More than just costs are a concern at Barrick Gold’s $8.5B Pascua-Lama megamine

Standing on a precipice 5,200 metres above sea level, the air is thin and the vistas are long. Just breathing is difficult at this altitude, with a howling wind disturbing the utter, majestic silence of the snow-capped Andes mountains, threatening to blow you over the edge. You’d think you were alone at the top of the world.

The one chart about oil's future everyone should see

When people read about a long-term forecast of world oil supply--say, out to 2030--they often believe that the forecasters are merely incorporating our knowledge of existing fields and figuring out how much oil can be extracted from them over the forecast period. Nothing could be further from the truth. Much of the forecast supply has not yet been discovered or has no demonstrated technology which can extract or produce it economically. In other words, such forecasts are merely guesses based on the slimmest of evidence.

credit bubble bulletin

Hotel California. "You can check out any time you like...but you can never leave"...Hotel California...The Eagles 

Treasury Yields Below Inflation May Last Years: Chart of the Day

Investors in Treasury securities will have to get used to yields lower than the U.S. inflation rate, according to Andrew Garthwaite, a global strategist at Credit Suisse Group AG.

Santelli's 'Republic, for Which it Stands'

Santelli's republic

World risks fresh credit bubble, Switzerland's BIS warns

Asset prices across the world have risen to heady levels not seen since the credit boom five years ago and may be losing touch with economic reality yet again, the Bank for International Settlements has warned.

Shadow banking worries limit China’s rebound

China's industrial output rebounded sharply last month and retail sales gathered speed, boosting hopes that Asia’s powerhouse economy has finally come back to life.

Mario Monti's exit is only way to save Italy

Italy has only one serious economic problem. It is in the wrong currency.

Europe clings to scorched-earth ideology as depression deepens

Like the generals of the First World War, Europe’s leaders seem determined to send wave after wave of their youth into the barbed wire of tight money, bank deleveraging, and fiscal austerity a l’outrance.

The world's commodity supercycle is far from dead

Great resource booms usually end abruptly, catching almost everybody by surprise.

Germany displaces China as US Treasury's currency villain

The US Treasury has issued a damning criticism of Germany’s chronic trade surplus in its annual report on worldwide exchange rate abuse, although it stopped short of labelling the country a currency manipulator.

China shakes off hard landing by reverting to bad old ways

China's gauge of manufacturing industry jumped to a seven-month high last month in the latest sign that Asia's powerhouse is springing back to life.

Hi-tech expansion drives China's second boom in the hinterland

By the end of this year a fifth of all computers in the world will be manufactured in Chengdu, the ancient Sichuan capital of western China.

China's 'Go West' boom offers bonanza for British banks

Rarely have British banks, insurers, and financial firms been offered such tempting fruit on a platter, if they are willing to take the plunge in China’s western hinterland.

US Conference Board fears Brics miracle over as world faces decade-long slump

The catch-up boom in China, India, Brazil is largely over and will be followed by a drastic slowdown over the next decade, according to a grim report by America’s top forecasting body.

French economy buckles as car sales collapse

France’s industrial woes deepened last month as car sales crashed 19pc and French brands lost market share at an dramatic pace, raising fears of a serious economic crisis next year once austerity hits.

Greek deal frays as IMF threatens walk-out on debt buy-back impasse

The eurozone's debt relief plan for Greece has hit serious trouble within days as banks and pension funds balk at fresh losses, raising fears that the package could unravel before a deadline in mid-December.

Merkel's day of reckoning as taxpayer haircut on Greece looms

Germany, Holland, and the creditor states of northern Europe have not lost a single cent on eurozone rescue packages, so far.

1930s medicine pushes Europe back into double-dip recession

The eurozone has relapsed into double-dip recession as the austerity shock in the Mediterranean region spreads to the core countries of the north.

Angela Merkel sticks to austerity script in Portugal as revolt builds

German Chancellor Angela Merkel braved hostile crowds in Portugal on Monday to show unflinching support for the country’s austerity ordeal and plead for patience as social cohesion frays.

Hotel Management Agreements from a Bank's perspective Video :: Hotel News Resource

Hotel Management Agreements from a Bank's perspective Video :: Hotel News Resource

The Secret Return to the "Gold Standard"

Although it happened more than 40 years ago, many Americans still rue the day back in 1971 when U.S. President Richard M. Nixon effectively took this country off the so-called "gold standard." Under a true gold standard, paper notes are "convertible" into pre-determined, fixed quantities of the "yellow metal." What actually happened back in 1971 was that President Nixon - facing huge budget and trade deficits, and a plunging dollar - enacted a series of economic moves, including the unilateral cancellation of the direct convertibility of the U.S. dollar into gold. By slamming the "gold window" shut, Nixon also brought down the curtain on the existing Bretton Woods system of global financial exchange. The fallout was immediate, creating a situation that financial historians still refer to as the "Nixon Shock." Proponents of the gold standard say the real damage is still being wrought: That decision four decades ago led directly to the uncertainty, volatility and irresponsibility that we see in the U.S. economy and global financial markets today. Whether you agree or not is a topic for another time. But what I'm here to tell you today is that the world's central banks have quietly - almost secretly - returned the world to a new version of the gold standard.

Bad news for miners - China's big-spending days are over

China's slowdown has arrived. This morning, we learned that China's economy grew by 7.4% in the third-quarter of 2012, compared to the same time last year. That's the seventh quarter in a row that the pace of growth has slowed. And it's the slowest growth seen since the first quarter of 2009 (back when the global financial system was imploding). Yet China's leaders don't seem to be panicking. There's a very good reason for that. And as I'll explain in a moment, this lack of panic could be very bad news for anyone betting on a huge commodities rebound...

The world needs more food - and Latin America is the place to invest

Right now, the market is urgently trying to tell us something. In fact it’s been trying to tell us something for the last few years. In the last decade or so we’ve seen regular bouts of record-busting food prices. This is the market’s way of warning us that our supply of the stuff is running low. And as the global population grows and also becomes wealthier, demand for food will only keep rising. Clearly, rising prices are bad news for consumers, and particularly for the world’s poor. But these price spikes aren’t entirely bad. In the long run, higher prices encourage farmers and food processors around the world to raise food production. In turn, that’s going to mean a lot more money will be invested in boosting farm productivity. One region in particular looks likely to capture the lion’s share of the extra investment – Latin America.

Marc Faber: “Money printing will destroy the world”

Central bank money-printing “will destroy the world”. Contrarian investment expert Dr Marc Faber, who writes the Gloom, Boom and Doom Report newsletter, came out with that one in a recent interview with Bloomberg. It sounds extreme. But he might just be right. Here’s why – and what you should hold onto to protect yourself in the meantime…

Investors Who Own Japanese Stocks are About to Get a Nasty Surprise

September's anti-Japanese protests in China over the disputed Senkaku/Daioyu Islands may have come and gone in the Western press, but the real damage is only just beginning for investors who have piled into Japan in recent years. With their focus on the U.S. fiscal cliff and ongoing EU banking problems, many investors just don't understand how interlinked trade between China and Japan has become, nor the breadth of the damage this strained relationship can do to their portfolios.

