Purchasing Power

The FT Goes Full Fearmonger: Electing Trump "Would Unravel The World"

"Sometimes history jumps. Think of the first world war, the Bolshevik revolution, the Great Depression, the election of Adolf Hitler, the second world war,... We may be on the brink of an event as transformative as many of these: the election of Donald Trump as US president. This would mark the end of a US-led west as the central force in global affairs. The result would not be a new order. It would be perilous disorder."

What A Commodity Trading Legend Is Buying Ahead Of The Next Crisis

When a commodity trading guru like Dwight Anderson, founder of the iconic Ospraie Management has something to say on the market outlook, people tend to listen, especially when he’s consigning the last great commodity bull run to the history books and buying gold and farmland for the next crisis.

What Do We Know?

"These linear thinkers can’t understand why their playbook of lies, misinformation, pointless social justice issues and a myriad of other inane distractions aren’t working this time. They fail to acknowledge that history is cyclical and we’ve entered the phase when generational cohorts are aligned for dramatic sweeping change. The data is there for all to see, but those benefiting from the current perverted paradigm will not be swept aside without a bloody fight."

Italy's Earthquake: Will It Revive Their Economy?

As long as the Italian public will believe in “the blessings of destruction,” and in government-led recovery, which diverts capital from productive to nonproductive uses, earthquakes will continue to be, quoting Giovanni Birindelli “the health of democracries.” Meanwhile, politicians will have the intellectual power of using the broken-window scheme as an expedient to extend their tentacles over the private sector, in the form of more public debt, increased deficits, and higher taxes.

Is Trump Wrong On Trade?

The real culprit or cause of the loss of purchasing power is the American Central Bank. It is directly responsible for the growth in income inequality and the slow decline in living standard of the American middle class. Monetary policy is “econspeak” for legal counterfeiting! If Trump really wants to make America great again, he should seriously consider returning the U.S. to sound mone.

BOJ Needs To Go All The Way

The BOJ does have a track record of surprising markets. If it doesn’t want to see USD/JPY collapse, exacerbating the nation’s economic struggles, then it needs to ensure the shock is a dovish one this time. Which maybe what the banks are negatively expecting...Even as Goldman warns "don't expect much if anything, at all."

A Messaging Tip For The Donald: It's The Fed, Stupid!

The nation’s rogue central bank is essentially a reverse Robin Hood on steroids. If Donald Trump wants to hit the ball out of the park next Monday evening, therefore, he needs to quickly skip over his dog-eared income tax cut plan and put the wood good and hard to the Fed, Janet Yellen, and our unelected financial rulers.

Why Is There So Much Confusion In Macroeconomics?

Should we print, not print? Stimulate, not stimulate? Is austerity the right or wrong policy? Is government spending or printing effective? If we ask two economists these questions, we will likely get three opinions for each question. Economists seem confused, yet these questions are more important today than ever. Where does this confusion come from?

Obama Explains Why The Presidential Race Is Such A "Nail-Biter"

The President of "the most transparent administration ever" is shocked at how close the election has become. Having seemed to be try to shame the black community into voting for Hillary (calling it a "personal insult"), CNN reports that President Obama has found another scapegoat  - blaming "misinformation" from right-wing websites for the "nail-biter."

Deplorables, Delusionals, & Demagogues United By A Flawed Foreign Policy

If you are an alien, terrestrial or extraterrestrial, looking at our nation these days, you would be scratching your head trying to figure out why our country is known as the USA and not the DPA (Disunited Peoples of America).  Only thing that appears to unite us –  not all but most – is the love of empire and pride in a corporate-military war machine that mercilessly sucks a great part of our economic, intellectual and moral resources; truly impoverishing our people and making Americans, friends of some but enemies of most people around the world.

Previewing Next Week's Main Event: What Will The BOJ Do? (Spoiler Alert: Probably Nothing)

At the BOJ's next Monetary Policy Meeting on September 20-21, the Central Bank will conduct a “comprehensive assessment” of trends in economic activity and prices under the current policy framework, as well as the policy impact, with a view to achieving its 2% price stability target at the earliest possible time. Here is what to expect from next week's main event.

Deconstructing The "Median Income Bullshit"

What do you do when the economy isn't growing the way you want it to but you need to win an election in the very near future?  Well, one option is to have the Census Bureau change its data collection methodology to goal seek the desired income growth.