In 2005, Congressman Ron Paul (R-Texas) said section 404 of the Sarbanes-Oxley Act (2002) which requires chief executive officers to certify the accuracy of financial statements caused capital flight away from the U.S. stock market. Later in 2008, Paul said that the government bailouts of badly run corporations was rewarding bad behavior and punishing good behavior, and that it prevented resources from being allocated away from inefficient uses to more productive uses, and that this lowered the overall amount of wealth across the entire economy.
RATE AND REVIEW this podcast wherever you listen.https://itunes.apple.com/us/podcast/the-peter-schiff-show-podcast/id404963432?mt=2&ls=1Turkey's Current Account DeficitThe "Turkey baste" continued on Monday, although Tuesday we did have a bit of a reversal, Tuesday bounce in the lira, rising about 7 percent or so, in today's trading. But still, ...…
Erik Townsend welcomes Jim Grant to MacroVoices. Erik and Jim discuss new Fed governor Powell, treasury yields and how far the FED go before something breaks. They discuss his outlook on inflation, gold, junk bonds, China and the drivers of long term debt cycles. They reflect on History and what happened when the FED did not bail out the banks in 1920 and considerations on what actions the US government can take to deal with the debt.
Extreme valuations in equity markets look less of an issue than they were a few months ago. The S&P 500 still looks over-stretched, with a P/E of 24.3x earnings – well above its 30-year average. The Shiller P/E, which adjusts for the cyclicality of earnings looks even worse. However, these figures are still not wildly excessive and earnings have kept pace so far. The upcoming earnings season will be an important indicator of whether there is good support for prices at these levels.
vt (pret bore; pp borne) tolerar, aguantar, soportar; (to give birth to) dar a luz; child-bearing age edad fértil; to — down pujar; Bear down as if you were having a bowel movement.. Puje como si estuviera defecando (haciendo popó); to — weight soportar peso; You shouldn’t bear weight with your left leg for two weeks..No debe soportar peso con su pierna izquierda durante dos semanas.
So what are the prospects for another rally in bonds? In our view, it is not a rosy picture. For the first time in a very long time the fundamentals and technicals of investing in bonds have become aligned. The global economy has transitioned into a period of synchronised growth, spare capacity is being used up and unemployment is close to the lows seen for many years. All that suggests inflation risks are on the upside. Deflation risks are waning and sooner or later this will need to be priced into bond prices. On the technical side, central banks are now winding down their quantitative easing programmes. This means that Governments will have to finance their deficits from private investors rather than relying on central banks. The increase in supply of bonds on a global scale to institutional investors runs into trillions of US Dollars over the next few years, made worse by the fact that Governments are now relaxing their fiscal straightjackets, imposed after the financial crisis.
RATE AND REVIEW this podcast on Facebookhttps://www.facebook.com/PeterSchiff/reviews/Sacrificed on the Altar of Political CorrectnessI want to spend the rest of this podcast talking about politics; in particular, what's going on with Brett Kavanaugh and his fading chances of sitting on the Supreme Court. It appears that he may be sacrificed on ...…
One of the major indicators that a bear market may be on the way is the yield curve. While the yield curve is currently flattening out, and not inverting, by sitting at around 0.2%, it is right on the edge. When the yield curve is flat, that means that the 2-year spread and the 10-year spread for bonds (in the case of the U.S. Treasury yield curve) are around the same -- basically, that the long-term interest rates aren't much better than the short-term interest rates (which they ideally should be). Given that interest should be higher for lending the government money over a long time (giving up the opportunity to do other things with your money like invest in stocks), an inverted yield curve is a sign of danger and a possible bear market.
This article will focus on the top four precious metals, gold, silver, platinum, and palladium. Even though Rhodium and other metals are considered precious, the ones listed above take the lion’s share of the investment market. Furthermore, while platinum and palladium are purchased as investments, they have a much larger industrial component than gold or silver. Read More
Most people are aware that historically there have been speculative bubbles. Some of them can even name a few – the South Sea bubble, tulips, and more recently dot-coms. Some historians can go even further, quoting the famous account by Charles Mackay of the South Sea bubble, the tulip mania and the Mississippi bubble, published in the mid-nineteenth century.
Unfortunately today’s markets have evolved to the point where the latest political decree can significantly impact what happens. And along those lines, there’s been ample speculation that the powers that be may be planning a financial reset. With many feeling that gold and silver will be reset higher, while perhaps much of the global debt is somehow cancelled out (keep in mind U.S. president Donald Trump does have extensive experience with the bankruptcy code). Read More
Confidence and complacency are more acute now than any time I’ve seen before. All expressions of overvaluation are at historical extremes. Despite this, most money managers remain in the market. The thesis is “if it’s going up, regardless of anything else, I want to be in it.” Perhaps the best indicator of complacency is the VIX which at its current level of 13 tells us that investors see no reason to protect their positions. Every minor decline is seen as a buying opportunity. The rationale is that the Fed would not allow anything worse than a 10% decline. If the stock market starts sinking between now and October 1st, I will be most interested to see if the Fed eliminates QE.
