The global addiction of central banking stimulus – Contagion spreads to Spain as 10-year edges to 7 percent. Life in a perpetual quantitative easing world.
Financial markets around the world are now desperately dependent on central bank stimulus. The US recovery is largely dependent on the Federal Reserve funneling loans into the system via the quantitative easing process and other archaic forms of money development. It is interesting how the Greek stock market rallied this week merely on the notion [...]
Solving the massive debt problem with more debt. American consumers carry as much debt as annual U.S. GDP. Credit card debt declines but auto loans and student loans go up?
The Federal Reserve has come to the aid of bailing out Greece. I wonder how many Americans even know that billions of U.S. dollars are going to prop up a failing European country in Greece that got into the mess they are in because of too much debt. In the end, the Euro is still [...]
American Financial Dream Deferred: How the U.S. is Mirroring the Japanese Lost Decade after the Heisei Boom.
This weekend I decided to take a trip to a couple of local stores to pick up some food that didn’t involve turkey so I wouldn’t be fatigued of eating the same thing for the entire week. A chain grocery store had about five people on a Sunday when it typically would have many more. [...]
U.S. Dollar fell 35 Percent Over 18 Years from 1984 to 2002 – The U.S. Dollar then Dropped Over 40 Percent from 2002 to 2007: How the Dollar is Being Systematically Devalued since the 1980s. 5 Reason why a Weak Dollar is bad for America.
The U.S. Treasury and Federal Reserve have kept quite in recent months about any strong dollar policy. Last time Timothy Geithner was in China he was laughed at by students when he insinuated that the U.S. would get its economic house in order. The Chinese students realize just like most Americans do, that the U.S. [...]
Stock Market Dollar Store: U.S. Dollar Down 12.5 Percent and S&P 500 Up 50 Percent since March. How the U.S. Treasury and Federal Reserve Juice the Stock Market.
Americans have missed one serious correction since the manic stock market took off in March. Since that time the value of the U.S. dollar, the bedrock of our economic system has fallen a stunning 12.5 percent. Currencies should not fluctuate this much especially the world’s reserve currency. Back in December, I talked about how the [...]
The Federal Reserve and U.S. Treasury Determined to Sink the U.S. Dollar in 2009. Why Gold and U.S. Dollar went up in 2008.
2008 will go down in history as the worst global market for countless investments since the Great Depression. It was significant even with the late rally which occurred after the November bottom. What this signifies is that market volatility a sign of a very unhealthy marketplace will continue in 2009. Yet the more important point [...]
Best Performing Investments for 2008: Can Real Estate actually be one of the Best Investments for the Year? 5 Strong Performing Areas for the Year.
Investors had very little place to hide this year. Without a doubt, 2008 has been a tumultuous year for virtually every class of investment out there. The stock markets are seeing one of the worsts year on record since the Great Depression losing globally, an estimated $32 trillion in market capitalization.
Citigroup Analyst Predicts $2,000 an Ounce Gold in next 2 Years: Another Stupid Move by U.S. Government Where we Should Have Invested the Bailout Money in Gold Bars.
So what do we get for our massive bailout of Citigroup? How about an ominous warning that global markets will collapse or we will face massive inflation. Either way, the suggestion from one analyst at Citi is gold will go to $2,000 in the next 2 years. We just backstopped $306 billion in toxic mortgages [...]
How to Invest Wisely and Diversify: 3 Current Economic Issues. Gold, World Currency Reserves, and World Housing Bubbles.
I’ve done my best to remain diversified. I don’t mean simply having 10% in a global mutual fund, 20% in a small-cap fund, 40% in a blue chip fund, and 30% in bonds. You can rearrange the numbers a bit but there is this intense belief bordering on religion that by having your money in [...]
Money Markets, CDs, 401ks, and Savings Accounts that Lose Against Inflation: A Society that Punishes Savers.
One of the unintended consequences of this housing market is the punishment conservative savers are taking. Last month we had the rather astonishing release of data from the Bureau of Labor and Statistics telling us for the month, that inflation was at 0 percent. As disconnected as this is from reality, there is a reason [...]