Rapture verdict ad 1

Use Of The Articles On This Site

If you would like to use any of the articles on this site on your own blog or website, that is perfectly fine. What we require is that you make no edits to the content of the article and that you include a direct link back to the article source.
Disasters Can Happen

Less than Zero

Less than zeroby MN Gordon

Economic Prism

Lucky to Be Alive

Just when we thought we’d seen it all the impossible happened.  Earlier this week the 10-year Japanese government bond slipped into negative.  Obviously, it took decades of heavy handed intervention into credit markets to pull off such a feat.

On Tuesday, when the Nikkei dropped over 5 percent, the yield on Japan’s 10-year government bond dropped to minus 0.005 percent.  This marked the first time in the history of government debt that the yield on a G7 country’s 10-year bond has been less than zero.  We are lucky to be alive to bear witness to the absurdity.

Just a few years ago these depressed (Read More....)

. . . → Read More: Less than Zero

The Beginning of the End for the European Union

The Beginning of the End for the European Union Picture Credit Pixabayby MN Gordon

Economic Prism

The European Central Bank initiated a new mass money debasement scheme yesterday. If you recall, this involves buying €60 billion ($66 billion) a month of European government bonds. Somehow this is supposed to improve the economy.

No doubt, the European Union is absurd (Read More....)

. . . → Read More: The Beginning of the End for the European Union

Chasing the Wild Goose

Moneyby MN Gordon

Economic Prism

Occurrences of rich irony are to be savored like fine wine. Each sip makes one feel smarter, younger, and wealthier too. So, too, they should not be wasted…lest they turn to vinegar.

Today we pause a moment for appreciation. A bottle of rich irony was served up this week in a giant glass goblet. We must drink it in before it sours.

Do-gooders galore are gathered in Davos, Switzerland, to partake in the World Economic Forum. Moreover, they are gathered for grave and weighty reasons. According to the programme, they are “committed to improving the state of the world.”

This, in itself, warrants a snicker. For the vanity (Read More....)

. . . → Read More: Chasing the Wild Goose

Hold On To Your Gold

Stock Market Crashby MN Gordon

Economic Prism

Something befuddling’s going on. It is quite the brain twister. As night follows day and day follows night, should not price inflation follow the massive $4 trillion Fed balance sheet expansion that’s happened over the last 6-years?

Simply connecting the dots quickly leads one to a ‘yes’ conclusion. More money chasing a static number of goods and services should result in price inflation. For prices must rise to balance out all the new money.

This, of course, makes good practical sense. In fact, it might even lead someone to sell dollars and buy gold. Certainly they’d have a bullet proof rationale guiding their decision.

Yet the world isn’t always a practical place. Often time things happen that don’t make sense. Sometimes the exact opposite of what should logically occur ends up happening.

Gold’s price peaked around $1,900 an ounce in 2011. Gold’s currently at about $1,180. That’s over 37 percent off its high. What is going on?

Currency Debasement

The U.S. (Read More....)

. . . → Read More: Hold On To Your Gold

Collective Destruction

By MN  Gordon Economic Prism

Last Tuesday we remarked that Mario Draghi and the European Central Bank were receiving valuable on the job training.  Most notably, that money creation operations are much harder to stop than to start.

By Thursday, Draghi confirmed he’s an astute learner when he announced to an audience of business leaders in London that the ECB would do “whatever it takes to preserve the euro.”  What exactly that is…one can guess.  But Draghi will have the opportunity to explain it to everyone this Thursday when the ECB’s governing council meets.

Details aside, and in confirmation of the adage to ‘buy the rumor sell the news,’ world markets celebrated the announcement with a manic rally.  The DOW ran up 207 points on Thursday and another 190 points on Friday.  “Mario Draghi Just Put a Floor in Market, Pros Say,” (Read More....)

. . . → Read More: Collective Destruction

Hi I am Michael160 ABOUT ME160 Follow Me On facebook160 Follow Me On twitterMicheals Book MN Gordon EPAbout MN GordonFollow MN Gordon