German economists fear complacent coalition risks national decline

Germany’s Grand Coalition under Chancellor Angela Merkel takes the helm on Tuesday under a blizzard of criticism from economists of all stripes, attacked for doing nothing to stop the slow erosion of German dynamism and for insisting rigidly on further austerity for Europe. “It is a lost chance for Germany’s future: the deal puts extra […]

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Eurozone plans to wind up failing banks 'too complex', says Mario Draghi

Latest plans to wind up failing eurozone banks may be overly complicated and inadequately funded, European Central Bank President Mario Draghi has said. Under the terms of an EU proposal seen by Reuters, the cost of closing down a bank in the currency bloc will initially be borne almost fully by its home country, but […]

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New Trend Guarantees Higher Gold Prices

If you’re like me, you’ve bought gold due to the money printing policies of most developed countries and the effect those policies will have on the future purchasing power of our paper money. Probably also because there’s no viable way for governments to escape the consequences of all the debt they’ve piled up. And maybe […]

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Mother Of All Currency Wars In One Chart: Dollar Vs. Swiss Franc

The Federal Reserve was established in 1913 primarily, or at least ostensibly, to manage the dollar. The way the Fed has “managed” is best shown in a nifty chart that juxtaposes the exchange rate of the dollar against the Swiss franc (blue line) and the US Consumer Price Index, not seasonally adjusted (red line). The […]

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Bank of America advises China default contracts to hedge debt storm

Bank of America has advised clients to take out default insurance against Chinese debt, warning that monetary tightening by China’s central bank risks setting off a bout of serious credit stress in 2014. Bin Yao, the bank’s credit strategist in Asia, said Chinese bond yields have already risen to the highest in a decade as […]

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Deutsche Bank under scrutiny in gold price-fixing probe – FT

Dec 13 (Reuters) – German banking regulator Bafin has demanded documents from Deutsche Bank as part of a probe into suspected manipulation of benchmark gold and silver prices by banks, the Financial Times reported, citing sources. Bafin has interrogated the bank’s staff during several on-site inspections over the past few months, the newspaper said on its […]

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The Fed Doesn't Really Trust the Banks Either

Here is a Wall Street Journal article about how the Federal Reserve is experimenting with reverse repo agreements as a tool of monetary policy. “The Fed traditionally has managed short-term interest rates by shifting its benchmark federal-funds rate, an overnight intrabank rate,” but the reverse repo mechanism wouldn’t be limited to banks. In the reverse repos, counterparties would lend […]

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Lurid Subprime Scams Unveiled in Long-Running Fraud

Lost amid the hoopla over JP Morgan Chase’s record-setting $13 billion settlement this fall was news of another monster court resolution – a $2.46 billion judgment, the largest ever awarded after trial in a securities fraud class action case, handed down in October against a HSBC acquisition called Household International. It’s an old case, with the trial completed […]

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The Issue: U.S. long-term unemployed about to lose extended benefits

Vera Volk of Lynn, Mass., is scared. With her state unemployment benefits about to run out, the federal extended benefits about to expire and her husband’s information technology consulting business in the tank, she doesn’t know how her family will survive. Volk was among the witnesses who appeared before a Democratic Steering and Policy Committee […]

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Who Really Makes The Most Money

Of the 25 companies with the largest corporate profits in the world, banking, energy and technology firms are absolutely ranking it in. Collectively, they made $567,856,000,000 in 2012 alone. And that’s only 25 of the most profitable companies in the world. Let’s put all that cash into perspective. That enough money to … continue reading at goldsilver.com […]

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