Posts Tagged ‘debt’
“First Bank Failure of Many?”
As I discuss in my New Retirement Rules Class, ever since 1971, the US Dollar has been debt rather than an asset. On August 15, 1971, President Richard Nixon eliminated the link between the US Dollar and gold, making the US Dollar a fiat currency. Since that date, US Dollars have been loaned…
Read MoreAn Artificial Economy
The March “You May Not Know Report” discusses how the current economy (since the time of the Great Financial Crisis) is artificial- the result of easy money policies by the Federal Reserve and government stimulus. History teaches us that when governments overspend and central banks over print, eventually, reality sets in. One of…
Read MoreDebt Truths
A seldom-discussed topic that has a significant economic impact is private sector debt levels. Ever since 1971, when the US Dollar became a fiat currency, and new currency has been created by loaning it into existence. If banks have a 10% reserve requirement, a $100,000 deposit into a bank can be transformed into…
Read MoreDepression Parallels?
Depression parallels? Not a comfortable topic to discuss, to be sure. But as my now oft-quoted history professor used to say, “those who don’t study history are doomed to repeat it.” The older I get and the more experience I acquire, the smarter my history professor becomes. Which brings me to this…
Read MoreLong-Term Stock Forecast
While the overall stock market trend remains down, stocks did begin to show some signs of life last week, technically speaking. As the chart below, a weekly chart of an exchange-traded fund that tracks the S&P 500, illustrates, the longer-term downtrend line in place since the beginning of calendar year 2022 may have been broken…
Read MoreAn Inevitable Outcome
Last week, I discussed that stagflation was the most likely immediate economic outcome in my view. Just in case you missed last week’s post, stagflation is defined as price inflation combined with a shrinking economy. Ultimately though, I believe we will see a very painful deflationary environment that may rival the 1930s. …
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