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Understanding Our Pandemic – Economy Predicament
Understanding Our Pandemic – Economy Predicament The world’s number one problem today is that the world’s population is too large for its resource base. Some people have called this situation overshoot. The world economy is ripe for a major change, such as the current pandemic, to bring the situation into balance. The change doesn’t necessarily come from […]
The Collapse of Main Street and Local Tax Revenues Cannot Be Reversed
The Collapse of Main Street and Local Tax Revenues Cannot Be Reversed The core problem is the U.S. economy has been fully financialized, and so costs are unaffordable. To understand the long-term consequences of the pandemic on Main Street and local tax revenues, we need to consider first and second order effects. The immediate consequences of […]
Negative Rates Are Not an Option
Negative Rates Are Not an Option Today, Fed Chair Jerome Powell reiterated the Fed’s position on negative rates and gave his economic assessment as well. Economic Outlook “Highly Uncertain” In a live economic interview with PIIE, Jerome Powell discussed the Fed’s outlook for the economy and the advisability of negative interest rates. The video interview […]
Battle OF The Fibos & The Negative Yield Wall
Battle OF The Fibos & The Negative Yield Wall Fibonacci retracement levels are horizontal lines that indicate where support and resistance are likely to occur. They are based on Fibonacci numbers. Each level is associated with a percentage. The percentage is how much of a prior move the price has retraced. The Fibonacci retracement levels are 23.6%, 38.2%, 61.8%, and 78.6%. While […]
States Are Now Wrestling With The Biggest Budget Crisis They Have Faced In All Of U.S. History
States Are Now Wrestling With The Biggest Budget Crisis They Have Faced In All Of U.S. History Most U.S. states are seeing tax revenues completely and utterly collapse during this COVID-19 pandemic, and some are already begging the federal government for bailout money. Because if dramatic intervention does not happen, many states are going to […]
What does COVID-19 mean for sustainable consumption?
What does COVID-19 mean for sustainable consumption? Our priorities shift when the wolf is at the door, Iona Murphy writes about the impact of the current crisis. It’s quite understandable that people may not have the headspace for sustainability right now. Nonetheless, we’re currently on a hiatus from consumerism—will it last? Back in the beginning […]
How the COVID-19 Bailout Gave Wall Street a No-Lose Casino
How the COVID-19 Bailout Gave Wall Street a No-Lose Casino While ordinary Americans face record unemployment and loss, the COVID-19 bailout has saved the very rich This story appears in the June 2020 print edition of Rolling Stone. In late April Marko Kolanovic, a financial analyst for JPMorgan Chase, wrote to clients with good news. Pandemic […]
New Zealand Deprioritizes Growth, Improves Health and Wellbeing
New Zealand Deprioritizes Growth, Improves Health and Wellbeing Last May, New Zealand Prime Minister Jacinda Ardern released a budget to improve the “wellbeing” of its citizens rather than focusing on productivity and GDP growth. And not so coincidentally, New Zealand has one of the best coronavirus outcomes of any democracy in the world. Perhaps this […]
992 Billion Reasons Why The Fed Needs Another Market Crash In The Next Few Weeks
992 Billion Reasons Why The Fed Needs Another Market Crash In The Next Few Weeks Speaking in a video conference organized by the Peterson Institute, turbo money printer Jerome Powell today reassured the market that negative rates are not something the Fed – which expanded its balance sheet by $2.6 trillion in the past two months […]
HSBC Lost $200 Million In One Day When The Gold Market Broke
HSBC Lost $200 Million In One Day When The Gold Market Broke Last week, we discovered precisely which bank got hammered by the violent divergence between the spot and future price of gold. As we reported, “HSBC had 15 “back-testing exceptions” in January and March, when the firm was caught out by moves in the prices of precious […]
A Word About the Current Chaos in Prices and Inflation
A Word About the Current Chaos in Prices and Inflation Some prices collapsed, others skyrocketed, and the Consumer Price Index went haywire. Here’s what I’m seeing beyond the near term — and it’s not “deflation.” Amid soaring prices of meat, beverages, fruit, veggies, and other food at home, and surging costs of personal goods, medical […]
Chinese Debt Could Cause Emerging Markets to Implode
CHINESE DEBT COULD CAUSE EMERGING MARKETS TO IMPLODE The novel coronavirus has brought the world economy to a grinding halt. Global growth is set to fall from 2.9 percent last year into deep negative territory in 2020—the only year besides 2009 that this has happened since World War II. Recovery will likely be slow and […]
Stocks Tumble After Powell Says “Fed Not Looking At Negative Rates”
Stocks Tumble After Powell Says “Fed Not Looking At Negative Rates” Update (0935ET): The market is throwing a tantrum, demanding – it would appear – that The Fed move to negative rates as following Fed Chair Powell’s comments that NIRP “was not in The Fed’s toolbox.” How long will The Fed allow stocks to drop […]
A Taste Of What Is Coming – Food Prices Just Increased By The Most That We Have Seen Since 1974
A Taste Of What Is Coming – Food Prices Just Increased By The Most That We Have Seen Since 1974 Get ready to pay much more for groceries. I have been warning that the flood of new money that the Federal Reserve and Congress have been pumping into the system would have very serious consequences, […]
