Commodity Trade Mantra

Posts Tagged ‘Bankruptcy’

Why the Coming Wave of Defaults Will Be Devastating

In an economy based on borrowing, loan defaults & deleveraging matter. Defaults mean loans & bonds won’t be paid back. The owners of the bonds & debt (mortgages, auto loans, etc.) will have to absorb massive losses. Having unleashed tens of trillions of dollars in new credit since 2008, the central banks have simply increased the likelihood & scale of the coming default conflagration.

A Gold Standard & Debt Jubilee for an Honest Money Monetary System

A gold standard handcuffs corrupt governments, forcing them to operate somewhere near a balanced budget, at all times. It handcuffs criminal central banks, restraining the speed with which they steal-by-inflation to a near-zero rate. Only alternative to Debt Slavery: Debt Jubilee – the complete renunciation of all debts. We absolutely require a gold standard but cannot till we don’t have a debt jubilee.

Why We Need Oil Prices to Rise to $120 Per Barrel or More

When oil prices fall from $100 per barrel to $50, the incomes of a large share of people are adversely affected. This drop in income tends to radiate outward to the rest of the economy because each worker who is laid off is forced to purchase fewer discretionary items & is also less able to take on new debt, such as to buy a new car or house.

Crude Oil Crash Of 2016 Has The Big Banks Running Scared

During the boom years, big banks gave out billions of dollars in loans to fund exceedingly expensive drilling projects all over the world. Now those firms are dropping like flies & the big banks could potentially be facing catastrophic losses. Since the start of 2015, 42 US oil companies have filed for bankruptcy. The longer the price of oil stays low, the worse the carnage will get.

Beware: Fracking Is Where Money Goes to Die

The fracking boom has been cash-flow negative for oil and gas drillers from the very beginning. The steep decline rates of fracked wells force producers to drill more wells just to keep production and revenues flat. They fund this drilling with debt. To support that growing debt, they have to produce more & take on even more debt.

Greece Says ‘No’ To Fake Bail-Outs – Jeff Nielsen

With a sane (and apparently honest/legitimate) government achieving election in Greece; the past six years of European “bail-out” fraud is about to be fully exposed. Indeed, the recent history of Greece, alone, is little more than a road-map of fraud, conclusively illustrated by a concise summation of events.

One Of Largest Russian Gold Miners On Verge Of Bankruptcy

Russian gold producer Petropavlovsk, was valued at more than $3 billion four years ago and was a potential candidate to move into the coveted FTSE100. But today the firm is now worth just $60 million and is in a perilous financial situation, with speculation it may even default on $310 million in convertible bonds in February.

Greece Recovery? 60% Of Greeks Live At Or Below Poverty Levels

A report from Greece’s State Budget Office found that three in every five Greeks, or some 6.3 million people, were living in poverty or under the threat of poverty in 2013 due to material deprivation and unemployment. Greece also ranks fourth among EU states in poverty disparity, after Spain, Romania and Bulgaria.

The World’s Largest Subprime Debtor: The US Government

Six years ago financial institutions were demonized as subprime borrowers who could not repay their loans. If the federal government turns out to be just another subprime debtor, we should expect the blame to be placed on the Federal Reserve for fostering such a situation and allowing it to persist for so long.

Ten Reasons to Condemn Inflation

An un-backed expansion of the money supply causes the prices of goods and services to rise – Inflation. It allows the state to go into debt more easily and at lower interest rates than would be the case without monetary expansion. Inflation reduces the purchasing power while the price of raw materials tends to rise.

We Must End this Addiction to Debt as the Engine of Growth

Growth is back – after a fashion – but debt levels are rising again, productivity growth in advanced economies is close to post- war lows, capital spending is becalmed, inroads into deep fiscal and current account deficits are proceeding only at glacial pace. Is this a sustainable economic model?

How A Country Dies - Death Of A Nation

Do people understand what is happening to them & their country? I suspect some have partial awareness. Few appreciate the full consequences of what is happening. People sense there is something wrong, even though they may be unable to identify what that something might be – But always believe it may be temporary.

Banks Have Become the Permanent Government of Europe

European banks have long been hermetically sealed black boxes. The only thing known about the holes in their balance sheets, left behind by assets that have quietly decomposed, is that they’re deep. And no one is allowed to know until Eurocrats decide who is going to pay for bailing out these banks.

Will Consumer Credit Drive The Next Economic Boom

The age of “easy credit terms” and “no money down” led to a consumption boom that offset a decline in actual economic productivity, incomes and savings. Of course, the basic lesson of economics is that it is savings that ultimately leads to productive investment, production and economic growth.

Banks Disparage Gold Ownership and Engage in Largest Financial Crime Spree

As we enter 2014 and amid a list of bearish reports on gold, issued by most of the major Western banks, the flow of gold from the West to the East continues while Western banks are found guilty of a multitude of criminal activities including market rigging, insider trading, just to mention a few.

What A U.S. Debt Default Would Mean For The Global Economy

Just for starters – A U.S. debt default would cause stocks and bonds to crash, would cause interest rates to soar wildly out of control, would cause a massive credit crunch and would cause a derivatives panic that would be absolutely unprecedented.

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