Economy

Most economists see the latest Q1 GDP stumble as a blip, something we shouldn't worry about because the economy is still on track for recovery...[but] another way to look at it is that the economy is being harmed by monetary inflation and we are seeing massive distortions in the economy as a result of this intentional Fed policy - economic growth is stalling and industrial production, manufacturing, non-manufacturing, durable goods production, retail sales and employment is flattening-to-declining... I think this is the correct way of looking at things and, [as such,] Q1 is not a temporary blip on the road to recovery... [but another mile down the road to economic stagflation, price inflation, lower real estate prices, continuing high unemployment, a weaker dollar, higher taxes and more - much more! Let me explain.] Words: 2997

The economy can't be fixed...the old regime of general economic stability and rising standards of living fueled by excessive credit are a thing of the past... The sooner we can accept that idea and make other plans the better... [Let me explain.] Words: 1898

[A look below at the trend in the U.S.'s share] of world GDP (data here) from 1969 to 2010... [shows an] amazingly stable share of world output which has remained [constant at 26.3%] for more than forty years...[and] is a testament to how America's dynamism, resiliency, and culture of innovation and entrepreneurship have enabled us to be productive in a tough world. [Let me expand on this further.] Words: 730

In response to the financial crisis of 2008, the Fed injected unprecedented levels of liquidity into the banking system. While inflation has been modest to date, an analysis of similar periods in history shows that it typically takes more than two years for the impact on consumer prices to be seen. Consequently, we are now at a pivotal point in the current cycle as Fed stimulus began more than two years ago. [Let me explain further.] Words: 2755

[As a reult of] slowing economic growth around the world, stock markets are at the “tipping point” of a correction. Here are 15 global signs that supports that thesis. Words: 678

Until people understand the reality of this supposed financial recovery and realize that unless major changes are made the deck chairs on the Titanic will just keep being rearranged resulting in the wealthy being even wealthier by 2020 and the middle class being a shell of what it once was in the United States. [Let me explain more fully.] Words: 1260

[While] the average country has seen its default risk decline by about 5% this year [25 countries' CDS prices went up; 32 countries saw their CDS prices go down]... the US has seen its default risk rise the 8th most (i.e. 19.28%) out of the 57 countries listed.

There is a tremendous fixation on the inflationary components of CPI of which the most obvious driver is gasoline without which even the rate of headline inflation would be dropping, and the largest risk would be falling inflation. [Deflation? Yes, that is the case when you look at] what consumer prices have declined over the past few years. Words: 460

The credit risk of the 30 large global financial entities representing the most systemically worrisome firms in the world just broke an important channel. It is now at its highest level in over four months having increased 14% in just the last three weeks which is extremely fast. At current levels we are now almost twice as risky as we were prior to the financial crisis and there is increasing concern that there might be another round of insolvencies or collapse of the financial industry. [Let's take a closer look.] Words: 630

The Federal Reserve’s dual quantitative easing exercises...have been disappointing thus far and, according to what the multi-billion dollar Treasury market is telling us, the numerous forecasts of upcoming inflationary pressures just do NOT exist. [Let me explain.] Words: 571