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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 |
Is Deflation Possible?
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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? |
Social Mood, Politics and the Stock Market
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Here is an interesting perspective on predicting the outcome of presidential elections. According to socionomic theory, bear markets come with a downturn in crowd psychology. When the crowd turns from optimism to pessimism, it is first seen in stocks, and then the rest of the economy, politics, culture. A president who is in the office during… Read more Social Mood, Politics and the Stock Market |
Financial Tsunami Coming
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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 |
US Dollar Will Rise in Deflation
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Before the 2008 crash, US dollar had been declining steadily. Everyone was on a borrowing spree. We borrowed and spent and inflated the money supply. Banks create money when we borrow. And more and more chequebook money was being created. Then we ran out of borrowers and deflation started. US dollar suddenly shot up. Once… Read more US Dollar Will Rise in Deflation |
Deflation and Kondratieff Winter is About to Intensify
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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 |
Conquer the Crash in Kondratieff Winter
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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 |
Austerity in America
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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 |
Global Debt Bubble
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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 |
Public Pension Funds Are In Trouble
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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 |
Is the World’s Central Bankers’ Strategy Working?
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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? |
Largest US City Bankruptcy is Coming
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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 |
Who is Going To Win the Presidential Elections?
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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? |
Do Low Interest Rates Move Stocks Higher?
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Many investors think that the Federal Reserve reduces the interest rates and that makes the stock market move higher. But there are two fallacies in this assumption. For one, the Federal Reserve does not set the interest rates, the market does. FED follows. Below we are going to show you a chart of declining interest… Read more Do Low Interest Rates Move Stocks Higher? |
Credit Crisis: Is The Perfect Storm Coming?
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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? |
What moves the stock market?
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The widespread idea is that events around the world direct the financial markets. We are told to believe that the market reacts to the news and people’s mood changes accordingly. When the news are good, people feel good and they buy stocks they say. When the news are bad, people sell stocks according to the… Read more What moves the stock market? |
Deflationary Depression Coming?
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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? |
Is It a Bear Market Rally?
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Market had a sharp decline 2 months ago. We are well below 200 day average, and we have bounced off of 38.6% fibonacci retracement level a few times. Price support level has been holding well. Now the sentiment in the mainstream media is that this is a healthy pullback, a buying opportunity in the stock market. One needs to… Read more Is It a Bear Market Rally? |
Prechter Explains ‘Triple Top’ Forming in U.S. Stock Market
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(Video) Bob Prechter Explains ‘Triple Top’ Forming in U.S. Stock Market This excerpt from the special video issue of the August Elliott Wave Theorist brings you Bob Prechter’s analysis of the triple top that has been forming in the U.S. stock market over the past 12 years. Watch as Bob himself explains what this pattern… Read more Prechter Explains ‘Triple Top’ Forming in U.S. Stock Market |
Can The Federal Reserve Help Us Today
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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 |