The Pound’s Future In A Dollar Collapse

By Alasdair Macleod – Re-Blogged From GoldMoney

In recent articles for Goldmoney I have pointed out the dollar’s vulnerability to a final collapse in its purchasing power. This article focuses on the factors that will determine the future for sterling.

Sterling is exceptionally vulnerable to a systemic banking crisis, with European banks being the most highly geared of the GSIBs. The UK Government, in opting to side with America and cut ties with China, has probably thrown away the one significant chance it has of not seeing sterling collapse with the dollar.

A possible salvation might be to hang onto Germany’s coattails if it leaves a sinking euro to form a hard currency bloc of its own, given her substantial gold reserves. But for now, that has to be a long shot.

And lastly, in common with the Fed and ECB, the Bank of England has taken for itself more power in monetary matters than the politicians are truly aware of, being generally clueless about money.

Conclusion: the pound is unlikely to survive a dollar collapse, which for any serious student of money, is becoming a certainty.

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Wearable Air Conditioner Could Stave Off Your Death In This Heat Wave

Personal Cooldown

Sony has developed a wearable personal air conditioner that you can stick inside a specially-designed pocket sewn into an accompanying shirt.

The device was meant to cool down attendants of the Tokyo 2020 Olympics, but the event had to be postponed due to the coronavirus. But summer itself isn’t cancelled — with much of North America slammed by a July heat wave — so luckily Sony decided to make the futuristic device available for purchase anyway.

Gold, Copper And Silver Are Must-Own Metals

Gold surged on Monday after a spike in coronavirus cases worldwide dashed hopes of a quick economic recovery. Within 24-hours the number of infections globally rose 183,020, a new record, the World Health Organization reported, Reuters said the US saw a 25% increase in new COVID-19 cases over the week ending June 21st.

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Central Banks And The Ponzi Scheme That Will Bankrupt The World

By Egon von Greyerz – Re-Blogged From Gold Eagle

The destiny of the world is now in the hands of 6 central banks, Fed, ECB, BoE (England), PBOC (China), BoJ (Japan), SNB (Swiss). This in itself bodes extremely badly for the global financial system. This is like putting the villains in charge of the judicial system. For decades these central banks have totally abused their power and taken control of the world monetary system for the benefit of their banker friends and in some cases their private shareholders.

The central banks have totally corrupted and destroyed the financial system, by printing money and extending credit that doesn’t exist. Everyone knows that creating money out of thin air makes the money totally worthless. These bankers know, that if you stand next to the printing press and get the money first, it does have some value before it circulates. And this is exactly what they have done. Once the money reaches the people, it devalues rapidly. As Mayer Amschel Rothschild said over 200 years ago: “Permit me to issue and control the money of a nation, and I care not who makes its laws.”

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Europe’s Anti-Science Plague Descends On Africa

By From The GWPF – Re-Blogged From WUWT

European Scientist

The pests recently landed in Djibouti, Eritrea, Oman and Yemen. Swarms have also struck Tanzania and Uganda. They won’t stop on their own. According to the Food Agriculture Organization (FAO), “this is the worst situation in 25 years.

European activists are putting lives at risk in East Africa, turning a plague of insects into a real prospect of widespread famine.

Map: FOA

The fast-breeding desert locust has invaded Kenya, Somalia and Ethiopia, creating a state of emergency.

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Mysterious, Deadly Chinese Virus Officially Reaches the US

By Dan Robitzski – Re-Blogged From Futurism
This is bad. Officials just confirmed the first case in North America.

The deadly coronavirus that’s infected hundreds, and killed at least six in China, has officially made its way to the continental United States.

Authorities have now confirmed a case of 2019-nCoV, a mysterious virus that causes flu-like symptoms, in Washington State, according to The New York Times. While there are already cases in Japan, Thailand, and South Korea, the fact that the virus has now crossed into North America is bad news for the global effort to prevent a pandemic.

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The Elderly in Japan are Using Exoskeletons to Delay Retirement

By Victor Tangermann – Re-Blogged From Futurism
“The father is in his 70s and was supposed to retire but is still working with our muscle suit.”

Exoskeletons aren’t just for super soldiers, automotive assembly workers and the paralyzed — they can assist the elderly in everyday tasks as well.

