Decoupling

Commodites are Poised to Head Higher

Commodites are Poised to Head Higher

Having lived through the 70s, it’s hard to look back on those days without having a good chuckle… What with disco, bell bottoms, and all of that hair, the “me decade” seems kind of comical compared to what followed it. But one thing that definitely wasn’t groovy back then was the misery index. Talk about a bummer. Created by economist Arthur Okun, the misery index was calculated by adding the unemployment rate to the inflation rate. Naturally, the higher the number turned out to be, the greater the level of misery. A 70s rerun But as it turned out, the misery index wasn’t just some tool used by economists to put a hard number on the suffering; in the hands of James Earl Carter, it actually became a ticket to the White House. During the presidential campaign of 1976, Candidate Carter made frequent references to the misery index, stating that no man responsible for a misery index that high had a right to even ask to be president. Of course, Carter was referring to President Gerald Ford, who presided over an economy with a score of almost 14% during the campaign. (In May of that year, the inflation rate was 6.2%, while unemployment rate stood at 7.40%.) The rest, as they say, is history— and as history provided the crack, Carter waltzed right through it. But by the election of 1980, Carter’s own words turned on him as he lost in a landslide to Ronald Reagan. Under Carter, the misery index had reached an all-time high of 21.98%, giving a whole new meaning to the word malaise . Some 34 years later, history might be on the verge of repeating itself again because of higher commodity prices. Because with the unemployment rate stuck seemingly in the 9%-10% range, and the Fed working overtime to create inflation, the misery index is on the cusp of a comeback in the familiar form of stagflation. Stagflation, of course, is the worst-case scenario. In short, it’s a period during which the economy stumbles and inflation soars. And while the deflation camp continues to argue that soft aggregate demand in developed economies will keep inflation at bay, I’m not sure they can fight against the tide of devalued currencies and the growing commodities demand spurred by emerging markets… On the verge of decoupling? While the developed economies are still spinning their wheels, countries like China, India, and Brazil are stepping on the gas. Unhampered by exploding asset bubbles and massive sovereign debt problems, these emerging markets are flush with cash and ready to lead the world economy. In fact while the U.S economy is only projected to grow by a paltry 1.9% in 2011, GDP growth in …

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Commodities are Poised to Head Higher

Having lived through the 70s, it’s hard to look back on those days without having a good chuckle… What with disco, bell bottoms, and all of that hair, the “me decade” seems kind of comical compared to what followed it. But one thing that definitely wasn’t groovy back then was the misery index. Talk about a bummer. Created by economist Arthur Okun, the misery index was calculated by adding the unemployment rate to the inflation rate. Naturally, the higher the number turned out to be, the greater the level of misery. A 70s rerun But as it turned out, the misery index wasn’t just some tool used by economists to put a hard number on the suffering; in the hands of James Earl Carter, it actually became a ticket to the White House. During the presidential campaign of 1976, Candidate Carter made frequent references to the misery index, stating that no man responsible for a misery index that high had a right to even ask to be president. Of course, Carter was referring to President Gerald Ford, who presided over an economy with a score of almost 14% during the campaign. (In May of that year, the inflation rate was 6.2%, while unemployment rate stood at 7.40%.) The rest, as they say, is history— and as history provided the crack, Carter waltzed right through it. But by the election of 1980, Carter’s own words turned on him as he lost in a landslide to Ronald Reagan. Under Carter, the misery index had reached an all-time high of 21.98%, giving a whole new meaning to the word malaise . Some 34 years later, history might be on the verge of repeating itself again because of higher commodity prices. Because with the unemployment rate stuck seemingly in the 9%-10% range, and the Fed working overtime to create inflation, the misery index is on the cusp of a comeback in the familiar form of stagflation. Stagflation, of course, is the worst-case scenario. In short, it’s a period during which …

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America’s Decoupling From Reality

Filed in Decoupling, economy, gld, Gold, Gold Spot Market, recession by on September 18, 2010 0 Comments

As Election Day 2010 approaches – as the United States wallows in the swamps of war, recession and environmental degradation – the consequences of the nation’s three-decade-old decoupling from reality are becoming painfully obvious. Yet, despite the danger, the nation can’t seem to move in a positive direction, as if the suctioning effect of endless spin, half-truths and lies holds the populace in place, a force that grows ever more powerful like quicksand sucking the country deeper into the muck – to waist deep, then neck deep. Trapped in the mud, millions of Americans are complaining about their loss of economic status, their sense of powerlessness, their nation’s decline. But instead of examining how the country stumbled into this morass, many still choose not to face reality.

