The history of previous civilizations rising and eventually collapsing is well documented. Our current economy seems to be following a similar pattern... Our fundamental problem is the fact that neither high nor low energy prices are now able to keep the world economy operating as we would like it to operate.
In an curious exchange in traditional roles, Senate Minority Leader Chuck Schumer slammed Republicans on Tuesday for advancing a fiscal year 2017 budget resolution which, while designed to repeal the Affordable Care Act, also contemplates more than a $9 trillion increase in the public debt over a decade
In the realm of investing, an example of “fake news” is the claim by some market participants that a “great rotation” will take place from bonds to stocks. Despite a sharp rise in interest rates during the past six months and a drop in the market value of debt holdings, we expect minimal asset rotation away from debt and into equities during 2017.
The smooth transition appears to be getting bumpier. Following president-elect Trump's earlier tweet on the "Obamacare disaster," President Obama delivered a mandate to Democrats on Wednesday: "Don't rescue" Republicans on Obamacare. With his legacy in tatters, CNN reports Obama also floated this idea: Start referring to the GOP's new plan as "Trumpcare."
"It will be an orderly transition to something better...using executive authority to ensure it’s an orderly transition. We’re working now on a series of executive orders that will enable that orderly transition to take place even as Congress appropriately debates replacements for ObamaCare" said VP-elect Mike Pence.
"As I look out over the coming years, I am convinced that we’ll see the blowing up of the biggest bubbles in history - including those of government debt and government promises. And it’s not just in the US, but all over the world. That will lead to an eventual global crisis of biblical proportions."
"Markets don’t have a purpose any more - they just reflect whatever central planners want them to. Why wouldn’t it lead to the biggest collapse? My strategy doesn’t require that I’m right about the likelihood of that scenario. Logic dictates to me that it’s inevitable..."
The countdown has started as the demise of the great U.S. shale gas industry has begun. This will have a disastrous impact on the U.S. economy as shale gas production declines in a big way. Unfortunately, very few Americans understand how sickly the domestic shale gas industry truly is, because they have been brainwashed to believe the United States is heading towards energy independence.