November 20, 2014

Social Transformation, Economy and Stock Market


Every production phase or civilization or other human invention goes through a so called transformation process. Transitions are social transformation processes that cover at least one generation (= 25 years). In this article I will use one such transition to demonstrate the position of our present civilization and its possible effect on stock exchange rates.

Subprime Crisis in Shale Oil Junk Bonds?

By John Rubino at Dollar Collapse blog via David Stockman's Contra Corner

One of the surest signs that a bubble is about to burst is junk bonds behaving like respectable paper. That is, their yields drop to mid-single digits, they start appearing with liberal loan covenants that display a high degree of trust in the issuer, and they start reporting really low default rates that lead the gullible to view them as “safe”. So everyone from pension funds to retirees start loading up in the expectation of banking an extra few points of yield with minimal risk.

Silver Market Interim 2014 Outlook

New York, 18 November 2014
At the Annual Silver Industry Dinner organized by the Silver Institute, Andrew Leyland, Manager, Precious Metals Demand in the GFMS team at Thomson Reuters, presented the Interim Silver Market Review. This Review included Thomson Reuters’ provisional supply and demand forecasts for 2014. The following details some of the highlights from the report.

Money Printing: The U.S. Fed Is No Match for China

By Wolf Richter at Wolf Street.

The phenomenal credit expansion in China has taken many forms and has accomplished many phenomenal things, from building entire ghost cities to turning ambient air into a toxic cocktail. In the process, the credit bubble turned China into the second largest economy.

November 19, 2014

What's Scarier Than Deflation?

What's Scarier Than DE-flation?
As early as 2011, our analysis warned that Europe's deflation was coming -- here's why

By Elliott Wave International

For the economies of Europe, the past few months have felt like one long ice-bucket challenge that never ends: A perpetual state of shock induced by the bone-chilling fact that deflation
"...has become a reality in many European countries." (Oct. 24, New York Times)
At last count, eight European nations are now in outright deflation, including:
  • Italy's -0.1% annual inflation, the country's first descent into deflation since 1959
  • Spain's -0.3% annual inflation, the most serious deflation of any larger eurozone economy
  • France's near 0.0% core inflation, the lowest in modern history