new economy

The US Is About To Hit $20 Trillion In Debt: Here's How It Affects You

As the vulture pundits in the mainstream media pick apart hollow political scandals, the essential bankruptcy of the federal government looms just ahead. The national debt is creeping toward 20 trillion dollars, and the United State’s largest problem is once again staring the world in the face.

3 Things: Policy Hopes, Consumer-Spending Puppies, & Tax-Cut Rainbows

"Will “Trumponomics” change the course of the U.S. economy? We certainly hope so as any improvement that filters down to the bottom 80% of the country will be beneficial. However, as investors, we must understand the difference between a “narrative-driven” advance and one driven by strengthening fundamentals. The first is short-term and leads to bad outcomes. The other isn’t, and doesn’t. "

Do Central Bankers Know A Bubble When They See One?

In spite of being exposed in what is either a self-exculpating lie (the claim that bubbles can only be seen after they burst) or a sign of gross incompetence (the failure to see two of the largest financial bubbles in history), no Fed official has ever been asked to explain or rationalize the Fed’s contradictory positions on bubbles.

Can Trumponomics Fix What's Broken?

Will “Trumponomics” change the course of the U.S. economy? We certainly hope so. It will be better for us all. However, as investors, we must understand the difference between a “narrative-driven” advance and one driven by strengthening fundamentals. The first is short-term and leads to bad outcomes. The other isn’t, and doesn’t.

A Narrative For Every Season: Stocks, Before And After Trump

Following Donald Trump’s surprise victory and the violent market reactions, many investors are left scratching their heads. The consensus narrative warned that a Trump victory would spell doom for the markets. Days later, the narrative flipped and Trump’s economic policies, all of which were known prior to the election, are deemed beneficial for share prices.

"Welcome To Fantasy Land" Peter Schiff Warns Negative Rates Will Kill Growth

"So we have a choice, either we continue down the road of negative rates to Fantasy Land, where central banks own all the stocks and bonds and asset prices always rise, but real wages and average living standards always fall, or we take our chances on a different path that leads to reality, however unpleasant the transition may be. I for one would choose the latter, but it looks like I won’t have much company."

How Does It All End?

[T]he long run meets the present [where] systems that no longer pay their way exhaust their credit and go broke. The Breaking Point is a nonlinear departure on the road to nowhere. It occurs when collateral collapses, burying the public’s faith in fiat money and the institutions that create and regulate it.”

American Worker Productivity Worsens (Again) - Biggest Decline Since 1993

As expected Q2 US worker productivity slowed from its initial -0.5% to a final -0.6%. This is the 3rd quarterly decline - the first instance since 1979 - and the last 3 quarters are the biggest plunge in productvity since 1993 (thanks to a doubling of unit labor costs from expectations of +2.1% to +4.3%).

US Trade Deficit Shrinks On Biggest Spike In Food & Beverage Exports In History

Forget the new economy, it appears - judging by July's preliminary trade data - that USA's great export is 'food and beverage'. Thanks to a 31.3% surge month-over-month in this category - the biggest MoM gain in history - the US trade deficit 'improved' to -$59.3bn (from -$64.5bn revised lower) and beat expectations of -$63bn.