Showing posts with label central banks. Show all posts
Showing posts with label central banks. Show all posts
8:06 AM
If you are imagining the great economic recovery is recovering, a post by Tyler Durden from zerohedge.com gave some info that raised an eyebrow. World trade volume dropped for the third time in four months, the biggest drop in global trade since May 2009.
Developing Asian economies had the biggest drop of 4.5%.
$12 trillion in global money printing hasn't helped.
Another post from zerohedge.com gave us this chart on average real hourly earnings:
On May 16, zerohedge.com featured a post on real hourly wage declines. Wage inflation has not reared its head. Year-over-year growth in both pay and hours has actually been falling since early 2012. Fed policy action has not healed the labor market.
Developing Asian economies had the biggest drop of 4.5%.
$12 trillion in global money printing hasn't helped.
Another post from zerohedge.com gave us this chart on average real hourly earnings:
On May 16, zerohedge.com featured a post on real hourly wage declines. Wage inflation has not reared its head. Year-over-year growth in both pay and hours has actually been falling since early 2012. Fed policy action has not healed the labor market.
7:57 PM
Rick Santelli of CNBC gives the blueprint of the central bank plan and warns it can't go on forever.
Many thanks to Tyler Durden for bringing this to our attention.
Many thanks to Tyler Durden for bringing this to our attention.
10:42 AM
Commodity prices are expected to stay near current levels. Skepticism regarding commodities in general, and gold in particular, in face of the large money printing, gives an extreme long term bullish picture. But pause to see what is happening now.
The general bearishness on commodities is based on a loss of faith in gold. Bullion is down 17% this year. Now it is about shorting gold. Bullion has a bad outlook. Gold is a most hated asset class. Its decline has begun to gain momentum.
Probability of inflation has diminished. The recent onslaught against gold is being led by the central banks. The central bank money monopoly is profiting. It began as bearish reports on gold were being published by Credit Suisse and Goldman Sachs. Their reputations were being undermined by the rise in the price of gold.
After all, the banking cartel relies on the fiat money system remaining intact. Ever since the fiat money system became operational in the early 1970's, the financial sector's share of corporate profits has inexorably risen and finally eclipsed all other sectors of the economy. The banks have to protect a major franchise. Socialism lives on in a capitalist system.
The general bearishness on commodities is based on a loss of faith in gold. Bullion is down 17% this year. Now it is about shorting gold. Bullion has a bad outlook. Gold is a most hated asset class. Its decline has begun to gain momentum.
Probability of inflation has diminished. The recent onslaught against gold is being led by the central banks. The central bank money monopoly is profiting. It began as bearish reports on gold were being published by Credit Suisse and Goldman Sachs. Their reputations were being undermined by the rise in the price of gold.
After all, the banking cartel relies on the fiat money system remaining intact. Ever since the fiat money system became operational in the early 1970's, the financial sector's share of corporate profits has inexorably risen and finally eclipsed all other sectors of the economy. The banks have to protect a major franchise. Socialism lives on in a capitalist system.
11:32 PM
Shale drilling is allowing the United States to become more of an oil producer than ever before. It is changing the global oil producing landscape. This will help growth by diminishing the rise in oil prices. When inflation rises (which it will) energy will most likely be at a lower price. Household incomes will be helped.
Central banks have used energy prices to figure core inflation.
The U.S. trade balance would be equalized. The U.S. would have less of an oil constraint.
Source story from businessinsider.com
Central banks have used energy prices to figure core inflation.
Source story from businessinsider.com