When the value of a firm’s real estate appreciates by $1, its investment increases by approximately 6 cents. The ability to pledge collateral enhances a firm’s debt capacity, and providing outside investors with the option to liquidate pledged assets acts as a strong disciplining device on borrowers. Therefore, asset liquidation [...]
Jim Rogers likes RiceJim Rogers likes (guess what) real assets like silver, rice, natural gas, etc. Jim Rogers dislikes (guess what) central banks, governent intervention and politicians. |
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6 Moves to Check Mate: China’s Economic Lever of Mass DestructionThe following is inspired by the rumoured defection of China’s central bank governor, Zhou Xiaochuan, over $430 billion in losses on a short US Treasury position. According to undisclosed sources, the governor was facing ‘punishment’ for the losses and fled the country. The rumor was false. True or not, as [...] |
The US Housing Market – It’s worse than you thinkAltos Research presents a prescient look at the US housing market. Always two steps ahead of the street, Altos provides compelling evidence that the US housing market remains in rough condition. Although one month old, this presentation is an eye opener: The US Housing Market – It's worse than you [...] |
The Economics of CrackFreakonomics author Steven Levitt discusses the economics of drug dealing. When I think of drug dealers, I think of fast cars, slick clothes and well-jeweled people…however, this is not so. Contrary to popular myth, Levitt says, being a street-corner crack dealer pays below minimum wage. |
Inside Look at the Evangelist of Doom (Peter Schiff)The Wall Street Journal exposes the real life of Peter Schiff. An interesting look at the evangelist of doom: |
China: Rumors of the Central Bank Chief’s DefectionThis just in from Stratfor…the rumors are flying. $430 billion loss on USTs implies a short position, since USTs have been performing very well lately. Is this $430b loss net of long positions? This rumor highlights China’s ability to send the US economy into a death-spiral: Step 1) China hedges US [...] |
Peter Schiff & Henry Blodget With Dylan RatiganDylan Asks: What the heck is wrong with the economy? Peter Schiff and Henry Blodget (yes, that Henry Blodget) answer. You might not like what they say. Visit msnbc.com for breaking news, world news, and news about the economy |
SNL Video: Obama and Chinese President Hu JintaoClassic Saturday Night Live skit (2009) pointing out the glaring political and economic challenges facing the Obama administration. “Do I look like Mrs. Obama?”…”You are not allowed to pay us back in ‘clunkers’.” Laugh it up – funny because it’s all true. |
The History and Future of Nuclear Weapons“With Iran insisting on moving ahead with uranium enrichment, what are the options? Cirincione takes aim at the current U.S. default policy, “to muddle through.” He also scoffs at the idea of regime change in Iran, since Iraq teaches that “democratic transformation takes a long time.” He saves his most [...] |
China Defends Control of Rare Earth ExportsChina controls about 97% of the world’s rare earth metals (also known as rare earth elements) supply. Rare earth metals are vital inputs into the production of hybrid car batteries, windmills, liquid cristal displays, and many other industrial and military outputs. China is again exerting its control over this precious [...] |
Why our agricultural empire will fallA fantastic, and scary-to-depressing, article on how our food system is repeating the history of doomed civilizations. In an age of super-sized meals and obesity epidemics, food-shortage doomsday scenarios always seem a little surreal. Backed by half a century of agricultural abundance, it’s easy to imagine that cheap food will [...] |
