credit makes inflation and speculation inevitable, especially when it is subjected to the insanely loose monetary policies of our central bankers. Generally speaking, most people cite driver number two, China, as the reason for the rise in the price of raw materials – base metals, grains, energy – the commodities that are being consumed voraciously as China's middle class grows. Gold, on the other hand, we are told, is rising mainly because of inflation and fears 'about the system' – driver number three. But what if you took 'driver number two' and applied it to gold? What if the Chinese middle class all wanted gold?

We must call the bluff of the big, bad banks

It would be insane not to change the structure of banking, because it’s doomed to fail again, writes Jeff Randall.

Business Bullet: Osborne head to Hungary for Portugal talks and a Grand National tip

Robert Miller with the main City and business news as Chancellor George Osborne attends Portugal crisis talks in Hungary; BlackRock fund manager tells the Telegraph about his warm welcome from the Kremlin; UK banks are braced for interim recommendations from the Independent Commission on Banking and Business Bullet's tip for the Aintree Grand National.

S&P 500 and QE

March Madness: U.S. Gov't Spent More Than Eight Times Its Monthly Revenue

The U.S. Treasury has released a final statement for the month of March that demonstrates that financial madness has gripped the federal government. During the month, according to the Treasury, the federal government grossed $194 billion in tax revenue and paid out $65.898 billion in tax refunds (including $62.011 to individuals and $3.887 to businesses) thus netting $128.179 billion in tax revenue for March. At the same time, the Treasury paid out a total of $1.1187 trillion. When the $65.898 billion in tax refunds is deducted from that, the Treasury paid a net of $1.0528 trillion in federal expenses for March.

Why the Housing Market is Three Times Worse Than You Think

Between the recent report that sales of new homes hit a record low in February and this week's news that 19 of the 20 largest metro areas tracked by the Standard & Poor's/Case-Shiller home price index saw a price slump in January, it hasn't exactly been a stellar few weeks for the housing market. And yet another data dump tracking foreclosed and distressed homes that have yet to hit the markets - what's known as "shadow inventory" - suggests things are not likely to get a whole lot better for a long time.

How to cut your risk when investing in junior miners

One of the received wisdoms of investing is that you should diversify. Have some equities, some bonds, some gold, some commodities, some real estate, some cash and so on. Then if one sector takes a hit, you're not too badly hurt. The problem with this strategy is that you don't make that much money either. It's rare, even in this era of crazy asset price inflation, that every market will rise together. The way to make serious money is not to diversify, but to intensify. Find the sector that's in a bull market – such as tech stocks in the '90s, or metals now – and then 'get all over it'. But that's also the way to lose everything. If you're not out by the time the party's over, you give back all your gains and wake up with a nasty headache. So what should you do? I have a solution – or a compromise at least. It's called the 'prospect generator' model.

Rainmaker: There’s one big deal left in mobile - and O2 could lead it

In recent weeks it would appear that the tectonic plates on which the UK’s four big mobile phone companies sit have been slowly shifting.

The US recovery is little more than an economic 'sugar-rush'

Guess what! America is on the mend. That’s right, the world’s biggest economy is now forging ahead, escaping its sub-prime malaise.

Britain needs an injection of Thatcherite radicalism

Once our debt to GDP ratio is set firmly on a downward path, what should be on the government’s agenda for fundamental reform? The answer should constitute a modern version of Thatcherite radicalism.

Uranium Prices – And Producers – Are Poised to Rebound

Uranium spot prices and shares of uranium mining companies have plunged in recent weeks amid fears that the situation in Japan could deteriorate into a nuclear meltdown on par with Chernobyl. Investors fear that the explosion and subsequent radiation leaks at the Fukushima nuclear power plant will force other countries to tighten restrictions, or worse, abandon their pursuit of nuclear power as an alternative source of energy. But what if no such thing happens? What if the nuclear fallout in Japan remains relatively contained, and other countries around the world move ahead as planned with their atomic energy projects?

Safe nuclear does exist, and China is leading the way with thorium

A few weeks before the tsunami struck Fukushima’s uranium reactors and shattered public faith in nuclear power, China revealed that it was launching a rival technology to build a safer, cleaner, and ultimately cheaper network of reactors based on thorium.

Dereliction of the Big Four blamed for financial crisis

As with most man-made catastrophes, the financial crisis had multiple different causes which were then compounded by a bungled policy response.

The bull market in uranium is over

I was having a coffee last week with mining entrepreneur Irwin Olian, catching up on the latest news with his companies. The weather was unusually nice and, in the afternoon sunshine, we were feeling relaxed and quite philosophical. Just as Irwin was observing how sometimes you can get the greatest insight into a market from an outsider, some students on the next table, who were loud, opinionated and not altogether ill-informed (like most students, really) declared that: "It's all over for nuclear power". "Why?" we asked them.

