|
|
By Monty Guild & Tony Danaher, on June 24th, 2009
While reading the report on the Obama administration’s proposed new financial regulations, we were concerned to see the following. “In order to improve accountability in the use of other crisis tools, we also propose that the Federal Reserve Board receive prior written approval from the Secretary of the Treasury for emergency lending under its ‘unusual and exigent circumstances’ authority.”
The Federal Reserve board is made up of economists whose sole purpose is to be able to monitor and manage the banking risks that are under their purview, and to set monetary policy without political pressure. They are free to . . .
Continue Reading: SCARIER THAN A HORROR MOVIE
By Monty Guild & Tony Danaher, on June 17th, 2009
“Why don’t somebody print the truth about our present economic condition? We spent years of wild buying on credit, everything under the sun, whether we needed it or not, and now we are having to pay for it, howling like a pet coon. This would be a great world to dance in if we didn’t have to pay the fiddler.”
- QUOTE BY WILL ROGERS
The world has accumulated a great deal of debt, and it will take a long time for the savings rate to get to the point where debt can be managed. Rather than implement rational . . .
Continue Reading: THE INTEGRITY & INDEPENDENCE OF THE U.S. FEDERAL RESERVE
By Monty Guild & Tony Danaher, on June 9th, 2009
On June 16th, Brazil, Russia, India and China, four of the world’s fastest growing nations, will summit in Russia. The BRIC nations come in to the meeting producing about 20 percent of world GDP. Their economies have been growing, while developed Europe and the U.S., currently representing 28 and 25 percent of world GDP respectively, are in economic decline. After the current global slowdown, by the end of 2011, the BRIC nations will be producing closer to 25 percent of world GDP. The BRIC nations want more control and more global influence…but individually, their strengths and their goals differ.
. . .
Continue Reading: THE BRIC NATIONS BECOME MORE ASSERTIVE
By Monty Guild & Tony Danaher, on June 3rd, 2009
Last week, the U.S. bond market fell substantially and yields rose as investors finally began to see the obvious: Quantitative Easing (the purchase of U.S. Treasury bonds by the Federal Reserve) and its potential inflationary pressures are weakening the U.S. dollar.
As most economists will tell you, the U.S. economy is in a depression. Statistically speaking, most depressions are deflationary and therefore accompanied by a fall in interest rates. However, the bond market’s recent behavior provides evidence that the current depression is not deflationary. On the contrary, inflationary pressures are building and interest rates are rising. Bond investors, looking . . .
Continue Reading: U.S. BOND MARKET FALL —EFFECTS WILL BE FELT WORLD WIDE
|
