Tag Archive: newsletter

The Lessons of Rome: Our Neofeudal Oligarchy

2019-06-23

by

2019-06-23

Our society has a legal structure of self-rule and ownership of capital, but in reality it is a Neofeudal Oligarchy. The Inheritance of Rome: Illuminating the Dark Ages 400-1000 is not an easy, breezy read; its length and detail are daunting. The effort is well worth it, as the book helps us understand how the power structures of societies change over time in ways that may be largely invisible to those living through the changes.

Read More »

Millionaires in Switzerland still on the rise

2019-06-22

by

2019-06-22

Switzerland is home to the fourth-largest number of dollar millionaire households, according to a report by the Boston Consultancy Group (BCG). Worldwide, the number of such millionaires continues to rise. There are now some 500,000 millionaire households in Switzerland, BCG said, putting the Swiss in fourth place behind the US (around 15 million), China (1.3 million), and Japan (1.1 million).

Read More »

FX Daily, June 21: Markets Pause Ahead of the Weekend

2019-06-21

by

2019-06-21

The global capital markets are trading quietly ahead of the weekend. Equity markets are mostly narrowly mixed. Chinese shares extended their run, and the major benchmarks were up 4%+ on the week. Japan, Australia, South Korea, and India saw gains pared.

Read More »

The Fed’s Casino Is Giving Away Free Gambling Chips (But Only to the Super-Rich)

2019-06-21

by

2019-06-21

The rest of us eat our losses, either all at once or in bitter bites as we trudge through the financial wasteland left after bubbles burst. The news that the Federal Reserve Casino is giving away free gambling chips triggered a frenzied rush that trampled the bears, including poor Yogi:

Read More »

A third of young Swiss experience financial hardship

2019-06-21

by

2019-06-21

Around 30% of young adults in Switzerland have faced financial difficulties, according to data from the Young Adult Survey Switzerland (YASS). The survey, which questions some 70,000 19-year-olds around the country every four years, aims to gain an “empiric and interdisciplinary insight” into the “educational biographies, living conditions and social and political orientations” of young Swiss adults.

Read More »

FX Daily, June 20: Doves Rules the Roost Except in Oslo

2019-06-20

by

2019-06-20

Overview:  The prospect of "lower for longer" continues to fuel the bond and stock rally.  The initial US equity response to the Fed was positive but not strong and closed about 0.3% higher.  Asia Pacific equities followed suit with mostly modest gains, except for China and Hong Kong, where gains of more than 1% were recorded.

Read More »

Switzerland Construction prices rose by 0.5 percent in April 2019

2019-06-20

by

2019-06-20

Development of the construction price index in Switzerland
20.06.2019 - The construction price index recorded a rise of 0.5% between October 2018 and April 2019, reaching 99.8 points (October 2015 = 100). This result reflects an increase in building prices and a stabilisation in civil engineering prices. Year on year, construction prices increased by 0.7%. These are the results of the Federal Statistical Office (FSO).

Read More »

Dear Central Bankers: Prepare to be Swept Away in the Next Wave of Populism

2019-06-20

by

2019-06-20

The Fruit of Financialization: Soaring Income Inequality
The political moment when the "losers" connect their discontent and decline with central bankers is approaching. The Ruling Elites' Chattering Classes still haven't absorbed the key lesson of the 2016 U.S. presidential election.

Read More »

Gold Bullion International Lease #1 (gold)

2019-06-20

by

2019-06-20

Gold Offers for Gold Bullion International
Monetary Metals leased silver to Gold Bullion International, to support the growth of its gold jewelry line. The metal is held in the form of inventory in a third party depository.

Read More »

General Electric to slash 450 more Swiss jobs

2019-06-20

by

2019-06-20

United States engineering giant General Electric has revealed it will cut a further 450 jobs at two of its Swiss sites. Since 2016, the company has already shed some 2,000 workers. The company, which generated profits of $954 million (CHF952 million) last year, blamed the latest cuts on “financially challenging conditions”. But its GE Power division reported an operating loss of nearly $1 billion globally.

