Equity 1 Group
Pushing back the frontiers of economic ignorance and restoring sound financial foundations, one family at a time.

May
27

EpochTimes  |  Valentin Schmid

 


But first, my (very short) opinion on the article:

Why the Chinese Yuan won’t be the World’s Reserve Currency

SIMPLY… It does not need to be.

China has already jumped the major hurdle by gaining access to the vehicle it needs to accomplish its goal of doing us (U.S.) financial harm.  The SDR, Special Drawing Rights.

Sure, the U.S. Dollar gave up very little (.2%) to include the Yuan, but the Yen dropped 1.1%, the Pound dropped 3.2% and the Euro gave up 6.4%.  And let’s not forget, the Euro is having its own internal issues.

Is it reasonable or rational to believe those percentages will not change if (when) China announces the backing of its currency by that very gold it has been accumulating and hoarding all these years?

The Yuan does not need to be THE world’s reserve currency, merely a competing one, to negatively affect the value of the U.S. Dollar.

The most significant line in the article is…

“the admission [of the Yuan] to the International Monetary Fund’s (IMF) special drawing rights (SDR) basket late in 2016.”

Opinion by Hans R. Monod de Froideville

 


Whenever someone gets too big and too important, the other players who can’t compete by themselves call for a challenger. This is true in sports, business, and even for currencies.

Because the dollar is so big and important, smaller countries were happy when the euro was launched to provide a counterbalance, if not to challenge the dollar’s position outright.

The euro ultimately provided that counterbalance, but never managed to dethrone the dollar as the world’s foremost reserve currency. The euro is used in 30 percent of all global payments, according to payment provider SWIFT; the dollar is still number one, at 40 percent. Read the rest of this entry »

May
27

NewsMax  |  Peter Reagan

“That said, now could be a crucially important time for average savers to protect themselves with gold and silver for financial security.”

Gold-Silver

Newly released minutes from this month’s Federal Reserve meeting outline an aggressive agenda from our nation’s central bank that could upset markets in the months to come.

Officials insist the plan is cautious, and stocks rallied initially on the news.

But how safe should Americans feel long-term?

2 Decisions to Watch

There are two major policies from the Fed — one confirmed, the other anticipated with a high level of certainty — to keep your eye on in the coming months:

  • A “trimming” of the Fed balance sheet, i.e. the “stealth” rate hike
  • Another traditional rate hike

Read the rest of this entry »

May
26

ZeroHedge  |  Tyler Durden

“Success is not final, failure is not fatal: it is the courage to continue that counts.” Churchill

At first glance, it’s easy to be impressed by Elon Musk’s impressive resume. He’s shooting for the stars with SpaceX, changing the future of transportation with Tesla, Hyperloop, and The Boring Company, and he’s already had a profound impact on the e-commerce and payments sectors through Paypal. It’s no coincidence that most of these are $1 billion+ companies. But, as Visual Capitalist’s Jeff Desjardins notes, focusing only on his successes provides a superficial view of the man. To get the full perspective on his career, it is much more interesting to look at the failures and lows he has experienced. These are the moments when most people would have likely given up.

FAILING OFTEN

As every entrepreneur knows, any business venture can be upended by failures at any moment – and it is how one bounces back from those failures that counts. Today’s infographic from Kickresume shows Musk’s struggles and failures throughout his career, and how he persevered to become a modern business icon. Read the rest of this entry »

May
25

ColdCore  |  Ron Paul Liberty Report Staff

Undermining the Federal Reserve received a major boost yesterday.

Image result for arizona gold is money image

Arizona Governor Doug Ducey signed into law a bill that eliminates capital gains taxes on gold and silver, thus allowing Arizona residents to use precious metals as currency instead of Federal Reserve notes.

Currency competition against the monopolist Fed is starting to unfold. Let’s hope that other states follow in Arizona’s heroic footsteps. There’s no reason to wait for another severe financial crisis to act.

Read Ron Paul’s statement via The Campaign For Liberty below: Read the rest of this entry »

May
25

ZeroHedge  |  Tyler Durden

Image result for plunge protection image

People love the Plunge Protection Team conspiracy theory when looking at equities. Well that’s exactly what is happening in bonds, right out in the open… central banks are still buying a lot of bonds right on schedule. Are you willing to bet these amounts will hold steady or decrease over time?

