Category: Economy

The Federal Reserve’s efforts to rescue the economy have been historically aggressive, starting with the initial round of quantitative easing in 2008 and continuing through 2013. Much money has been printed, despite what Bernanke says. M1 has been more than tripled. Yet Gold is down, commodities market is down, and inflation is still at historic low levels!… Read more Deflationary Forces Preventing FED’s Rescue Efforts

Money Manager Startles Global Conference. History shows that the U.S. should pay attention to economies in Europe. The economy has been sluggish for five years. There’s no shortage of chatter about “why,” yet few observers mention deflation. Bernanke has been printing trillions. ECB and Bank of Japan has joined the reflation efforts and promised to… Read more Deflation Warning

To understand the deflation problem, one must understand the nature of money and the amount of total debt in the US economy. In a credit based economy, money is created when banks make loans. Our money supply is not what Bernanke prints, but it is what we borrow. Fractional reserve banking coupled with interest based… Read more Is Deflation Possible?

The size of the coming wave will surprise everyone It has been 4 years since the 2008 crash, and we have mostly forgotten about the dark days of financial calamity that almost destroyed the world economy. It was later revealed that FED made tens of trillions of loans to ailing institutions to save the world.… Read more Financial Tsunami Coming

After the crash of 2008-2009, Kondratieff Winter has eased. Money supply expansion has resumed with more borrowers stepping upto the plate. QE1 and QE2 has added to the base money supply and saved the banks – for now. But financial changes can happen at lightning speed in a way we do not foresee. History books… Read more Deflation and Kondratieff Winter is About to Intensify

Financial assets has still not recovered from the financial crash of 2008. One could argue we are still in Kondratieff Winter. But will it get better or will it get worse? Have we seen the stock market bottom in 2009? Is it safe to buy and hold stocks for the long run? Or is buy… Read more Conquer the Crash in Kondratieff Winter

What will austerity look like in America? State and local governments are broke. Pension plans are unfunded. Unemployment is as high as ever. Sovereign debt is a problem. The total debt in the world economy is too high. Entire western world has borrowed excessive amounts in the last few decades. This is not just the… Read more Austerity in America

Debt Bubble is More Threatening Than Any Single Economic Sector Now History shows that once a financial bubble bursts, it can take a long time to bounce back. We had a crash in 2008 and since then nothing has been fixed other than printing money and handing it out to the failed banks. Now we are doing… Read more Global Debt Bubble

It has been years since the great recession, but unemployment remains stubbornly high. Europe is struggling with the debt problems of it’s members and the debt problem of the US is in check by strong demand to US dollar despite Bernanke’s printing press. But is a bull market ahead of us despite all of our… Read more Public Pension Funds Are In Trouble

Debt is the world’s problem. After decades of credit inflation, deflationary pressures have been forcing central banks to take actions across the globe. The Fed is not the world’s only central bank dealing with debt. Watch as Steve Hochberg, EWI’s chief market analyst, shows what has happened to GDP in countries around the world as… Read more Is the World’s Central Bankers’ Strategy Working?

As pundits chatter about an economic recovery, 80 miles east of San Francisco you’ll find a city (pop. 292,000) facing bankruptcy: Stockton is on the verge of becoming the largest city in the United States to declare bankruptcy… San Francisco Chronicle (3/4) Bloomberg reports (2/25) that it costs the city $175,000 just to get a… Read more Largest US City Bankruptcy is Coming

Is Obama going to win the elections to serve his second term? Can the Republican nominee beat Obama? Does it matter if it is Romney or Santorum or Ron Paul? or Gingrich? Or does Obama’s destiny rests on something else? A recently-published, landmark research paper shows the link between stock market performance and presidential election… Read more Who is Going To Win the Presidential Elections?

Robert Prechter discusses what’s backing your dollars In this video clip, taken from Robert Prechter’s interview with The Mind of Money, Prechter and host Douglass Lodmell discuss “real” money vs the FIAT money system, and what is backing your dollars under our current system. Enjoy this 4-minute clip and then watch Prechter’s full 45-minute interview… Read more Credit Crisis: Is The Perfect Storm Coming?

Social psychology precipitates economic depressions Don’t blame Martin Van Buren for America’s first deflationary depression. Social mood rode higher in the saddle than did our 8th President, who only stood 5′ 6″. Elected in 1836, by the time Van Buren assumed office in March 1837 a speculative bubble had burst and a banking crisis was… Read more Deflationary Depression Coming?

J.P. Morgan saved the banking system back in 1907. Then the Federal Reserve was created to protect the system in 1913. While the FED was at the helm, we had the Great Depression and the inflationary period of 70s. If we look at the stock market charts, it looks like market volatility has actually increased… Read more Can The Federal Reserve Help Us Today

The European Banking Authority announced Friday that 8 banks had failed their stress tests and 16 more had narrowly passed. But the results drew much criticism from analysts, who said that the stress test is not strict enough. Indeed, this is something that European Financial Forecast readers have known since the first stress test last… Read more European Bank Stress Tests

Elliott Wave International’s free report “Discover the Top 100 Safest U.S. Banks” explains the true risk that you may face when a bank fails. Bank failures still dominate headlines as the number of failing banks continues at an alarming pace in 2011. The odds are that you’ve seen at least one bank failure in your… Read more Money in the Bank

FED is printing money. They call it “Quantitative Easing” aka QE1, QE2 and so on. Many economists think this expansion of FED balance sheet will create inflation in the near future. But they were saying that back in 2009 too. And two years later we still do not have the promised inflation. Why?