Salient to Investors: David Stockman writes: Germany has set fire to the Eurozone in order to save it. Lending another $96 billion to a bankrupt country makes no sense, while the fiscal targets set for Greece are ridiculous. Greece has a de facto public debt of $400 billion vs. $200 billion of GDP. Within days the
READ MORE... →Salient to Investors: Harry Dent writes: All the signs point to the end of the global bubble. The greatest trigger will be the bursting of the massive, unprecedented China bubble. China’s stock market loss of 35% in less than 30 days signals its stock bubble has peaked: a drop of 30% to 40%
READ MORE... →Salient to Investors: Fareed Zakaria said: The Economist says Connecticut bankrolls the weaker states in America: 5% of their GDP over the last 20 years has been net income transfers to states like Mississippi and Alabama. Allen Cooperman says the nuclear deal will only take Iran from 2 months away
READ MORE... →Salient to Investors: Fareed Zakaria said: Singapore mandates ethnic diversity in all neighborhoods – over 80% of Singaporeans live in public housing. US efforts in the 50s and 60s to desegregate schools and integrate neighborhoods were largely abandoned by the 80s and America is now strikingly segregated. A UCLA study in 2014 said
READ MORE... →Salient to Investors: China last reported its gold reserves in 2009 at 1,054.1 tonnes, just 1% of the value of its foreign currency reserves, and less gold reserves than Germany, the IMF, Italy and France, and a fraction of those of the US. Bloomberg Intelligence believes China’s reserves exceed 3,510 tonnes,
READ MORE... →Salient to Investors: David Stockman writes: Keynesian central banking has created a worldwide financial bubble. Soaring bond yields and the fear of losing debt market access are the one force that can cause governments to sober-up and acknowledge the facts. Reagan did not want Volcker to ease the intense upward pressure on interest rates and private
READ MORE... →Salient to Investors: David Stockman writes: Economists Piketty and Krugman are zero-sum anti-capitalists. Real capitalism cannot thrive unless inventive and entrepreneurial genius is rewarded with outsized fortunes. Massive central bank intervention is not necessary for capitalism to thrive. The free market does not perennially slump toward underperformance and depressionary collapse
READ MORE... →Salient to Investors: David Stockman writes: The Fed has generated a $50 trillion financial bubble and made money and capital markets to little more than gambling casinos. Speculative rent-seeking in the financial market has replaced entrepreneurial innovation and supply side investment and productivity, resulting in a severe drop in real growth and a
READ MORE... →Salient to Investors: Fareed Zakaria said: The cold war between Russia and the West over Ukraine is worsening. Saudi Arabia will not build a nuclear weapon whatever happens with Iran’s nuclear program because it cannot – oil is 44 % and manufacturing less than 10% of GDP. Saudi Arabia could not
READ MORE... →Salient to Investors: David Stockman writes: The ratio of finance to GDP has risen to 540% vs. the historic norm of 200%. Central bank driven bubble finance since the late 1980s has resulted in the GDP deflator-adjusted value of corporate equities and credit market debt outstanding rising 8 times, while real median household
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