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All posts under ‘Economy’

When Will US Debt Hit the Wall?
Debt Crisis | US Economy | June 27, 2015

US debt is now over $13 Trillion & is increasing rapidly, thanks to out of control spending far in excess of revenues. Assume revenues increase at the historical average of 4.6% per year & public debt only increases at 14% per year. Its likely that revenues will decline in the coming recession, while expenses will probably increase for social programs. And then?

12 Signs That The United States And China Are Moving Toward War
China | Michael Snyder | US Economy | June 23, 2015

If the United States and China are supposed to be such “great friends”, why are both sides acting as if war is in our future? Thanks to events in the South China Sea and the blatant theft of the personal information of millions of U.S. government workers, tensions between the United States and China are the highest that they have been in decades.

How Is Gold Impacted By Runaway Debt?
Debt Crisis | Gold Trading | June 19, 2015

The world now sits beneath a mountain of debt worth $200 trillion. If gold backed total global debt 100%, it would be valued at $33,900 per ounce. It’s unlikely that gold will ever reach $33,900 per ounce—or even $12,000, as James Turk calculates—but the fact that supply has not kept up with debt levels suggests that gold prices might very well rise.

What's the Real Unemployment Rate in the U.S.?
Unemployment | US Economy | June 18, 2015

The unemployment rate of 5.6% reflects nearly full employment, as 3% to 4% of the work force is in the process of quitting/being laid off & finding another job. By my reckoning, roughly 60% of the civilian work force is fully employed & 40% are marginally employed or unemployed. What qualifies as a job? Should we count someone who earns $1,000 a year as employed?

Everything You Need To Know About Debt
Debt Crisis | June 18, 2015

Debt has become so ingrained in the American lifestyles, it’s borderline impossible to live without a credit card or a loan. What is debt, exactly & does it have a limit? How big is the debt & why do we have so much? While debt may seem like an abstract concept, when the federal debt is exceptionally high, the consequences are very real. Here are the answers.

Economic Inequality and the Gold Standard
Economy | Gold Trading | June 17, 2015

Economic inequality declined in the US from 1917 to the early 1970s when Nixon took America off of the gold standard. The trend has been for greater economic inequality ever since. Part of the answer to the problem of economic inequality is to return to an honest and sound monetary system including — but not limited to — the gold standard.

The War On Cash: Officially Sanctioned Theft
Economy | June 16, 2015

Why are governments suddenly declaring war on cash, the oldest officially issued form of money? Governments say – Physical cash has the potential to evade both taxes. The real Reason: Physical cash can evade officially sanctioned theft via bail-ins and negative interest rates. In short, physical cash is extremely difficult for governments to steal.

Silver Price Lows and Bubble Bond Markets
Bond Market | Silver Trading | June 8, 2015

T bonds & S&P look dangerous, while silver has been crushed during the past 4 years. Which of those three asset classes is likely to perform better between now & Election Day 2016? Which of those assets has no counter-party risk? Two of those assets currently trade near all-time highs, while one is quite inexpensive.

Higher Than Expected Jobs, Give Yellen Green Light To Hike Rates
US Economy | Zerohedge | June 7, 2015

While the strong jobs number is strong enough to give Yellen a green light for a September rate hike (or even June), what is most notable is the jump in average hourly earnings, which rose by 0.3%, above the 0.2% expected, & well above the 0.1% in April, suggesting the slack in the labor force is indeed evaporating.

Goldman Sachs Warns “Too Much Debt” Threatens World Economy
Debt Crisis | Economy | Goldcore | May 29, 2015

Andrew Wilson, Goldman Sachs Asset Management’s chief executive in Europe said, “There is too much debt and this represents a risk to economies. Consequently, there is a clear need to generate growth to work that debt off but, as demographics change, new ways of thinking at a policy level are required to do this.”

What A Cashless Society Would Look Like
Economy | May 20, 2015

Those who generate real wealth & employment need support, not penalties on how they choose to go about their business. A cash ban does not address any substantive issues. What is needed is a sensible economic proposal & political courage to implement a Cashless Society, which so far seems to be lacking.

The Debt To GDP Ratio For The Entire World: 286%
Debt Crisis | Michael Snyder | May 18, 2015

Seven years after the bursting of a global credit bubble resulted in the worst financial crisis since the Great Depression, debt continues to grow. In fact, rather than reducing indebtedness, or deleveraging, all major economies today have higher levels of borrowing relative to GDP than they did in 2007.

How GDP Metrics Distort Our View of the Economy
Economy | May 18, 2015

GDP purports to measure economic activity while largely divorcing itself from quality, profitability, depth, breadth, improvement, advancement & rationalization of goods & services provided. Why does GDP poorly reflect economic size & vitality? Its largely due to 3 fallacious concepts embedded within GDP measurements.

Global Debt Now $200 Trillion!
Debt Crisis | Goldcore | May 15, 2015

Global debt is now in the region of $200 trillion. Unless and until the debt based system is replaced there can only ever be an increasing debt load and an urgency for economic growth with the consequent degradation of our environment and a debt enslaved humanity.

Why Dodgy US Jobs Data is Keeping Gold Prices Down
Gold Trading | US Economy | May 11, 2015

Low unemployment rate will be used as evidence to prevent the dollar from rising. If the US dollar retains its current strength, then gold prices won’t move higher in the short term. There’s no reason for a mass market movement into hard assets like gold if the US dollar is strong and the official inflation rate is low.

Can Gold Save The World From the Credit Bubble?
Debt Crisis | Gold Trading | April 29, 2015

Governments & central banks created the currency & credit bubbles. When fiat currencies crash in the next crisis, backing currencies with gold could “save the world” & restore confidence in fiat currencies but only after significant trauma. Perhaps central banks will do the “right thing,” but only after exhausting all other alternatives.

Gold, the SDR and BRICS
Emerging Markets | Gold Trading | April 24, 2015

There are difficulties when it comes to including gold in the SDR basket as none of its paper constituents are convertible into gold. It also cannot last long as major central banks insist on printing money as an economic cure-all. But China’s position with respect to gold & her own currency could be a different matter.

China's Massive Debt Problem Is About Get Much Massiver
China | Debt Crisis | Zerohedge | April 23, 2015

PBOC has announced that regulatory approval will no longer be required to issue ABS. Market players now expect ABS issuance to more than triple to 1 trillion yuan ($161 billion) this year. This means China’s massive debt burden is about to get massiv-er, as banks use ABS issuance as a pressure valve to free up lending capacity.

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