Peak Prosperity

A Brief History of US Money - Crash Course Chapter 9

The rules get changed (a lot)
Friday, August 15, 2014, 5:29 PM

Looking at the past 100 years of the US dollar's history, one theme becomes abundantly clear: in times of crisis, the US government has no issue with changing its own rules or breaking its own laws. And those "temporary" emergency measures have a nasty habit of quickly becoming permanent. » Read more



Off the Cuff: Vacuum of Leadership

Where have all the Churchills gone?
Thursday, December 5, 2013, 2:21 AM

In this week's Off the Cuff podcast, Chris and Mish discuss:

  • Raising taxes until morale improves
    • Europe's misguided approach to its woes
  • Tough medicine for underfunded pensions
    • Detroit bankruptcy may be a key precedent
  • Manipulation & fraud
    • Two things the TBTF banks get away with
  • Vacuum of leadership
    • A defining crisis of our time

Alasdair Macleod: Europe is a Hot Mess

Its banks are the weak point in the global financial system
Sunday, July 28, 2013, 9:42 AM

It's almost August, the month everyone in Europe takes off on holiday to forget their troubles. This year may be different, though, as not only can many not afford a vacation, but Europe's troubles loom so large that forgetting them won't be easy... » Read more

Daily Digest

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Daily Digest 7/15 - Oil May Determine South Sudan's Future, UK Charges 2 Brokers In Libor Inquiry

Monday, July 15, 2013, 11:57 AM
  • Precious Metals Stocks: The Most Undervalued Asset Class
  • China Wealth Eludes Investors as Stocks Earn 1%
  • What Sweden Can Tell Us About Obamacare
  • It’s Amazing to Be a Working Mom in France—Unless You Want a Job
  • Britain Charges 2 Former Brokers in Libor Inquiry
  • Oil May Determine South Sudan's Future
  • Climate change is a bigger threat to the Tour de France than doping

Where Will the Minsky Moment Occur?

Which country will start the next crisis?
Tuesday, June 25, 2013, 4:36 PM

Executive Summary

  • Spain: after tens of €billions in bailouts, its banks still need more
  • Germany: its largest banks are ridiculously levered
  • France: its banks are deteriorating fast with the sinking French economy
  • UK: bail-ins are now on the table

If you have not yet read Part I: Europe's Precarious Banks Will Determine the Future available free to all readers, please click here to read it first.

Spain and Bankia

The true state of the Spanish economy (i.e., it is in depression) should be uppermost in our minds when we consider recent developments at Bankia, the Spanish mortgage bank formed only thirty months ago out of the wreckage of Spain’s regional mortgage banks. Bankia underwent a subsequent bail-out only a year ago and has been a continuing disaster, as shown by the share price in the chart below.

Having fallen from an adjusted €106 to only 68 cents as recently as last November, the share price tells us that Bankia is simply bust. The new G20 bail-in rules cannot have helped Bankia hold on to its deposits; the only deposits left should be those of the small depositors prepared to rely on government insurance.

The Cyprus bail-in precedent has undoubtedly made Bankia’s position worse than it would otherwise be. At March 31st Bankia... » Read more

Daily Digest

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Daily Digest 6/11 - The Logic Of The Surveillance State, The Myth Of Executive Accountability

Tuesday, June 11, 2013, 9:43 AM
  • The Logic of the Surveillance State
  • Damage Control Time: National Intelligence Releases PRISM "Facts"
  • Social Security: The New Deal’s Fiscal Ponzi
  • France Prohibits Sending Currency, “Coins And Precious Metals” By Mail
  • Silver Cycles: What Next?
  • The myth of executive accountability
  • Driving Factors Behind Improvements in Water and Energy Production
  • Farm Equipment That Runs on Oats
Daily Digest

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Daily Digest 5/7 - France's Budget Gap Widens, Australia Faces Decade Of Debt

Wednesday, May 8, 2013, 9:03 AM
  • Unemployment haunts Social Security recipients
  • Spanish Banks Refinanced, Restructured $272.4 Billion in Loans
  • Australia faces decade of debt, economists warn
  • France's budget gap widens in March
  • L.A. city employees urge leaders to go after uncollected fees, taxes to balance $7.7B budget
  • Copper theft epidemic has lawmakers looking for answers
  • Wall Street sees Fed buying $1.25 trillion of assets in stimulus: Reuters poll
  • India's cheap food plans to prove costly for government
  • French Industrial Output Drops as Hollande Aims to Revive Growth
  • Wichita school district counts record number of homeless children
  • Greenspan-Era Faith in Fed Seen With Bernanke: Chart of the Day
  • Many Americans say they can't retire until their 70s or 80s
  • Bankers Warn Fed of Farm, Student Loan Bubbles Echoing Subprime
  • Australian Central Bank Cuts Key Rate to Historic Low
  • New red light camera law could raise cost of appeals
  • Moody’s Says Cities View ‘Strategic Default’ as Less Taboo
Daily Digest

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Daily Digest 4/10 - Americans Skipping Meds To Save Money, Italians' Spending Power Crumbles

Wednesday, April 10, 2013, 10:14 AM
  • Blue Angels Grounded by Budget Cuts for Rest of 2013
  • Cyprus Faces Risk of Payments Freeeze, Budget Shortfall Looms
  • Arizona gold bill moving forward
  • Five million households in debt to energy firms
  • Fitch Cuts China Yuan Debt Rating on Local Government Borrowing
  • French economy stalls as budget deficit grows
  • Stately Detroit Homes Rot As Appraisals Stall Sales
  • US homeless numbers expected to rise as spending cuts deepen
  • Italians' spending power crumbles in recession
  • Bass Says Japan Bondholders’ Reaction to Stimulus Telling
  • Interest on government student loans set to double this summer
  • Americans Skipping Prescription Meds To Save Money
Daily Digest

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Daily Digest 3/29 - Cyprus Banks Reopen, U.S. Army Fights Brain Drain

Friday, March 29, 2013, 11:46 AM
  • It’s head for “the mattresses” time for savers worldwide
  • Cyprus banks reopen amid tight security and tough curbs
  • Cyprus - The Answer Is Uniastrum
  • Hundreds Of Armed Vigilantes Seize Mexican Town, Arrest Local Police
  • After court rules Hollande he can’t put 75% tax on salaries, French President vows to hit companies directly
  • Les misérables: Despite welfare state and wine, unhappiness reigns in France
  • Hollowed out: US Army fights brain drain
  • Highest paid banker on Wall Street suing renovators of neighbouring building for ruining view from his 360-degree glass penthouse 
  • Should airlines start charging passengers by the pound?
  • More Scientific Evidence Linking Fracking and Earthquakes
  • Money for aquaculture, but not wild salmon, critics note
Daily Digest

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Daily Digest 3/22 - Eating On The Poverty Line, Will Cyprus Go The South American Way?

Friday, March 22, 2013, 11:53 AM
  • Le Monde Headline "No, France is Not Bankrupt"
  • Will Cyprus go the South American way?
  • US Begins Regulating BitCoin, Will Apply "Money Laundering" Rules To Virtual Transactions
  • Shopping on the poverty line - what can you eat?
  • Indonesia's wage wars
  • What You Think Is True Might Be False and Costly
  • Michael McKay: 'We're On The Verge Of Being Mugged By Our Governments'
  • Why Renewable Energy is so Attractive to Google
  • With a Big If, Science Panel Finds Deep Cuts Possible in Auto Emissions and Oil Use
  • Petroleum Use, Greenhouse Gas Emissions of Automobiles Could Drop 80 Percent by 2050; Efficiency, Alternative Fuels, and Strong Government Policies Will Be Needed