The casino of Wall Street enters official correction territory: S&P 500 has increased on the back of a massively expanding Fed balance sheet.
The casino effect of Wall Street is being played out in full. The Fed balance sheet recently stopped growing at an astounding $4.5 trillion. This is the first time in nearly three years that the balance sheet has slowed down in large part for the oncoming rate hikes that seem to never materialize. The market […]
Fed doublespeak and the dismantling of the middle class: Fed states dropping “patient” word doesn’t mean it is impatient on rates. In 1970 roughly 7 percent of all income was earned by the top 1 percent. Today it is closer to 20 percent.
The Fed has taken a page out of George Orwell’s 1984. Doublespeak is all the rage and the Fed’s statements are analyzed as if sifting for gold. Even when they don’t do anything markets jump. The Fed sets the tone on our debt addiction. The Fed dropped the word “patient” in terms of increasing interest […]
The long inflation con on the public: How the CPI severely underreports inflation and the slow erosion in the American standard of living.
The Consumer Price Index (CPI) is supposed to give us a good barometer of price changes in the economy. Unfortunately the CPI misses many big items like housing and college tuition. The latest report shows that the economy had a taste of deflation for the first time since the Great Recession hit. Of course this […]
The government is already in a soft default and is addicted to low interest rates: Government expenses at $3.87 trillion while receipts enter at $3.29 trillion.
The term default has varying definitions depending on whether you are an individual, a big bank, or the government. For you as an individual, default will occur when you are unable to pay your debts with the income you are generating. You are constrained by your income. As we saw with the housing crisis, when […]
Inflation over 270 years: It is hard to feel the tornado of price erosion when you are standing in the eye of the financial storm.
People tend to be creatures of habits. It always intrigues me how most of the people I speak with seem to already assume that prices will always go up. It is the default life position. They know the sun will rise, grass will typically be green, and prices over time will go up. While some […]
The Red Queen’s Race in pay raises: Record number of employed US workers report no change in wages or salary. Stagnant wages and inflation eating away at purchasing power.
A record number of Americans currently working are reporting no wage increases over the last year. What is important to note in this recent report from the Federal Reserve is that this is for those working and staying in their current job. As we know, we have a growing army of people in the “not […]
Feeling poorer through the power of inflation: Since January of 2000 college tuition is up 68 percent, new car costs are up 55 percent, your typical home is up 50 percent, and wages are simply not keeping up.
You have to love how the Federal Reserve downplays inflation when they are the primary source of it with other central bankers for this monetary phenomenon. They continue to play inflation down because it gives them the power to continue to use policies that seem to only aid their banking allies while making working Americans […]