Now, New Scientist reports that older folks in Japan are using exoskeletons to help them do their jobs as they spend more of their lives in the workforce.

Japan currently has one of the oldest populations int he world. According to the U.S. Population Reference Bureau, Japan has the highest share of people above the age of 65 of any country — 26 percent, according to 2015 data.

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Weekly Climate and Energy News Roundup #389

The Week That Was: December 7, 2019, Brought to You by www.SEPP.org

By Ken Haapala, President, Science and Environmental Policy Project (SEPP)

Quote of the Week: The real problem in speech is not precise language. The problem is clear language. The desire is to have the idea clearly communicated to the other person. It is only necessary to be precise when there is some doubt as to the meaning of a phrase, and then the precision should be put in the place where the doubt exists. It is really quite impossible to say anything with absolute precision, unless that thing is so abstracted from the real world as to not represent any real thing.” – Richard Feynman (New Textbooks for the “New” Mathematics)

Number of the Week: Minus 89,000. Down from plus 13,442,000 b/d

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Disaster Of Negative Interest Rates

By Ellen Brown – Re-Blogged From Gold Eagle

President Trump wants negative interest rates, but they would be disastrous for the U.S. economy, and his objectives can be better achieved by other means.

The dollar strengthened against the euro in August, merely in anticipation of the European Central Bank slashing its key interest rate further into negative territory. Investors were fleeing into the dollar, prompting President Trump to tweet on Aug. 30:

The Euro is dropping against the Dollar “like crazy,” giving them a big export and manufacturing advantage… And the Fed does NOTHING!

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The Yield “Curve” Knows

By Craig Hemke – Re-Blogged From Gold Eagle

As global interest plummets to historically negative levels—and as the U.S. bond market reveals a deeply inverted yield curve—it’s time again to assess what all of this means for the precious metals investor.

Just yesterday, a fellow on CNBC remarked that “no one had seen this coming”. By “this”, he meant a sharp rally in both gold and bonds. Oh really? We write these articles for Sprott Money each and every week.

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Nuclear Talks in Doubt as North Korea Tests Missiles, Envoy Cancels Trip

North Korea test-fired two new short-range ballistic missiles on Thursday, South Korean officials said, its first missile test since its leader, Kim Jong Un, and U.S. President Donald Trump agreed to revive denuclearisation talks last month.

South Korea, which supports efforts by North Korea and the United States to end years of hostility, urged the North to stop acts that are unhelpful to easing tension, saying the tests posed a military threat on the Korean peninsula.

The South’s National Security Council said it believed the missiles were a new type of ballistic missile but it would make a final assessment with the United States.

Kim Hong-Ji/File Photo/Reuters

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Trump Blames Iran for Tanker Attacks

By Reuters – Re-Blogged From IJR

U.S. President Donald Trump blamed Iran on Friday for attacks on two oil tankers at the entrance to the Gulf despite Tehran’s denials, raising fears of a confrontation in the vital oil shipping route.

Iran has dismissed earlier U.S. charges that it was behind Thursday’s attacks that crippled two tankers. It has previously suggested it could block the Strait of Hormuz, the main route out for Middle Eastern oil, if its own exports were halted.

The blasts followed similar attacks a month earlier on four tankers, which Washington also blamed on Tehran.

They come at a time of escalating tension between the two countries. Last month the United States sharply tightened economic sanctions against Iran, which in response has threatened to step up its nuclear activity.

Navy/Handout via Reuters

Fed Running Out Of Time And Conventional Weapons

By Michael Pento -Re-Blogged From PentoPort

The buy and hold mantra from Wall Street Carnival Barkers should have died decades ago. After all, just buying stocks has gotten you absolutely crushed in China for more than a decade. And in Japan, you have been buried under an avalanche of losses for the last three decades. And even in the good old USA, you wouldn’t want to just own stocks if the economy was about to enter another deflationary recession/depression like 2008. Likewise, you wouldn’t want to own any bonds at all in a high-inflation environment as we had during the ’70s.

The truth is that the mainstream financial media is, for the most part, clueless and our Fed is blatantly feckless.

The Fed has gone from claiming in late 2018 that it would hike rates another four times, to now saying that it is open to actually start cutting rates very soon.

