Money Morning Archive June 2009

The danger threatening the United States right now is not inflation, but deflation...and perhaps, as Bill points out in today's essay, hyper-deflation. Read on...

When MoneyWeek SA launched in June 2007, the economy was booming. You could pick a winning share by throwing darts at the business section. This market driven euphoria gathered momentum through 2008 as the JSE surged to record highs on the back of commodity prices. But then the wheels came off...

There was probably a disconcerting silence when Telkom Limited pulled the wraps from its full-year results recently. At first glance the numbers suggest resilience under the much-publicised recessionary trading conditions...

Today, the biggest borrower in all the land is, you guessed it, the United States of America. And, points out Bill Bonner in the essay below, the Obama Administration is adding to the accumulated U.S. debt at a suicidal pace - four times faster than the record set just last year. Is hyperinflation in our future? Read on...

As we pen this, the country’s regulators are preparing a “too little too late” assault on South Africa’s very own Bernard Madoff. The alleged mastermind of the latest failed business “opportunity” is Barry Tannenbaum, grandson of Adcock Ingram’s co-founder...

While paging through the Financial Times earlier this week, we stumbled on a story with loads of laugh-out-loud potential. The headline – Machines with Midas touch swap chocolate for gold bars...

It may sound a bit dull. But it's a key barometer of global freight activity – in other words, it measures the cost of ferrying raw materials around the planet. The message it's starting to send is very clear: shipping rates and commodity prices are set to tumble. And that means the share prices of many cyclical stocks – which have led the recent rally - will be heading south, too...

Is Reserve Bank governor Tito Mboweni bowing to trade union pressure? While you may be tired of hearing this question, it’s worth asking after recent sabre-rattling by the unions...

While paging through the financial media you’re bombarded with information. Reporters can’t wait to tell you how much the market has moved since yesterday. They drawl on endlessly about the daily swing-and-roundabout variations in company stock prices... not this article...

Dividends are on a downer. European companies will be reducing their dividend payments over the next 18 months at the fastest rate since at least 1999, according to Gareth Gore and Adam Haigh at Bloomberg...

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