Economy

In an odd twist of fate the future of the U.S. dollar is in the hands of Asian governments [and particularly China and Japan. Let's hope they continue to put their own interests first.] Here’s why.

It’s been exactly two years since Standard & Poor’s did the unthinkable and downgraded the U.S. government’s debt rating...and yet, it’s as if it never happened…

With wage growth suppressed and consumers still driving over 70% of the nation's GDP, weak economic growth should not be a surprise.

New research shows that forecasters tend to underestimate the expected outcome of anticipated economic data for several months in a row, and then overestimate it for several months in a row thereafter. Why does that matter? Read on.

Despite the preponderance of evidence that money printing doesn’t create jobs, Bernanke and his Central Bank colleagues continue to perpetuate the myth that the recovery is just around the corner, as long as we continue to print money. It’s complete and utter insanity as all it will accomplish is bankrupting the U.S. resulting in higher costs of living - and lower quality of life - for all of us. [Let me explain why I believe that is the case.]

The Eurozone economy (and currency) – which was once on the brink of complete and utter disaster – is finally on the road to recovery....[Here is] a safe way for skittish investors (i.e. – the non-contrarians) to take advantage of the opportunity in Europe before it disappears. Words: 503; Charts: 1

All of this talk about a "bright future" for real estate is just a bunch of nonsense. The yield on 10-year U.S. Treasuries is starting to rise aggressively again and, because mortgage rates tend to follow such increases, mortgage rates are going up. As monthly payments go up less people will be able to afford to buy homes at current prices and this will force home prices down. As such, another great real estate crash is inevitable. Let me explain further. Words: 995 ; Charts: 1

At this point, thanks to a long-standing policy of wanton money printing, the Fed has more liabilities than ever before in its history - by an enormous margin - and this precarious balance sheet is dangerous, because if the Fed goes bust, everyone loses [- including YOU. Let me explain why that is the case]. Words: 398

Data from Barclays Research clearly shows that the strain on US consumers from student loans isn’t going to improve any time soon and that the risk to the taxpayers is on the rise.

Never before has the world faced such a serious debt crisis. Yes, in the past there have certainly been nations that have gotten into trouble with debt, but we have never had a situation where virtually all of the major powers around the globe were all drowning in debt at the same time. Right now, confidence is being shaken as debt levels skyrocket to extremely dangerous levels. Many are openly wondering how much longer this can possibly go on. [Here's my take on the situation.]