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Fed's Williams Calls For An Overhaul Of Monetary And Fiscal Policy... But There Is A Problem

According to John Williams, central banks and governments must come up with new monetary and fiscal policies to kickstart a global economy which is barely growing (thanks to 7 years of flawed monetary policy). "We can wait for the next storm and hope for better outcomes or prepare for them now and be ready." As a result, Williams believes that a major fiscal stimulus thrust is now critical to propel the US economy higher. And he is, mostly, right. There is just one problem...

Global Stocks Rise, US Futures Near All Time Highs As Flood Into Emerging Markets Continues

European shares advanced, with gains in automakers  helping Germany’s benchmark DAX Index turn positive for the year for the first time. Stocks rose around the world, led by emerging-markets, as oil climbed further after its best week since April and traders pushed back bets on higher U.S. interest rates. S&P futures advance and Asian stocks little changed as rising oil prices bolstered investor sentiment.

How Long Can Economic Reality Be Ignored?

Real economists, if there were any, looking at the real economic picture would see an economy collapsing into widespread debt deflation and impoverishment. Debt deflation is when consumers after they service their debts have no discretionary income left with which to drive the economy with purchases. The reason that Americans have no income from their savings is that public authorities put the welfare of a handful of “banks too big to fail” above the welfare of the American people. The enormous liquidity created by the Federal Reserve has gone into the financial system where it has driven up the prices of financial instruments. There has been a stock market recovery but not an economic recovery.

Generation Screwed Fights Back

“We call ourselves “Generation Screwed” because governments are spending money but leaving the bills behind for the young to pay,” says Gunn. “Apathy is our biggest challenge. Many youth are so burdened with the demands of getting a start in life, they are unaware of the lousy hand they are being dealt.”

Rethinking The Cold War... And The New One

The new Cold War is far more dangerous than the old, because the respective war doctrines of the nuclear powers have changed. The function of nuclear weapons is no longer retaliatory. Mutually Assured Destruction was a guarantee that the weapons would not be used. In the new war doctrine nuclear weapons have been elevated to first-use in a preemptive nuclear attack. Washington first took this step, forcing Russia and China to follow.

The Great Stock Market Swindle

The reigning hallmark of our time is the abundance of deceptions that presently pass for standard practice...