Category: Politics & Government
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It is THE story of the day.
It is THE event that will impact every investment decision you make.
If you ignore it, it will cost you. If you harness it, it can make you substantially richer.
I’m talking about the end of austerity programs and so-called “fiscal pacts” all over the world.
If running out of your own money wasn’t bad enough, policy makers are increasingly spending other peoples’ money to bail their country out. At the upcoming G-20 meeting, finance ministers from around the world will contemplate an increase to the resources of the International Monetary Fund (IMF). At stake for politicians is whether they can continue to do what they know best – to play politics.
The global economy is healing, so we are told. Yet, the moment the Federal Reserve (Fed) indicates just that – and thus implying no additional stimulus may be warranted – the markets appear to throw a tantrum. In the process, the U.S. dollar has enjoyed what may be a temporary lift. To make sense of the recent turmoil, let’s look at the drivers of this “recovery” and potential implications for the U.S.
Axel Merk
April 3, 2012
Investors may be taken for a ride by today’s Minutes of the Federal Open Market Committee (FOMC), which expand on the FOMC’s March 13, 2012 statement; in the interim, we believe the Federal Reserve (Fed) Chairman Bernanke has gone out of his way to assure the markets that monetary policy will remain.
I’ve spilled much ink on the subject of why central banks are hazardous to our financial health.
And it seems more and more people are arriving at similar conclusions. But that doesn’t seem to thwart the efforts of central banks. Short-term gain is masking long-term pain, insofar as central bank policy consequences are concerned.
By Doug Casey, Casey ResearchAn International Man lives and does business wherever he finds conditions most advantageous, regardless of arbitrary borders. He's diversified globally, with passports from multiple countries, assets in several jurisdictions and his residence in yet another. He doesn't depend absolutely on any country and regards all of them as competitors for his capital and expertise.Living as an international man used to be just an interesting possibility.
In assessing whether to make tough decisions, policy makers tend to weigh the cost of action versus inaction. As critical as we are of our dear policy makers, when push comes to shove, they may rise to the occasion. But what if they are not told when it’s time to act, when it’s time to stop printing and spending trillions? In our assessment, the voice of reason has been silenced, posing potential risks to economic stability, as well as the U.S. dollar.
Sometimes, investment analysis can be extremely complicated …
You have to be able to turn a balance sheet upside down and inside out.
You have to know a company’s sector, competitors, and business like you’ve worked there for years.
You have to figure out precisely where you are in the economic cycle, and monitor every minor data release from here to Shanghai.
And sometimes? It’s much simpler.
Don't Tax You, Don't Tax Me
Tax that Man Behind the Tree!
– Senator Russell Long, Democrat Louisiana (1918-2003)
Last week's letter on taxes drew more response than any letter I have written in years. Questions that were raised simply beg for an answer, and some of the replies were very thoughtful, well-written suggestions for alternatives.