My friend John Rubino who runs the show at DollarCollapse.com recently noted: “bad debts are everywhere, from emerging market dollar-denominated bonds to Italian sovereign debt, Chinese shadow banks, US subprime auto loans, and US student loans. All are teetering on the edge.” I would add that the banking system of Europe is insolvent—look no further than Deutsche Bank with its massive derivatives book, which is the 15th largest bank in the world and 4th biggest in Europe. Its stock was trading at $150 pre-crisis, but it has now crashed to a record low $6.90 today. If this bank fails, look for it to take down multiple banks around the globe.

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US Is Winning Trade War With China…For Now

The ongoing battle between the United States and China for economic supremacy isn’t only being fought in the gilded ballrooms of Washington, as trade negotiators from either side parry over automobile parts content, intellectual property rights, government subsidies and the like.

Casualties and victories are also borne out over the decks of hulking freighters that carry the commodities which make up the nuts and bolts of international trade.

Indeed, shipping statistics are often sought by economics and traders trying to predict the health of a country’s economy or the world economy. The Baltic Dry Index (BDI) is one such leading indicator. Another is the Purchasing Managers’ Index (PMI). PMIs are a monthly survey of supply chain managers across 19 industries. An economy with a PMI of over 50 is considered to be growing; under 50 means an economy is treading water or possibly drowning.

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Putin Says US Guarantees Unlikely to Prompt North Korea to De-Nuclearize

By Hyonhee Shin and Joyce Lee, et al – Re-Blogged From IJR

Russian President Vladimir Putin said after holding talks with North Korean leader Kim Jong Un on Thursday that he thought U.S. security guarantees would probably not be enough to persuade Pyongyang to shut its nuclear program.

Putin and Kim held a day of talks on an island off the Russian Pacific city of Vladivostok two months after Kim’s summit with U.S. President Donald Trump ended in disagreement, cooling hopes of a breakthrough in the decades-old nuclear row.

Shamil Zhumatov/Reuters

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Gold – Preparing For The Next Move

By Alasdair Macleod – Re-Blogged From Gold Money

The global economic outlook is deteriorating. Government borrowing in the deficit countries will therefore escalate. US Treasury TIC data confirms foreigners have already begun to liquidate dollar assets, adding to the US Government’s future funding difficulties. The next wave of monetary inflation, required to fund budget deficits and keep banks solvent, will not prevent financial assets suffering a severe bear market, because the scale of monetary dilution will be so large that the purchasing power of the dollar and other currencies will be undermined. Failing fiat currencies suggest the dollar-based financial order is coming to an end. But with few exceptions, investors own nothing but fiat-currency dependent investments. The only portfolio protection from these potential dangers is to embrace sound money – gold.

The global economy is at a cross-road, with international trade stalling and undermining domestic economies. Some central banks, notably the European Central Bank, the Bank of Japan and the Bank of England were still reflating their economies by supressing interest rates, and the ECB had only stopped quantitative easing in December. The Fed and the Peoples’ Bank of China had been tightening in 2018. The PBOC quickly went into stimulation mode in November, and the Fed has put monetary tightening and interest rates on hold, pending further developments.

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Fukushima, Chernobyl, And Three Mile Island Show Why Nuclear Is Inherently Safe

From Forbes, By Michael Shellenberger – Re-Blogged From WUWT

Opinions expressed by Forbes Contributors are their own.

Fukushima was a public health catastrophe, just not one caused by radiation.Shutterstock

After a tsunami struck the Fukushima Daiichi nuclear plant in Japan eight years ago today, triggering the meltdowns of three reactors, many believed it would result in a public health catastrophe.

“By now close to one million people have died of causes linked to the Chernobyl disaster,” wrote Helen Caldicott, an Australian medical doctor, in The New York Times. Fukushima could “far exceed Chernobyl in terms of the effects on public health.”

Many pro-nuclear people came to believe that the accident was proof that the dominant form of nuclear reactor, which is cooled by water, is fatally flawed. They called for radically different kinds of reactors to make the technology “inherently safe.”

