In September 2017, legislators will meet to try to raise the national debt ceiling…. which currently stands at just under $20 trillion ($19.809 trillion to be exact), before the September 29 deadline. Regular readers who have been following this blog will be well aware of the true scale of America’s debt situation…. If the United States […]
What Happens to the Market When the Liquidity Tap Gets Turned Off?
Despite numerous warnings from various experts, our stock market continues to reach unprecedented highs. The Dow Jones stands at another all-time high of 21,891. And so does the S&P500 at 2,470. We’ve talked previously about how the Shiller Ratio which measures cyclically adjusted price earnings ratio, is at the same level as 1929; second only […]
The War On Cash: Private Sector Coercion
Some good news and bad news from the war on cash. Let’s start with the good news. The EU government, one of the main government entities spearheading the global war on cash, had announced that it was looking at imposing upper limits on cash payments (PDF). This was back in January 2017 and in view of that […]
The Asset Price Correction is Coming
The Federal Reserve recently released the minutes of their mid-June FOMC meeting, which contained this ominous warning: Corporate earnings growth had been robust; nevertheless, in the assessment of a few participants, equity prices were high when judged against standard valuation measures. The big corporate entities may have recovered well from the recession, and their earnings […]
The Yield Curve May Soon Invert: Sign Of Recession?
Do you know about the US Treasury yield curve and what it means for the economy? If you don’t, here’s a quick primer. The US Treasury yield curve is a graph with treasury yields on the y-axis and maturities on the x-axis. It compares the yields between 3-month, two-year, five-year, and 30-year US Treasury debt. […]
Bubbles And Bankruptcies: An Explosive Combination
We are already living in a country almost entirely fueled by debt, let that sink in…. With the US national debt currently standing at $19.9 trillion, according to the US Debt Clock. And it’s not just the US; the entire world is living in the largest debt bubble in history, with global debt levels standing […]
Financial Weapons Of Mass Destruction: $500 Trillion In Derivatives
All the way back in 2003, the ‘Sage of Omaha’, Warren Buffett had this to say about OTC financial derivatives in Berkshire Hathaway’s 2002 annual report: “I view derivatives as time bombs, both for the parties that deal in them and the economic system. Basically these instruments call for money to change hands at some […]
