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Technically Precious With Merv, Jan 16, 2010

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How Goldman Sachs Made Tens Of Billions Of Dollars From The Economic Collapse Of America In Four Easy Steps

Investment banking giant Goldman Sachs has become perhaps the most prominent symbol for everything that is wrong with the U.S. financial system, but most Americans cannot even begin to explain what they do or how they have made tens of billions of dollars from the economic collapse of America. The truth is that what Goldman Sachs did was fairly simple, and there may not have even been anything "illegal" about it (although they are now being investigated by the SEC among others).

The following is how Goldman Sachs made tens of billions of dollars from the economic collapse of America in four easy steps.... (more)

Gold Charts in Foreign Currencies

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2010 Market Outlook

At the start of every year we put together our best research and analysis and then formulate a forecast based on the most likely outcomes. Unlike others who simply say what they think will happen, we sit down and analyze the fundamental, technical and sentiment evidence and opine on what is most likely to happen, what might happen and what won't happen. We take a lot of pride in this, as we believe we are one of the few that puts forth actionable research and makes it available to the public.

Heading into 2010 we've seen a range of forecasts and opinions. The econo-bears like Michael Panzner and David Rosenberg, while very prescient on the economy, continue to expect new lows or a retest of 2009 lows. Some bulls see the strong recovery as a sign that we are in a new bull market and that the market is leading the economy. Few seem to take the middle ground. Maybe that is because such a forecast isn't worth reporting in the media. That being said, before we think what is likely, let us think what is not likely. (more)

UK’s Only Options are “Default, Inflation or Belt-Tightening”

Yesterday, McKinsey released a new report showing that the combined public and private debt in the UK is now 449 Percent of GDP. It’s actually the biggest debt to GDP jump of any western nation over the span of the past ten years.

Given that recently-imploded Dubai World is still top of mind, and the Iceland meltdown was really not so long ago, it must make a mighty bitter pill for them to swallow.

According to the Financial Times: (more)

Sovereign Debt: The Next Crisis - Marc Faber

US Crosses the Bernholz Line -- Hyperinflation Early Warning Signal

Economic historian Peter Bernholz has identified that inflation starts to take on hyperinflationary characteristics some time after the deficits of a country as a share of government expenditure rise above a third and stay there for several years.

According to Bernholz, the great hyperinflations of France, Germany, Poland, Brazil, and Bolivia all occurred after deficits reached that magic percentage or higher (In Bolivia, it reached 91%). The United States crossed over the Bernholz line last year.

Japan is even deeper into the warning despite concerns of many that it has a deflation problem. Ambrose Evans-Pritchard writes: (more)

US Trading Holiday Monday

Due to the Dr. Martin Luther King Jr. day in the USA today is a trading holiday.