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Wall Street is Chasing Ghosts

By Michael Pento – Re-Blogged From Pento Portfolio Strategies

Wall Street’s absolute obsession with the soon to be announced most wonderful trade deal with China is mind-boggling. The cheerleaders that haunt main stream financial media don’t even care what kind of deal gets done. They don’t care if it hurts the already faltering condition of China’s economy or even if it does little to improve the chronically massive US trade deficits—just as long as both sides can spin it as a victory and return to the status quo all will be fine.

But let’s look at some facts that contradict this assumption. The problems with China are structural and have very little if anything to do with a trade war. To prove this let’s first look at the main stock market in China called the Shanghai Composite Index. This index peaked at over 5,100 in the summer of 2015. It began last year at 3,550. But today is trading at just 2,720. From its peak in 2015 to the day the trade war began on July 6th of 2018, the index fell by 47%. Therefore, it is silly to blame China’s issues on trade alone. The real issue with China is debt. In 2007 its debt was $7 trillion, and it has skyrocketed to $40 trillion today. It is the most unbalanced and unproductive pile of debt dung the world has ever seen, and it was built in record time by an edict from the communist state.

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Fed Chair Powell’s Rate Pause Won’t Save Stocks

By Michael Pento – Re-Blogged From Pento Portfolio Strategies

Jerome Powell threw Wall Street a lifeline recently when he decided to temporarily take a pause with the Fed’s rate hiking campaign. The Fed Head also indicated that the process of credit destruction, known as Quantitative Tightening, may soon be brought to an end.  This move towards donning a dovish plume caused the total value of equities to soar back to a level that is now 137% of GDP. For some context, that valuation is over 30 percentage points higher than it was at the start of Great Recession and over 90 percentage points greater than 1985. So, the salient question for investors is: will a slightly dovish FOMC be enough to support the massively overvalued market?

The S&P 500 is now trading at over 16x forward earnings. But the growth rate of that earnings will plunge from over 20% last year to a minus 0.8% in Q1 of this year, according to FACTSET. It might have made sense to pay 19x earnings back in 2018 because it was justified by a commensurate rate of earnings growth. But only a fool would pay 16x or 17x earnings if growth is actually negative?

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40 Years Of Reforms And Gold

By Arkadiusz Sieroń – Re-Blogged From Gold Eagle

The economic development of China is one of the most important events in the history of the world. In an unprecedentedly short time, millions of people have been taken out from poverty. But, as no country has ever developed so fast, that great story raises important worries.

We invite you to read our today’s article about the great progress China made in the last forty years and find out whether it’s too good to be true and it must end with some catastrophe, triggering rally in the gold prices.

One of the biggest risks for the global economy which can materialize this year is the slowdown of China’s economic growth. So, it is wise to analyze the current state of the Chinese economy – its implications for the gold market and what will happen next. As December 2018 marked the forty years of market reforms in China, we will adopt a long-term perspective, explaining how China transformed itself from a poor, backward and isolated country to the world’s economic power. We will examine what the global economy and the precious metals market can expect in China’s fifth decade of reform and development.

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US-China War May Be “Just A Shot Away”

By Mark O’Byrne -Re-Blogged From Gold Eagle

– “World’s most dangerous hotspot” is in the South China Sea
– Currency and trade wars can lead to shooting wars warns Rickards
– Chinese buildup in South China Sea like ‘preparing for World War III’ says US senator (see news)
– U.S.-China shooting war could be, as Mick Jagger put it, “just a shot away…”


Chinese President Xi Jinping speaks after reviewing the Chinese People’s Liberation Army Navy fleet in the South China Sea on April 12. Xi has urged the PLAN to better prepare for combat, according to state media reports. (Li Gang/Xinhua via AP)

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Goodbye to a Misguided War on Coal

– Re-Blogged From Washington Times

ANALYSIS/OPINION:

The unexpected departure of Dr. Jim Yong Kim as president of the World Bank gives President Donald J. Trump the perfect opportunity to reverse the anti-fossil fuel, energy poverty agenda the bank has pursued since Dr. Kim’s appointment by President Barack Obama in 2012.

The World Bank is the world’s premier development bank. Its knowledge of developing countries means that its participation is often essential to leverage private sector investment into some of the world’s poorest countries.

