The US government established a commission to find out what caused the financial crisis. Riiight. Notorious for finding wrong reasons for catastrophes, government commissions are yet magnificent at then proposing solutions to fix wrong causes, which themselves become problems. Read more »
Archive for January, 2011:
Recent interview of John Truman Wolfe on WGN TV Chicago covering the problems with the dollar losing favor as the international currency along with investing tips during this financial crisis.
John Truman Wolfe Talks About His Book, Crisis by Design: The Untold Story of the Global Financial Coup and What You Can Do About It.
Watch it here: John Truman Wolfe on WGN TV Chicago
Fortune tellers have a good opportunity to choose from a short menu of life’s problems and desires and land on something the person is concerned about.
If it isn’t love, it’s money and visa versa.
Predicting the financial markets in the midst of an economic crisis (which, media spin and the DJIA* aside, is still with us) is less forgiving and is somewhat akin to walking a metaphorical tightrope without a net. A misstep could cause you to fall and break your reputation, which, truth be told, can be picked up and dusted off and put back in the game.
But too many falls and your audience quits coming to your show.
I don’t have a show, beyond a book to read, and being a financial prophet is best left to Warren Buffet and friends. But modesty aside, I have been encouraging the ownership of silver since it was $4 per oz and it is now battering at the door of $30 per (with, in my opinion, a lot more upside).
And while the success story is not yet as dramatic, I make clear in Crisis by Design that deploying one’s assets should include a modest diversification out of dollars and into the Chinese Yuan (AKA the Renminbi or RMB for short).
No surprise then that the Chinese government has just announced that it is permitting Yuan deposits at the state owned Bank of China for U.S customers. There are branches in New York and Los Angeles currently.
The Yuan has already started a modest appreciation against the dollar, but with the U.S. government continuing its annual party of trillion dollar budget deficits (this year’s is projected to be $1.5 trillion!) the dollar will likely see continued erosion on world currency markets. The other side of the coin is the fact that the Chinese economy grew about 10% last year and China contributed a staggering 50% of the planet’s economic growth in 2009.
China’s opening the gates to the relatively free trading of the RMB signals a paradigm shift in the global economy and, in our opinion, argues strongly for further appreciation of that nation’s currency.
RMB deposit accounts are also available at www.everbank.com.
All said, bear in mind the old adage and SEC mandated admonition, past performance is no indication of future results.
It is also important that you understand that buying a foreign currency is buying a commodity: the value can go up or down depending on currency markets, meaning there is risk involved.
Be well and Keep your powder dry.
* Dow Jones Industrial Average
A jet airplane is screaming across the sky at the speed of sound (about 750 miles per hour). A stream of green paper begins reeling out behind it.At the speed of sound, it would take 14 years before it reeled out one trillion dollar bills. Seven hundred and fifty miles and hour – fourteen years. Read more »
And mine has accumulated its share of cracks over the years. But I was scrolling through my older newsletters, recently and, modesty aside, some of them are rather prophetic. The following is a clip from July, 2004. Read more »