Having lambasted the market’s abhorrent response to the worst terror attack in Britain in 12 years yesterday, Bloomberg’s Richard Breslow takes aim at the flip-flopping consensus rearing its ugly head in bond land worldwide.

As he writes, it’s become very fashionable to get on the bandwagon that sovereign yields are never, or at least no time soon, going to rise.

A number of the biggest banks have joined the parade just recently. This relies largely on making the obverse of the assumptions they stated with great assurance for much of this year. It’s also borne out of impatience for this conviction view to start working already. That’s not a great investing thesis. Read the rest of this entry »

May
25

ZeroHedge  |  Tyler Durden

Edelman simply notes that he doesn’t want to be in the markets right now because I don’t know when the plug is going to be pulled.”

Legendary vulture investor Asher Edelman, the 1980s model for Gordon Gekko, strayed into what must’ve been uncomfortable territory for CNBC during an appearance on “Smart Money” when he discussed his view that the government’s “plunge protection team” is the only thing propping up the current market rally, and said he suspects that it has again been recently intervening in the market to keep stocks at record highs.

Read the rest of this entry »

May
25

ZeroHedge  |  Tyler Durden

Sub Prime Auto

We first introduced readers to the “New Century of auto finance” (aka “Santander Consumer USA”) several years ago when we first took note of one of their aggressive auto ABS facilities which sported an average FICO of 595, LTV of 110%, APR of 16.2% and a term of 70 months…but don’t worry too much because they verified income on at least 8% of the loans in that pool.

We first introduced readers to the “New Century of auto finance” (aka “Santander Consumer USA”) several years ago when we first took note of their aggressive auto ABS facilities.  In fact, here is a quick look at one of their ABS deals from 2015 which sported an average FICO of 595, LTV of 110%, APR of 16.2% and a term of 70 months.

Santander is the largest subprime auto lender in the country with more than $15 billion in outstanding loans to underqualified buyers. Not surprisingly, the company also dominates the subprime auto ABS space accounting for a disproportionate share of YTD issuance. We noted that Santander’s first deal of 2015 (SDART 2015-1) carried an average FICO of 595, an average APR of 16.20%, and an average term of 70 months… Read the rest of this entry »

May
25

OfTwoMinds  |  Charles Hugh Smith

Can we finally admit that eight years of following the Keynesian coloring-book have not just failed, but failed spectacularly?

Image result for fail image

What do we call a status quo in which “emergency measures” have become permanent props? A failure. The “emergency” responses to the Global Financial Meltdown of 2008-09 are, eight years on, permanent fixtures. Everyone knows what would happen if the deficit spending, money-printing, zero interest rates, shadow banking, asset purchases by central banks and all the rest of the Keynesian Cult’s program stopped: the status quo falls apart.

1. The dominant socio-economic structures since around 1500 AD are profit-maximizing capital (“the market”) and nation-states (“the government”).

2. The dominant economic theory for the past 80 years is Keynesianism, i.e. the notion that the state and central bank must aggressively manage private-sector consumption (demand) and lending via centrally planned and funded fiscal and monetary stimulus during downturns (recessions/depressions).

Read the rest of this entry »

May
25

RealInvestmentAdvise  |  Richard Rosso

You will bleed.  How much is up to you.

The financial services industry is headed for the greatest debate in recent history.

Regardless of what occurs from here –a continued stock market bullish trend or reversion to long-term averages which chronicles back to 2000 levels, the confines of discussion, the heated verbal and written volleys tossed deep from the roots of philosophical differences will forge a permanent rift between the steadfast buy-and-hold brethren and the stewards who manage risk by preserving capital (the dreaded group with a market escape plan), through the forthcoming bear cycle.

The stakes are higher than I can recall.

Future generations: Those we are depending on to lift the globe from the depths of a demographic malaise, groups nowhere near as ostentatious as Baby Boomers; generations that savor experience over product and have been wary of the risk in stocks, are beginning to relent and take notice of this bull market trajectory.

How they experience the ride in stocks and what occurs from here will shape their investment philosophy. I fear Millennials to Gen Y are going to get fooled, taken out. Smacked in the face.

Betrayed.

Read the rest of this entry »

May
25

SovereignMan  |  Simon Black

This morning I read a stinging open letter written by a small business owner in the Land of the Free named Don Chernoff.  Chernoff imports and sells luggage, and he pulled no punches in voicing his disgust for the phony support and failed policies that constantly make his life more difficult.

I’ve edited his letter for length below;

Read the rest of this entry »