Tag Archives: economic growth

Injecting massive amounts of liquidity into the banking system can spur dramatic economic growth if that liquidity is used. On the other hand, if public perception is negative and fearful, that liquidity remains untapped and no growth occurs. We are in a new earnings season and for the most part - based on lowered expectations - the numbers are looking OK so what should we expect based on these modestly improving numbers? Words: 2176

In today’s overleveraged world, greater deficits and government spending, financed by an expansion of public debt and the monetary base (“the printing press”), are not the answer to our economic woes. In fact, these policies have been proven to have a negative impact on growth. [Therefore] as long as we continue down this path, the “solution” will continue to be the problem. There is no miracle cure to our current woes and recent proposals by central planners risk worsening the economic outlook for decades to come. [Let us explain.] Words: 1510

With 10 year Treasuries yielding 1.6% in the United States, some argue that higher deficits are warranted. As the discussion below shows, the logic behind that view is fundamentally flawed, if not reckless. Words: 1238

Recent favourable macroeconomic data has suggested that the U.S. economy could be back on track but the recent uplift in the economy only hides more fundamental problems...[The truth of the matter is that] US economic growth will remain weak and below trend throughout 2012 as a result of net exports continuing to be a drag and the Fed being unable, in the face of political constraints, [to do enough, soon enough,] to help the economy significantly... [Let me explain more fully why that is going to be the case.] Words: 950

It all comes down to this: We have to match growth to debt. If we can't create miracles from growth, we have to consider inflation to reduce the value of our debt. [Those are the] only two ways out of our current global economic mess - innovation and inflation. As the saying goes, we should hope for the best (more innovation) and prepare for the worst (higher inflation). [Let me explain why that is the case.] Words: 1195

The economic news is not very encouraging these days. Everywhere I've looked, and I've looked at 10 different indicators (surveys, polls and indexes), things appear to be either down or stagnant. Let me be more explicit. Words: 1058

In the face of lackluster economic growth and no hopes for new stimulus anytime in the near future, the global tightening cycle may force the market back into a deflation scare. Either way, caution remains warranted in such an environment. [Let me explain further.] Words: 568

Knowing where we are within the business cycle can help investors better position themselves for superior returns [because, as we all know,] during economic expansions equities typically outperform fixed income investments while the converse is typically the case during economic downturns. Current analysis of the business cycle suggests a period of slower growth ahead, not just in the U.S., but also globally, [but no signs of an impending recession. Let me explain.] Words: 834

[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

[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