China has the world’s largest debt at $40 trillion from 30 years of deficit financing its industrial growth. According to some analysts, China’s banks cannot withstand a downturn because it would expose trillions of dollars in bad debt. Now China is being prompted (Wall Street Journal) to return to stimulative policies because of slowing rates
The Fed (specifically, FOMC: federal open market committee) has been manipulating interest rates for decades. David Stockman says since 1973, which was only two years after Nixon “closed the gold window.” With the Treasury no longer having to redeem dollars in gold, massive dollar printing began, first in small amounts (millions) but by 2008 in
Gold pushed at $1240 today (spot market) as the Dow Jones Industrials were down 800 points in early trading after closing down 800 points Tuesday. Stock markets were closed Wednesday in honor of President George H. W. Bush’s passing.
The video “Why economic collapse never comes” was viewed more than 47,000 times before it was pulled with no explanation givern. In short, it said that economic collapse never comes because of the Establishment’s ability to create money out of thin air. True, the Fed’s ability to create money can forestall economic declines, but the
… says Daniel Arbess, CEO of Xeriorn Investments, in a recent Wall Street Journal op-ed. The essence of his article is that debt crises take place when markets underwrite and buy too much bad debt and that the fixes for the 2008 World Financial Crisis (WFC) was the piling on of still more debt. The
It is not decided whether the housing industry is a coincident indicator of economic activity or a leading indicator. Yet when the housing industry slows, it is not a good sign.
Over the last two weeks, the Dow Industrials rose eight of the ten sessions, tacking on more than 800 points for a 3.2% increase and spreading optimism that the bull market is back on track. The Dow hit two records highs this week. According to the Wall Street Journal, investors seems less concerned about the
David Stockman, Budget Director (1977-1981) under Ronald Reagan, offers unique analyses on today’s economic and political developments. Unlike a lot of analysts, Stockman has a grasp of the economic situation and political developments. He is a bear on stocks and on the economy. Below are links to recent Bloomberg interviews with him.
The stock markets seem oblivious to the Fed’s stated objective of higher interest rates, with some major averages making new highs and other just shy of new highs. However, some segments of the economy are already being impacted by higher rates, namely the housing market. Across the nation, home sales have declined four months in
Silver has hit $50 twice in my 45 years in precious metals bullion business, January 1980 and April 2011. Both times would have been excellent times to have sold. I did not see either and was not a seller. What will be the right move the next time silver hits $50, sell or hold?