Thanks to the Fed, It's All Proceeding According to "The Plan"

If you've been reading the headlines, you know Bank of America Corp. (NYSE:BAC) is in trouble. It could be in really big trouble. Thank goodness they're so big! Thank goodness all the big banks in America are all much bigger now than they were a few years ago, before the financial crisis brought them to their knees, by their own doing, of course. Don't you just love it when a plan comes together? Yeah, it's all part of "The Plan" to eliminate pesky banking competition. Let me show you how nicely it's working...

China's economic destiny in doubt after leadership shock

The forces of reaction and economic folly threaten to prevail in China. The long political arm of Jiang Zemin has reached out from the shadows to thwart reform, with huge implications for Asia and the world.

Asia's green shoots allay global slump fears

Green shoots are sprouting across much of the Far East as stimulus begins to feed through, greatly reducing the risk of a deep global slump next year.

Japan to join currency wars as exports slump

Japan is poised to join the world's "currency wars" as it battles a triple crisis of crashing exports, recession and a suffocatingly-strong yen.

Is Greece insolvent?

Pimco's managing director Andrew Bosomworth has said Greece is insolvent and it's going to default. It's just a question of how and when that is realized.

Britain shouldn’t jump the gun on leaving the European Union

Rather than rush for the exit, it would be better to allow the euro crisis to play out

The new threat to the euro – disintegrating nations

Up until now, the biggest threats to the continued existence of the euro have come from individual countries. In June, Greece nearly elected the anti-austerity Syriza. A few weeks ago, some people thought that Germany might be prevented, by the courts, from taking part in the fund designed to bail out Spain and Italy. These threats haven’t gone away, of course. Recent protests in Athens and Madrid show that both the Greeks and the Spanish are sick of austerity. Meanwhile, there are rumours that Berlin might take a much harder line on bail-outs once the US presidential election is out of the way. But now an even greater fiscal threat is emerging – the danger that individual countries themselves may splinter as regions call for independence. How much of a threat is this to the euro? And can you take advantage of it?

Greek death spiral raises heat for German-bloc creditors

Greece’s debt-load is rising much faster than expected as the country spirals into a sixth year of depression, ratcheting up the pressure on Germany and Europe’s creditor states to accept debt-forgiveness for the first time.

Germany rattled as taxpayer losses loom in Greece

The EU-IMF Troika of inspectors in Greece has called on European bodies and official creditors to write off a chunk of their loans, opening the way for first taxpayer losses since the sovereign debt crisis began.

Europe left behind as shale shock drives America’s industrial resurgence

The wonders of US shale gas continue to amaze. We receive fresh evidence by the day that swathes of American industry have acquired a massive and lasting advantage in energy costs over global rivals, demolishing assumptions about US economic decline.

Bundesbank slashed London gold holdings in mystery move

Germany withdrew two thirds of its vast holdings of gold from Bank of England vaults shortly after the launch of the euro more than a decade ago, according to a confidential report by German auditors.

IMF's epic plan to conjure away debt and dethrone bankers

So there is a magic wand after all. A revolutionary paper by the International Monetary Fund claims that one could eliminate the net public debt of the US at a stroke, and by implication do the same for Britain, Germany, Italy, or Japan.

Europe ratchets up grip on Madrid

The EU-IMF Troika in charge of Spain's €60bn (£48bn) bank rescue is to demand much tougher action by the country's authorities to clean up toxic debts, risking a clash that could deter Madrid from requesting a full sovereign bail-out.

EU leaders agree 'fiscal facility’ plan with eye on budget union

Europe's leaders agreed on Thursday to plans for a “fiscal facility” to help eurozone countries cope with shocks, opening the door to partial budgetary union.

Germany shocks EU with fiscal overlord demand

Germany has stated its exorbitant price for keeping Greece in the euro and agreeing to mass bond purchases by the European Central Bank.

French business erupts in fury against "disastrous" François Hollande

France is sliding into a grave economic crisis and risks a full-blown “hurricane” as investors flee rocketing tax rates, the country’s business federation has warned.

Euroland's debt strategy is an economic and moral disgrace

The International Monetary Fund has demolished the intellectual foundations of Europe's debt crisis strategy.

US rebound signals IMF gloom may be overdone

The US economy appears to have turned the corner at last after flirting with danger earlier this summer, according to a rash of new data.

IMF fears 'credit shock' in Spain if Rajoy blocks rescue

The International Monetary Fund has issued a veiled warning that Spanish bond spreads could surge to a record 7.5pc and push the country into a deeper crisis if premier Mariano Rajoy continues to drag his feet on a bail-out request.

Angela Merkel recoils from Greek showdown on Spain contagion fears

Angela Merkel, the German chancellor, has stamped her seal of approval on Greece's austerity plan and vowed to stand by the country as "partner and friend", signalling almost certain approval for the next tranche of EU-IMF Troika aid.

Spain fears harsh rescue terms from AAA Nordic parliaments

Senior officials from Germany and other parts of the eurozone's AAA core have warned Spain privately that angry parliaments are likely to impose stringent conditions on any further rescue loans.

Damming dollar flood comes at a huge cost to Argentine economy

Cristina Kirchner's tightening of the rules on currency exchange has backfired horribly, says Buenos Aires resident William McAllister

How QE3 Shakes Up Gold: Q&A With Nick Barisheff

Nick Barisheff is President and CEO of Bullion Management Group Inc., a bullion investment company that provides investors with a secure, cost-effective and transparent way to purchase and store physical bullion. Recognized worldwide as a bullion expert, Barisheff is an author, speaker and financial commentator on bullion and current market trends. The BMG BullionBars program provides a secure, cost-effective and transparent way to purchase and hold individual Good Delivery gold, silver and platinum bullion bars

Is the world running short of gold?

In his essays On The Principles Of Population, the English scholar Thomas Malthus argued that the earth's resources are limited and cannot support unlimited population growth. "The power of population is indefinitely greater than the power in the earth to produce subsistence for man", he said. In many ways ‘peak oil’ theory is an extension of this notion. There is a finite amount of oil in the world, runs the theory (one estimate puts that number at 75 trillion barrels). At a certain stage, the point of maximum production will be reached. Thereafter production levels will decline. The US reached its peak in 1970; the rest of world, it seems, in May 2005 at 74 million barrels per day - though this is subject to a lot of debate. But what about 'peak gold'? Does the Malthusian argument extend to gold?

Japan launches QE8 as 20-year slump drags on

Japan has launched an eighth round of quantitative easing to weaken the yen and cushion a slide back into recession.

Beijing hints at bond attack on Japan

A senior advisor to the Chinese government has called for an attack on the Japanese bond market to precipitate a funding crisis and bring the country to its knees, unless Tokyo reverses its decision to nationalise the disputed Senkaku/Diaoyu islands in the East China Sea.

Back Ben Bernanke's QE3 with a clothes peg on your nose

Monetarists from across the world can mostly agree on one thing. The US Federal Reserve caused the Great Recession.

Bernanke attacked for 'too low’ interest rates

The US Federal Reserve and central banks worldwide kept interest rates far too low in the build-up to the global credit bubble and may have caused much of the crisis, the world’s top watchdog has concluded.

The next big eurozone panic could be over France

There’s something missing from the eurozone crisis. By now, we’re all getting very used to hearing about Greece, Italy and Spain’s problems. We also hear plenty about how irritated the German establishment is with its feckless neighbours. But France – the second-biggest power in the eurozone - has been keeping a surprisingly low profile. Since the presidential election in the late spring it has fallen from the headlines. Those who expected new President François Hollande to pick a fight over austerity measures have been disappointed. Indeed, some have described his budget – which was announced on Friday – as the “toughest in decades”.

