Commodity Trade Mantra

Posts Tagged ‘Real Economy’

The U.S. Economy Slows to Stall Speed

The US economy is slowing to stall speed, the point when gravity overcomes the lift provided by central bank free money. This long-term weakening of the economy is the direct result of financialization & the Federal Reserve’s policy of propping up impaired debt with more debt & constantly bringing demand forward with zero interest rates.

The End of the Debt Cycle

Tokyo’s debts have grown so large that 43% of tax receipts are required just to service its debt, to say nothing of the amounts needed for current and future deficits. Try living on 57% of what you earn (the rest goes to pay your creditors) while still spending more than your income. You can imagine how far you’d get if you tried this at home.

The Fed “IS” the Problem!

The solvency of the Fed itself will be questioned during the next crisis, which seems to already have begun. Either the Fed gets the markets calmed down or, the markets will begin to question the Fed’s “all-encompassing power.” When will speculators take them on? Announcement of further QE will probably do the trick.

Central Bank Monetary Policy Enables Us To Put Off Real Reforms

The cycle of entrenched interests protecting their skims and scams via central bank monetary policy is self-liquidating: every nation that pursues this “fix” will find its economy liquidated by financial implosion and the hollowing out of productive sectors to support crony-capitalist unproductive sectors.

Is This What a Credit Bubble Looks Like?

There’s been some buzz recently about a pick-up in business lending. Unlike some pundits, though, we’re not convinced that a surge in business credit is such a good thing. Corporations are already borrowing at a pace that’s only before been seen near cyclical peaks, especially as this pace never lasts long.

What Needs to Happen Before We See a Big Recovery in Economy?

Will real economy mend before excessive financial risk-taking kills the patient? What needs to happen before we get a robust recovery: 1) Households need to borrow at the pace we normally see in economic expansions. 2) Household income needs to grow strongly – More of the second & less of first.

Limits to Economic Growth at our Doorstep, but not yet Recognized

It is the collision of the lack of economic growth in the real economy with the need for economic growth from the debt system that can be expected to lead to collapse. The hidden parts of our economy are being affected by depletion. How long can economic growth continue in a finite world?

Six Reasons Why The Government Is Destroying The Dollar

These six powerful motivations all exist simultaneously, they all wrap around each other in their numerous interrelationships, and they all reinforce each other. Together they constitute an overwhelming incentive to make sure that a dollar does not remain worth anything.

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