Systemic-solvency and liquidity issues continue to plague the Fed and to restrain U.S. economic activity. Bank lending remains impaired, household income has taken a new hit, annual and monthly growth in the broad money supply appears to be stalling, again and U6 unemployment levels are at staggering levels. These ongoing financial problems have horrendous implications for the markets and systemic stability. [Let me explain.]
Read More »Nouriel Roubini: Ignore the Recent Favourable Macroeconomic Data – US Economy to Remain Weak – Here's Why
Recent favourable macroeconomic data has suggested that the U.S. economy could be back on track but the recent uplift in the economy only hides more fundamental problems...[The truth of the matter is that] US economic growth will remain weak and below trend throughout 2012 as a result of net exports continuing to be a drag and the Fed being unable, in the face of political constraints, [to do enough, soon enough,] to help the economy significantly... [Let me explain more fully why that is going to be the case.] Words: 950
Read More »Europe's Scariest Unemployment Chart – Ever
The last time we plotted European youth unemployment...Spain was actually worse off than even Greece...Following the latest economic...update from Greece, however, things are back to normal, as Greek youth unemployment is officially the second one in Europe after Spain to surpass 50%. In other words, Europe's scariest chart just got even scarier [as seen below]. Words: 370
Read More »Financialization: Its Definition, Its Lifecycle and Its Impending Collapse (+7K Views)
Financialization is like the bubonic plague–it constantly needs new victims as it kills off its existing hosts. Housing? Dead, killed by financialization, aided, abetted and powered by the Federal Reserve. Now the Fed wants to “save” what it already killed via financialization–housing–by buying $1 trillion in plague-infested mortgages and brute-force efforts to keep interest rates below inflation, i.e. negative rates.[Let me take this disease analogy further.] Words: 514
Read More »An Inflation Inferno is Expected – but When? (+4K Views)
Daniel Thornton, an economist at the Federal Reserve Bank of St. Louis, argues that the Fed’s policy of providing liquidity has “enormous potential to increase the money supply,” resulting in what The Wall Street Journal’s Real Time Economics blog calls “an inflation inferno.” [Personally,] I think it’s too soon to make significant changes to a portfolio based on inflation fears. Here's why. Words: 550
Read More »Asset Allocation: How Sound is the Foundation of Your Portfolio Pyramid? (+2K Views)
Regardless of the size of your financial pyramid, without a core-holding foundation, you are building it on sand. Core holdings are for protection, not for profit. They function as insurance against a catastrophe. [Let me explain.] Words: 754
Read More »Debt and the Santa Claus Principle (+2K Views)
"An essential point in the social philosophy of interventionism is the existence of an inexhaustible fund which can be squeezed forever. The whole system of interventionism collapses when this fountain is drained off: The Santa Claus principle liquidates itself." [This article discusses the reality of the current economic crisis and] what is required to revive the economy. Words: 1666
Read More »Events Accelerating Towards an Ultimate Dollar Catastrophe! Here's Why
With the U.S. election just six months off, political pressures will mount to favor fiscal stimulus measures instead of restraint. Such action can only accelerate higher domestic inflation and intensified dollar debasement culminating in a Great Collapse - a hyperinflationary great depression - by 2014. [Let me explain why that is the inevitable outcome.] Words: 2766
Read More »Physical Gold and Gold Stocks Should be in Your Portfolio – Here’s Why (+2K Views)
Do you own enough gold and silver for what lies ahead? If 10% of your total investable assets (i.e., excluding equity in your primary residence) aren't held in various forms of gold and silver, we...think your portfolio is at risk. Here's why. Words: 625
Read More »Busy? Here's a Shortcut to Accessing THE BEST Financial Articles Every Day
Lorimer Wilson, editor of www.FinancialArticleSummariesToday.com - a site for sore eyes and inquisitive minds - finds the most informative articles on the internet each day. He edits them for the sake of clarity and brevity to ensure a fast and easy read and posts introductory paragraphs to them on the site. He also provides a link to www.munKNEE.com where his edited excerpts of the original article are posted. Below are the latest articles for your enjoyment. Words: 500
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