Category: Economy

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?