Another domino falls as Hollande pushes France into depression

If French President François Hollande thinks he can assuage the bond markets by dishing out tax-heavy austerity instead of genuine reform, he has been given very bad advice.

Germany told to 'come clean’ over Greece

German Chancellor Angela Merkel must “come clean at long last” and admit that Greece will need help for another seven or eight years, the German opposition leader said over the weekend.

Spain's crisis flares again as AAA club scuppers bank rescue deal

Spain's debt crisis has returned with a vengeance after Germany, Holland and Finland reneged on a crucial summit deal and scuppered hopes of direct eurozone help for Spanish banks.

Swiss central bank fuels Europe's North-South debt crisis

Switzerland’s central bank has become a conduit for vast flows of capital into German Bunds and other safe-haven bonds, exacerbating the eurozone’s North-South divide.

Bundesbank castigates IMF for saving Europe

Germany's central bank has launched a blistering attack on the International Monetary Fund, accusing officials of spraying around money like confetti and overstepping their legal mandate.

Spain risks break-up as Mariano Rajoy stirs Catalan fury

The ruling parties of Catalonia have sought guidance from Brussels on the legality of secession from Spain, requesting a “route map” for membership of the European Union and the euro as an independent state.

Spain shuns further cuts as unrest grows

Spain is digging in its heels against further austerity as protests sweep the country and mounting tensions with Catalan nationalists threaten to split the country.

BofA Sees Fed Assets Surpassing $5 Trillion By End Of 2014... Leading To $3350 Gold And $190 Crude

Yesterday, when we first presented our calculation of what the Fed's balance sheet would look like through the end of 2013, some were confused why we assumed that the Fed would continue monetizing the long-end beyond the end of 2012. Simple: in its statement, the FOMC said that "If the outlook for the labor market does not improve substantially, the Committee will continue its purchases of agency mortgage backed securities, undertake additional asset purchases, and employ its other policy tools as appropriate until such improvement is achieved in a context of price stability."

Era of 'jobs-targeting' begins as Fed launches QE3

Quantitative Easing has become banal, a fine-tuning tool like any other. It is by now drained of all drama. Even the Federal Reserve’s hawks have lost the will to resist. Five of the six critics acquiesced.

China launches £94bn infrastructure stimulus package

China's central government is to launch a $150bn (£94bn) spending package on roads and infrastructure projects, joining the country's regions in a blitz of stimulus to keep flagging growth alive.

The latest euro ‘fix’ could be bad news for the US

Investors are finally convinced that the eurozone can be saved. European Central Bank boss Mario Draghi has made it clear that he’ll do ‘what it takes’ to stop the likes of Spain or Italy from going bust, as long as they ask for help. The Germans might throw a spanner in the works later this week. But even if their constitutional court rejects or delays the existing big bail-out fund, chances are another fudge would be hastily pulled together. So the ‘Armageddon’ discount is fading from European assets, which have rallied hard in recent months. That sounds like good news. The trouble is, once investors stop fretting quite so much about Europe, they’ll wake up to the fact that the rest of the world is in a bit of a mess too. And that could be bad news for overpriced shares in the US in particular…

German court backs ESM rescue fund in double-edged ruling

Germany's highest court has cleared the way for ratification of the eurozone bail-out fund but capped German contributions and fired a cannon shot across the bows of the European Central Bank.

Carthaginian terms for Italy and Spain threaten Draghi bond plan

The cold douche begins. Markets will now learn that the European Central Bank's bond plan is a devout wish, not a done deal. Europe's political minefield lies ahead.

Nationalist backlash in Italy and Spain to test Mario Draghi bond plan

The European Central Bank's ground-breaking plan for mass purchases of Spanish and Italian bonds is fraught with political risk and may soon be overwhelmed by nationalist anger in the crisis states, leading economists and statesmen warned at a gathering of the European policy elites in Italy.

Brinkmanship as Spain warns over bail-out terms

Spain has issued a veiled warning that it will not accept a full bail-out from Europe if the terms are too harsh, a move that would paralyse the European Central Bank and call the euro’s survival into question.

U.S. Companies Brace for an Exit From the Euro by Greece

Even as Greece desperately tries to avoid defaulting on its debt, American companies are preparing for what was once unthinkable: that Greece could soon be forced to leave the euro zone.

Andalusia becomes fourth Spanish region to ask for bailout

Spain's indebted Andalusia region is to seek central government aid with a €1bn (£791m) "advance" to provide liquidity.

Top tax-man suggests Argentines spend vacations in the country, but he prefers Punta del Este

Argentines should stay at home and spend their vacation in Argentina, suggested the head of the tax revenue office, AFIP, arguing in favour of the latest measures severely limiting debit and credit card purchases abroad by charging them an additional 15% expense.

Fed Moves Toward Open-Ended Bond Purchases to Satisfy Bernanke

Federal Reserve Chairman Ben S. Bernanke says the U.S. economy is “far from satisfactory.” His colleagues are moving to embrace policies that will stay in place until he’s satisfied.

How a German court could have a big impact on your wealth

The fate of the euro may not lie in the hands of national governments, or bond markets, or even European Central Bank governor Mario Draghi. Instead, it might all hang on the words of eight judges in Germany.

How to brace your portfolio for a hard landing in China

China bulls used to deny that any sort of economic slowdown was possible for the country. Once it became clear that the economy was indeed slowing down, the bulls said it would be a ‘soft’, well-managed landing. But now that the landing is looking a lot harder than they’d expected, the bullish argument is that there will be a rebound in the second half of 2012. However, the latest data suggests there’s little hope of that either. So just how hard will China fall? And what does it mean for your money?

Technicals flash amber as ECB and Fed struggle to validate rhetoric

Louise Yamada clinched her reputation as America’s oracle of technical analysis with an emphatic sell warning at the top of the Wall Street boom in 2007.

Global crisis moves East as China suffers rapid downturn

China’s industrial output is contracting at the fastest pace since the depths of the global financial crisis, with knock-on effects spreading across the Far East.

China’s fears grow over eurozone crisis

China has expressed deep alarm at the escalating crisis in Europe and warned against austerity overkill as Europe's crumbling demand sends shock waves through Asia.

A Bunch Of Big Advisers At Morgan Stanley Might Leave The Firm For A Totally Embarrassing Reason

This just looks bad on Morgan Stanley. Reuters reports that around 40-48 advisers at the bank (who run tens of billions of dollars) are thinking of leaving the firm because of "widespread technology problems that have made it difficult to do their jobs."

Draghi plan under threat amid EU split

Pressure is mounting on the European Central Bank to water down emergency measures to prop up Spain and Italy, after reports that the chief of Germany’s Bundesbank threatened to quit in protest at the plan.

Fed Chairman Makes Case, in Strong Terms, for New Action

The Federal Reserve chairman, Ben S. Bernanke, delivered a detailed and forceful argument on Friday for new steps to stimulate the economy, reinforcing earlier indications that the Fed is on the verge of action.

It’s time to get rid of central bankers

Today the world’s investors and financial media will be hanging on the words of one man: Ben Bernanke. Everyone’s hoping that the Federal Reserve chief – the world’s most important central banker – will give some idea of whether or not he plans to print more money. This is madness. If there’s one thing that most of us should have learned by now it’s this: central bankers are one of the main causes of today’s economic mess, not the solution to it. Here’s why – and how you can protect your portfolio from their interference…

Deposit flight from Spanish banks smashes record in July

Spain has suffered the worst haemorrhaging of bank deposits since the launch of the euro, losing funds equal to 7pc of GDP in a single month.