Build America Bonds are a taxable municipal bond created under the American Recovery and Reinvestment Act of 2009 that carry special tax credits and federal subsidies for either the bond holder or the bond issuer. Many issuers have taken advantage of the Build America Bond provision to secure financing at a lower cost than issuing traditional tax-exempt bonds. The Build America Bond provision, which expired on January 1, 2011, was open to governmental agencies issuing bonds to fund capital expenditures.
usage: Since the latter part of the 18th century, a distinction has been made between born and borne as past participles of the verb bear. borne is the past participle in all senses that do not refer to physical birth: The wheat fields have borne abundantly. Judges have always borne a burden of responsibility. borne is also the participle when the sense is “to bring forth (young)” and the focus is on the mother rather than on the child. In such cases, borne is preceded by a form of have or followed by by: She had borne a son the previous year. Two children borne by her earlier were already grown. When the focus is on the offspring or on something brought forth as if by birth, born is the standard spelling, and it occurs in passive constructions and in adjective phrases: My friend was born in Ohio. No children have been born at the South Pole. Abraham Lincoln, born in Kentucky, grew up in Illinois.
Repayment schedules differ with the type of bond issued. Municipal bonds typically pay interest semi-annually. Shorter term bonds generally pay interest only until maturity; longer term bonds generally are amortized through annual principal payments. Longer and shorter term bonds are often combined together in a single issue that requires the issuer to make approximately level annual payments of interest and principal. Certain bonds, known as zero coupon or capital appreciation bonds, accrue interest until maturity at which time both interest and principal become due.
When the U.S. economy began to move forward once again, municipal debt continued its momentum, which was maintained well into the early part of the twentieth century. The Great Depression of the 1930s halted growth, although defaults were not as severe as in the 1870s. Leading up to World War II, many American resources were devoted to the military, and prewar municipal debt burst into a new period of rapid growth for an ever-increasing variety of uses. Today, in addition to the 50 states and their local governments (including cities, counties, villages and school districts), the District of Columbia and U.S. territories and possessions (American Samoa, the Commonwealth of Puerto Rico, Guam, the Northern Mariana Islands, and the U.S. virgin Islands) can and do issue municipal bonds. Another important category of municipal bond issuers which includes authorities and special districts has also grown in number and variety in recent years. The two most prominent early authorities were the Port of New York Authority, formed in 1921 and renamed Port Authority of New York and New Jersey in 1972, and the Triborough Bridge Authority (now the Triborough Bridge and Tunnel Authority), formed in 1933. The debt issues of these two authorities are exempt from federal, state and local governments taxes.
For me, this is the most important part of George’s new economics. The entrepreneur must know that if his product or service succeeds at the market, it won’t be regulated out of existence. And the profits will not be taxed away. If he doesn’t have that assurance, the likelihood of turning his idea into a product or service is greatly diminished. That results in less entrepreneurial creations, which means less knowledge and wealth in the economy.
I don't believe the developing bear market is an "end of the financial world event." We already had that in 2008. There is a difference between bears and collapses. Bear markets are normal, healthy corrections that refresh the markets and economy with creative destruction. There is almost no reason to believe that an economic collapse is imminent even if financial fleas are apparent. I will talk about that in a series of columns in coming weeks.
I think that paper money is in a secular bear market and that the institution of managed currency will be seen to be a species of pretense, if not outright intellectual fraud. And I use that word advisedly. And I think that come the dropping of the scales from the eyes of the money holders of the world, gold will do better against almost every currency.
In addition, during World War II, the Empire of Japan considered wildfires as a possible weapon. During the spring of 1942, Japanese submarines surfaced near the coast of Santa Barbara, California, and fired shells that exploded on an oil field, very close to the Los Padres National Forest. U.S. planners hoped that if Americans knew how wildfires would harm the war effort, they would work with the Forest Service to eliminate the threat. The Japanese military renewed their wildfire strategy late in the war: from November 1944 to April 1945, launching some 9,000 fire balloons into the jet stream, with an estimated 11% reaching the U.S. In the end the balloon bombs caused a total of six fatalities: five school children and their teacher, Elsie Mitchell, who were killed by one of the bombs near Bly, Oregon, on May 5, 1945. A memorial was erected at what today is called the Mitchell Recreation Area.
Rather than write on a planned topic, I received at least 20 e-mails yesterday on the same subject so had to switch gears. The e-mails were all panicky because an analyst who works in the precious metals industry suggested that silver will not perform as gold will in the coming reset. I feel the need to address this because I believe it is faulty analysis and may have motivation behind it. I will not name the analyst but can be easily discerned.
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RATE AND REVIEW this podcast on Facebook.https://www.facebook.com/PeterSchiff/reviews/Merchandise Trade Deficit Largest Trade Deficit on RecordToday's rally had to overlook the bad news that came out today. I was watching CNBC this morning just before the news was announced and the anchor said, "We've got a lot of news coming out at 8:30 and I ...…
At the time of publication, Michael Brush had no positions in any stocks mentioned in this column. Brush has suggested AMZN and GOOGL in his stock newsletter Brush Up on Stocks. Brush is a Manhattan-based financial writer who has covered business for the New York Times and The Economist Group, and he attended Columbia Business School in the Knight-Bagehot program.
What effect will a bear market in bonds have on equities? That depends. If bond yields rise above a certain level, equity risk premiums will start to look less attractive. Higher rates also push up interest costs for corporations, although the bank's analysts say interest rates would have to increase by 100 basis points in the U.S. and 250 basis points in Europe before they become a noticeable drag on earnings.