Commodity Trade Mantra

Posts Tagged ‘Fiscal Stimulus’

Trump & the Monumental Magnitude of the US Debt Trap

What lies directly ahead, therefore, is another bumbling attempt by the White House and Congressional Republicans to hammer out an FY 2018 budget resolution and what amounts to a 10-year fiscal plan. So there flat-out must be big-time deficit offsets or there will not be close to 218 votes for what would otherwise be upwards of $15 trillion in added public debt over the coming decade.

Europe: Stagnation, Default, Or Devaluation

When a country accumulates too much debt and begins to find the roll-overs a growing challenge, it really has just two options: the first is a total or partial default; the second is a large currency devaluation. The second choice begs the question ‘Who prints the currency in which the debt is labeled?’

The Problem With Credit Booms Is That They Are Followed by Busts

Research on private sector credit booms over the last 20 years show that whenever credit to the private sector expanded by 30% or more within a 10-year period, a banking crisis & recession resulted without any exception. Credit booms always end badly & last longer than rational minds expect.

What Happens When The Giants Unwind Economic Stimulus

The world has depended on Chinese and American stimulus for years, and one implication of their tightening is a slowing global economy in 2014 – Unwinding stimulus, especially one so large and prolonged, is fraught with unintended consequences. Bubbles tend to pop, not deflate slowly.

QEen Janet Yellen Has Ensured An Equity Market Crash Is Inevitable

Yellen’s failure to acknowledge any signs of bubble-like conditions encourages more risk-taking and speculation, ensuring that an equity market crash someday is inevitable – Also her hints of a continuation of QE, thus should lead to a larger bubble; all which eventually pop.

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