Mainstream Media Agrees on Empire's End?

Saturday, June 25, 2011 – by Anthony Wile

Anthony Wile Peter Oborne, the Daily Telegraph's chief political commentator, has written an article entitled, "In fleeing Afghanistan, the West relinquishes its grip on the world." What is striking, to me anyway, is how closely it parallels analyses we've provided in the recent past.
Before I present Oborne's insightful perspective, along with some of our recent related articles, let me provide some background. An animating thesis of ours has been that the Internet itself is something like the long-ago Gutenberg Press and is increasingly igniting a similar radical reconfiguration of world power – even empowering the individual in ways previously unimaginable.
This is a simple statement, of course, and the world is complex. However, a simple explanation has resonance if events themselves conform to the analysis. And this, perhaps, seems to be the case.
Our article, Bin Laden Episode End of Empire? - Top US Official Says 9/11 Was an Inside Job, speculated that the seemingly phony death of bin Laden (as he probably died of Marfan's Syndrome and failing kidneys some ten years ago) might serve a pretext for a withdrawal from Afghanistan. But unlike much of the rest of the mainstream and alternative news media, we saw what seems to have been a staged death as far more significant than a mere draw down of troops. It seemed to us, potentially anyway, to mark the end of the current phase of Money Power aggression.
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Presenting The (Only) Four Outcomes To The Global Public Debt Crisis 

Submitted by Tyler Durden on 06/26/2011 13:19 -0400

A global public debt crisis, in which private sector deleveraging is offset by public debt, to the point where Reinhart and Rogoff say "no more" (and often times beyond) has only four possible outcomes. These are: 1) a debt trap; 2) hyperinflation; 3) austerity but in conjunction with actual economic growth and 4) default. Currently in the developed world, the only two outcomes actively pursued, are (1), the debt trap, best seen in the US, where the only solution to debt is "more debt", and half of (3), austerity, although not coupled by the critical "growth" component, but merely more strikes, more economic deterioration, and more austerity in a closed loop to the bottom as a disenchanted population decided to let it all burn down in the process of losing its entitlements safet net. And with 3) so far a failure in every iteration (the closest it is to an actual empirical outcome is in the UK, where it has so far produced nothing but stagflation), what happens next will be, as UBS' senior economic advisor George Magnus says, "or else."

China Says It Will Bail Out Insolvent European Countries 

Submitted by Tyler Durden on 06/26/2011 14:00 -0400

As expected, China is the new IMF. No surprise there.

• CHINESE PREMIER WEN TELLS BBC WILL LEND TO EUROPEAN COUNTRIES HAVING TROUBLE BORROWING

All this means is that China will do everything in its power to prevent the ECB from launching an outright unsterilized monetization episode, which will double the amount of importable inflation (plunging EUR) to hit the Chinese domestic economy, and destabilize the already shaky stability, so critical for the Chinese communist party. And since the USD and the CNY are pegged, this has the added benefit of devaluaing the CNY instead even more if not against the USD, then against the CNY, which is now importing European sovereign risk and will continue to do so, until China finds itself in the same lock out as half of Europe currently.

Marc Faber on 21st Century Investing, Why It's Too Late for the Dollar and Why Emerging Markets Look Good

Sunday, June 26, 2011 – with Anthony Wile

Marc Faber The Daily Bell is pleased to present an exclusive interview with Dr. Marc Faber (left).
Introduction: Dr. Marc Faber was born in Zurich, Switzerland. He went to school in Geneva and Zurich and finished high school with the Matura. He studied Economics at the University of Zurich and, at the age of 24, obtained a Ph.D in Economics magna cum laude. Between 1970 and 1978, Dr. Faber worked for White Weld & Company Limited in New York, Zurich and Hong Kong. Since 1973, he has lived in Hong Kong. From 1978 to February 1990, he was the Managing Director of Drexel Burnham Lambert (HK) Ltd. In June 1990, he set up his own business, MARC FABER LIMITED, which acts as an investment advisor, fund manager and broker/dealer. Dr. Faber publishes a widely read monthly investment newsletter "THE GLOOM, BOOM & DOOM" report which highlights unusual investment opportunities. A regular speaker at various investment seminars, Dr. Faber is well known for his "contrarian" investment approach. He is also associated with a variety of funds.
A brief synopsis:
Daily Bell: Is there a cartel of wealthy banking families that runs the world? Are they located in the City of London? Do they by any chance seek one world government?
Marc Faber: I don't know. I think there are some very important banking dynasties for sure. People sometimes refer to them as the Rothschilds and that they have benefitted from wars – so I am not sure I would want a one-world government. When I compare my life today to the life I had in the 50s and 60s, we have much less freedom. Everything is regulated as the governments have become like a cancer; they keep expanding and regulating and dictating everything. In my opinion, this creates not a very favorable environment in the Western world.
Daily Bell: Is the EU going to collapse? Just the euro?
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The Debt Limit Increase Fix is In




 

Why the Smart Money Is Running for Cover!

by Bryan Rich | Saturday, June 25, 2011 at 7:30am
Earlier this year, I wrote a Money and Markets piece titled “Social Unrest Setting the Stage for Sovereign Defaults.” We had already seen overthrows in Tunisia and Egypt, Libya was underway and other Middle ... [More »]