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Roubini: 40 Percent Chance of a Double Dip

Filed in Decoupling, economy, euro, Gold, Gold Market, marc-faber, recession by on September 7, 2010 0 Comments
Roubini: 40 Percent Chance of a Double Dip

Here’s the latest take on the world economy from economist Nouriel Roubini. Needless to say, he’s still bearish…. From CNBC by Patrick Allen entitled: More than 400 US Banks Will Fail: Roubini “ Even if the US and European economies manage to avoid a double dip, it will still feel like a recession, while more than half of the 800-plus US banks on the “critical list” are likely to go bust, according to renowned economist Nouriel Roubini of Roubini Global Economics. The second half of the year will remain weak as tailwinds become headwinds, Roubini told CNBC on the shores of Lake Como, Italy at the Ambrosetti Forum economics conference. “In the second half, fiscal policy becomes a headwind, no more cash for clunkers,” Roubini said. “The positive scenario is that growth will be below par.” Roubini recently said the chance of a double-dip recession in the US was now more than 40 percent. “The big risk is that there will be a downturn in markets that could impact the bond, the equity and the credit markets,” he said. “ Job losses have been higher, the US jobs number will show that. There is no private sector jobs growth,” he said. “Consumption is weak, exports are weak and housing is weak.” “If there is no final sales and no final demand, companies will not invest,” he added. Roubini said he believes hopes of decoupling will be dashed as the slowdown in the US impacts China, Japan and the euro zone. “In Europe, Germany is strong but the rest of the continent is pretty dismal,” he said. “The rest of the world cannot cope without the prop of the US consumer. Chinese growth in the second half will be 7 percent.” “ Get used to it,” Roubini said. “Deleveraging has to continue as governments and consumers deleverage in the developed world.” ‘We have to expect the new normal,” he added. “We do not need a double dip for it to feel like recession.’” Related Articles: Roubini on Greece: The Tip of the Iceberg Marc Faber: “Governments have become like a cancer” Greece Cut to Junk The Chinese Bubble and the Ghost City of Ordos To learn more about Wealth Daily click here Advertisement Your IRA and 401(k) are in Washington’s sights… But you’ll never hear about it in the mainstream media until it’s too late to save your retirement assets . Click HERE for the “guerilla wealth” secret to keeping your hard-earned nest-egg in your own hands – and perhaps even growing it by 378

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How China Will Corner the World’s Gold Supply

This post initially appeared on EnergyandCapital.com June 1st, 2010. With the Eurozone looking about as stable as a burning deepwater oil drilling platform — and the partisan American media propping up President Obama’s jobless domestic “recovery” — the U.S. dollar has seemed to get a temporary stay of execution in the court of global economics… But let’s not allow the buck’s spring bloom to erase the memory that for years now, as the dollar declined against the euro and other currencies, many have been gunning for its replacement as the de facto world reserve currency — and the monetary unit in which oil, gold, and other commodities are priced. In the heat of the dollar’s descent in 2007, our own beloved (not) Alan Greenspan said that it was “absolutely conceivable that the euro will replace the dollar as reserve currency, or will be traded as an equally important reserve currency.” His voice presaged or echoed the sentiments of many important nations, among them well-known dollar-bashers China and Russia — but also to varying degrees India, Iran, Brazil, Venezuela, and others… Advertisement An Airplane Mechanic’s 843% Profit Secret By sheer luck, one working class man from Minnesota discovered a “kickback” strategy that turned his $35K retirement fund into a hefty $295,050 nest egg in a little under 2 years… But now his secret is ours — and our readers have already started to make 100% legal “kickbacks” of as much as 793%, 846%, even 3,475% or more from this reliable strategy. Click here now to learn why we’re no longer keeping this profit trick hush-hush… And let’s not forget that the U.N., IMF, OPEC, and G20 have all recently pondered or publicly called for some form of decoupling of the U.S. dollar from commodities — or its replacement as the gold standard (no pun intended) of world reserve currencies. None of these bode well for the buck. One doesn’t have to be economist, monetary historian, or even an investing ace (I’m none of these, to be sure) to see that nothing about America’s current monetary policy could arrest the dollar’s ultimate decline against other currencies of the world. Even after the Eurozone gets its act together, we’ll still be printing dollars by the truckload, artificially fending off inflation with a bunch of book-cooking hocus pocus — and pressuring (or begging) other nations to underwrite our overspending by purchasing dollar-based debt. That’s not how a strong, stable global reserve currency is maintained. …

