Economy

When velocity is low the nation essentially winds up in a "liquidity trap" which is a situation where monetary policy is unable to stimulate the economy either through lowering interest rates or increasing the money supply. This was the condition that Japan found itself enveloped in from 1989 to present. We expect the same problem in this country and hope (really hope) to be wrong. Words: 672

Yes, you read that right; get ready for the next housing boom. You're probably thinking, "How could that be with all the mortgage delinquencies and foreclosures going on, and the record levels of housing inventory? Well, it's not going to happen soon - [probably] not for several more years - but it's coming. [Let me explain to you why it is inevitable.] Words: 589

Tens of millions of American families are about to go through economic hell and most of them don't even realize it...Most Americans realize that things seem "harder" these days, but most of them also have faith that things will eventually get better. Unfortunately, things aren't going to get any better. The number of good jobs continues to decline, the number of Americans losing their homes continues to go up, people are having a much more difficult time paying their bills and our federal government is drowning in debt. Sadly, this is only just the beginning. [Let me explain.] Words: 1256

While Washington debates raising the debt ceiling and cutting spending to achieve $1 to $2 trillion of savings over the next decade, it’s worth pointing out that these savings may never materialize because the existing official budget numbers are too optimistic across several fronts. [Let me show you some numbers that will both surprise, concern, and enlighten you.] Words: 1070

Many investors are worried about inflation and, as a result, are considering buying inflation indexed bonds and other inflation protected investment vehicles. They may be setting themselves up for significant losses, however, because of the way the government is now calculating the CPI, and the further changes being proposed. In the opinion of this writer, the CPI calculation appears to be inaccurate and, as a result, such investments may not be appropriate inflation hedges. [Let me explain.] Words: 1533

Greece is going to default and even take the euro, and maybe the EU, with it. There will be 5 investment opportunities should that unfold as expected and one of them will be the U.S. dollar. [Let me explain.] Words: 1187

Every single day the U.S. economy is getting weaker. Every single day we are going into more debt. Every single day we get closer to the collapse of the entire system but time is running out. The entire U.S. financial system has become a gigantic shell game (a confidence trick to perpetrate fraud) but when it ends the consequences can be painful and, sadly, that [pain is eventually going to be ours to experience. Let me explain.] Words: 1483

The budgetary and fiscal crisis right now has made many political issues far clearer in people's minds. The debt dilemma is a challenge and an opportunity to set America on a freer and potentially more prosperous track, if the reality of the situation is looked at foursquare in the eye. Otherwise, dangerous, destabilizing, and damaging monetary and fiscal times may be ahead. [Here is how I see the situation and how I would propose solving the inherent problems.] Words: 3518

According to conventional market wisdom, there are three safe haven currencies: the Swiss franc, Japanese yen, and US dollar. It is to these currencies that investors flock whenever there is a crisis, or merely an outbreak of uncertainty, and for much of the period following the collapse of Lehman Brothers, the three were closely correlated [but that is nolonger the case as the title of this article so indicates. Let me show you what has happened of late.] Words: 670

Inflation is a significant measurement for the economic health of countries around the world but rates are often reported weeks after data is collected. To address this problem, two professors at MIT Sloan School of Management have launched the Billion Prices Project which is the first website to publish daily price indexes and provide real-time inflation estimates around the world. Words: 825