Biggest Miss On Record

September 24, 2013

Following UMich confidence’s biggest miss on record, the Conference Board misses expectations printing at its lowest since May 2013 as the last data was revsied higher.

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Market … Waiting

September 18, 2013

Print On? Print Off?…::: Investors jostle ahead of Fed decision on stimulus

Markets took last minute positions on Wednesday ahead of what is expected to be the first tentative step by the U.S. Federal Reserve to wean the world off the super-easy money it has used to treat the last five years of financial turmoil.

Tenative??

And then comes inflation, as the truth spills out.

Printing money, does not an economy make.

 

 


The 2% Tipping Point

September 16, 2013

There’s a little known rule of thumb in the economics world: when the annual growth rate of key U.S. indicators falls below 2 percent, the economy slides into recession in the next 12 months… and more than one of them is flashing red.

Via Bloomberg’s Rich Yamarone,

Real GDP growth was an annual 1.6 percent in the second quarter. It was last at 2 percent in the fourth quarter 2012, down from 3.1 percent in the third. In addition, real disposable personal incomes (0.8 percent), and real consumer spending (1.7 percent) flash warning signs. With GDP, they possess exceptional recession-predicting abilities. The reason is simple: like riding a bike, if you don’t pedal, you tip over.

And we are tipping over…

Industrial production has the weakest history as an indicator, with growth falling below 2 percent on several occasions when the economy has avoided recession. The economics behind this is that the U.S., far from being a factory behemoth, is prone to manufacturing downturns.

Another rarely-cited statistic with excellent predictive qualities is the pace of real final sales of domestic product, which measures the level of goods produced in the economy that are actually sold rather than placed in inventory. The current 12-month pace is 1.6 percent. Alternatively, some economists look to the level of final sales to domestic purchases, which represents GDP less net exports and inventories.

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Print On, Print Off

September 11, 2013

The International Monetary Fund expects the U.S. Federal Reserve will trim the amount of bonds it buys every month beginning next year, the organization’s chief said on Friday.

“In terms of our hypothesis for next year’s (economic) forecast, I think we have assumed a very slight decline” in monthly purchases made by the Fed, IMF Managing Director Christine Lagarde told a news conference.

 


The Economic Division Widens

September 1, 2013

No matter how much welfare you latter on nothing changes, except those with cash get richer, those without get poorer.

The Big Confidence Gap Splitting the U.S. Middle Class. “It’s always been true that those who are better off have a more sanguine view of the economy. In the last year, though, that gap has become especially glaring. For households with income of more than $50,000 a year, confidence is up to the levels of 2007. For those below that, it’s not even close. . . . For a long time it was a cliché that much of the U.S. working class felt ‘middle class.’ Now it appears that a big part of the middle class — those households in the $35,000 to $50,000 a year bracket — feels poor.”

Destroy The Middle Class … What did you expect was going on here. Communists only operate in a two class society, them and the rest of us, the peasants. Why do you think Congress got exempted from Obamacare???

It’s the Communist way …

 


The Way It Is Being Used and Manipulated –It Is Theft

July 31, 2013

It’s not just inflation that is theft. It is painfully self-evident that our financial system doesn’t just enable theft, it is theft by nature and design. If you doubt this, please follow along.

The Financial System Doesn’t Just Enable Theft, It Is Theft

 Inflation is theft, but we accept inflation because we’ve been persuaded it benefits us. Here’s the basic story: our financial system creates new credit money (i.e. debt) in quantities that are only limited by the appetites of borrowers and the value of assets they buy with freshly borrowed money.

If this expansion of credit money exceeds the actual growth rate of the real economy, inflation results.
Since our economy is ultimately based on expanding debt in every sector (government, corporations, households), inflation is a good thing because it enables borrowers to pay back old debt with cheaper money.
Try to print physical gold…

 


Where Are We Now? – A World View

June 25, 2013

 

Wondering why the money world got its knickers in a twist last week? The answer is simple: the global economy is breaking apart and its constituent major players are doing face-plants on the downhill slope of a no-longer-cheap-oil way of life.

Let’s look at them case by case.

 


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