It’s truly amazing how many potential black swans are circling around our beloved economy. While the mainstream media and government comments speak to some type of recovery, most readers of this website and others like it know that the recovery is a joke. In addition to an economy that is structurally flawed (too much debt, too many homes, buildings, not enough productive jobs, too much government, too much taxation and regulation, etc.), the economy is also facing a number of black swans that can hit at any moment. …

China “reassured” the global economy that they had no intention of unloading European debt.  While the market on Thursday responded to this by jumping a few hundred points on the Dow, I believe people are overreacting somewhat to this “good news”.
If you hold a significant chunk of an asset, say some European debt, would you announce that you plan to sell it before actually selling it?  Obviously by announcing your intentions, you would result in many other parties attempting to sell before your do.  The obvious result would be a …

The following video does such a fantastic job of thoroughly explaining the global economy and the issues we face in simple terms.  Anyone can understand this video.  Warning, the video uses facts and figures that  you might not like.  The video is close to an hour long, so skip American Idol tonight, and watch this instead.  You won’t be disappointed.

The global economic strategy and policies moving forward is clear.  The printing of fiat currencies is the sole strategy and solution to every economic issue around the globe.  The trillion dollar bailout was meant to stabilize the Euro and send a message to the markets that the Euro will be defended (not sure how printing a trillion units of a currency symbolizes defense).  The effect was quick but has already began to fade.  Default and collapse in Europe might be prevented for a few months, but how much will be …

The following is from Senator Jim DeMint
The International Monetary Fund board has approved a $40 billion bailout for Greece, almost one year after the Senate rejected my amendment to prohibit the IMF from using U.S. taxpayer money to bailout foreign countries.
Congress didn’t learn their lesson after the $700 billion failed bank bailout and let world leaders shake down U.S taxpayers for international bailout money at the G-20 conference in April 2009. G-20 Finance Ministers and Central Bank Governors asked the United States, the IMF’s largest contributor, for a whopping $108 …

Playing the currency game is tough.  Maybe you’re bearish on the dollar, or maybe you’re bearish on the Euro.  The problem is to short the Euro, you might be long the dollar.  Well, what if you are negative on all currencies?
I’m negative on all currencies, because the current global economic trend is a competitive devaluation.  A race to the bottom.  Many major economies around the world are attempting to devalue their currencies in an effort to drive exports.  Unfortunately, when the other guy is doing the same, isn’t it basically …

There are some big marches around the world today with workers demanding better pay, better conditions and more jobs.  Ok, I could see demanding better pay and conditions, but demanding better jobs seems comical to me.  As if jobs are created out of thin air simply in response to a worker’s demands.
It seems like we’ve forgotten that jobs are created by businesses.  Businesses needs to be created and/or grow in order for “more jobs” to be available and offered to workers.  This requires innovation, capital, hard work, entrepreneurship, etc.  So, …

The IMF is announcing further plans to bail out Greece.  The largest contributor of funds to the IMF is the United States.  Or, maybe I should say, you fund the IMF.  The latest round of bailouts for the disaster-of-an-economy known as Greece is estimated to be about $7 billion in U.S funds.
Well, I apologize for interrupting your day.  You need to go back to work so that you can pay taxes and send more money over the Greece so that the Greeks can have guaranteed retirement at age 50.  You?  …