The world's third-largest bank is bust

The world's third-largest bank is bust. It is a US bank with $2.55 trillion of assets. Only BNP Paribas and Royal Bank of Scotland are larger. It's way too big to fail. When it goes bust, it will be bailed out. And Ben Bernanke, chairman of the US Federal Reserve, will have no choice but to fire up the printing presses all over again. Today, I want to tell you how to protect your wealth against the inflationary impact of the dollar flood that will result. But first, let's talk about exactly how banks make money. And how they go bust

To Lower The Debt Ceiling, Fix The Monetary System

The federal debt limit is supposed to be a political straightjacket on tough-talking Republicans in Congress like Marco Rubio. However, there is a way out of it that would allow them to reset the debate on government spending rather than punt on an issue that has come to a head.

We've Become a Nation of Takers, Not Makers

If you want to understand better why so many states—from New York to Wisconsin to California—are teetering on the brink of bankruptcy, consider this depressing statistic: Today in America there are nearly twice as many people working for the government (22.5 million) than in all of manufacturing (11.5 million). This is an almost exact reversal of the situation in 1960, when there were 15 million workers in manufacturing and 8.7 million collecting a paycheck from the government.

Forget About a Raise; More Consumers Expecting Paycut

More Americans expect their salaries to be cut soon, reversing a steady decline in the number of workers who fear pay cuts, according to a March survey. Adding insult to injury, those same consumers expect to take a bigger hit on expenses because of rising inflation.

Food Inflation Kept Hidden in Smaller Bags

Chips are disappearing from bags, candy from boxes and vegetables from cans.

China sees strong commodities, weak dollar in 2011

Loose monetary policies in developed economies will place more upward pressure on global commodity prices and weigh on the dollar this year, the Chinese central bank said on Friday.

US Finances Rank Near Worst in the World: Study

The US ranks near the bottom of developed global economies in terms of financial stability and will stay there unless it addresses its burgeoning debt problems, a new study has found.

US Approaching Insolvency, Fix To Be 'Painful': Fisher

The United States is on a fiscal path towards insolvency and policymakers are at a "tipping point," a Federal Reserve official said on Tuesday.

James Turk - Panic Selling of US Dollar Could Happen Quickly

With gold and silver up and the dollar down, today King World News interviewed James Turk out of London. When asked about the dollar Turk stated, “There are so many important things happening here today, but what I am focusing on is how weak the dollar has been. The key is the dollar index took out its low from last November. The way I see it that means the dollar index is going to be closing in on its all-time low of 70.79. Here is the scarey part Eric, given how poorly the dollar is trading, I think we could see that low level very quickly.”

Is this the endgame for the US dollar?

Is this the endgame for the US dollar? It's broken down through a key level of support. What could save it? What are the implications of further falls? Let's take a look…

Hidden Inflation: Why Prices Are Rising Faster Than You Think

Rising prices are hitting U.S. consumers a lot harder than the U.S. Federal Reserve - or the U.S. government - would have us believe. The government-issued consumer price index (CPI) for January showed that "core inflation" - which includes prices for all items except food and energy - was up only 1% from the same month the year before. By excluding food and energy prices, as volatile as they may be, the CPI fails to convey the pain that rising prices are inflicting on American households. Indeed, some economists have claimed that the true rate of inflation is closer to 8% or 9%. To get a true picture of the current inflation situation - and to understand its impact and potential dangers (as well as several investment opportunities) - Money Morning Executive Editor William Patalon III sat down with Chief Investment Strategist Keith Fitz-Gerald for a question-and-answer session on the topic.

Is the cost of saving the euro beyond reach?

Japan’s earthquake is sending shockwaves through Europe’s political structures, writes Jeremy Warner.

Not the devil's Budget, but a necessary evil

Critics of the Chancellor are out of touch with the realities of reforming hand-out Britain, writes Jeff Randall.

Ireland still hasn't fixed its broken banking system

About the only piece of good news to be drawn from €24bn of additional capital the Irish government is having to inject into the country’s beleaguered banking system is that it is rather less than the €35bn the joint EU/IMF rescue package for Ireland originally envisaged for the purpose. After applying the latest set of European stress tests, things have turned out to be not quite as bad as feared.

Europe opens the floodgates to debt restructuring

There are no doubt plenty of reasons for further downgrading Portugal’s sovereign debt, but in confirming such a downgrade on Tuesday, Standard & Poor’s made clear that the primary cause was the concluding statement of the European Council meeting of March 24-25. This confirmed that (i) sovereign debt restructuring is a potential pre-condition to borrowing from the European Stability Mechanism (ESM), and (ii) senior unsecured government debt will be subordinated to ESM loans.

Merkel defeat: It's the euro, stupid

Angela Merkel's conservative party suffered a defeat