New President-elect Donald Trump and his enthusiastic team have promised over a trillion dollars worth of direct government spending on the aging and failing national infrastructure of the United States over the next ten years. They must have discovered a new gold mine or super oil field somewhere in order to pay for this incredible spending spree bonanza, right? Actually, the correct answer is more troubling. President Trump the dealmaker's dealmaker will simply borrow the trillion dollars in cold hard cash and add it to the already $19.9 trillion in debt we can never hope to repay. That is up… Read More

  In the latest geopolitically rocking election revolt against the establishment everywhere, Italy's Prime Minister Matteo Renzi became the latest casualty of the mighty populist wave sweeping like an unstoppable tsunami across the developed nations. The referendum "no" vote on which he had staked his future garnered 59% in a 70% voter turnout. As a result of the pro-European Union prime minister's fall, long-term troubled and third largest Italian bank Monte dei Paschi di Sienna ultimately failed its desperate efforts to raise 5 billion euros of much needed capital to rebuild its devastated balance sheet. It has twice failed the European Central… Read More

  The verdict is out from yesterday's crucial Italian referendum. Prime Minister Matteo Renzi and his much-lauded political and constitutional reforms were officially repulsed. Now Italian President Sergio Mattarella must decide if he will call for new elections well ahead of the planned 2018 polls. If he does, the latest anti-establishment populist candidate Beppe Grillo and his 5 Star Movement will win the election and begin another more potentially damaging referendum on Euro membership that could have far reaching consequences for your investments. Five Star Movement is the establishment's worst nightmare. It is a dangerous marriage between EU-skeptic ideas and progressive… Read More

  It has not been more than a few weeks since India stunned the world by declaring war on its largest denominated banknotes. The latest battle in the war on cash has since transpired in the "land down under," Australia. Swiss banking giant UBS recently proposed getting rid of Australia's $50 and $100 bills. They had the nerve to declaim this would be both "good for the economy and good for the banks." Sadly, this is far from the first instance of a financial institution calling for a society without cash in Australia, or for that matter anywhere other than… Read More

  There has been considerable speculation that higher interest rates are inevitable since the surprise election victory of Donald Trump as U.S. President. The problem is that few economists are contemplating the consequences on the enormous amount of debt the Federal government has wracked up since interest rates were last at a historically more normal five percent rate. Consider that the Federal debt today is over $19.867 trillion. This makes it literally larger than the whole American economy, with a Debt to GDP ratio of 106 percent. In only the first 45 days of the 2017 fiscal year, another $294 billion… Read More