Greg Hunter – Money manager Peter Schiff says the wild swings in the market are because of massive central bank money printing and exploding debt. What in the heck is going on? Schiff explains, “The real question is what was going on when the markets were going up? That’s what made no sense. The fact that they are coming back down to earth makes a lot more sense. I think the catalyst for this move (in the stock market) is, ironically, the tax cuts we got because that put the bigger deficits in the spotlight. Now, the deficits are going to go off the charts because we have to replace the lost tax revenue with more debt.”
What about the economy improving under Trump? Schiff says, “Growth hasn’t really picked up, it’s actually slower. This is all nonsense. The economy is not improving. Nothing is happening other than we are going into huge debt. We got tax cuts, and we borrowed the money to pay for them.” Continue reading “Biggest Ever Debt & Dollar Crisis Coming [Video]”
Charles Hugh Smith – We are in a very peculiar point in history. On the one hand, we’re reassured that all is well because Every One of the World’s Big Economies Is Now Growing. (NY Times)
Yet at the same time, we read that “Something Is Very Wrong With The Global Economy”: Richest 1% Made 82% Of Global Wealth In 2017 and are asked, Can the World Survive a Winner-Take-All Global Economy?
Even the authors of the rah-rah NY Times piece on the wonderfulness of the global economy expressed concern that this “growth” may not be distributed any more equally than the previous 10 years of “recovery.”
We already know absolutely nothing will change because neither the inputs nor the feedback loops in the economy have changed. As Donella Meadows explained in her seminal paper Leverage Points: Places to Intervene in a System, the only ways to change a system’s outputs (in this case, widening income and wealth inequality and rising social disorder) is to change the inputs or add a new feedback loop. Continue reading “Rising Social Disorder Is Inevitable: Here’s Why”
Charles Hugh Smith – Forgive me for wondering if the populace of America hasn’t fallen for a Jedi mind trick:
Disturbing, destabilizing abnormalities are now accepted as normal life in America:
1. Sprawling tent camps of homeless sprout like flowers of poverty in U.S. cities, leaving mountains of trash that speak volumes about systemic failure, destitution and overwhelmed city services.
2. The Federal Reserve’s vaunted “Wealth Effect” that was supposed to be a tide that raised all boats at least a bit has concentrated wealth and power in the top 5%, 1%, and 1/10th of 1%, leaving the bottom 95% with diminished prospects and a thinning stake in The American Project. Continue reading “The Disturbing, Destabilizing Abnormal Is Now Normal”
Charles Hugh Smith – Few topics are off-limits nowadays: the personal and private are now splashed everywhere for all to see.
One topic is still taboo: the holiday’s perverse incentives to over-consume and over-spend,lest our economy implode. This topic is taboo because it strikes at the very heart of our socio-economic system, which is fundamentally based on permanent growth, the faster the better, as if unlimited expansion on a finite planet is not just possible, but desirable.
In the current Mode of Production, the solution to every social and economic ill is to “grow our way out of it.”
The solution to unemployment: jump-start growth by expanding consumption, spending and borrowing.
The solution to stagnant wages: jump-start growth. Continue reading “Un-Merry Christmas: The Perverse Incentives to Over-Consume and Over-Spend”
Charles Hugh Smith – I am struck by the mainstream confidence that bitcoin is a fraud/fad that will soon collapse, while central bank fiat currencies are presumed to be rock-solid and without risk. Those with supreme confidence in fiat currencies might want to look at a chart of Venezuela’s fiat currency, which has declined from 10 to the US dollar in 2012 to 5,000 to the USD earlier this year to a current value in December 2017 of between 90,000 and 100,000 to $1:
Exchange Rate in Venezuela: Continue reading “Bitcoin vs Fiat Currency: Which Fails First?”
Greg Hunter – Market analyst Lynette Zang says even with the new tax cuts passed in Congress, the market looks like “it’s running out of steam.” Zang explains, “I have been noticing in the past month some pattern shifts that would indicate to me the market is struggling and breaking down.
So, these tax cuts make earnings per share look a lot better and also brings back a lot of funds. . . . The CEOs are saying that money will go into share buybacks, and they need to because that is shifting. . . . Corporate buy backs are actually breaking down.”
Continue reading “They Need the Markets to Implode [Video]”