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Kotlikoff: America in Worse Financial Shape than Russia or China – Peter Diekmeyer
Kotlikoff: America in Worse Financial Shape than Russia or China America’s 2017 fiscal gap will come in near $6 trillion, nine times higher than the $666 billion deficit announced by the US Department of the Treasury last week, says Laurence Kotlikoff, an economics professor at Boston University. “Our country is broke,” says Kotlikoff, who estimates […]
MARKETS… WE GOT TROUBLE: Debt & Brain-Dead Retail Investors Prop Up Stocks
MARKETS… WE GOT TROUBLE: Debt & Brain-Dead Retail Investors Prop Up Stocks As the Dow Jones Index hits another all-time high today, smart money is rushing to the exits. You see, smart money knows when something is too good to be true. Unfortunately for the retail investor who is suffering from acute BRAIN DAMAGE, they […]
Falling Interest Rates
Falling Interest Rates Amassing Unproductive Debt Last week, we discussed the marginal productivity of debt. This is how much each newly-borrowed dollar adds to GDP. And ever since the interest rate began its falling trend in 1981, marginal productivity of debt has tightly correlated with interest. The lower the interest rate, the less productive additional […]
4 In 10 Canadians Can Not Cover Basic Expenses Without Going Deeper In Debt
4 In 10 Canadians Can Not Cover Basic Expenses Without Going Deeper In Debt Back on July 13, when the BOC hiked rates by 25bps to 0.75% – its first rate hike in 7 years – followed by another unexpected rate hike in September, we documented some troubling trends among Canadian households, including the record […]
Yawning Debt Trap Proves the Great Recession is Still On
Yawning Debt Trap Proves the Great Recession is Still On While David Stockman stated early this year with resolute certainty that the debt ceiling debate would blow congress up and send the nation reeling over the financial precipice, I avoided jumping on the debt-ceiling bandwagon. While I was convinced major rifts in the economy would […]
Volatility and the Alchemy of Risk
Volatility and the Alchemy of Risk Reflexivity in the Shadows of Black Monday 1987 The Ouroboros, a Greek word meaning ‘tail devourer’, is the ancient symbol of a snake consuming its own body in perfect symmetry. The imagery of the Ouroboros evokes the infinite nature of creation from destruction. The sign appears across cultures and […]
Hartford Could Default On Its Debt As Soon As Next Month, Moody’s Says
Hartford Could Default On Its Debt As Soon As Next Month, Moody’s Says Moody’s latest warning about Hartford Connecticut is its most dire yet. In a report issued Thursday, the ratings agency’s analysts said Hartford, Connecticut’s once-proud capital city, could default on its debt as soon as next month, forcing the capital of the country’s […]
GDP Is Bogus: Here’s Why
GDP Is Bogus: Here’s Why Here’s a chart of our fabulous always-higher GDP, adjusted for another bogus metric, official inflation. The theme this week is The Rot Within. The rot eating away at our society and economy is typically papered over with bogus statistics that “prove” everything’s getting better every day in every way. The […]
The Falling Productivity of Debt
The Falling Productivity of Debt Discounting the Present Value of Future Income Last week, we discussed the ongoing fall of dividend, and especially earnings, yields. This Report is not a stock letter, and we make no stock market predictions. We talk about this phenomenon to make a different point. The discount rate has fallen to […]
How The Elite Dominate The World – Part 2: 99.9% Of The Global Population Lives In A Country With A Central Bank
How The Elite Dominate The World – Part 2: 99.9% Of The Global Population Lives In A Country With A Central Bank Even though the nations of the world are very deeply divided on almost everything else, somehow virtually all of them have been convinced that central banking is the way to go. Today, less […]
Globalization is Poverty
Globalization is Poverty Marc Riboud Zazou, painter of the EIffel Tower 1953Central bankers have never done more damage to the world economy than in the past 10 years. One may argue this is because they never had the power to do that. If their predecessors had had that power, who knows? Still, the global economy […]
Only China Can Restore Stability in The Global Economy
Only China Can Restore Stability in The Global Economy Fan Ho East meets west 1963 For those of you who don’t know Andy Xie, he’s an MIT-educated former IMF economist and was once Morgan Stanley’s chief Asia-Pacific economist. Xie is known for a bearish view of China, and not Beijing’s favorite person. He’s now an […]
Schäuble Warns of Coming Economic Crisis
Schäuble Warns of Coming Economic Crisis In his farewell interview for the Financial Times, Federal Minister of Finance Wolfgang Schäuble warned of a new global financial crisis predicated upon the Quantity of Money theory that the central banks had pumped trillions of dollars into the financial system that is creating a risk of “new bubbles”. […]
De-dollarization Not Now
De-dollarization Not Now USD-denominated debt outside the US hits record – even junk bonds. China announced today that it would sell $2 billion in government bonds denominated in US dollars. The offering will be China’s largest dollar-bond sale ever. The last time China sold dollar-bonds was in 2004. Investors around the globe are eager to […]