Rather than development, Dr. Kim saw the bank’s principal job as waging President Obama’s war on coal across the developing world. One of his first acts was instituting a ban on World Bank participation in any funding of new electrical generation projects using coal, other than in the most exceptional circumstances.

The Approaching Storm

By Gary Christenson -Re-Blogged From Gold Eagle

Peter Schiff explained “What Happens Next.” This article takes his “likely sequence of events” and expands the discussion.

His sequence:

  1. Bear Market
  2. Recession
  3. Deficits explode
  4. Return of ZIRP and QE
  5. Dollar tanks
  6. Gold [and silver] soars
  7. CPI spikes
  8. Long-term rates rise
  9. Federal Reserve is forced to hike rates during a recession
  10. A financial crisis without stimulus or bailouts.

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End Of The World (Part 2)

By Gary Christenson – Re-Blogged From Gold Eagle

Part one discussed the “what” and “why” of unpayable debt, an inevitable “reset” or the end of the current financial world. Part two addresses when.

REVIEW FROM PART ONE

  • A risk/reward analysis for 2018—202? points toward gold and silver, not stocks, bonds, corporate debt, student loans or most asset classes.
  • The “everything bubble” will burst. Consequences will be dire for many individuals, businesses and governments.
  • Debt and spending are “out of control.” Central banks will “paper over” massive defaults, and fiat currencies will devalue.
  • Hyperinflation, defaults and resets occurred in many countries and could (will) happen in developed countries such as the U.S.
  • Rig for stormy weather! Gold and silver bullion and coins are “insurance” against the inevitable currency devaluations that must occur in our debt based fiat currency systems.

Part Two—When?

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Bond Bubble Conundrum

By Michael Pento – Re-Blogged From Silver Phoenix

Wall Street shills are in near perfect agreement that the bond market is not in a bubble. And, even if there are a few on the fringes who will admit that one does exist, they claim it will burst harmlessly because the Fed is merely gradually letting the air out from inside. However, the fact that we are in a bond bubble is beyond a doubt—and given the magnitude of the yield distortions that exist today, the effects of its unwinding will be epoch.

Due to the risks associated with inflation and solvency concerns, it should be a prima facie case that sovereign bond yields should never venture anywhere near zero percent—and in some cases, shockingly, below zero percent. Even if a nation were to have an annual budget surplus with no inflation, it should still provide investors with a real, after-tax return on government debt. But in the context of today’s inflation-seeking and debt-disabled governments, negative nominal interest rates are equivalent to investment heresy.

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Scary US & Foreign Market Chrts

By Clive Maund – Re-Blogged From Gold Eagle

There are times in life when being alarmed is actually a healthy defense mechanism that gives you an advantage over the many for whom “ignorance is bliss.” This is one of those times.

The U.S. stock market is now at a dangerous unprecedented overbought extreme, as the charts that we will look at in this update make abundantly clear, after years of being wafted higher by a combination of QE, ZIRP and stock buybacks, and latterly Trump’s tax bonanza, which has kept the party going by making windfall cash available for still more buybacks. However, with QE having already reversed into QT (Quantitative Tightening) and rates rising, the tide has already turned, and the vice is closing inexorably on the market, which will soon buckle and collapse back into an overdue and very necessary bear market that will serve to at least partially flush out the monstrous excesses of the past decade, before they come riding to the rescue with QE4. The magnitude of these excesses means that the bear market is likely to be anything but orderly, and it should be characterized by at least one big crash phase.

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The Dollar is Central to the Next Crisis

By Alasdair Macleod – Re-Blogged From GoldMoney

Introduction And Summary

It is now possible to pencil in how the next credit crisis is likely to develop. At its centre is an overvalued dollar over-owned by foreigners, puffed up on speculative flows driven by interest rate differentials.  These must be urgently corrected by the European Central Bank and the Bank of Japan if the distortion is to be prevented from becoming much worse.

The problem is compounded because the next crisis is likely to be triggered by this normalisation. It can be expected to commence in the coming months, even by the year-end. When flows into the dollar subside and reverse, bond yields can be expected to rise sharply in all the major currencies. There will also be a number of other unhelpful factors, particularly rising commodity prices, the timing of the Trump stimulus and trade tariffs pushing up price inflation. Coupled with a declining dollar, price inflation and therefore interest rates are bound to rise significantly.

