Until the notion that wealth and prosperity can come from a printing press is eradicated from the thinking of policymakers, economies around the world will remained mired in this malaise. Jobs created through government money creation and heavily protectionist laws and regulations will not meet the needs of consumers, will add nothing to productivity, and ultimately will not last... economic stagnation is the unfortunate but predictable result.
Over the last two years, the Fed Up Campaign has routinely brought a coalition of low-wage workers to Jackson Hole, Wyoming to protest Federal Reserve hike rates amidst the unequal “economic recovery.” The Jackson Hole event is invite only, closed to the public and costs $1,000 per person to attend. It appears that this year, Janet Yellen and company went out of their way to ensure there would be no such protests diverting the attention of the nation's most esteemed economists.
The notion that something good might come out of a Trump policy elicits guffaws in certain economic circles. However, by insisting that the U.S. Treasury label China a “currency manipulator” and by promoting trade that is both free and “fair,” Mr. Trump may be laying the groundwork for a significant breakthrough in international monetary relations - one that could ultimately validate the rationale for an open global marketplace and restore genuine free trade as a vital component of economic growth.
Stock market “bulls” should pray that interest rates don’t rise. Don’t blame those poor consumers for not spending – they are spending everything they have and then some. Just one word describes the outcome of that event given the current excessively leveraged consumption based economy of today – disaster.
Here is the simple, pragmatic answer, and one which Wheeler did stumble on last night when he said that no matter what he does "the market would still want more." That is precisely what has happened with Australia, New Zealand, Japan and so on: the market still wants more. Much more.
The summer doldrums continue with another listless overnight session, not helpd by Japan markets which are closed for holiday, as Asian stocks fell fractionally, while European stocks rebounded as oil trimmed losses after the the IEA said pent-up demand would absorb record crude output (something they have said every single month). S&P futures have wiped out almost all of yesterday's losses and were up over 0.2% in early trading.
The reality is, they cannot hide an economic collapse forever. Negative financial effects are going to touch ground somewhere, and the data is going to sneak through...the globalists have created the conditions by which an economic crisis can be triggered at the time of their choosing (within certain limits)... and they need the economy to turn unstable in order to create a rationale for a centralized economic authority and a single global currency system.
After the ECB concluded its latest annual stress test, which as expected found no problems with Europe's largest banks, yesterday in an unexpected outcome, German economic research institute ZEW found that Deutsche Bank had the highest potential capital shortfall, as much as €19 billion in a study of 51 European banks using U.S. Federal Reserve stress test methods. The capital gap is greater than DB's entire market cap.
"Zero interest rates and negative interest rates and Europe and Asia are a huge signal that we are almost at the point where central banks have lost their tools to perpetuate a sense of confidence, that things are cyclical.... If you were to apply the Bretton Woods model for valuing money today, gold would be up to $15,000 an ounce..."
As first reported yesterday, in a striking development, the BOE failed to monetize all the longer-maturity gilts it had hoped to purchase on just the second day of its restarted QE operation, as it encountered something striking: an offerless bond market. Today Wall Street responds.
“Radical monetary policy begets more radical policy... It seems to me, at some point, markets or voters will put a stop to this.” If and when that time comes, Grant notes that investors will be looking for physical stores of wealth, explaining "the case for gold is not as a hedge against monetary disorder, because we have monetary disorder, but rather an investment in monetary disorder."