Economy

Global debt-to-GDP is now at a record high and the Bank for International Settlements hasbubbles noted that over the last 16 years, debts of governments, households and corporations has gone up everywhere.

In a conversation posted at You Tube, GoldMoney's brain trust -- founder James Turk, CEO Roy Sebag, research chief Alasdair Macleod, and Vice President John Butler -- discuss the market possibilities for the new year and how gold may figure in them. They seem to agree that big changes are in the air.

...According to Bloomberg ("White House: Cohn-Led Tax Plan is Real and it's Phenomenal," February 10, 2017), Trump's tax plan, to be released in two or three weeks, will be "the most comprehensive business and individual tax overhaul since 1986." That's saying something, since the landmark 1986 tax bill cut many deductions and reduced the top rate to 28% for the rich, 15% for the middle class, and 0% for the poor.

No matter what the Trump Administration and its many critics keep throwing at us, the market usually focuses more on corporate earnings than politics. Since we are in the middle of earnings season, stocks with strong sales, earnings, and forward guidance will likely continue to lead the market.

Are the actions being taken by Trump’s administration to spur domestic manufacturing, jobs and economic output a precursor to a weaker dollar and another bull market in gold? Only time will tell, but investors should keep close watch on this developing scenario and adjust portfolios accordingly.

Higher prices (inflation) are a natural consequence of our ever increasing monetary supply and the U.S. Department of Labor tracks those increases via a basket of common consumer goods which is known as the Consumer Price Index (CPI) but reveals a major discrepancy with The Economist's Big Mac index. Why is that?

The green shoots of inflationary pressures are sprouting in our daily lives and, as such, NOW is the time investors should be actively seeking out sectors that can realize rising revenues and profits because of the wave of price increases in goods and services that will be passed on to businesses and consumers.

According to the Atlanta Fed’s closely watched “Deflation Probabilities” indicator, overall prices in the U.S., as determined by the Consumer Price Index, now have exactly 0% chance of dropping over the next 5 years, down from a probability of 14.1% in May last year.

Would abrogating NAFTA, withdrawing from the WTO, and not ratifying the TPP be appropriate and sufficient policy responses to the shedding of manufacturing jobs? The clear and obvious answer is: NO. Here's why.

How much consumer debt is too much? Today’s infographic uses extensive data from Equifax to try and answer this question.