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At this (late) stage of the game, we can expect almost anything and everything in the way of statistical miracles to be used in order to sustain the illusion that everything is fine.
by
Adam Taggart
by
Adam Taggart
by
Adam Taggart
by
admin-2
by
Gregor Macdonald
Prepare for the Collapse of the Dollar
by Gregor Macdonald, contributing editor
Monday, January 30, 2012
Executive Summary
- The decision whether to export its commodities will become increasingly strategic to the US
- Understanding why Washington has decided to kill the dollar
- What’s driving the dollar now
- What to expect from a coming secular decline of the dollar
- Why the deflation risk is ending and grand quantitative easing (QE) is now underway
Part I: The Price of Growth
If you have not yet read Part I, available free to all readers, please click here to read it first.
Part II: Prepare for the Collapse of the Dollar
The just-released GDP report, which wraps up the 2011 performance of the US economy, made for unhappy reading.
While the headline number was stronger in the fourth quarter, after adjusting for inflation, the reading for the entire year came in at 1.7%. As Business Insider’s Joe Weisenthal put it, that is the “final, pathetic growth number for 2011.”
Many writers over the past year, including me, have hammered away at the idea that the performance of the US economy in real terms was statistically indistinguishable from a flatline in the aggregate.
No one disputes that some sectors of the economy, like exports and shipping, are growing. At issue is whether the economy as a whole is operating for the majority and not just segments of the populace. (Again, in real terms.) At a growth rate of 1.7%, we can at least conclude that no meaningful headway can be made in employment. Since the 2008 crisis, the US has been building a multi-million sub-population of people who are unemployed long-term. Only monthly job growth that first utilizes all new workers coming into the labor force will be able to eventually cut into this labor pool. Hence the revelations from the Federal Reserve this week related to targeting inflation, maintaining a zero-interest rate policy through late 2014, and conducting further quantitative easing (QE).
Before we dissect this week’s Fed meeting, let’s take a look at the recent trend in exports.
Prepare for the Collapse of the Dollar
PREVIEW by Gregor MacdonaldPrepare for the Collapse of the Dollar
by Gregor Macdonald, contributing editor
Monday, January 30, 2012
Executive Summary
- The decision whether to export its commodities will become increasingly strategic to the US
- Understanding why Washington has decided to kill the dollar
- What’s driving the dollar now
- What to expect from a coming secular decline of the dollar
- Why the deflation risk is ending and grand quantitative easing (QE) is now underway
Part I: The Price of Growth
If you have not yet read Part I, available free to all readers, please click here to read it first.
Part II: Prepare for the Collapse of the Dollar
The just-released GDP report, which wraps up the 2011 performance of the US economy, made for unhappy reading.
While the headline number was stronger in the fourth quarter, after adjusting for inflation, the reading for the entire year came in at 1.7%. As Business Insider’s Joe Weisenthal put it, that is the “final, pathetic growth number for 2011.”
Many writers over the past year, including me, have hammered away at the idea that the performance of the US economy in real terms was statistically indistinguishable from a flatline in the aggregate.
No one disputes that some sectors of the economy, like exports and shipping, are growing. At issue is whether the economy as a whole is operating for the majority and not just segments of the populace. (Again, in real terms.) At a growth rate of 1.7%, we can at least conclude that no meaningful headway can be made in employment. Since the 2008 crisis, the US has been building a multi-million sub-population of people who are unemployed long-term. Only monthly job growth that first utilizes all new workers coming into the labor force will be able to eventually cut into this labor pool. Hence the revelations from the Federal Reserve this week related to targeting inflation, maintaining a zero-interest rate policy through late 2014, and conducting further quantitative easing (QE).
Before we dissect this week’s Fed meeting, let’s take a look at the recent trend in exports.
by
Adam Taggart
Back in the 1930s, Irving Fisher introduced a concept called the 'debt supercycle.' Simply put, it posits that when there is a buildup of too much debt within an economy, there reaches a point where there simply is no other available solution but to let it rewind.
We are at that point in our economy, as are most other major economies around the world, claims John Maudlin, author of the popular Thoughts from the Frontline newsletter and the recent bestselling book Endgame: The End of the Debt Supercycle and How It Changes Everything.
For the past several decades, excessive and increasing amounts of credit in the system have allowed us to live above our means as both individuals and nations. We've been able to have our cake and eat it, too. Now that the supercycle has ended and the inevitable de-leveraging cycle is staring us in the face, we will be forced to set priorities in a way that has been foreign to our society for over a generation.
John Mauldin: It’s Time to Make the Hard Decisions
by Adam TaggartBack in the 1930s, Irving Fisher introduced a concept called the 'debt supercycle.' Simply put, it posits that when there is a buildup of too much debt within an economy, there reaches a point where there simply is no other available solution but to let it rewind.
We are at that point in our economy, as are most other major economies around the world, claims John Maudlin, author of the popular Thoughts from the Frontline newsletter and the recent bestselling book Endgame: The End of the Debt Supercycle and How It Changes Everything.
For the past several decades, excessive and increasing amounts of credit in the system have allowed us to live above our means as both individuals and nations. We've been able to have our cake and eat it, too. Now that the supercycle has ended and the inevitable de-leveraging cycle is staring us in the face, we will be forced to set priorities in a way that has been foreign to our society for over a generation.
by
Adam Taggart
In this week’s Off the Cuff with Mish & Chris podcast, Chris and Mish set their sights on:
The Fed
- 0% interest rates through 2014 (at least!). There’s not even a pretense left now about whom its policies are really directed at helping.
- Europe
- In the words of Shakespeare, the latest proposals are simply “sound and fury, signifying nothing.” At this point, a deep and prolonged recession is a certainty.
- Japan
- Decades of can-kicking are coming to their limit. 2012 could well be the year Japan topples into crisis.
Recorded on Wednesday, this podcast features Chris and Mish tackling the parade of head-scratching news announced by various governments and central banks this week. It’s almost as if these entities are competing with each other for the Darwin Award.
Off the Cuff: It’s a Mad, Mad World
PREVIEW by Adam TaggartIn this week’s Off the Cuff with Mish & Chris podcast, Chris and Mish set their sights on:
- The Fed
- 0% interest rates through 2014 (at least!). There’s not even a pretense left now about whom its policies are really directed at helping.
- Europe
- In the words of Shakespeare, the latest proposals are simply “sound and fury, signifying nothing.” At this point, a deep and prolonged recession is a certainty.
- Japan
- Decades of can-kicking are coming to their limit. 2012 could well be the year Japan topples into crisis.
Recorded on Wednesday, this podcast features Chris and Mish tackling the parade of head-scratching news announced by various governments and central banks this week. It’s almost as if these entities are competing with each other for the Darwin Award.
FED EXPECTS TO MAINTAIN `HIGHLY ACCOMMODATIVE’ MONETARY POLICY
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