Jun 282013
 June 28, 2013  Posted by at 10:16 am Finance Comments Off on Playing Russian Roulette With Someone Else's Head
Playing Russian Roulette With Someone Else's Head

Last week, Britain's Parliamentary Commission on Banking Standards issued a report that lists a number of recommendations for an overhaul of the country's banking sector. The idea is that Chancellor George Osborne includes them in his Banking Reform Bill, a preliminary draft of which was publicly criticized by the Commission in March. Whether the government will actually follow the recommendations, however, remains to be seen; PM David Cameron and his cabinet have sung their praises of the City and its

Jun 252013
 June 25, 2013  Posted by at 12:15 pm Finance Comments Off on Deflation By Any Other Name Would Smell As Foul
Deflation By Any Other Name Would Smell As Foul

Russell Lee Family Car February 1939 "White migrant and wife repairing clutch in their car near Harlingen, Texas" Over the past two weeks or so, we've been seeing a very clear portrait of how sick our economies are. Not that you would know it from reading the press. The term deflation pops up only very cautiously. Could that be because people don't understand what's going on? Or are they simply afraid of the word? This is the real thing, guys.

Jun 192013
 June 19, 2013  Posted by at 6:51 pm Finance Comments Off on Why And How The Young Are Screwed
Why And How The Young Are Screwed

Last week I read a few lines in a Dutch newspaper article about pensions that immediately took me back to something I wrote in early May about youth unemployment – especially in southern Europe, where it's often 50% or more -. There is a common thread that links pensions to employment to stimulus measures: the younger generations invariably get the short end of the stick. Until they don't, of course, for they have one thing going for them. Age. Before

Jun 142013
 June 14, 2013  Posted by at 10:46 am Finance Comments Off on Five Stonking Crashes
Five Stonking Crashes

Photo top: Dorothea Lange Broke, Baby Sick February 1937 "Tracy (vicinity), California. U.S. Highway 99. Missouri family of five, seven months from the drought area. Broke, baby sick, car trouble." Little by little the realization is seeping through that, provided we can agree a recovery cannot be purchased outright, there is no such thing as a recovery anywhere in the western world. Mind you, I said seeping, and I could even have said trickling; it's a slow process. And that

Jun 092013
 June 9, 2013  Posted by at 1:58 pm Finance Comments Off on Nicole Foss – New Zealand And The End Of Economic Growth
Nicole Foss - New Zealand And The End Of Economic Growth

From yet another "gruelling" tour comes this once again highly recommended 1 hour podcast from New Zealand's GreenplanetFM radio, in which Nicole, as usual, covers a wide range of topics, with indepth analysis of issues specific to an economy like New Zealand's, a nation so dependent on trade it's dangerous, but also blessed with a ratio of resource base to population that offers possibilities many other countries do not have. For instance, New Zealand suffers from massive soil depletion because

Jun 072013
 June 7, 2013  Posted by at 2:45 pm Finance Comments Off on Compound Interest : Friend Or Foe?
Compound Interest : Friend Or Foe?

Dorothea Lange When I was a kid 1936 "American River camp near Sacramento, California. Children of destitute family. Five children aged two to seventeen." Amid all the superficial up and down rumblings of stocks and bonds, and hyped up analysis thereof, none of which makes you any wiser (hey, I told you Abenomics can't work..), it's a good idea to look at some of the more profound workings of the financial system. I saw an interesting take on an angle

Jun 022013
 June 2, 2013  Posted by at 1:13 pm Finance Comments Off on What If Stimulus Is Self-Defeating?
What If Stimulus Is Self-Defeating?

It's sort of funny to see a wider – though still faint – recognition developing in the financial world that perhaps it's true that the more stimulus is applied in today's global economies, the faster it will hit a wall. Some may finally even begin to see one or more inbuilt mechanisms at work. I personally think it all harks back to what I've long said, that stimulus by governments and central banks may have a function in certain economic