Economic Overviews

History strongly suggests that, rather than a return to a nice, placid world of “normal” interest rates, we are likely to see a continuation of the borrowing binge/asset bubble until real rates spike as a result of either soaring nominal rates soar or plummeting inflation. Here's why that is the case.

The Fed and the bond market are responding appropriately to declining risk aversion and a somewhat improved economic outlook. There is no reason to fear the end of QE or the beginning of higher short-term interest rates. Let me explain further.

Much of the conventional economic wisdom prevailing in financial circles - largely subscribed to as a basis for governmental policy, and widely accepted by the media and the public - is based on incomplete analysis, contra-factual assumptions, and false analogy. Below are 15 such fallacies and explanations as to why each is such.

Canada is seen as the new banking safe haven and an “island of safety and stability” because of its perceived sound fiscal position, commodity wealth and solid economic performance - but it's a myth! Plain & simple. Here are the facts.

Frankly, we cannot conceive of a more cataclysmic set of circumstances for both the global economy in general, and the gold Cartel specifically, than currently exist. Act now, before “traders” return from summer vacations next week or you may be locked out of the most important “protection trade” of all time!

History has taught that the collapse of the pillar of prosperity in a society always leads to revolution - and revolution is now rattling at the gates of Greece, Portugal, Spain, Italy and France. Below is an 8-step rescue plan for the Euro and a proposal to re-index all the European stock exchanges to dramatically improve the standard of living in the above mentioned countries.

The U.S. already looks more and more like a Third World country.

The frequency of financial crises and recessions is quite high: on average, there is one crisis every 58 months (using data from the US National Bureau of Economic Research). In other words, statistically speaking, we should expect the beginning of the next crisis in April 2015, which would end by March 2016. There are 8 possible scenarios that could cause the next crisis. Let's take a look at each.

[Charts have the ability to clearly illustrate various situations and no 2 could be more so than the following charts] on the incredible divergence in the U.S. economy and the European economy as it related to the extent of unemployment and industrial production in each region. Take a look. It's truly amazing - truly tragic.

Despite the European Central Bank's periodic assurances to the contrary, Europe is well on its way to a lost economic decade and if European policymakers cannot shake themselves out of their present state of complacency we should brace ourselves for very rough going in the global financial markets when the U.S. Federal Reserve starts the process of normalizing interest rates.