Posts On Economic and Geopolitical News

June 29, 2015 |

Greece and the Moment of Truth

AG greece_truth

Imagine for a moment the feeling of sheer panic you might experience if you went to your bank and were told you cannot withdraw your own money… Unfortunately, the people of Greece are going through such a scenario right now as we speak… After a weekend in which no deal was able to be reached concerning an extension of funding for the country, Greece has now imposed capital controls and closed its banks for the next several days. Greek depositors are limited to withdrawals of... Continue Reading

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June 15, 2015 |

RISE OF THE RENMINBI

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According to a recent article from The Street.com, “The most important economic issue over the next decade will be the rising position of the Chinese currency, the renminbi, in the foreign exchange markets.” While current global financial reserves are dominated by the dollar, euro, yen and British pound, there is a significant shift taking place right now. A shift that could dramatically change the global reserve market and the dollar’s status as the reserve currency of choice. The central banks that issue these currencies have,... Continue Reading

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May 29, 2015 |

Chinese Yuan May Get Reserve Currency Status This Year

Japanese Yen

The Chinese yuan has been gaining traction and acceptance among global currency markets. As the Chinese economy continues to grow, China will seek to continue to forge its place among leadership in the global financial marketplace. According to a report today by BBC News, the yuan could get reserve status this year… This is huge. This is another step towards the yuan becoming the global reserve currency of choice. When the International Monetary Fund this week stated that it does not consider the yuan to... Continue Reading

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May 21, 2015 |

DOLLAR DOOM

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The dollar will fail…. This is not a question of if but rather when. We believe that when the dollar does fail, it will create a period of economic and geopolitical chaos the likes of which this country has not seen before. Fiat currencies such as the dollar are fundamentally flawed. To the average investor, discussions on the dollar’s loss of value-or any other fiat currency for that matter- seem complicated and difficult to comprehend. In reality, there are very simple reasons why fiat or... Continue Reading

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May 20, 2015 |

IS DEFLATION A RISK?

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With all the recent talk of the possibility of inflation bottoming in the U.S., we felt it prudent to discuss the other side of the coin a bit. Deflation is a decline in the general price levels of goods and services. An economy is said to be experiencing deflation when the inflation rate falls below zero percent. A CPI reading of -.1 percent, for example, would indicate that prices have dropped as much. The U.K. has just apparently entered deflation with year-over-year consumer prices falling... Continue Reading

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May 11, 2015 |

Greek Gold

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Without question, one the main themes in financial circles this past year has been the ongoing troubles in Greece and its economy. We thought it might be prudent to provide a little background on this situation, and how it may potentially impact not only gold and precious metals but global financial markets. First off, the Greek Government, like many if not all modern day governments, relies on borrowed money to fund its operations. Greece was hit particularly hard during the recent recession, and tax revenues... Continue Reading

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May 1, 2015 |

Larry Summers Warns US Is Losing Its Global Leadership Role

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“This past month may be remembered as the moment the United States lost its role as the underwriter of the global economic system.” —Larry Summers, Harvard professor and past U.S. Treasury Secretary, wrote in an April Washington Post article. The global economic and political power tides are shifting from West to East. China is flexing its economic muscle and the balance of global power scales are beginning to tip in their favor. This month China announced the formation of the Asian Infrastructure Investment Bank (AIIB),... Continue Reading

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April 21, 2015 |

Is Greece Teetering On The Edge Of Default?

blackcloudloomsgreece

Black Storm Cloud Looms Over Greece And The Global Horizon The clock is ticking toward a Greek debt default which could jettison the country from the euro-single currency bloc. A “Grexit” or Greek exit from the euro zone could catapult the region and the globe back into financial crisis and political turmoil. A Greek exit would have far reaching implications not only for contagion within the euro zone, but would also raise concerns about the viability of paper currencies, and the subsequent shifting global power... Continue Reading

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