Peak cheap oil is an incontrovertible fact

If the looming global oil crunch has been postponed for another decade or two as widely alleged, this is far from obvious in today’s commodity markets.

Dennis Gartman Just Dumped All Of His Stocks

Back in February when the DOW crossed the 13,000 mark, Dennis Gartman said he had made a mistake reducing the size of his long position. He said, "you make it sound like I'm short of equities. Not on your life. Not right now" Now Gartman, publisher of the Gartman Letter, who cut his long position by half earlier this week, has exited stocks entirely.

China bubble in 'danger zone' warns Bank of Japan

China risks a repeat of Japan’s boom-bust disaster 20 years ago as exorbitant property prices combine with a demographic tipping point, a top Japanese official has warned.

Bernanke Sees More Scope for Easing to Spur U.S. Economy

Federal Reserve Chairman Ben S. Bernanke said the central bank has the ability to take additional steps to boost the economy.

Citi pulls funds from '$5bn man' John Paulson

He is credited with earning the fastest $5bn (£3bn) ever made, but John Paulson, the American financier, now appears to be losing money from his famous hedge fund even faster.

Fed joins stimulus party as global trade slumps

All three major blocs of the world economy have shifted gears dramatically over the last month, preparing a fresh blast of stimulus to combat the sharpest contraction in global trade since the 2008-09 crisis.

“Look at me – I’m a thieving enemy of the people”

If you lived in Italy today would you buy a new super yacht? I suspect you would not. Why? Because the taxman might see it and if he did he might pop round to ask exactly how you paid for it. And given the size of the black economy in Italy, that might be a question you didn’t want to answer. But it might not be just yachts you are shying away from splashing out on. And your reluctance to spend may have nothing to do with being Italian or owning Italian assets. Across the globe there are signs that high-end buyers of luxury goods are closing their wallets. Tax is one reason. Another is that ostentatious wealth is no longer admired or accepted in the way that it was. And that’s bad news for luxury goods shares.

Italy's Wealthy Yacht Owners Sail Away From Taxman

http://www.bloomberg.com/video/italy-s-wealthy-yacht-owners-sail-away-from-taxman-ZpkuOdrESJa0FtmZ6EOVmw.html

Germany will support Greece, says Angela Merkel

German Chancellor Angela Merkel stressed on Friday that she wants Greece to remain in the euro, but made no mention of any concessions Europe was prepared to offer over its austerity targets.

Fitch is targeted by Italian magistrate

Italian prosecutors have compiled a controversial case against Fitch Ratings for allegedly issuing “false and unfounded judgements” against Italy, the latest move in an escalating judicial campaign against “Anglo-Saxon” credit agencies.

Lord Rothschild takes £130m bet against the euro

Lord Rothschild has taken a near-£130m bet against the euro as fears continue to grow that the single currency will break up.

Banks Use $1.77 Trillion to Double Treasury Purchases

The gap between U.S. bank deposits and loans is growing at the fastest pace in two years, providing lenders with more funds to buy bonds and temper the biggest sell-off in Treasuries since 2010.

Another way to profit from a Chinese slowdown – buy Mexico

Investment banks like to group 'hot' countries together. Not only is it a great way to grab investors’ attention, sometimes it even makes money. In 2001, Goldman Sachs came up with the BRICs – Brazil, Russia, India and China. Those four markets did very well during the 2000s. However, as we’ve pointed out already, these four seem to have hit the buffers. So now Goldman has come up with another shiny package of ‘must-have’ nations. The catchy acronym this time? MIST – Mexico, Indonesia, South Korea, and Turkey. As with the BRICs, there’s no real reason to group these countries together beyond branding. Each has its own merits and individual problems. However, of the four, Mexico looks the most interesting to us. Here’s why…

Germany backs Draghi bond plan against Bundesbank

Germany’s director at the European Central Bank has thrown his weight behind mass purchases of Spanish and Italian debt to prevent the disintegration of the euro, marking a crucial turning point in the eurozone debt crisis.

Global gold demand down in Q2 but Central Bank buying hits record

Latest figures from the World Gold Council show that global gold demand fell back in Q2 2012 compared with a year ago, but Central Bank buying rose to a new record level.

How to profit from Brazil’s infrastructure splurge

It’s all gone wrong for the Brics. Brazil, Russia, India and China were meant to dominate the global economy in the near future. As it stands, Russia remains hopelessly dependent on oil, India can’t get its act together at all, and China is suffering a hard landing. As for Brazil, falling commodity prices (a knock-on impact of China’s landing) are likely to hit growth this year. The country is also suffering a major credit bubble. My colleague Merryn Somerset Webb thinks that property in Brazil is overdue a fall. But while we’re bearish on the market overall, there are still some pockets of opportunity in Brazil – here’s why…

Retail Exodus From Stocks Continues: Another $3.6 Billion Pulled Out Last week

There was a time when retail stock outflows were considered a bullish catalyst: after all, retail was always considered the dumb money (not "two and twenty" hedge funds which continue to underperform the stock market, and have done so for the past five years), and would pull money at the bottom and add money at the top. This is no longer the case for the simple reason that while persistent outflows from domestic equity funds continue (and as the recent shuttering of levered ETFs by Direxion shows the infatuation with synthetic mutual fund replacements is now over), for the inverse to be true there have to be inflows, which are now non-existent.

Is the gold mining sector about to take off?

Gold has had a quiet year. Despite the prospect of more money printing by the world’s central banks, and minuscule interest rates, it seems that not many people see inflation as a big threat at the moment. But things can change quickly in the financial world. Often the best time to buy things is when nobody really wants them. It’s interesting that renowned investors George Soros and John Paulson have been buying gold recently. It looks a smart move to us. Gold is worth holding, if only as a form of insurance against paper money going bad – which it eventually will, if all the printing continues. We certainly see no reason to hold low-yielding government bonds. But what about gold mining stocks? If you believe that you should own gold and that it will go up in price, surely gold stocks are a good investment?

Russian Bear stops Finland leaving euro

German eurosceptics quietly hope that Finland will become the first creditor state to storm out of monetary union in disgust, opening the way for others to break free.

Finland prepares for break-up of eurozone

Finland is preparing for the break-up of the eurozone, the country’s foreign minister warned today.

World shipping crisis threatens German dominance as Greeks win long game

Germany’s shipping industry faces a wave of bankruptcies over coming months as funding dries up and deepening economic woes across the world cause a sharp contraction in container trade.

Five years on, the Great Recession is turning into a life sentence

Five years into the Long Slump it almost seems as if we are back to square one.

The Solution…is the Problem

When we wrote Part I of this paper in June 2009, the total U.S. public debt was just north of $10 trillion. Since then, that figure has increased by more than 50% to almost $16 trillion, thanks largely to unprecedented levels of government intervention.

Exclusive: U.S. banks told to make plans for preventing collapse

U.S. regulators directed five of the country's biggest banks, including Bank of America Corp and Goldman Sachs Group Inc, to develop plans for staving off collapse if they faced serious problems, emphasizing that the banks could not count on government help.

