Friday, May 31, 2013

The Real Price of Gold is More Than the Gold Price

Watch how William Grants presented his Mathematical perspective on the world economics.  This was presented on 21 May 2013 at Marina Bay Sands in Singapore.  He started off by bringing us back to the basics of Maths (see how he proves 1=0.999...)

No matter what the media and governments in the world are telling us about the economic recovery, mathematical facts are facts.  In the video, he showed the inevitable mathematical and statistical facts of what is really going on in the world economics.   Some of the key points include:
  1. Outside influence (QE) are dangerous things
  2. If it makes no sense, it is nonsense.
  3. The gold price is not the price of gold
A very educational content for anyone who wants to understand the current world economics.  The more interesting presentation starts at the 7th minute in case you like to skip the introduction.

Tuesday, May 28, 2013

Japan's Interest Payment is Compounding despite their efforts to keep interest rates low

Despite what the media is still telling us about Japan's economic recovery, the facts don't lie.  Regardless of any growth they are having in their GDP numbers, Japan's interest payment is getting out of control due to its compounding effect.  Could Japan be the first domino to fall? This is what Otterwood observed on the Japan Ministry of Finance website.  Anyone who understands should be concerned.

Wednesday, May 22, 2013

4 Signs That We're Back in Dangerous Bubble Territory

By Chris Martenson:

Here are the four things that convince me that we are in truly bubbly territory:

Sign #1: Junk Bond Prices at Record Highs
The Fed, et al., have been buying up all of the 'safe' bonds, with the twin intents of driving down interest rates and chasing investors into riskier assets. With lower yields comes (hopefully) more borrowing; and when investors move towards riskier assets, this drives up the equity markets – which, as the thinking goes, will paint a rosier picture of the economy plus boost consumer confidence and spending.

Sign #2: Junk Sovereign Debt Being Chased to New Highs
It was just over a year ago when Greece ten-year debt was yielding a whopping 30%...Today? Greek ten-year debt is under 10%.

Sign #3: It's Not Official Until It's Denied
The poster child for a bubble market has to be Japan, where the main stock index of the island nation, the Nikkei, is up an astonishing 70% in the past six months

Sign #4: Making Up Crazy Excuses
My final sign of that we are in bubble territory is when the folks who consider it their job to make sense of the high and spiking prices offer up thin, sometimes stretched-to-the-breaking-point, rationalizations for why the current price action make sense.

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