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Tag Archives: Yen

  • Daily Digest
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    Daily Digest 9/2 – Scientists Warn UN of Capitalism’s Imminent Demise, Skim Reading Is The New Normal

    by DailyDigest

    Sunday, September 2, 2018, 3:53 PM

    4
    • Scientists Warn the UN of Capitalism's Imminent Demise
    • A deadly storm is coming in Syria 
    • Report: Trump Admin Denying Passports to Citizens Along Border
    • So Much for The Great California Bail Celebration
    • Elections board takes less than a minute to reject proposal to close 7 of 9 polling places in majority-black county 
    • Skim reading is the new normal. The effect on society is profound
    • Attention, Shoppers: Kroger Says It Is Phasing Out Plastic Bags
    • U.S. court orders Trump administration to enforce chemical safety rule

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  • Daily Digest
    Image by Mohmed Althani, Flickr Creative Commons

    Daily Digest 4/16 -The Doomsday Maps Of The World, Miami Racing Against Time

    by DailyDigest

    Monday, April 16, 2018, 3:13 PM

    3
    • Here's How Facebook Tracks You When You're Not On Facebook
    • The Shocking Doomsday Maps Of The World And The Billionaire Escape Plans
    • Inside The Secret World Of Russia's Cold War Mapmakers
    • Cops Around the Country Can Now Unlock iPhones, Records Show
    • IEA: U.S.-China Trade Row Could Dampen Oil Demand Growth
    • The world faces a future of floods, famine, and extreme heat — here’s what it’ll take to bounce back
    • Miami is racing against time to keep up with sea-level rise
    • Gulf Stream current at its weakest in 1,600 years, studies show 
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  • Blog
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    Deflation Is Winning – Beware!

    Expect the ride to get even rougher
    by Chris Martenson

    Friday, July 24, 2015, 3:03 PM

    14

    Deflation is back on the front burner and it's going to destroy all of the careful central planning and related market manipulation of the past 6 years.

    Clear signs from the periphery indicate that a destructive deflationary pulse has been unleashed. Tanking commodity prices are confirming that idea. 

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  • Insider
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    Why The Strengthening Dollar Is A Sign Of The Next Global Crisis

    It causes the weaker parts of the system to fail faster
    by charleshughsmith

    Wednesday, November 12, 2014, 3:21 PM

    2

    Executive Summary

    • Understanding the two different ways money flows into the US dollar
    • How currency crises elsewhere can send the dollar skyrocketing
    • Why yen, yuan and euro printing are not the same as dollar printing
    • How these accelerating money flows are creating the next global crisis

    If you have not yet read The Consequences of a Strengthening US Dollar available free to all readers, please click here to read it first.

    In Part 1, we surveyed the key dynamic that is playing out across the globe: the problems revealed by the Global Financial Meltdown of 2008-2009 were not addressed; they were in effect shifted into the foreign exchange (FX) market. Now the risk bubble is in the FX market.

    The complexity of the feedbacks into the FX market is nothing short of mind-boggling, and rather than attempt a comprehensive survey, I’m highlighting the dynamics that hold the greatest risks of triggering instability, not just in finance but in geopolitics, trade and commodities.

    Two Kinds of Dollar Flows

    Let’s start by differentiating between the two kinds of money flows into the dollar:

    1. Money converted from periphery currencies into dollars to pay back loans denominated in dollars
       
    2. Money flowing out of periphery economies and into dollar-denominated assets such as stocks, bonds, real estate and dollar-denominated bank accounts.

    Broadly speaking, both of these capital flows are “risk-off,” but they have different effects.

    In the first case, money borrowed on the cheap in dollars and invested in high-yield periphery bonds earned a tidy profit as the dollar weakened. The trader picked up a double profit: the arbitrage on the interest rates (borrow at .25% and earn 4+%) and the FX profit from the rise of the periphery currency and the decline of the dollar.

    This currency-arbitrage profit reverses when the dollar starts rising, and it quickly wipes out the entire interest-rate profit as it leaps higher.

    The carry trade is “risk-on” because money is being borrowed to speculate in interest-rate arbitrage. Deleveraging this trade is “risk-off” because the only way to stem the potential losses as the dollar strengthens is to…

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  • Insider
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    What Will Happen When Japan Breaks

    Mapping the contagion risk to world markets
    by Chris Martenson

    Thursday, November 6, 2014, 1:36 PM

    7

    Executive Summary

    • The data that proves Japan is a ticking time bomb
    • Why the yen may still fall a lot further from here
    • How Japan's contagion can threaten world markets (and yes, the US)
    • Why the contagion is now underway, and what you should do about it

    If you have not yet read Central Planners Are In A State of Panic available free to all readers, please click here to read it first.

    Japan, By The Numbers

    I completely understand why the Japanese authorities are freaking out and taking enormous risks.  It's because they have no good choices left.  More fundamentally (and worse) they are in charge of a system that is destined to fail.

    Exponential money systems have to eventually fail because all paper money is just a marker for real wealth, it is not real wealth itself, and therefore ever-increasing exponential paper claims being stacked up  against a world of real wealth that is growing much less quickly (and someday reversing entirely) is a mathematical formula for a monetary accident.

    But it's quite bizarre that Japan, of all places, cannot see through to this math predicament given their very publicly and often discussed demographic decline.

    Having peaked at 128 million in 2005, Japan now has 127 million inhabitants and is on its way to 90 million by 2050, and 45 million by ~2100.

    (Source)

    This means that..

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  • Insider
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    Why The Dollar Is Gaining Strength

    Warning us of another impending financial crisis?
    by Chris Martenson

    Tuesday, September 9, 2014, 12:30 AM

    17

    Recently, the US dollar has gained at lot of territory compared to the yen, pound, euro, ruble, and pretty much every other currency you can think of. The dollar is now at a 14-month high and has been on a real tear.

    The reasons why are not that hard to understand, and it's important that we do.

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  • Insider
    Micha Klootwijk/Shutterstock

    Japan’s Economy Is Shattering

    Abenomics is fast proving to be a costly failure
    by Chris Martenson

    Monday, April 28, 2014, 3:09 PM

    33

    When you are a fully-industrialized island nation that makes its living in the world by importing raw materials, fashioning them into useful exports, and collecting the difference as your profits, then you simply have to run a trade surplus for the model to work.

    Which means Japan is in big trouble:

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  • Insider
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    Off the Cuff: Capital Is Sloshing Recklessly Around the World

    Moving prices out of whack more than anything else
    by Adam Taggart

    Thursday, February 27, 2014, 7:38 PM

    9

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

    • The Sloshing Tsunami of Global Capital
      • It's pushing prices around more than any other factor
    • Concerning Correlations
      • Markets are too correlated for their own safety righ tnow
    • The Wisdom of Playing it Safe
      • At its most valuable when it's hardest to practices
    • How The Next Market Break May Differ From 2008
      • Not enough suckers left?
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  • Blog
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    The Case for a Crash

    And for staying in cash until 2015
    by charleshughsmith

    Tuesday, December 10, 2013, 8:24 PM

    4

    We’ve recently been treated to two mutually exclusive forecasts: that the Great Bull Market will run until 2016 or 2018, so no worries; and that markets are exhibiting bubble-like characteristics that presage another crash.

    So which forecast is more likely the correct one?

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