LATEST NEWS: The System Is Terminally Broken

The Fed has formally “ended” QE, but it hasn’t really.  The Fed will continue reinvesting interest on its portfolio in more bonds and it will rollover maturities.  We saw what happens to the stock market a few weeks ago when Fed official James Bullard asserted that the Fed needs to start raising rates:   the […]

Continue reading

LATEST NEWS : We Are So Not Prepared For Another Oil Shock

In one sense, energy doesn’t matter all that much to what’s coming. Once debt reaches a certain level, oil can be $10 a barrel or $200, and either way we’re in trouble. But the cost of energy can still play a role in the timing and shape of the next financial crisis. The housing/derivatives bubble […]

Continue reading

LATEST NEWS : US economy contracts as tens of thousands are laid off

In recent days, several reports have surfaced that paint a grim picture of the United States economy. They provide details on how US gross domestic product (GDP), wage growth and consumer spending either stagnated or declined during the first quarter of 2014. This economic downturn corresponds with an increasing number of layoffs, which exceeded 14,000 […]

Continue reading

Half of U.S. Counties Haven’t Recovered From Recession

“About half of the nation’s 3,069 county economies are still short of their prerecession economic output, reflecting the uneven economic recovery, according to a new report from the National Association of Counties. The overall U.S. economy had reached its prerecession level of gross domestic product three years ago, Commerce Department figures show.”   Continue reading on blogs.wsj.com

Continue reading

The Fed Can Only Fail

The basic predicament we are in is that the current crop of leaders in the halls of monetary and political power do not appear to understand the dimensions of our situation. The mind-boggling part about all this is that it’s not really all that hard to grasp. Our collective predicament is simply this: Nothing can grow […]

Continue reading

China, India criticise developed nations’ monetary policy

“Chinese President Xi Jinping says the BRICS group should step up cooperation on major global issues. “BRICS members should expand consensus on major international issues and enhance solidarity and cooperation,” said President Xi. “BRICS members should join hands to maintain and promote the openness of the world economy, oppose trade protectionism, safeguard the multilateral trade […]

Continue reading

China’s American Bailout?

“ZURICH – The twenty-first-century economy has thus far been shaped by capital flows from China to the United States – a pattern that has suppressed global interest rates, helped to reflate the developed world’s leverage bubble, and, through its impact on the currency market, fueled China’s meteoric rise. But these were no ordinary capital flows. […]

Continue reading

The “New Economy” Is The No Jobs Economy — Paul Craig Roberts

“Dear Readers, I am flattered by the traffic on this site, and by the generosity of donors from across the United States–large cities and small villages–and the world. We have donations from Indonesia, Russia, Taiwan, Hong Kong, most countries in Europe and from Canada, Australia, and New Zealand. It is exciting to me that people […]

Continue reading

Why the global economy may be doomed to lower growth—maybe forever

“We’re more than halfway through the second-quarter corporate earnings season. And while the results for US companies show corporate growth, it’s been slower than normal—even the last few years’ normal. For the last four years, the “surprise percentage” of the S&P 500—the percentage by which all companies beat analyst expectations this quarter—has been 7.0% at […]

Continue reading