Gold is no safe haven – but you should still own some

“Sell gold”. That’s the message from FT columnist Peter Tasker, a Tokyo-based analyst with Arcus Research. As far as he’s concerned, gold’s bull market is over. I’m a fan of Tasker’s writing. He often talks a lot of sense. And I normally agree with him. I even agree with many of the points he makes about gold. But not quite all of them…

The Problem with Renewable Energy is the Price

I haven't written about renewable energy in recent months for a very specific reason. The market for sources such as solar, wind, and biofuel has collapsed. There are two reasons. Both involve price. First, while crude oil is beginning to move upward, and natural gas prices have increased by about 57% over the past three months, both had fallen to unusually low levels. That means the primary ally of alternative sourcing - the acceleration in the price of hydrocarbons - has been absent. Of course, there are environmental, lifestyle, and social considerations that would benefit from renewable energy. Taken by themselves, however, these do not have more than a marginal impact on the energy balance.

What 700 Million People in the Dark Says About Investing in India

For years now I've preferred China over India. When invariably asked to compare the two as investments, my answer has always been the same. Somewhat tongue -in-cheek, I'd point out "that India has trouble keeping the lights on from one end of the country to the other." Little did I know that those comments made in jest would actually become reality. Earlier this week, a massive power blackout left more than 700 million people without power in India as not one, but three, regional electrical grids failed. If that isn't a glaring sign that India isn't ready for prime-time I don't know what I can say to make you see the light - pun absolutely intended. Don't get me wrong. There are clearly a few select Indian companies worth the risk. But as a whole, the scope of this power failure suggests India has a long way to go before it achieves the global superpower status it seeks and a dominant position in your portfolio.

A new way to profit from China’s slowdown: get into the wine business

Chile is the Switzerland of South America. Trains run on time, the economy generally outperforms its larger neighbours and the politicians have a solid record of prudent macroeconomic management. Throw in Chile’s relatively sound legal system, free press and established democracy, and it’s easy to understand why it’s popular with investors. But a storm is brewing for the Chilean economy. As the world’s biggest copper producer, Chile is very dependent on China’s appetite for raw materials. And right now, China isn’t feeling as hungry as it once did. Yet this could be very good news for one specific Chilean industry – and one company in particular. Let me explain…

Hard landing for China as factory prices fall and deflation looms

Factory gate prices in China fell at an accelerating rate of 2.9pc in July as the economy flirted with industrial recession, prompting calls for further stimulus to head off Japanese-style deflation.

Eurozone money printing is on the horizon – buy Europe now

On Thursday evening, it seemed all was lost for the eurozone. Mario Draghi had sworn to do “whatever it takes” to save the euro. Then on Thursday afternoon, he did nothing. He just talked. With the ‘big bazooka’ failing to materialise, markets plunged, as you’d expect. The European Central Bank (ECB) had failed. But then on Friday, yields on Spanish and Italian debt fell, and markets rebounded sharply. Suddenly the end of the world didn’t seem quite as nigh. So what’s changed everyone’s minds?

Global slump risk falls as world money rebounds

The first green shoots have begun to emerge in money supply data from across the world, raising hopes of a tentative global recovery by later this year.

Five years of financial crisis

Here is a selection of news and views from the stories, blogs and columns over the past five years about financial crisis.

Germany and Italy near blows over euro

German politicians from across the spectrum have reacted furiously to warnings by Italy’s Mario Monti that Bundestag control over EU debt policies threatens to bring about the “disintegration” of the European project.

Venetian cunning of Draghi-Monti masterplan may save euro for now

So we enter the treacherous market month of August with Europe in limbo. The actors wait upon each other. World finance held hostage to a fiendishly complicated game of diplomatic chess.

Pressure on Spain to bow to bail-out

Italy’s leader Mario Monti is to make a last-ditch effort tomorrow to persuade Spain to swallow its pride and accept a formal rescue, hoping to clear the way for double-barrelled action by bail-out funds and the European Central Bank.

China prepares vast stimulus as slump threatens Asia

China has ditched its reform strategy and prepared a vast stimulus package as the country’s soft-landing turns uncomfortably hard, with recession warnings flashing across East Asia.

Spain Reports Record Capital Flight

Capital outflows from Spain quadrupled in May to €41.3 billion from May 2011 in a sign of waning confidence in the country's ailing banking sector. In the first five months of this year, outflows reached a record €163 billion, according to figures from the country's central bank.

Try as He Might, Mario Draghi Cannot Save the Euro

Of all the pyramid schemes that governments and banks have perpetrated in the last decade, the Eurozone debt crisis is the most damaging. No amount of posturing by European Central Bank President Mario Draghi can change that fact. The market may like what Draghi has to say about the fate of the euro, but tomorrow's big ECB meeting will change little. The massive amount of money Draghi will need to print is far too great for the German taxpayer or the ECB's balance sheet. Eventually, the Eurozone will break up and drag the global economy right down with it. In the long run, that will mark the beginning of the recovery, but in the short run it will precipitate a banking and economic crisis that will make 2008 look like child's play. As investors, we had better be prepared.

Europe is cheap. It's time to buy

Since the Olympics kicked off, markets have been on a bit of a tear. But it’s not because investors all loved Danny Boyle’s opening ceremony. It’s all down to a central banker, once again. You’ve heard of the ‘Greenspan put’ and the 'Bernanke put’: the way that markets can always rely on the US Federal Reserve chief to cut interest rates and prop up stocks. Now investors are betting on the ‘Draghi put’. Last Thursday, European Central Bank (ECB) chief Mario Draghi promised that he’d do “whatever it takes” to save the euro. This Thursday, he gets the chance to prove it, as the ECB governing council meets to discuss what to do. But can he live up to expectations? And what happens if he doesn’t?

Only Mario Draghi's ECB can avert global calamity before the year is out

Mario Draghi has promised the moon. The European Central Bank’s council had better deliver on his pledge this week. If it does not, the crisis will surely escalate out of control in August or soon after.

Gold still looks good – but miners look even better

Have you ever sat down and worked out your personal inflation rate? I have. The latest official statistics suggest that the consumer price index (CPI – the Bank of England’s official ‘target’ measure) rose at an annual rate of 2.8% in May. But I reckon my cost of living has risen by a lot more. Having looked at all my costs – and I mean all, from the 5.8% rise in the price of a kilogramme of tomatoes, to the 2.4% rise in the price of a loaf, to the 6% rise in the cost of filling up my car, to the whopping 14% rise in the cost of a bag of potatoes – I reckon my annual inflation rate is sitting at more than 6% – 6.3% to be exact. The chances are, unless you live with your parents and spend most of your income on new electronic goods (which are about the only things that consistently fall in price these days), your own cost of living is probably rising at a similar rate.

How to profit from America’s manufacturing comeback

“The future of manufacturing is in America, not China” declared Vivek Wadhwa in Foreign Policy magazine this week. Wadhwa argues that technology is going to save the US. In fact, “technical advances will soon lead to the same hollowing out of China’s manufacturing industry that they have to US industry over the past two decades”.

Lord Green is pushed on HSBC money laundering

A shadow treasury minister has written to Lord Green, trade minister, demanding answers about HSBC’s money laundering problems in America and Mexico.

Citigroup CEO Vikram Pandit: It's about getting back to the basics of banking

In a rare interview, Citigroup CEO Vikram Pandit tells the Sunday Telegraph how he plans to change the culture at the US giant.

