At Bunker Basics, I post about the various threats posed to our economy. I detail the concerning practices performed within the financial community. I also cover how we can insulate ourselves from economic downturns.
Do you want to talk about the economy? Leave a comment on one of my posts or contact me directly.
The United States has Encountered a Force it Cannot Stop Today, the United States has the privilege of issuing the global reserve currency. All around the world, countries save and transact with US dollars due to the Bretton Woods Agreement and the petrodollar system. The petrodollar system, which spawned from an oil deal between the … Read more
When Risk Becomes too Great Hurricane Dorian recently ravaged the Bahamas, leaving tens of thousands homeless. The Category 5 hurricane was even worse than expected. Unfortunately, as climate change worsens, the number of devastating weather events like Dorian will rise. Homes and businesses in coastal areas will grow increasingly exposed to the possibility of ruin. … Read more
This Isn’t Your Typical List The economy is beginning to show signs of a nearing recession. The yield curve has again become inverted. The trade war between the US and China continues on. And Europe is a mess. There are plenty of potential catalysts that could make the shaky market completely quake. Many people sense … Read more
Blackstone Sets a New Fundraising Record Blackstone, the biggest private equity firm in the world, will soon have the biggest fund in the world. Its latest flagship fund has already surpassed $22 billion, which puts it on target to exceed Apollo’s record $24.7 billion fund. SoftBank proved that investors have a venture capital appetite strong … Read more
Profit at the Expense of Patients A couple weeks ago, I booked an appointment with a dermatologist to get a skin condition looked at. It’s nothing serious, but it nevertheless needs to be treated. The appointment was confirmed with an M.D. at a location I had visited previously. Prior to being seen, I waited in … Read more
China and Russia Stockpile Gold While Gold Prices Are Artificially Low China is aggressively buying gold in an effort to build its reserves. While it has not been selling off its US dollar holdings, there’s evidence to suggest China wants gold to upend the US dollar as the global reserve currency of choice. The US … Read more
CLO: The New CDO The collateralized loan obligation, or CLO, is now in vogue within the world of finance. A CLO is a security that consists of loans with similar characteristics. These characteristics can be the dates on which the loans mature, their risk profiles, etc. The CLO have become popular due to the search … Read more
Spending Addiction Governments across the globe have grown far too comfortable with expansionary policy. Increased military spending, entitlement programs, tax cuts, and bank bailouts simply add to the amount of debt governments owe to their lenders. As one would expect, government spending is politically popular. Tax cuts put more money in consumers’ pockets, which drives … Read more
Alternative Asset Managers Smell Opportunity In the wake of the financial crisis, banks became more tightly regulated by external authorities. Regulators put controls in place to reduce the prospect of banks growing too big to fail and to help avoid another taxpayer funded bailout. Moreover, banks changed their own lending standards in an effort to … Read more