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Trump Started a Global Trade War Today: Canada, Mexico Responded, So Will Europe
Trump Started a Global Trade War Today: Canada, Mexico Responded, So Will Europe Trump has been itching for a global trade war ever since he took office. He just confirmed one. The U.S. will impose tariffs on steel and aluminum imports from Canada, Mexico and the European Union starting on Friday. Trump’s ill-advised Tariffs Provoked […]
Liquidity Crisis Coming: Here, There, Everywhere
Liquidity Crisis Coming: Here, There, Everywhere Jim Puplava thinks a liquidity crisis is on the horizon. I agree, adding that the problem is global. Please pay attention to Jim Puplava at Financial Sense. He says a Liquidity Crisis Looming. In total, index funds represent $7 trillion of U.S. stock funds that have no active manager. […]
Fed’s Dilemma: Debt-to-GDP Ratios Dramatically Understate the Debt Problem
Fed’s Dilemma: Debt-to-GDP Ratios Dramatically Understate the Debt Problem Reader Lars writes Debt-to-GDP ratios understate the true nature of the problem. He uses Greece as an example. Reader Lars from Oslo, the capital of Norway, and a long-time reader of this blog, questions the widespread use of debt-to-GDP as the true measure of the debt […]
Germany Accuses Italy of “Debt Blackmail”: Hello EU, Time for Reform Expired
Germany Accuses Italy of “Debt Blackmail”: Hello EU, Time for Reform Expired For 10 years, the EU and EMU promised reform. None was delivered. Time is Up. Populists have taken control of Italy. Merkel’s CDU/CSU coalition is in a state of panic regarding Italy. The German parties went on the attack accusing Italy of “debt […]
Reflections on Late-Stage Inflation
Reflections on Late-Stage Inflation Without a doubt, we are in a period of late-stage inflation. But how long can it last? A few days ago I noted that “inflation expectations” were the same or nearly the same for every period from seven years through thirty. Actually, the thirty-year expectation was slightly less than the 10-year […]
It’s Now Clear: Five Star Lega Deal is a Commitment to Leave the Eurozone
It’s Now Clear: Five Star Lega Deal is a Commitment to Leave the Eurozone There was some confusion Tuesday over the exact wording of an Italian coalition agreement. The agreement is now clear. Italy Coalition Agrees to Leave the Eurozone I typically do not agree with Eurointelligence regarding views on what “should” happen. However, I […]
Don’t Worry “Everything Bad is Priced In”
Don’t Worry “Everything Bad is Priced In” The stock market has turned the corner. Everythig bad is priced in. Here’s the joke of the day: Stock Market Turns the Corner as Most Risks are Already Priced In. “By now, investors priced in all the bad things they could price in: concerns about trade wars, geopolitics, […]
Argentina Seeks IMF Financing Following Yesterday’s Hike in Rates to 40%.
Argentina Seeks IMF Financing Following Yesterday’s Hike in Rates to 40%. Argentina once again seeks help from the IMF following yesterday’s 40% interest rate hike. Last year, Argentina was a favorite destination for investors. This year, Argentina is facing yet another currency crisis. A run on the Peso started last month as investors soured on […]
Australians Face Huge Spike in Repayments as Interest-Only Home Loans Expire
Australians Face Huge Spike in Repayments as Interest-Only Home Loans Expire Day of Reckoning: Hundreds of thousands of interest-only loan terms expire each year for the next few years. The Reserve Bank of Australia (RBA), Australia’s central bank, warns of a $7000 Spike in Loan Repayments as interest-only term periods expire. Every year for […]
Wave of Corporate Bankruptcies Coming: GE Warns About its Subprime Mortgage Unit
Wave of Corporate Bankruptcies Coming: GE Warns About its Subprime Mortgage Unit Earlier today I commented to a friend about corporate bankruptcies. A few hours later, another friend Emailed about GE. Earlier today a friend pinged me with this story: U.S.Personal Spending Outpaces Income Growth For 26th Straight Month. He commented: “Hey, a lot of […]
Velocity of Money Picks Up: Inflation Coming? Stagflation? How About Deflation?
Velocity of Money Picks Up: Inflation Coming? Stagflation? How About Deflation? The velocity of money is picking up. What does it mean? Velocity of money is defined as (prices * transactions) / (money supply). Economists substitute GDP for (prices * transactions). This tweet caught my eye today. Velocity of Money has increased for third quarter […]
Global Pension Gap Expected to Hit $400 Trillion: US Leads the Way
Global Pension Gap Expected to Hit $400 Trillion: US Leads the Way The global pension gap of 8 nations is $70 trillion. The US alone is $38 trillion. By 2050 the total gap will hit $400T. The Visual Capitalist reports The Pension Time Bomb: $400 Trillion by 2050. The above image is a small section […]
Japan Expects to Hit 2% Inflation in 5 Years, Aggressive Easing Will Continue
Japan Expects to Hit 2% Inflation in 5 Years, Aggressive Easing Will Continue The BOJ thinks Japan may hit its 2% inflation target in 5 years. Kuroda says risks are to the downside. It may take Japan five more years to reach its 2% inflation targetaccording to BOJ governor Haruhiko Kuroda. “Sometime within the next […]
Lesson From Canada: There Really Are No Rate Hike Targets
Lesson From Canada: There Really Are No Rate Hike Targets Despite an inflation spike in Canada, Bank of Canada Governor Stephen Poloz says “Rate hikes Aren’t Mechanical.” Bloomberg reports Poloz Says Canadian Inflation Spike Doesn’t Violate 2% Target. Bank of Canada Governor Stephen Poloz said he’s not worried about inflation temporarily rising above the 2 […]
Belief in Inflation (And 4 or More Rate Hikes in 2018) Picks Up
Belief in Inflation (And 4 or More Rate Hikes in 2018) Picks Up Investors Increasingly believe the Fed may hike four or more times in 2018. The inflation scare is picking up steam. Due to Federal Reserve Beige Book regional reports, investors increasingly believe the Fed will go on a rate hike spree this year. […]