Sceptics abound as Mario Draghi's ECB bond 'bluff' electrifies global markets

The European Central Bank has opened the door to emergency support for the Spanish and Italian bond markets, setting off a blistering rally on bourses across the world.

Euro exit beats begging bowl, says Cascos

The regional leader of Asturias in Spain has become the country’s first major figure to call for a radical change of strategy and exit from the euro, unless monetary union is fundamentally reformed.

Europe is sleepwalking towards imminent disaster, warn top economists

The euro has completely broken down as a workable system and faces collapse with “incalculable economic losses and human suffering” unless there is a drastic change of course, according to a group of leading economists.

Eurozone danger mounts as Spain spins out of control

Spain is battling to avert a fully-fledged sovereign rescue after borrowing costs spiralled out of control, with dangerous knock-on effects in Italy and Eastern Europe.

Blaming the Spanish victim as Europe spirals into summer crisis

It is time for Spain and the victim states to seize the initiative.

Spanish debt crisis returns as Germany nears bailout fatigue

Spanish borrowing costs have surged to euro-era highs despite draconian fiscal cuts and backing from the German parliament for the country’s €100bn (£78bn) bank rescue package.

Monti plans 'Greek-style' takeover of Sicily to avert default

Italian premier Mario Monti is mulling emergency action to take direct control of Sicily’s regional government before the island spirals into a full-blown financial crisis, fearing contagion to the rest of Italy.

Fund managers expect more trouble in Germany

Fund managers from across the world have begun to doubt Germany’s ability to withstand further shocks from the region’s debt crisis, registering a stark change in view since the late spring.

Euro tumbles as Asian funds shun EU chaos

The euro has plunged to multi-year lows against a range of currencies on fears of a deepening slump in Italy and Spain, and ugly disputes between eurozone leaders.

Spain bows to EU ultimatum with drastic cuts

Spanish premier Mariano Rajoy has raised VAT sharply in a humiliating volte-face and pushed through €65bn (£51bn) of drastic austerity measures to comply with a European Union ultimatum, risking a downward spiral into full depression.

Germans in court battle to block eurozone bailouts

The German Constitutional Court may take up to three months to rule on an injunction by private citizens and Left-wing lawmakers aimed at blocking the eurozone bailout machinery, leaving markets hanging in suspense as the eurozone debt crisis eats at confidence.

Debt crisis: ECB pledges action as southern Europe buckles

The European Central Bank has vowed to do whatever it takes to hold the euro together after the North-South gap in borrowing costs reached fresh extremes, pushing the two halves of monetary union closer to breaking point.

What I Wish Ben Bernanke Knew About Japan

I've called Japan my "other" home since 1989 and in that time I've seen it change in ways that ought to scare the pants off you. I say that not to ruin your day, but because I fear we are headed down the same exact road as long as Ben Bernanke and his central banking buddies think it's easier to print money than actually stimulate real growth. In doing so, they are re-creating Japan's "Lost Decades" here at home with years of smoldering, piss-poor growth as our destiny. Yet it doesn't have to be that way. We can still choose a different path.

Is it time to buy Chinese stocks?

This week, the cover story in US financial paper Barron’s warns readers to expect a hard landing in China. It covers all the bases. China has relied too much on exports (not a viable model when your customers in the US and Europe have no money) and infrastructure building (not viable when you’ve built too much of it already). So now it faces a property crash, and tighter credit, just at a time when it’s trying to become a consumer-driven economy. That’s a tough task for anyone to tackle. It’s even tougher for a country burdened with vested interests who would rather keep the state-owned enterprises in control than let the private sector breathe. Oh, and on top of that, there’s a change of leadership to cope with. However, it doesn’t add anything new to the story that MoneyWeek readers wouldn’t already have picked up from our various China covers over the last couple of years. (Read this piece from June 2011 for a full rundown of the bear case: China is heading for a fall – here’s what it means for you). And that got me thinking. If the China story is only now hitting the mainstream, and there’s not much new to add to it – well, maybe it’s time to have another look at Chinese stocks…

Capitalism is in crisis but it's still our best bet for prosperity

The last couple of weeks have not been good for capitalism. The Libor scandal has come on top of yet more disputes about executive pay. This has brought forth the usual catcalls from the left and the usual kneejerk responses from the right.

German president tells Angela Merkel to come clean on EU debt deal

Joachim Gauck, the German president, has ordered Chancellor Angela Merkel to clarify exactly what she agreed behind closed doors at the EU crisis summit ten days ago.

Euro break-up: Let Germany lead the northern core and France the rest

The respected economist and Telegraph columnist summarises the argument for an orderly break-up of the eurozone if a struggling member was forced to leave that won him the Wolfson Economics prize.

One thing is clear– the Bank knew Libor was broken and did nothing

Paul Tucker, the Bank of England's deputy governor, says he is keen to give evidence to the Treasury Select Committee "as soon as possible" to clarify what he sees as the misconceptions surrounding the Libor fixing scandal.

Fraud trial for Rodrigo Rato over Bankia collapse

Rodrigo Rato, the former head of the International Monetary Fund, is to face trial for alleged fraud in connection with the spectacular collapse of Spanish lender Bankia.

Debt crisis: Italy's deficit to double, but Germany's to halve

Italy has almost doubled its deficit forecast, as Germany halved its, underscoring the increasing lag of "sinner states" that could persuade the European Central Bank to cut interest rates on Thursday.

Debt crisis: Greece admits it's off track on bail-out terms, as troika inspects

Greece's new finance minister, Yannis Stournaras has admitted that the country is "off-track" to meet the conditions of its bail-out agreements while his predecessor warned Athens would need three-years to get back on track.

Falklands oil players on the cusp of something huge

Stand by for action! The Falklands Islands could be making headlines again very shortly. And this time, it won’t be Cameron and Kirchner who are dominating the headlines.

The best emerging market to buy now

This Thursday’s Bank of England interest rate decision has investors’ mouths watering. Even more money-printing seems to be on the cards. Similarly, India’s central bank has been standing firm against its government too.

The $289 Trillion Problem

Two hundred and eighty-nine trillion dollars. An unimaginable amount. That is the total of derivatives outstanding at the top five US bank holding companies as of March 31, 2012, according to the Office of the Comptroller of the Currency (OCC).

Debt crisis: Live

European Central Bank policymaker, Joerg Asmussen, urges Greece to stick to its reform agenda as markets digest data showing a slide in Spain, Greece and Italy's manufacturing activity and a rise in unemployment across the eurozone.

Bank of England prepares £200bn economic stimulus

The Bank of England is preparing to unleash a £200bn stimulus package for the economy by printing more money this week and relaxing financial regulations.

Europe’s bad debts 'will bite in 2013’

Bad debts in the eurozone are a “ticking time bomb” for the continent’s economy, with the worst effects expected to be felt next year, a report has warned.

Euro debt crisis: is complete pessimism justified?

Rarely have economists and policy-makers emitted such unmitigated gloom.

Italy has won this euro battle, but not the war

Long-suffering investors, desperate for some good news, have seized on the headlines from the latest in a long series of “last-ditch” European summits.

After Barclays, the golden age of finance is dead

Retribution and regulation are sure to follow the Barclays scandal, but if the City is shackled, Britain as a whole will suffer

Angela Merkel isn't bluffing; like everyone else in Europe, she's defending national sovereignty

You turn if you want to. The lady's not for turning. No, not Mrs Thatcher, but Angela Merkel, the latest big beast of the European political scene to dig her heels in and refuse to go along with the international consensus.

