Wednesday , 25 December 2024

Economic Overviews

U.S. On Unsustainable Path That Guarantees Eventual Catastrophic Financial Melt-down – Get Prepared (3K Views)

Although our supposed leaders are presumably highly intelligent, educated, and knowledgeable, they act largely “brain-dead” as they lead the United States down an unsustainable path that guarantees eventual catastrophic financial destruction. Do you own enough gold and silver that you would feel safe in a such a financial melt-down? If not, why not? Words: 817

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Coming Derivatives Crisis Will Cause Panic in Financial Markets With Horrific Consequences – Here’s Why (+2K Views)

Wall Street has been transformed into a gigantic casino where people are betting on just about anything that you can imagine. This works fine as long as there are not any wild swings in the economy and risk is managed with strict discipline but, as we have seen, there have been times when derivatives have caused massive problems in recent years - the government bailout because of derivatives at AIG; the failure of MF Global because of bad derivatives trades; and the 6 billion dollar loss that JPMorgan Chase recently suffered because of derivatives - [but the next] derivatives panic that comes will destroy global financial markets, and the economic fallout from the financial crash that will happen as a result will be absolutely horrific. [Let me explain my contention.] Words: 1485

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A Rise in Interest Rates Would Derail An Economic Recovery – Yes or No?

[While]... I am not currently predicting an acceleration in inflation [I believe]...that the risk of interest rate instability is very real [given that] core inflation is already above a key benchmark that the Fed has staked its credibility on,. It should be of concern to investors that, despite economic growth being so anemic and overall resource utilization being so low (including human resources), there is currently very little margin for error on the inflation front. [In this article the author evaluates the danger that rising interest rates could potentially have on the U.S. economy.] Words: 2050

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Fiscal Cliff: 1 Step Backward – Then 2 Steps Forward (2K Views)

...Fiscal policy, both in the U.S. and in Europe, has already been a drag on economic growth, and it’s extremely likely to continue to be one as politicians begin addressing concerns about long-term debt burdens. The debate about the fiscal cliff deal might revolve around the preferred paths to reducing the nation's long-term debt, but it also will determine just how much fiscal policy will limit growth over the coming months and years. What’s really at stake, in the near term at least, is the answer to two important and interrelated questions: How dysfunctional is our political leadership and how bad is our economy going to be next year? Words: 610

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Attention Chinese Nationals! This Site Provides Broad, Balanced Financial Analysis on China & the Rest of World

Of the 1000s of financial sites on the internet many contain biased, shallow, unbalanced and uncomplimentary commentary on the state of the Chinese economy and economic system - so much so that the state government has blocked access to said sites. This site prides itself in posting objective, substantive and balanced articles containing insightful analysis of the world's financial affairs including those of China. Check them out.

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How Much Higher Can the Canadian "Loonie" Soar Before Its Economy Gets Singed?

Booms — and the boom in Canadian commodities is no exception — are seldom without their unintended costs....[As the Canadian dollar appreciates versus the U.S. dollar, and with the U.S. as] its largest trading partner, falling Canadian exports could well induce a secular decline in the Canadian manufacturing base. Indeed, as the loonie soars, the inevitable question is: "How much higher before its economy gets singed?" Words: 528

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