Jim Rickards’ Currency Wars Simulation: Collapse

Written by Gary North on October 25, 2012

Jim Rickards has produced a video of his hypothetical scenarios relating to currency wars. My view is that something like this could happen, but is unlikely. That is also his view. The general trends he surveys are accurate. He thinks price inflation will go to 20%. Then he adds “and higher.” Here, I think he […]

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Why Gold Rebounded So Fast

Written by Gary North on January 31, 2012

Gold in late December was under $1540. Today, it is $200 higher. What happened? A Forbes colmnist offers suggestions. First, gold is not like other commodities. It is an alternative currency. The European crisis is accelerating. Second, hedge funds had to sell to redeem shares. Third, low interest rates help to keep ownership cheap. Alternative […]

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Hatchet Job on Apple

Written by Gary North on January 30, 2012

On the CBS TV news program, Sunday Morning, the cover story was a hatchet job on Apple. It exposed a Chinese firm that supplies with some of their products. The company’s plant is huge: over 400,000 workers. Most workers that we could see were young: twenty-somethings. They were all dressed in Western clothes: T-shirts, jeans. […]

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A Key Economic Index Is in Freefall

Written by Gary North on January 26, 2012

The Baltic Dry Index sounds really dull. Usually, it is. Not now. This index measures freight rates for ships that transport commodities. When demand for commodities falls, less freight is shipped. But the same number of ships are competing for tonnage. So, rates fall. Demand for commodities falls as a prelude to a recession. A […]

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Tall Skyscrapers and Big Crashes: Get Ready

Written by Gary North on January 16, 2012

Did you know that there is a tight correlation between the completion of the world’s tallest skyscraper and either a recession or a depression within a year or two? Well, there is. Dr. Mark Thornton of the Mises Institute published an article on this in 2005. Worldwide, real estate peaked in 2006. Then came the […]

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Food Prices Will Keep Climbing

Written by Gary North on January 9, 2012

The Chinese are buying food. That is what people in poor nations buy when they get less poor. For China, the disparity between urban, coastal wealth and rural, interior wealth is enormous. People in interior towns are finding it very expensive to buy food. There are riots, which are not widely reported. As for Egypt […]

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If Iran Blocks the Straits, Worldwide Recession Is Sure

Written by Gary North on January 4, 2012

Iran’s leaders are talking tough about shutting down the straits of Hormuz. This may be a way for them to get the West to negotiate from a weaker position regarding Iran’s nuclear fuel program. Or it may be that Iran thinks there is an attack coming. The question is this: Will oil prices skyrocket if […]

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Bailing Out of the Dollar

Written by Gary North on December 28, 2011

China and Japan have taken the first step in abandoning the dollar. I have been waiting for this for years. Now it has happened. Japan and China will promote direct trading of yen and yuan without using dollars and will encourage the development of a market for companies involved in the exchanges, the Japanese government […]

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Asian Crash Continues

Written by Gary North on December 13, 2011

The decline of China’s Hang Seng stock index continued down on Monday. The news keeps getting worse. India has been hit by the same decline. The cause is the same in both nations. Their central banks inflated, causing an economic boom. This boom created stock market bubbles. Now the booms are turning into busts. In […]

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If China Crashes, Imports Will Get Cheaper

Written by Gary North on December 9, 2011

China’s real estate bubble has popped. Rich Chinese who bought urban residential living space and are holding empty space off the market for appreciation have begun to take the inevitable bath. Most analysts expected monetary easing to start next year when inflation had subsided further. But then most China analysts were predicting a “soft landing” […]

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