While Banks Crumble, The Next Leg Up For Gold Prices Draws Near

Something's afoot in the world of high stakes finance. The Basel Committee for Bank Supervision (BCBS) is about to decide something crucial to bankers, sovereign nations, and gold investors alike. As part of the Bank of International Settlements (BIS), the BCBS is reviewing the upcoming new Basel III rules. That may sound arcane to you but I promise it's not. Though rarely discussed in the mainstream press, the all-important Bank of International Settlements is essentially a global central bank to the world's central banks. Its goal is ostensibly to provide global stability to the monetary and financial systems. And in a surprise twist that only a few years ago would have been considered preposterous, the BCBS is entertaining whether gold should qualify as a full-fledged Tier 1 capital asset.

The rare metal that’s got Warren Buffett excited

Watching where Warren Buffett invests has become a cottage industry. No wonder. Regardless of what you think of the 'Sage of Omaha’s' more recent track record, his long-term performance is hard to argue with. He’s not the world’s most famous investor for nothing. The other thing Buffett is famous for is hating gold. So when he buys a stake in a mining operation, it has to be worth noting. What’s got Warren so excited about this particular hole in the ground? And can you profit from it too?

Is it time to buy American banks?

http://www.moneyweek.com/investments/stock-markets/us/is-it-time-to-buy-american-banks-22400?utm_source=newsletter&utm_medium=email&utm_campaign=Money%2BMorning

Why Ford (NYSE: F) Wants to Put a Robot in Your Driver's Seat

http://moneymorning.com/2012/06/12/why-ford-nyse-f-wants-to-put-a-robot-in-your-drivers-seat/

Barbarian hoard

Will the euro go the way of the 50,000 Iron Age coins unearthed in Jersey?

Chile Is Latest Country To Launch Renminbi Swaps And Settlement

The dollar exclusion list is becoming bigger and bigger with every passing day as China gets ready.

Recovery still five years away, Mervyn King warns

Britain is facing at least five more years of financial pain, the Governor of the Bank of England has warned, in his bleakest outlook for the economy yet.

Spain Poised for Downgrade to Junk as Default Swaps Near Records

Spain is poised for a downgrade to junk by Moody’s Investors Service, according to investors who sent the cost of default insurance for the nation’s biggest banks and companies close to record highs.

Egan-Jones cuts Germany on exposure to euro zone

Egan-Jones Ratings on Tuesday lowered Germany's sovereign rating on expectations that the country will be left with significant uncollectable receivables due to its exposure to the euro zone. "Egan-Jones Ratings has downgraded Germany from 'AA-' to 'A+' and has issued a negative watch with a projected rating of 'A-,'" said Sean Egan, managing director of Egan-Jones, in emailed comments.

Stockton bankruptcy is hard hit for city retirees

When Stockton becomes the largest U.S. city ever to file for bankruptcy, it will strike a hard blow to residents, especially city employees and retirees whose health benefits and pensions helped drive the city toward insolvency.

Consumer Confidence in U.S. Declines to a Five-Month Low

Confidence among U.S. consumers dropped in June for a fourth consecutive month as mounting concern over jobs and incomes dimmed the outlook for spending.

Angela Merkel defies Latin Europe and the IMF on bond rescue

German Chancellor Angela Merkel has shot down calls for full mobilisation of the eurozone's bail-out funds to halt the raging bond crisis in Spain and Italy, ignoring unprecedented pleas for action from the International Monetary Fund.

Debt crisis: desperate Monti needs Merkel summit deal to stop revolt at home

Italy's technocrat government risks a parliamentary mutiny unless premier Mario Monti can secure major concessions from Germany at a crucial summit of the eurozone's Big Four powers in Rome on Friday.

G20 summit: perils of a half-baked rescue for Spain and Italy

Germany and France are doubling up on a high-risk gamble. The tentative deal at the G20 summit to mobilise the EU's rescue machinery to douse the raging fire in Spain and Italy comes in the nick of time, but is fraught with fresh dangers.

Spain pleads for ECB rescue as bond markets slam shut

Europe's leaders have vowed to mobilise all possible means to counter the region's escalating crisis after Spain's borrowing costs threatened to spiral out of control.

Greece will have to leave EMU whoever is elected

The exact circumstances and timing of Greece’s ejection from monetary union no longer have any systemic importance for global finance. The damage has already been done. The precedent of EMU break-up is by now priced into the credit markets. Formalising it changes little.

Debt crisis: ECB last hope as dam breaks in Spain

Spain's borrowing costs have surged to record highs and are perilously close to the point of no return, threatening a full-blown sovereign crisis unless the European Central Bank comes to the rescue.

Debt crisis: Germany signals shift on €2.3 trillion redemption fund for Europe

The German government has begun opening the door to shared debts for the first time in a profound change of policy, agreeing to explore proposals for a €2.3 trillion (£1.9 trillion) stabilization fund in order to stop the eurozone’s crisis escalating out of control.

Debt crisis: Bundesbank scuppers all talk of EU banking union

Germany's central bank has shot down EU proposals for a European banking union, warning categorically that eurozone liabilities cannot be shared without a fundamental shift towards fiscal and political union.

Mobile Wallet Technology: Warming up For the Battle Royale

The mobile wallet movement is inevitable. But so are the bumps in the road. If there's anything that's going to delay the mobile wallet's future on a global scale rivaling, well, telephony itself, it's going to be because there are so many players and stakeholders tilling the same soil to sow what they hope to reap. The fact that so many giants and would-be giants are trying to make their networks and systems-in-development the standard mobile wallet platform ensures a battle royale. The development race will be just that, a race. But, in the end there will only be a few competitors and everyone else will cease chasing the Holy Grail and fall in under one or another network. But, because we're investors seeking an edge and know that by the time the end-game is resolved the big money will have been made, we are looking for a "heads-up" on where to place our bets early.

Good News for Gold Prices: Commodities are Wounded, But Far From Dead

Greece is frozen in a political stalemate. Youth unemployment is running at over 50%. And there has been a $1 billion run on Greek banks. From near and afar, there appears to be no easy way out, especially now that the Eurozone is heading back into a recession. It's times like these when investors pour into the U.S. dollar for its "perceived safety." With commodities priced in U.S. dollars, this spike in the greenback has sent commodities-including gold prices-into a tailspin since early March. That has many doubters asking: "Has the commodities super-cycle ended?" It's a reasonable question considering the Continuous Commodity Index (CCI) is back down to levels it last saw in September 2010. What's more, gold prices have backed off to near $1,500/oz., and oil prices have fallen from $110 to $90/barrel. But as you'll see, the commodities coin does have another side.

A Liberty Investor's Guide to Latin America

Words, indeed, are powerful things. As an Englishman in America, my personal favorite is freedom. It's embodied by those words penned so long ago by a young Thomas Jefferson... It's the idea that "We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness." That's not only the foundation for what I believe, but it's also the basis for how I invest. It's a technique I call "Liberty Investing." As such I like to invest in countries and companies whose operations are compatible with freedom, as defined by the Founding Fathers and the best U.S. political and economic traditions. To me, this is ultimately the right way to run both societies and companies. And when we follow them, our returns will be consistently superior over the long term.

