Implode-Explode Heavy Industries news feed Tracking the many faces of the global credit implosion. en-us iehi-feed-54455 Wed, 23 Jul 2014 15:05:11 GMT Venezuela admits its ever growing dependency with China iehi-feed-53723 Wed, 16 Apr 2014 18:22:16 GMT Why Crony Capitalist Brats Make Me ILL - David Stockman During 2012 Levin's 14-person team of speculators apparently made a $2.0 billion profit on a short-term bet on about $7.5 billion of busted loans and bonds-- mainly the smoking remnants of sub-prime CDOs and private labor MBS. As head of the trading group, Leven's share was apparently the aforesaid $119 million, and this swell outcome was truly a gigs-to-riches story.

... in an honest two-way market, no one in their right mind would bet $7.5 billion on financial drek using high leverage and minimal hedges. And no 30-year old would be given leave to close his eyes and bet the ranch, as apparently Levin did, based on merely the "housing recovery" word clouds being emitted by the monetary politburo and its echo-boxes in the financial press.''

iehi-feed-53418 Fri, 28 Feb 2014 15:32:19 GMT 'A Perfect Storm': The Failure of Venezuela's New President iehi-feed-53386 Sat, 22 Feb 2014 00:36:37 GMT The Game Changed in Venezuela Last Night -- and the International Media Is Asleep At the Switch iehi-feed-53066 Thu, 09 Jan 2014 17:32:26 GMT Forecast 2014 -- Burning Down the House by James Howard Kunstler iehi-feed-52793 Sat, 23 Nov 2013 14:59:38 GMT Venezuela reported planning to pawn its gold through Goldman Sachs iehi-feed-52425 Mon, 14 Oct 2013 14:54:34 GMT Venezuela's Impending Collapse iehi-feed-50865 Tue, 21 May 2013 06:45:15 GMT Now Venezuela is running out of toilet paper iehi-feed-49881 Mon, 11 Feb 2013 04:45:18 GMT Absent Chavez devalues Venezuelan currency to aid gov't finances iehi-feed-49450 Thu, 10 Jan 2013 12:09:01 GMT Chávez, or at Least His Sash, Is Set for Venezuela Inauguration President Hugo Chávez's supporters have not ruled out swearing him in from his hospital in Havana. His detractors are calling for government investigators to go check his pulse themselves. The justices whom Mr. Chávez's allies have named to the Supreme Court have decided that he can continue to govern in absentia. ]]> iehi-feed-48095 Mon, 08 Oct 2012 11:55:35 GMT Hugo Chavez Wins Re-Election In Venezuela Presidential Vote It was Chavez's third re-election victory in nearly 14 years in office. The victory gives Chavez another six-year term to cement his legacy and press more forcefully for a transition to socialism in the country with the world's largest proven oil reserves. ]]> iehi-feed-46009 Sat, 28 Jul 2012 22:14:27 GMT Cuba to end Soviet-style economy and will implement market friendly policies iehi-feed-43610 Wed, 02 May 2012 14:19:43 GMT Hugo Chavez & Officials Caught in Huge Drug Money Scandal Venezuela's justice minister on Monday accused a former Supreme Court magistrate of receiving money from drug traffickers. ]]> iehi-feed-42991 Fri, 06 Apr 2012 21:45:29 GMT Sobbing Chavez Pleads for Life at Catholic Mass in Home State Venezuelan President Hugo Chavez wiped tears from his face as he pleaded for life in his fight against an undisclosed cancer at a Catholic mass in his home state of Barinas.

Chavez, speaking yesterday at the mass held for his health and broadcast on state television, said cancer is a "real threat" that takes many lives and that he has faith that he will win the fight against the disease.

iehi-feed-42132 Wed, 22 Feb 2012 13:38:35 GMT Chinese loans put Venezuela over barrel iehi-feed-41811 Thu, 02 Feb 2012 08:54:25 GMT Venezuela Announces "Irrevocable" Withdrawal from World Bank's Arbitration Body iehi-feed-39600 Fri, 07 Oct 2011 15:23:07 GMT Venezuelan gold repatriation to start in month-and-a-half iehi-feed-39360 Tue, 27 Sep 2011 12:46:15 GMT Chase offers $30K to delinquent homeowners iehi-feed-38961 Sun, 11 Sep 2011 13:27:18 GMT Pension scandal shakes up Venezuelan oil giant iehi-feed-38818 Sun, 04 Sep 2011 14:19:17 GMT Revealing Gold Advice from Mauldin Financial writer John Mauldin, who rarely mentions gold, gave an interesting "reveal" in his public newsletter today:

The question I am asked the most is some variant on "What do you think about gold?" So, let me deal with that question here, as it has been a while.

First, I do not think of gold as an investment. It is insurance for me. I buy a rather fixed amount of gold nearly every month, no matter the price. I hope the price of gold goes down, because that means I get more coins in the mail to go into the vault. Yes, I take delivery of my gold, and it is near me if I need it.

My fondest dream is that I will give my gold coins to my great-great grandkids some 70-80 years from now, and they will be rather embarrassed that their "Papa John" bought all that much of that barbarous yellow metal instead of more biotech stocks. But as I live in the real world, I buy gold, even though I am optimistic we'll get through this rough patch; because I simply don't trust the bas*%*ds who are driving this ship with 100% of my money in dollars, or any fiat currency, for that matter.

Gold to me is a neutral currency. While the metal looks good over the last ten years (and I became bullish on it in 2002 in this letter), over the last 32 years it has not had all that much luster. Bonds have been much better as an investment. It is all about timing.

If I wanted to buy gold for investment or trading, I would simply buy GLD. (It is an excellent vehicle for traders; however, GLD is not what I think of as insurance.) And if I were buying gold as a trade, I would buy it in terms of the euro or yen, which I think are both going down against the US dollar.

For those who want to buy larger sums of gold, there is a program that I like backed/sponsored by the state government of Western Australia, called the Perth Mint. You can buy gold certificates that represent actual bullion in vaults in Perth at reasonable prices. While your gold is stored in Perth, you can take delivery if you want and leave the country with no taxes owed. Or you can sell the gold and get cash. You diversify your country risk, have excellent and safe storage facilities, diversify your currency risk (if, like me, you think of gold as a currency), and have a different asset class than traditional portfolios.

You can learn more about the Perth Mint at And one of their dealers is an old friend of mine, Mike Checkan of Asset Strategies International. I have known Mike for about 30 years, and he does what he says and shoots straight. He is well-known in the investment information world, with lots of endorsements. You can learn more about his outfit at or call them toll-free at (800) 831-0007 in the U.S. and Canada, or direct at (301) 881-8600. You can also email them from their web site.

Where to buy actual bullion? Gold coins are gold coins. ASI is a good choice, but I would shop around. Depending on the amount you are buying, mark-ups can be significant, and there are differences in service and responsiveness. Delivery can be an issue, although I get mine in the mail with insured mail (although we do have to pick it up!).

Do I think gold is at a high? While I hope so, I truly do, I rather think that gold still has some upside because of government policies. When the deficit gets under control and we are on the road to real recovery, I rather think that gold will come back down from whatever highs it makes. I remember in 1980 there were True Believers who thought gold could only go one way.

For the record, I think you should own about 5% of your net worth in gold, as insurance, not as an investment. The "goal" and your hope should be to never have a reason to sell your gold. I trust that tells you where I stand.