Mide joins Blue Chip landslide with $11.6m losses

A company which was part of the franchise business of property investment specialist Blue Chip has gone into liquidation with losses of $11.6 million and no prospect of any money for unsecured creditors. Mide Ltd, part of the New Zealand franchise group of companies involved with Blue Chip, ceased trading on February 22 and went […]

The Federal Reserve’s rescue has failed

The verdict is in. The Fed’s emergency rate cuts in January have failed to halt the downward spiral towards a full-blown debt deflation. Much more drastic action will be needed.   The Federal Reserve building in Washington Read more from Ambrose Evans-Pritchard ‘Ninja’ loans explode on sub-prime frontline The latest news and views on the […]

Kiwi dollar falls sharply

The New Zealand dollar fell sharply against major international currencies overnight Friday as sliding United States equities increased investors’ risk aversion. Dollar picked to hit US85c The kiwi’s decline against the major three traded currencies came even as the greenback fell to record lows against the euro and a basket of currencies for a fourth […]

Stagflation is Here

War—after all, what is it that the people get? Why—widows, taxes, wooden legs and debt. Samuel B. Pettengill “Armies, and debts, and taxes are the known instruments for bringing the many under the domination of the few. James Madison, 4th U.S. President (April 20, 1795) “Let me issue and control a nation’s currency and I […]

The Mortgage Mogul and His Victims

As banks, money markets and stock exchanges convulse over a sinking American economy, we see the folks sprawled at the bottom of the smoking rubble — debt-crushed American consumers. It is they whose reckless or trusting natures enriched so many, at least for a while, and whose troubled loans have sent markets into panic. But […]

US Housing Crisis: Why Real Estate is Always a Wasting Asset

Meanwhile, speaking of housing, there are a lot of long faces among house sellers this morning. According to the weekend news, the story just becomes more and more depressing. “American Dream turns to a Nightmare,” begins the report in the Arizona press. (A modest suggestion to financial journalists: find a better headline. We’ve read that […]

Central Banks Erode World’s Work Ethic by Devaluing Money

What a relief. A day without a crisis. Everything seems to be “in crisis”. You’ve got a credit crisis, a housing crisis, a water crisis, a climate crisis, a dollar crisis, and somewhere, a 42-year old insurance salesman with a sense that something is missing in his life out buying a Porsche or having an […]

Cullen planned $1 billion in tax cuts

The Government planned to deliver $1 billion in personal tax cuts at the last budget, but shelved the plan due to fears it would fuel inflation, official papers show. The papers, issued under the Official Information Act, show the Government last year considered a package of personal tax cuts that would have equalled the $1 […]

Soup Kitchen U.S.A.

By Mike Whitney   “Credit booms do not end in inflation as most people believe. Credit booms ARE inflation that end in deflation. This credit boom is not any different.”   Mike Shedlock, “Mish’s Global Economic Trend Analysis”     09/11/07 “ICH” — — The days of the dollar as the world’s “reserve currency” may be drawing to a […]