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

May
12

BloombergNews  |  Doug Alexander, Allison McNeely & Maciej Onoszki

Canada’s dollar and bank bonds declined after Moody’s Investors Service downgraded the nation’s banks for the first time in more than four years…

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…signaling that soaring household debt combined with runaway housing prices leave the lenders more vulnerable to losses.

The ratings firm lowered the long-term debt and deposit ratings one level on Toronto-Dominion Bank, Bank of Montreal, Bank of Nova Scotia, Canadian Imperial Bank of Commerce, National Bank of Canada and Royal Bank of Canada Wednesday. The move left TD with a long-term debt rating of Aa2, the third-highest level. Moody’s lowered the other five to A1, the fifth-highest. The outlook is negative on all six lenders.

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May
09

DallasMorningNews  |  George Gilder

President Donald Trump is a menace to world trade and prosperity. As a free-trading supply sider, I once shared these fears. However, I was wrong. I underestimated the significance of the chaos of currency trading.

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Trade theorist Paul Krugman, imperious in his Nobel crown; Christine Lagarde of the International Monetary Fund; some 370 economists including 19 Nobel Laureates; and even David Stockman, formerly of the Reagan White House, all agree: President Donald Trump is a menace to world trade and prosperity.

As a free-trading supply sider, I once shared these fears. However, I was wrong. I underestimated the significance of the chaos of currency trading.

According to the Bank of International Settlements, this market has swelled to some $5.1 trillion a day, 25 times global GDP and 73 times all trade in goods and services. Yet all the vast shuffle of money fails to achieve the crucial function of money and markets: to yield a reliable guide for international transactions.

The Theory of Information holds that an economy is an information system governed by entrepreneurial knowledge and learning, guided by sound money. In an information economy, learning and growth depend on money to transmit the significance of prices. When money becomes merely a reflection of the policies of central banks, it can no longer guide enterprise or international trade.

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May
09

Chris Martenson & Mike Maloney

May
09

SRSRoccoReport  |  SRS Rocco

The Fed and Central banks are manipulating the gold and silver price because they are horrified that the biggest global BANK RUN in history will take down the entire system.

Gold Puppet Strings

Unfortunately, a lot of investors are still being misled about the fundamentals of precious metals market manipulation.  While the Fed and Central bank are indeed intervening in the gold and silver market, they are also propping up the majority of asset values across the board.  This is especially true for most stocks, bonds and real estate.

Yes, it is also true that billions of Dollars worth of paper gold and silver are dumped into the market in nanoseconds during very light trading days.  Thus, the impact is to cap the gold and silver price, making sure that 99% of investors stay fast asleep.  These are the very same investors who the Central banks are working extremely hard to keep their funds placed firmly in stocks, bonds and real estate.

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May
08

SchiffGold  |

You’ve probably heard people say gold is real money, but what does that actually mean?

Is there some fundamental difference between gold and the green pieces of paper stuffed in your wallet that we call money? As investment guru Doug Casey put it, “The dollar is, technically, a currency. A currency is a government substitute for money. But gold is money.” So, what is money? Simply put, it is a medium of exchange and a store of value.

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May
08

NewYorkPost  |  Nicole Gelinas

A Hidden Mess: a seemingly healthy jobs market dependent on cheap debt.  They’ve built up another bubble… this time in the car and SUV industry.

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President Trump came in for much jeering when he told reporters he had “inherited a mess” from President Barack Obama. On the economy, though, Obama did indeed leave behind a hidden mess: a seemingly healthy jobs market dependent on cheap debt.

When this debt bubble bursts, just as the last one did, the manufacturing jobs Trump wants to save will be in even greater peril.

The country’s last bubble was in housing. Between 2000 and 2007, Americans nearly doubled their mortgage debt, from $5.9 trillion to $10.6 trillion.

This didn’t bother anyone in a position of power. The housing boom created millions of jobs, from construction to home-furnishing, and people felt rich.

What bothered the pols was when the illusion broke. Read the rest of this entry »

May
08
May
08

CNBC

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May
08

SchiffGold  |

Chinese Gold

As Asia regains its appetite for gold, production in the region appears to be dropping. The trend could ultimately have an impact on global markets. According to a rare report issued by the China Gold Association, the country’s first quarter gold production dropped  9.3% year-on-year, falling from 111.563 tons in Q1 2016 to 101.197 tons this year. Meanwhile, demand for gold in China surged 14.73%

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May
08

OutsiderClub  |  Jason Simpkins

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So far this year, gold has gained more than 8%. By comparison, the S&P 500 index has climbed less than 7%.

That’s not typical.

And it’s not a well-publicized fact, is it?

It seems like more analysts are talking about the eighth anniversary of the bull market in stocks, which we hit in March.

Well, let me share another interesting fact with you…

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