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Image | 2013 Year in Review
2013 Year in Review
by David Collum

Every year, friend-of-the-site David Collum writes a detailed "Year in Review" synopsis full of keen perspective and plenty of wit. This year's is no exception. Moreover, he has graciously selected PeakProsperity.com as the site where it will be published in full. It's quite longer than our usual posts, but worth the time to read in full.

2013 Year in Review
 by David Collum

Every year, friend-of-the-site David Collum writes a detailed "Year in Review" synopsis full of keen perspective and plenty of wit. This year's is no exception. Moreover, he has graciously selected PeakProsperity.com as the site where it will be published in full. It's quite longer than our usual posts, but worth the time to read in full.

Image | There Is Too Little Gold in the West
There Is Too Little Gold in the West
by Alasdair Macleod

Western central banks have tried to shake off the constraints of gold for a long time, which has created enormous difficulties for them. They have generally succeeded in managing opinion in the developed nations but been demonstrably unsuccessful in the lesser-developed world, particularly in Asia. It is the growing wealth earned by these nations that has fuelled demand for gold since the late 1960s. There is precious little bullion left in the West today to supply rapidly increasing Asian demand. It is important to understand how little there is and the dangers this poses for financial stability.
There Is Too Little Gold in the West
 by Alasdair Macleod

Western central banks have tried to shake off the constraints of gold for a long time, which has created enormous difficulties for them. They have generally succeeded in managing opinion in the developed nations but been demonstrably unsuccessful in the lesser-developed world, particularly in Asia. It is the growing wealth earned by these nations that has fuelled demand for gold since the late 1960s. There is precious little bullion left in the West today to supply rapidly increasing Asian demand. It is important to understand how little there is and the dangers this poses for financial stability.
Image | None of This Makes Any Sense
None of This Makes Any Sense
 PREVIEW
by Chris Martenson

I have to confess, these are trying times for those of us trying to make sense of the markets from a fundamentals standpoint.  We are back in serious bubble territory, and during the heights of bubbles, all sorts of newly-minted rationalizations are bandied about as the new wisdom or a 'new normal'.

I am simply amazed that we are in yet another massive bubble, so soon after the last ones, and that so few remember the lessons from those events.
None of This Makes Any Sense
 PREVIEW by Chris Martenson

I have to confess, these are trying times for those of us trying to make sense of the markets from a fundamentals standpoint.  We are back in serious bubble territory, and during the heights of bubbles, all sorts of newly-minted rationalizations are bandied about as the new wisdom or a 'new normal'.

I am simply amazed that we are in yet another massive bubble, so soon after the last ones, and that so few remember the lessons from those events.
Image | A Fed Insider Comes Clean
A Fed Insider Comes Clean
 PREVIEW
by Chris Martenson

After they behaved badly and almost ruined the entire world financial system while pocketing fat fees along the reckless road they laid down, the big banks got 'made whole' by the Federal Reserve.

While couched at the time in fancy acronyms, a lot of complexity, and some good old motherhood and apple pie (that is, the Fed talked about helping the economy recover and people get their jobs back), the truth of the matter is simply that the Fed cared only about helping the big banks repair their balance sheets.
A Fed Insider Comes Clean
 PREVIEW by Chris Martenson

After they behaved badly and almost ruined the entire world financial system while pocketing fat fees along the reckless road they laid down, the big banks got 'made whole' by the Federal Reserve.

While couched at the time in fancy acronyms, a lot of complexity, and some good old motherhood and apple pie (that is, the Fed talked about helping the economy recover and people get their jobs back), the truth of the matter is simply that the Fed cared only about helping the big banks repair their balance sheets.
Image | Alasdair Macleod: Currency Crisis Dead Ahead
Alasdair Macleod: Currency Crisis Dead Ahead
by Chris Martenson

This week's podcast interview introduces a new monetary measurement developed by Alasdair Macleod: the 'Fiat Quantity of Money', or FMQ. Alasdair explains how FMQ is derived, as well as what it can tell us about the true levels of fiat money supply. In the case of the dollar, it reveals that levels are far above what is commonly appreciated – so far, in fact, that a currency crisis could arrive sooner than even many dollar bears expect.
Alasdair Macleod: Currency Crisis Dead Ahead
 by Chris Martenson

