LATEST NEWS : The Immorality Of Paper Money

One of today’s most common economic fallacies is that the soaring stock market is evidence of economic recovery. Nothing could be further from the truth. Stocks have almost tripled since the 2008 collapse, but that stock growth stems from Federal Reserve money printing (inflation) and near zero interest rates. The Fed’s balance sheet has grown […]

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S&P Dims Outlook on Russia to 'Negative' on Geopolitical Jitters

Hours after President Obama threatened to sanction key sectors of Russia’s economy, Standard & Poor’s downgraded its outlook on Russia on Thursday to “negative” amid fears over the economic fallout of the deteriorating geopolitical situation. The move by the ratings company underlines the financial ramifications of Moscow’s annexation of Crimea, which has slammed Russia’s equity […]

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Prepare For Tough Times If Your Job Has Anything To Do With Real Estate Or Mortgages

“If you have a job that involves building homes, buying homes, selling homes or that is in any way related to the mortgage industry, you might want to start searching for alternate employment.  Seriously.  Interest rates are starting to rise dramatically, and mortgage lenders such as Bank of America, Wells Fargo and JPMorgan Chase are […]

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Cooked Books: The Technical Bankruptcy of the Government Is Kicked Out Another Six Weeks

“The U.S. government’s debt has been locked in at this implausible limit for three months: $16,699,396,000,000. The Secretary of the Treasury says that it will not hit the ceiling until mid-October. The BBC reports this. The country’s borrowing limit is currently capped at $16.7tn (£10.7tn).”Extraordinary measures are projected to be exhausted in the middle of […]

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Bank of England Ready to Inject More Stimulus, Carney Says

“Bank of England Gov. Mark Carney, in his debut speech on Wednesday, announced new measures to boost lending in the U.K. and said the central bank is ready to step in with fresh stimulus if the country’s economic recovery falters. Once again, however, his message seems to have fallen on deaf ears: U.K. government bonds […]

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Fed Debates Whether Purchases or Promises Work Better

“Federal Reserve officials gathering in Jackson Hole, Wyo., this week with academics, private bank economists and others will ponder a question that will influence Fed decisions in the coming months: Which of its novel monetary tools are doing the most for the economy?”   Continue reading on online.wsj.com

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The Fed has already squashed its most tangible tool for helping the economy

“America’s largest mortgage maker, Wells Fargo, is cutting some 2,300 mortgage production employees, Bloomberg reports. Why? Higher interest rates. Since the US Federal Reserve started talking up the taper back in May, mortgage rates—which are closely tied to yields on US government bonds—have surged. As rates have gone up, refinancing activity collapsed, killing off a […]

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