Foreign Affairs: The calm before the storm Nassim Taleb and Gergory Terverton point out political stability is often an
illusion with centralized power masking divisive fault lines. Worthy of thought and reflection.
Buckminster Fuller predicted the economic collapse. He also predicted a far better world will follow. The crisis Fuller predicted has begun. A better world is coming but, first, it's going to get worse.
DRSCHOON.COM features the articles of Professor A. E. Fekete of the New Austrian School of Economics, a leading expert on gold and its role in financial markets and the economy.
The Counter-Productive Monetary Policy of the Fed
Sowing Inflation, Reaping Deflation*
Typically, bond speculators carry on interest arbitrage along the entire yield curve. They sell the short maturity and buy the long, hoping to capture the difference between the higher long rate and the lower short rate of interest (borrowing short and lending long). This arbitrage is not risk-free per se as it has the effect of flattening the yield curve. As a result the normal yield curve could get inverted unexpectedly, that is, turned upside down, making the rising curve into a falling one while turning the speculatorsí profit into a loss.