This week's podcast interview introduces a new monetary measurement developed by Alasdair Macleod: the 'Fiat Quantity of Money', or FMQ. Alasdair explains how FMQ is derived, as well as what it can tell us about the true levels of fiat money supply. In the case of the dollar, it reveals that levels are far above what is commonly appreciated – so far, in fact, that a currency crisis could arrive sooner than even many dollar bears expect.
Image | The Periphery is Failing
The Periphery is Failing
by Chris Martenson

For years we've preached the From the Outside In principle of markets: When trouble starts, it nearly always does so out in the weaker periphery before creeping towards the core.

We saw this in the run-up to the housing bubble collapse, as sub-prime mortgages gave way before prime loans, and in Europe, as smaller economies like Greece, Ireland, and Cyprus have fallen first and hardest (so far).  We see this today in accelerating food stamp use among poorer U.S. households.  In each case, the weaker economic parties give way first before being followed, over time, by the stronger ones.

Using this framework, we can often get several weeks to several months of advance notice before trouble erupts in the next ring closer to the center.

Which makes today notable, as we're receiving a number of new warning signs.  The periphery is giving way.

The Periphery is Failing
 by Chris Martenson

For years we've preached the From the Outside In principle of markets: When trouble starts, it nearly always does so out in the weaker periphery before creeping towards the core.

We saw this in the run-up to the housing bubble collapse, as sub-prime mortgages gave way before prime loans, and in Europe, as smaller economies like Greece, Ireland, and Cyprus have fallen first and hardest (so far).  We see this today in accelerating food stamp use among poorer U.S. households.  In each case, the weaker economic parties give way first before being followed, over time, by the stronger ones.

Using this framework, we can often get several weeks to several months of advance notice before trouble erupts in the next ring closer to the center.

Which makes today notable, as we're receiving a number of new warning signs.  The periphery is giving way.

Image | The Fed Matters Much Less Than You Think
The Fed Matters Much Less Than You Think
by charleshughsmith

This lemming-like belief in the power of the Federal Reserve generates its own psychological force field, of course; the actual power of the Fed is superseded by the belief in its power. We can thus anticipate widespread disbelief at the discovery that the Fed is either irrelevant or an impediment to the non-asset-bubble parts of the economy.
The Fed Matters Much Less Than You Think
 by charleshughsmith

This lemming-like belief in the power of the Federal Reserve generates its own psychological force field, of course; the actual power of the Fed is superseded by the belief in its power. We can thus anticipate widespread disbelief at the discovery that the Fed is either irrelevant or an impediment to the non-asset-bubble parts of the economy.
Image | Alasdair Macleod: Europe is a Hot Mess
Alasdair Macleod: Europe is a Hot Mess
by Chris Martenson

It's almost August, the month everyone in Europe takes off on holiday to forget their troubles. This year may be different, though, as not only can many not afford a vacation, but Europe's troubles loom so large that forgetting them won't be easy…
Alasdair Macleod: Europe is a Hot Mess
 by Chris Martenson

It's almost August, the month everyone in Europe takes off on holiday to forget their troubles. This year may be different, though, as not only can many not afford a vacation, but Europe's troubles loom so large that forgetting them won't be easy…
Image | Bernanke’s Suspicious Remarks on Gold
Bernanke’s Suspicious Remarks on Gold
 PREVIEW
by Chris Martenson

Recently, on July 18, 2013, Federal Reserve Chairman Ben Bernanke told Congress a number of things about gold that make us wonder which one of two interpretations is correct: Is he really that out of touch? Or is he telling us lies with the bumbling skill of a four-year-old?
Bernanke’s Suspicious Remarks on Gold
 PREVIEW by Chris Martenson

Recently, on July 18, 2013, Federal Reserve Chairman Ben Bernanke told Congress a number of things about gold that make us wonder which one of two interpretations is correct: Is he really that out of touch? Or is he telling us lies with the bumbling skill of a four-year-old?
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