Incredibly, a bank in Denmark is offering home buyers 10-year mortgages at an interest rate of -0.5%. Borrowers who opt for these mortgages will pay back less than the amount borrowed. This has come about because of the massive money creation by the world’s central banks.
Before he was appointed chair of the Federal Reserve, Alan Greenspan was a “goldbug.” He didn’t just believe that at times gold was a good investment. He believed that gold was the foundation of an economic system (read below).
Durable goods orders are one of the most watched indicators of economic activity. They comprise such items as automobiles, washers, dryers, furniture, firearms, and toys. Things that are supposed to last for years. The chart below clearly indicates the downward trend in durable goods orders, and I’m sure that members of the FOMC were well
Gross Domestic Product (GDP) grew at 2.1% in the second quarter according to the Bureau of Economic Analysis’ (BEA) “advanced” estimate. The first quarter saw an increase of 3.1% Both estimates are subject to change as more data is analyzed by the BEA.
Both parties are happy with the spending deal reached Tuesday night between the Trump administration and the Pelosi-controlled House. The Trump administration will see defense spending going to $750 billion while the Dems (and, admittedly, some in the GOP) will see an equivalent increase in domestic appropriations.
From 1870 to 1970, the ratio of debt to GDP in the US averaged 1.48. Today, the ratio is 3.47, which means that the economy bears the weight of three times the debt that it did up until 1970. Not coincidentally, it was August 15, 1971 that the President Nixon made the dollar no longer
Gold is down $30 today because of massive selling on the COMEX on a day when illiquidity abounds. Because the 4th fell on Thursday, making for a four-day weekend, the manipulators took advantage of it. Monday will be a significant day for both gold and stocks as investors reassess their outlooks. The Dow Industrials are
Trump is committed to tariffs. If he were levying tariffs on only China, that would be bad enough as China is one of the tech manufacturing centers of the world. But, Trump is not going after only China. He has implemented tariffs on products imported from nations that have long been friendly, such as Canada,
Herbert Hoover’s name is generally held with derision because he is blamed for the Great Depression. However, here’s one HH statement that all should agree with: “We have gold because we cannot trust governments.” Basically, a gold standard fails as a monetary system because the government is involved.
The U.S. student load system is broken. Borrowers currently owe more than $1.5 trillion, an average of $34,000 per borrower. Over two million of them have defaulted on their loans in just the past six years, and the number grows by 1,400 a day. The federal government now acknowledges that taxpayers stand to lose $31.5