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The Biggest Economic Threat Today
The Biggest Economic Threat Today Kind heaven, no! A fresh economic scourge is upon the land. Announces CNN: “New Threat to the Economy: Americans Are Saving Like It’s the 1980s.” Is a higher evil possible? Thus we are informed: Americans are slashing their spending, hoarding cash and shrinking their credit card debt as they fear […]
Panic Sets In: Fed Promotes More Free Money
Panic Sets In: Fed Promotes More Free Money Lawmakers need to do more says Minneapolis Fed President Neel Kashkari. Free Money for 18 Months The Fed cannot directly give money away so that burden falls on Congress. Kashkari follows Fed Chair Jerome Powell in seeking Congressional Action. “They are going to need more. If this is […]
The Black Death Killed Feudalism. What Does COVID-19 Mean for Capitalism?
The Black Death Killed Feudalism. What Does COVID-19 Mean for Capitalism? How will the coronavirus transform the relationship between state and market? A look at oil, food, and finance. Shutterstock You pay little attention to the systems of your body — circulatory, digestive, pulmonary — unless something goes wrong. These automatic systems ordinarily go about […]
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 […]
