Not everyone can become a waiter or a bartender. And as more disposable income accrues to the top, and is deployed in luxury goods and the pursuit of rents and acquisition, the rest have lest to spend for goods that stimulate the aggregate demand.
As you know I would ascribe this slow decay in economic activity to the ‘top down’ monetary stimulus being deployed by the Western central banks, and their overattention to the well being of the largely broken and misdirected financial sector that was in fact primarily responsible for the crash in 2008. That they corrupted the regulatory process along the way for their own benefit is an ancillary cause at best.
As I have been saying since roughly 2008, the Banks must be restrained, and the financial system reformed, with balance restored to the economy, before there can be any sustainable recovery.
Any number of disaster scenarios would seemingly bring the U.S. to a grinding halt, and wreak untold havoc upon the vulnerable population.
On May 3, industry analysts are pumped up April 2016 to be the best April in history for car sales. Some analysts expect record sales for the entire year.
President Obama weighed into the Brexit debate on his recent visit to the UK, saying that if Britain left the EU, she would be at the back of the queue when it comes to a free trade agreement.
As investors become increasingly nervous about the stock market, the price of gold has been swinging up, rising roughly 20 percent since just the beginning of the year. But if you buy your gold in coin form, you need to be wary. Chinese crooks are minting fakes in large quantities and selling them on the Internet.
Add a jump in open interest to signs that gold’s rally may persist after the best start to a year in a decade.
Today the IRS published the latest figures on renunciation, showing that yet another 1,158 Americans have renounced their citizenship in the first quarter of 2016.
Liquifaction: … 3: conversion of soil into a fluidlike mass during an earthquake or other seismic event, 4: inability of flooded capital markets to absorb additional capital without destabilizing paper assets, e.g. stocks, bonds, currencies, etc., 5. a monetary phenomena associated with the collapse of capital markets.
The coming ‘sharia gold standard’ or shariah compliant gold could lead to a very significant source of new demand for physical gold coins and bars in the Islamic world. It is believed that this will contribute to much higher prices and gold “soaring” as some of the $2 trillion of assets held in Islamic financial institutions are allocated to the very small physical global gold market.
Europe has banned the use of €500 bills.
Japanese Prime Minister Shinzo Abe has urged British voters to back staying in the EU, adding to the chorus of international voices against so-called Brexit.
For investors skeptical that gold’s rally will persist after the best start to a year since 2006, one indicator may help ease their concerns. Open interest, a tally of outstanding contracts in Comex futures, rose to the highest in five years on Monday, showing traders are expecting further increases, according to George Gero, a managing director at RBC Wealth Management in New York. Bullion is gaining more appeal against interest-bearing assets after lending rates fell below zero in Europe and Japan and the Federal Reserve signaled a slow pace of monetary tightening.
Presumptive Republican presidential nominee Donald Trump on Thursday positioned himself on the far left of the political spectrum on fiscal issues, coming out for low interest rates, against a strong dollar and a more aggressive managing of U.S. debt.
With gold, silver and the dollar all trading higher, a couple of greats in the business warned about two horrific nightmares that the world now faces.