UK banks sitting on £40bn of undeclared losses

Britain's banks are sitting on a £40bn black hole of undeclared losses that are preventing them from making vital loans to businesses and households.

Japan's fiscal death is a warning to the West

Fitch Ratings has downgraded Japan two notches to A+, citing a surge in public debt since the Lehman crisis and the lack of any plan to restore fiscal probity.

Investing in Japan: Is There Light at the End of the Tunnel?

Most people have given up on investing in Japan. With an aging population and far too much government debt, the conventional wisdom is that Japan will never again see the vigorous economic growth it once enjoyed. The earthquake and tsunami of March 2011 only reinforced this view. However, that tragic episode did have another side. It showed the resilience and discipline of Japanese society. There was almost no looting, for example -- and recent economic data suggest that the Japanese economy is not as dead as it seemed. First quarter Japanese gross domestic product (GDP) came in at an annual growth rate of 4.1% --far higher than the United States, Canada, Australia, or anywhere in the Eurozone. Given that Japan has been in perpetual near-recession for 21 years, with no surges of productivity like the U.S. enjoyed in the late 1990s, it's really not a bad performance. You can also see Japan's true strength from its exchange rate, which is currently 79 yen to the dollar, up from around 120 five years ago. That makes visiting Tokyo very expensive. However, it's also sign of a highly competitive economy.

No One Is Talking About The Chinese Move That Is Even More Important Than The Rate Cut.

This morning, the People's Bank of China announced a surprise interest rate cut for the first time since 2008. More important and much less talked about is China's decision to allow commercial banks to offer up to 10 percent premium to the benchmark deposit rate (compared to 0 percent previously), and the up to 20 percent discount to the lending rates (compared to 10 percent previously), according to Societe Generale analyst Wei Yao.

China is heading for a well needed crash

When I look at China it scares me - it brings back dark memories of July 1997. I was working as an analyst in an office above the Hard Rock Café in Kuala Lumpur. For months, investors had been fleeing the country in the wake of a devastating currency crisis. I had a front row seat during the total collapse of a major economy. It proved an invaluable lesson in the pitfalls of investing in Asia. I remember a stern statement sent to a leading tycoon to top up many millions of dollars as collateral or face immediate legal action; I remember the pulsating trading rooms emptying; I remember companies slamming the doors to investors as managements became preoccupied with a fight for survival. It was very unpleasant. OK, the traffic in the business district was definitely lighter for a few weeks – it was a lot easier to get home at night. But the troubling thing was just how quickly an economy can go into deep-freeze. And when you think about China today, that’s the episode that you need to bear in mind.

Spain too big for EU rescue fund as China recoils

As Spain edges closer to a full sovereign rescue, economists have begun to doubt whether the EU bail-out machinery can raise such large sums funds at viable cost on global capital markets.

Spain makes plea for EU aid for troubled banks

Spain has admitted for the first time that it can no longer raise money on the global markets or roll over its sovereign bonds, threatening to set off a dangerous escalation of Europe's debt crisis.

Portugal props up banks with €6.6bn

Portugal is to inject up to €6.65bn (£5.4bn) into three of its biggest banks to meet an EU deadline for higher capital ratios by the end of this month.

BIS warns global lending contracting at fastest pace since 2008 Lehman crisis

International lending is contracting at the fastest pace since the onset of the financial crisis in 2008 as Europe's banks scramble to meet tougher rules.

The week that Europe stopped pretending

The euro has essentially broken down as a viable economic and political undertaking. The latest rush of events reeks of impending denouement.

Spanish rescue draws closer as Cyprus buckles

Spain's ruling party has begun to crack under pressure, signalling for the first time that the country may need a European rescue to shore up its banking system.

Spain faces 'total emergency' as fear grips markets

Spain is facing the gravest danger since the end of the Franco dictatorship as the country is frozen out of global capital markets and slides towards an epic showdown with Europe.

Europe’s debtors must pawn their gold for Eurobond Redemption

Southern Europe’s debtor states must pledge their gold reserves and national treasure as collateral under a €2.3 trillion stabilisation plan gaining momentum in Germany.

Spain's Rajoy fights losing battle to stave off EU rescue

Spanish premier Mariano Rajoy has given a fateful hostage to fortune. He told the nation that there will no EU rescue of Spain's banking system, even as `Black Monday' brought a further crash in bank shares and the IBEX index dropped to nine-year lows.

Europe's Maquina Infernal has crippled Spain

Spain is spiralling into the vortex of debt-deflation. This has nothing to do with Greece. It is not the result of fiscal extravagance over the past decade, or other such Wagnerian myths.

Europe's slump deepens as Kabuki summit falls short

Once again Europe's leaders have swooped into Brussels and vanished hours later without offering any clear way out of the pulsating crisis at hand.

Debt crisis: Germany holds a gun to Greece's head

Pressure on Greece increased dramatically on Wednesday night after Germany's central bank called for a suspension of financial support to Athens and eurozone finance ministries agreed to draft contingency plans for a Greek exit from the euro.

Cuidemos a nuestros viejos. Son los sabios de la sociedad.

Hoy caminaba rápido rumbo a una reunión y de repente delante de mí un señor mayor casi se cae en la vereda. Llegó a agarrarse un poco de un semáforo y otro poco se afirmó con su bastón. Una chica lo atendió casi al mismo tiempo que yo para preguntarle si estaba bien. El señor dijo que sí. Estaba agitado, quien sabe hace cuanto casi corriendo. Al usar bastón pensé que con el piso mojado por la lluvia lo apoyó mal y resbaló. Seguí caminando rápido porque llegaba tarde a mi reunión pero no pude evitar seguirlo con la mirada. Pude ver como otra gente hacía lo mismo.  Como esperando lo inevitable. Y lo inevitable sucedió. Se cayó sobre el cordón. Corrimos algunos de los que lo seguíamos con la mirada más adelante pero no nos dió tiempo a llegar y ya estaba erguido  y caminando rápido como retando al destino. Lo paré en seco y le dije que parara que se iba a lastimar de nuevo. Ví que tenía el meñique sangrando, la cara golpeada, el labio roto. Porqué está corriendo tanto señor? Tengo que llegar a Edesur y pagar antes que me corten la luz. Quédese tranquilo que hoy no va a ir. Ya cerró (le mentí) quédese un poco acá conmigo hasta que se tranquilice un poco y pueda volver a casa. Tengo que llegar. Hoy no señor. Le va la salud en el intento. Se arrimó otro muchacho a ayudarme y darle charla mientras llamaba al 911 para que lo atendieran. Vive en barrio norte, solo, de su jubilación. Le sacaron el subsidio y se le complica pagar. Tiene la cultura de pagar a término pero este mes no pudo. Tiene la culpa de vivir en barrio “rico”. Llegó el policía y al rato la ambulancia. Me debería sentir bien porque lo ayudé pero me sentí tan mal porque como sociedad no cuidamos a nuestros viejos. Me pregunté cómo puede ser que en diez años la única idea que se nos cayó es cobrarle más a los que viven en algunos barrios. Se puede ser jubilado, vivir en barrio norte y no tener subsidio o vivir en la 11 14, ser un drug diller y que el estado te subsidie el consumo de electricidad. No se nos cae una idea. Somos tontos?. No como vamos a ser tontos si somos argentinos. Tengo la sensación desde hace un tiempo que no cuidamos a nuestros viejos, nuestros sabios, pero debe ser una sensación nada más, como tantas otras.