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US Government To Fork Out A Half Trillion To Service Its Debt In 2018

By SRSrocco – Re-Blogged From Gold Eagle

The US Government is going to surpass another significant milestone this year.  According to the recently released data from the TreasuryDirect.gov, the government will fork out a stunning half trillion dollars just to service its debt in 2018.  Unfortunately, as U.S. interest rates rise, along with ever-expanding public debt, the cost to service the debt will continue to increase.

In just the first nine months of the year, the US interest expense has increased by an additional $40 billion.  Last year, the U.S. Government paid only $375 billion to service its debt from October to June, but this year it has jumped to $415 billion:

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New Age Fiscal Stimulus Is Unprecedented

By John Rubino – Re-Blogged From Dollar Collapse

In a normal business cycle, the economy expands for a while and businesses hire lots of new people at somewhat higher wages, generating enough tax revenue to shrink the government’s budget deficit – and in rare cases produce a surplus. So, for a while, the government borrows less money.

Not this time. The current recovery is nearly ten years old and the labor market is so tight that desperate companies are trying all kinds of new tricks to attract workers – including higher wages.

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Japan Scientists to Use ‘Reprogrammed’ Stem Cells to Fight Parkinson’s

By Thomson Reuters – Re-Blogged From Newsmax Health

TOKYO – Japanese scientists said Monday they will start clinical trials next month on a treatment for Parkinson’s disease, transplanting “reprogrammed” stem cells into brains, seeking a breakthrough in treating the neurodegenerative disorder.

Parkinson’s is caused by a lack of dopamine made by brain cells and researchers have long hoped to use stem cells to restore normal production of the neurotransmitter chemical.

How China Is Muscling In on Lithium-Ion Batteries

Re-Blogged From Stratfor

Highlights

  • In spite of potential global pushback against Beijing’s investments, Chinese companies will acquire control of a majority of the lithium-ion battery market, giving the country a significant advantage in a sector of growing geopolitical importance.
  • The United States will exploit economies of scale and focus on finding domestic sources of materials as it attempts to carve out a market share amid China’s growing dominance.
  • Japan and Korea will have the most success penetrating markets in which there is significant pushback against Chinese investment, such as in North America, Australia and parts of Europe.
  • Europe will likely fall behind because its battery manufacturing capacity does not have the ability to meet its demand.
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The Green Spent By The Green Climate Fund

By Willis Eschenbach – Re-Blogged From WUWT

When President Trump pulled the US out of the Paris Climate Agreement, he also pulled us out of paying any additional money to the so-called “Green Climate Fund” (GCF). Sorry, no more green for the greenies’ fund. This is the fund which has been given $7.2 billion dollars of taxpayer money from a variety of countries. It is the fund that countries around the world have been pushing hard to get their hands on. It is also the fund that was supposed to be given $100 billion, so they could parcel it out for corrupt third world politicians and greedy UN rent-seekers to swim around in for decades … dream on.

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Singapore, Trade And Geopolitics

By Alasdair Macleod – Re-Blogged From http://www.Silver-Phoenix500.com

The Western media was incredulous. The Donald had disregarded diplomacy, scuttled out of the G7 meeting in Canada without endorsing the G7 agreement, and ended up shaking hands with a previously avowed enemy in Singapore. The formally leisurely pace of global diplomacy, where all is pre-agreed before the photo-op showing unanimity of leadership, was ditched in favour of the Art of the Deal. Foreign correspondents for the established media were confused and obviously out of their depth, particularly over the deal with President Kim Jong-un.

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A Distracted U.S. Struggles To Shift Its Global Focus

Omar Lamrani By Omar Lamrani – Re-Blogged From Stratfor

Highlights

  • The United States is restructuring its global military footprint, reallocating its resources and shifting its strategic focus to better compete against China and Russia.
  • To achieve this, the United States will be compelled to prioritize its commitments in Europe and the Asia-Pacific region.
  • However, enduring U.S. commitments elsewhere and emerging global flashpoints will sidetrack Washington’s attention and resources. 