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Northcom Backs Out of National Level Exercise 2010

Filed in Decoupling, economy, gld, Gold by on April 28, 2010 0 Comments
Northcom Backs Out of National Level Exercise 2010

Kurt Nimmo Infowars.com April 27, 2010 Northcom has unexpectedly withdrawn from participation in National Level Exercise (NLE) with FEMA and the Department of Homeland Security. The Department of Defense announced on April 26 it was decoupling its Ardent Sentry exercise from the National Level Exercise.           NLE 10 planned to simulate a dirty bomb terror attack in Las Vegas.     Ardent Sentry is a Joint Chiefs of Staff directed and Northcom sponsored “homeland defense” exercise. It is one of a number of DoD and Homeland Security exercises that blur the boundaries between the Pentagon, the federal government, and state and local governments under the guise of combating terrorism and responding to natural disasters. The Pentagon said it decided against the exercise after Las Vegas, the planned site for a post-nuclear-attack response exercise, pulled out in November, fearing a negative impact on its struggling business environment, according to the Washington Times . Officials said a new site could not be found. “The official also said the Northern Command’s exercise plans for ‘cooping’ — continuity of operations, during which commanders go to off-site locations — also had been scratched,” writes Rowan Scarborough for the newspaper. “One thing is definite about this year’s federal play-acting exercise to assess national emergency preparedness: A faux radioactive nuke, or ‘dirty bomb,’ will not be blowing up the Las Vegas Strip in May,” the Christian Science Monitor reported on March 30. “Sen. Harry Reid (D) of Nevada, in the midst of battling for the White House’s healthcare reforms, wrote late last year that to ’simulate a nuclear detonation in the heart of the city would unacceptably harm the Southern Nevadan economy.’” On April 2, the Washington Post reported the federal government was considering whether to scale back NLE 10. “The decisions are playing into a quiet debate about the future of the large-scale national exercises,” the newspaper noted. On April 14, the Public Intelligence website posted a story indicating it had received a message from FEMA requesting the removal of a document entitled “National Level Exercise 2010 (NLE 10) Exercise Overview,” a ten page document consisting of approximately 20 PowerPoint slides. “The contents of the brief are basically a calender of potential dates for the exercise and very brief descriptions of some preliminary plans for the exercise,” notes Public Intelligence. “The document has already been seen by a large number of people and has been discussed on a variety of websites and forums, which include mirrors in some cases.” Public Intelligence also published the National Level Exercise 2010 Training Manual . A number of people have warned that the NLE 10 exercise might “go live” in the same way drills went live on September 11, 2001, most notably Tripod. Other drills and exercises dealing with hijacked airplanes were also conducted weeks and days prior to the attack. Did Reid’s rejection of running a dirty bomb attack simulation in Las Vegas prompt Northcom to back out of the exercise? Or did the attention of the alternative media and speculation about the possibility of a nuclear exercise going live have something to do with the decision? FEMA’s sensitivity over the posting of NLE 10 documents on the Public Intelligence site is indicative. Is it possible all the attention is getting to them? Or was a false flag attack designed to crack down

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Gold Prices Rise with Dollar

Gold will get an interesting test this coming week, as the European Union committed about $40 billion in loans to Greece for a backup in case of emergency over the weekend, and the IMF reiterated they’ve made $10 billion in loans available as well.They also noted that this was only for 2010, as over the next three years it could reach as high as $107 billion. Now as far as all this affects the

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