The last but the most important and the most viable form of investment is direct investment in the currency. This is very similar to currency trading and can vary in terms of the capital invested and the time frame of investments. Direct investments vary from intraday trading to long term investments. While intraday trading might not be so feasible, long term investments would have heavy rewards vested with it.
School districts are notoriously short of funding – so short that some California districts have succumbed to Capital Appreciation Bonds that will cost taxpayers as much is 10 to 15 times principal by the time they are paid off. By comparison, California’s Prop. 51, the school bond proposal currently on the ballot, looks like a good deal It would allow the state to borrow an additional $9 billion for educational purposes by selling general obligation bonds to investors at an assumed interest rate of 5%, with the bonds issued over a five-year period and repaid over 30 years. $9 billion × 5% × 35 equals $15.75 billion in interest – nearly twice principal, but not too bad compared to the Capital Appreciation Bond figures.
However, there is a much cheaper way to fund this $9 billion school debt. By borrowing from its own state-chartered, state-owned bank, the state could save over $10 billion – on a $9 billion loan. Here is how. Read more ›
One of the hidden realities of modern life is its fragility. For example, few people are aware of the precariousness of the supply chain that refills gasoline/petrol stations around the world every few days.
Longtime correspondent Bart D. (Australia) recently experienced a multi-day regional loss of electricity. His first-person observations help us understand what breakdowns in energy are like on the ground.
HSBC’s respected chief precious metals analyst James Steel has written a note pointing out that the global trade slowdown will likely lead to “higher gold prices” as reported by Bloomberg.
Analysts at HSBC Group Inc. are telling clients that gold may be about to have another shining moment, as the precious metal’s status as a safe haven asset could boost prices, given the prospect of a looming downward shift in globalization.
The firm’s Chief Precious Metals Analyst James Steel says in a note published on Friday that “demand for gold is often stimulated by the same factors that fan protectionist and populist sentiment” and that “abrupt declines in cross border trade, investment and immigration, the dislocation of global economic policies, and a beggar-thy-neighbor approach to trade is almost tailor-made for higher gold prices.”
When asked about whether he has a “message for gold bugs … people who have Krugerrands in their dressing room drawer”, Steel spoke of gold’s portfolio insurance benefits and “the diversification argument is the most powerful … it is an insurance policy”.
The Long Term chart has been in an uptrend from the start of this year, with no sign of any set up change currently. The market has traded constantly over $630 with very low residual volumes in the range of $620 – $630. There is a strong possibility that the market might trade again in these levels to close the gap. This might be a chance to enter into a long term position around the zone of heavy support. The previous swing low of the market at $594 can be the stop with swing high at $770.89 as the target.
We discuss more warnings of global economic imbalances and the failings of neoliberalism. Mom joins in! Max then talks to Mike Maloney of GoldSilver.com about his latest chapter in his online documentary on monetary history, Hidden Secrets of Money.
The Euro “will collapse” as it is a”house of cards” warned Otmar Issing, the founder and creator of the euro in an extraordinary interview on Monday.
Paper currency – Euro paper notes and Greek drachma note
In the explosive interview with the journal Central Banking, Professor Issing, said “one day, the house of cards will collapse” as the European Central Bank (ECB) is becoming dangerously over-extended and the whole euro project is unworkable in its current form.
The founding architect of the monetary union has warned that Brussels’ dream of a European superstate will finally be buried amongst the rubble of the crumbling single currency he designed.
“Realistically, it will be a case of muddling through, struggling from one crisis to the next. It is difficult to forecast how long this will continue for, but it cannot go on endlessly,” he told the journal Central Banking in a remarkable deconstruction of the EU project. Read full story…
With so much mud being slung from all directions in this circus of an election, it’s often hard to separate fact from fiction. However, on one particular topic there is little doubt. When it comes to the big money crowd, they are definitely “with her.”
The Wall Street Journal reports:
Not a single registered lobbyist has raised a substantial amount of money for Republican nominee Donald Trump‘s campaign, according to campaign-finance disclosures filed over the weekend.
Democrat Hillary Clinton, meanwhile, has drawn more than $20 million over the course of her race for her campaign and joint Democratic Party accounts through funds raised by registered lobbyists, according to her disclosures.
Budget 2017: “Good Work To Halt Second Property Crash Undone In A Day”
David McWilliams has pointed out in two of his most recent articles how Budget 2017 and the latest mortgage tax grant risk creating a “second property crash”:
“We are faced with similar concerns on the horizon now. Unlike 2008, when this country went bust, or in 2012, when the euro as a currency was in real danger of falling apart, there is no serious internal threat. In 2012, the world’s central bankers cutting interest rates to zero prevented the disintegration of the euro. This may have saved the currency then, but it means that today central bankers have no ammunition left if there is another downturn. Interest rates are as low as they can go.
Unfortunately, the trading economies that Ireland depends on have not responded to zero interest rates with any real gusto. They are sluggish at best. This sluggishness means that the average guy feels left behind and sees real gains going to the very rich. As a result, the mainstream political players are now being rejected in favour of populists. This is happening everywhere, particularly in the UK, the US and France.”
The stupidity of this latest populist government gimmick and tampering in the property market was further underlined in an article published today. Read full story…
We are joined by Joel Benjamin, local authority debt audit campaigner with Debt Resistance UK, and Nigel Henderson, who lost his hotel business to RBS’s restructuring division, to talk of the ‘stunned commoners’ in awe (at the brazenness) of the Royal . . . Bank of Scotland. Nigel recounts his own encounter with RBS’s smash and grab unit which saw him lose his hotel in Scotland. We discuss the tens of billions in fines the bank, the taxpayer owned RBS, faces from US authorities for the bank’s role in mortgage backed securities fraud and whether or not there will be anything left for compensation of the thousands of small and medium sized enterprises destroyed in the UK.
There no longer seems to be a rational alignment between economic cost and value. This means questioning so-called conventional wisdom and critically considering whether or not to own property or even to go to college.
Here are some examples:
• In my own life, I owned a Florida vacant lot that would normally (and did actually significantly appreciate) in value, but the property was taxed so much in just a few years to pay for a municipal road that the taxes ate up the entire value of the property and I had to unload it just to stop the bleeding.
Lesson: Get rid of property that cost more in maintenance and taxes than they are worth. Don’t let sentimental attachment prevent you from liberating yourself of economic burdens, whether it is real estate property or old furniture in a paid storage facility.