U.S. soldiers watch paratroopers from the U.S. Army 173rd Airborne Brigade, the UK's 16 Air Assault Brigade and Italian Folgore Airborne Brigade as they parachute to the ground during a training jump as part of the Saber Junction 16 military exercises near the Hohenfels Training Area. April 2016, near Grafenwoehr, Germany.

(MATEJ DIVIZNA/Getty Images)

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Supersonic Jets are Making a Comeback

By Alex Gray – Re-Blogged From https://www.weforum.org

Five years from now, it might take three hours and 15 minutes to fly from New York to London, or five and a half hours to get from San Francisco to Tokyo. That’s half the amount of time it currently takes.

Photo illustration of the Aerion AS2, the world's first supersonic business jet, being developed by Lockheed Martin Corp partnering with plane maker Aerion Corp of Reno, Nevada, is shown in this handout photo illustration released December 15, 2017. Courtesy Aerion Corporation/Handout via REUTERS   ATTENTION EDITORS - THIS IMAGE HAS BEEN SUPPLIED BY A THIRD PARTY. - RC1487247B30

Those are the promises being made by several companies working on supersonic air travel. But to others, this is just a pipe dream.

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U.S. President Donald Trump Cancels the North Korea Summit With Kim Jong Un

Re-Blogged From Stratfor

In a shock announcement, U.S. President Donald Trump has canceled the planned June 12 summit with North Korean leader Kim Jong Un. In a letter directly addressed to Kim, released early May 24, the U.S. president thanked his North Korean counterpart for his time and patience in the discussions but said that the “tremendous anger and open hostility” displayed in North Korea’s most recent statement made a meeting inappropriate. The letter is referring to a May 23 statement made by North Korean Vice Minister of Foreign Affairs Choe Son Hui in the state-run media outlet KCNA, in which she threatened to pull out of the North Korean summit and condemned U.S. Vice President Mike Pence for recent remarks threatening North Korea if it doesn’t make a deal with the United States. Choe’s statement is the second such threat from North Korean officials in the past week. Trump’s letter ends with an invitation for North Korea to reach out if the country changes its mind about its position on the United States.

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Is Kim Jong Un Making a Visit to China?

Re-Blogged From Stratfor

Highlights

  • Amid a diplomatic outreach between North Korea and other regional powers, the arrival of a North Korean train in the Chinese capital signals that Beijing is probably preparing to reach out to Pyongyang itself — perhaps through a meeting with Kim Jong Un.
  • Ahead of its likely summits with the United States and South Korea, North Korea may try to use its position of strength to gain more equal footing with China in their relationship.
  • Because any lasting diplomatic solution to the North Korean crisis will have to include China, Pyongyang will not be able to sideline Beijing entirely in its negotiations.

(NICOLAS ASFOURI/AFP/Getty Images) Continue reading

Uncle Sam Issuing $300 Billion In New Debt This Week

By Mark O’Byrne – Re-Blogged From http://www.Gold-Eagle.com

US needs to borrow almost $300 billion this week alone
– This is the largest debt issuance since 2008 financial crisis
– Trump threatens trade war with its biggest creditor – China
– Bond auctions have seen weak demand due to large supply and trade war concerns
– $20 trillion mark reached in early September 2017; $1 trillion added in just 6 months
– US total national debt level now exceeds $21.05 trillion and is accelerating higher
– U.S. debt and dollar crisis coming which will propel gold higher (see chart)

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Global Trade: Looking at the Big Picture

Mark Fleming-Williams   By Mark Fleming-Williams – Re-Blogged From Stratfor

Highlights

  • Global trade is in flux after the United States has made clear that it is no longer willing to take the lead.
  • While the United States wants to shake up international commerce, China wants to preserve the status quo, and Europe wants to continue on the post-war path.
  • The divergent interests of other countries and blocs, including China, Japan and the European Union, will make substantial alignment without the United States difficult.

(IStock Photos)

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2017 Trade Deficit Worst since 2008

By Wolf Richter – Re-Blogged From Wolf Street

Trade deficit in non-petroleum products hit a record of $734 billion.

2017 was a banner year for the US trade deficit, according to the Commerce Department’s report today. Corporate America’s supply chains weave all over the world in search of lower costs. Other countries have an “industrial policy” designed to produce trade surpluses for them. This combo ballooned the US trade deficit in goods and services to $566 billion, up by $61 billion, or 12%, from 2016. It was the worst trade deficit since 2008.