Read More »

China looks to new policies to boost infrastructure spending

2019-06-19

by

2019-06-19

Growth in Chinese Fixed-Asset Investment by Sector, 2013-2019
To stabilise growth, the Chinese government will likely put more focus on infrastructure investment. A new policy announced recently could give a further boost to this sector.Activity data in May point to continued weakness in Chinese economic momentum, with growth in both fixed-asset investment and industrial production slowing last month.

Read More »

FX Daily, June 19: Still Patient?

2019-06-19

by

2019-06-19

Overview:  Risk-taking was bolstered by the dramatic shift in Draghi's rhetoric less than two weeks after the ECB meeting and a Trump's tweet announcing that there was going to be an  "extended" meeting between him and Xi at the G20 meeting and that the respective staff would begin coordinating. It was later confirmed by the Chinese media.

Read More »

Swiss Franc at 5 month highs vs the Pound

2019-06-19

by

2019-06-19

Tory leadership debate does little to help the pound. Sterling has remained under a lot of pressure against a number of currencies including vs the Swiss franc. The Tory leadership race is now down to 5 candidates after former Brexit secretary Dominic Raab only managed to get 30 votes. This was short of the required 33 to progress to the next round.

Read More »

Swiss health insurance deductibles to remain changeable annually

2019-06-19

by

2019-06-19

One idea for containing rising healthcare costs was to remove the possibility of changing health insurance deductibles every year, making it possible only every three years. If people are able to switch from high to low deductibles annually then they can save money by opting for a high deductible one year, while postponing visits to the doctor until the following year when they opt for a low one.

Read More »

Swiss gold refinery turns back on artisanal miners

2019-06-19

by

2019-06-19

Swiss gold refinery Metalor Technologies has announced it will no longer deal with artisanal mining operations. The company cites the increasing cost of ensuring that gold is being produced by small mines in compliance with human rights and environmental standards. Metalor has come under repeated fire for doing business with gold mines in South America that care neither for their workers or surrounding habitat.

Read More »

FX Daily, June 18: Draghi Ends Calm Ahead of FOMC, Sending the Euro and Yields Down

2019-06-18

by

2019-06-18

Overview:  ECB President Draghi underscoring the likely need for more stimulus broke the subdued tone as market participants took a "wait and see" stance ahead of tomorrow's FOMC decision.  Draghi's comments sent the euro through $1.12 for the first time in two weeks and drove European bonds yields to new lows.

Read More »

Das Einmaleins des neuen Leitzinses

2019-06-18

by

2019-06-18

Die Schweizerische Nationalbank (SNB) führt neu einen Leitzins ein. Hatte sie denn bis jetzt gar keinen? Doch, hatte sie, aber der hiess anders. Nutzen wir doch die Gelegenheit, um zu klären, was eigentlich ein Leitzins ist. Und was sich nun geändert hat. Eine Notenbank benutzt einen Leitzins, um das gesamte Zinsniveau in einem Land zu beeinflussen – und damit indirekt den Gang der Wirtschaft.

Read More »

How Much of Your “Wealth” Is Hostage to Bubbles and Impossible Promises?

2019-06-18

by

2019-06-18

S&P/Case-Shiller U.S. National Home Price Index, 1990-2015
All asset "wealth" in credit-asset bubble dependent economies is contingent and ephemeral. A funny thing happens to "wealth" in a bubble economy: it only remains "wealth" if the owner sells at the top of the bubble and invests the proceeds in an asset which isn't losing purchasing power.

Read More »

Raiffeisen bank announces CHF1 million executive pay cap

2019-06-18

by

2019-06-18

Switzerland’s third largest bank will limit the annual remuneration of top management to CHF1 million (around $1million) from July 1. The announcement was made at the bank’s general meeting on Saturday in Crans-Montana. CEO Heinz Huber’s compensation has already been adjusted when he took up his duties in January.

Read More »

The Elephant in the Gold Room, Report 16 June

2019-06-17

by

2019-06-17

Gold and Silver Price
We will start this off with a pet peeve. Too often, one is reading something about gold. It starts off well enough, discussing problems with the dollar or the bond market or a real estate bubble… and them bam! Buy gold because the dollar is gonna be worthless! That number again is 1-800-BUY-GOLD or we have another 1-800-GOT-GOLD in case the lines on the first number are busy!

Read More »