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Weekly Climate and Energy News Roundup #301

By Ken Haapala, President, Science and Environmental Policy Project

Brought to You by www.SEPP.org

Skepticism: In an essay titled “Be Skeptical of Those Who Treat Science as an Ideology” appearing in the Wall Street Journal, Dr. Sue Desmond-Hellmann discusses the difference between anti-science and skepticism, and the difference between denialism and skepticism. As an oncologist, faced with treating patients dying with cancer, Dr. Desmond-Hellmann recognized the importance of honesty and integrity in building trust with her patients. She writes: [Boldface added.]

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Luxembourg, Japan Team up to Explore and Mine Space Resources

By   Re-Blogged From Mining.com

Luxembourg seems to be in a rush to become Europe’s hub for space mining, as it announced Wednesday yet another deal aimed at boosting boost the exploration and the commercial utilization of resources from near earth objects, such as asteroids.

The fresh agreement, this time with Japan, is part of Luxembourg’s SpaceResources.lu initiative launched last year to promote the mining of celestial bodies for minerals.

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Don’t Fight the Fed! Or the Rest of the World’s Central Banks

By Michael Pento – Re-Blogged From PentoPort

On March 9, 2009, The Wall Street Journal’s Money and Investing section posed this ominous question: “How low can stocks go?” The stench of economic malaise was suffocating as the Dow Jones Industrial Average (DJIA) rounded off its fourth straight week of losses, and the S&P 500 touched below 700 for the first time in 13 years. Goldman Sachs cautioned the S&P could fall to 400, while CNBC’s Jim Cramer was busily calculating the stock valuations of the DJIA components based on balance sheet cash levels.

Yet miraculously, as the market pundits stood despondently believing there was nothing positive on the economic horizon and that no stock was worth buying at any price, investors stared into the abyss and took a leap of faith. And just like that, the market had bottomed. Dow 6,440.08 was a buying opportunity, and with the Fed’s QE spigot operating on full throttle, the Dow was poised for a historic take-off.

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Trade Profile: The U.S. Struggles to Break Its Fetters

Re-Blogged From Stratfor

Economic Background

More a continent than a country, one nation has held pride of place in the global trading system for most of the last century: the United States. Since World War II, the United States has been central to underpinning a system that has spread to encompass the whole world as it reduces trade barriers and reciprocity. This centrality has not only extended to leadership on trade but also to the use of the U.S. dollar in global payments and central bank reserves. Despite its preeminence in the global trading system, the United States periodically has chafed against the bonds that hold it in place. Under the leadership of U.S. President Donald Trump, the country is now staging the latest iteration of these periodic rebellions — an uprising that puts the whole structure of international trade at risk.

The Brooklyn Bridge and Manhattan.

(oneinchpunch/Shutterstock)

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Fed’s Policies About To Turn On Their Master

By Graham Summers – Re-Blogged From http://www.Silver-Phoenix500.com

The financial media is finally catching on to something we’ve been screaming about for years…

That the Fed’s preferred metric for measuring inflation is a complete joke.

Making matters more difficult, the Fed’s preferred inflation gauge does a pitiful job of capturing the quandary facing many households that live paycheck to paycheck. The so-called core PCE is the central bank’s go-to inflation metric. It is derived by netting out the necessities of food and energy from personal consumption expenditures. But the core PCE also minimizes the weight of rent and over-emphasizes health care due to Medicaid and Medicare’s inputs.

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Investment Prospects For 2018

By Alasdair Macleod – Re-Blogged From http://www.Gold-Eagle.com

Predicting the future is a mug’s game, and in financial markets we simply cannot know tomorrow’s prices. All we can do is make assessments of the factors that can be expected to influence them.

Economists’ forecasts today, with very few exceptions, are a waste of time and downright misleading. In 2016, we saw this spectacularly illustrated with Brexit, when the IMF, OECD, the Bank of England and the UK Treasury all forecast a slump in the British economy in the event the referendum voted to leave the EU. While there are reasonable suspicions there was an element of disinformation in the forecasts, the fact they were so wrong is the important point. Yet, we still persist in paying economists to fail us.

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