Skip to main content

Home/ Socialism and the End of the American Dream/ Group items tagged economic-growth

Rss Feed Group items tagged

Filter: All | Bookmarks | Topics Simple Middle
Paul Merrell

Another Global Financial Crisis in the Making | Global Research - 0 views

www.globalresearch.ca/...5389145

economy financial-collapse central-banks monetary-policy

shared by Paul Merrell on 30 Jun 14 - No Cached
  • The Swiss-based Bank for International Settlements has stated that the current policies of central banks and monetary authorities could lead to another financial crisis, potentially bigger than that of 2008. The warning is contained in the latest annual report of the bank, sometimes referred to as the central bankers’ bank, issued yesterday. The report expressed concerns that the present low-interest rate regime, initiated to try to overcome the effects of the 2008 crash, has pushed financial markets to new highs while lowering the rate premium for many risky loans. The BIS noted that markets had been “exuberant over the past year,” particularly in advanced economies. They were “dancing mainly to the tune of central bank decisions,” with volatility reaching historical lows and “market participants … hardly pricing in any risks.”
  • “Overall, it is hard to avoid the sense of a puzzling disconnect between the markets’ buoyancy and underlying economic developments globally,” the bank stated. The “disconnect” is most clearly expressed in the United States, where the Federal Reserve’s policy of pumping trillions of dollars into financial markets has seen stock market indexes reach record highs, while the underlying economy stagnates and reverses. Last week, it was revealed that the US economy contracted almost 3 percent in the first quarter of 2014, but stock markets climbed even further in the belief that the on-going stagnation would lead to the provision of still more ultra-cheap money. The BIS noted that despite an increase in economic growth, the world economy had not shaken off its dependence on monetary stimulus. Regardless of the euphoria in financial markets, investment remained “weak.” On a global scale, the total debt of private non-financial sectors had risen by 30 percent since the global financial crisis, pushing up the ratio of this debt to global output. Moreover, a concentration on short-term growth figures ran the risk of ignoring the long-term dangers created by present monetary policies.
Gary Edwards

The Europeanization of America - WSJ.com Pete Dupont - 0 views

online.wsj.com/...SB122504438328069963.html

politics obama socialism pete-dupont

shared by Gary Edwards on 29 Oct 08 - Cached
  • Gary Edwards on 29 Oct 08
     
    So where is the new Obama administration likely to take us? Seven things seem certain: The U.S. military will withdraw from Iraq quickly and substantially, regardless of conditions on the ground or the obvious consequence of emboldening terrorists there and around the globe. Protectionism will become our national trade policy; free trade agreements with other nations will be reduced and limited. Income taxes will rise on middle- and upper-income people and businesses, and individuals will pay much higher Social Security taxes, all to carry out the new president's goals of "spreading the wealth around." Federal government spending will substantially increase. The new Obama proposals come to more than $300 billion annually, for education, health care, energy, environmental and many other programs, in addition to whatever is needed to meet our economic challenges. Mr. Obama proposes more than a 10% annual spending growth increase, considerably higher than under the first President Bush (6.7%), Bill Clinton (3.3%) or George W. Bush (6.4%). Federal regulation of the economy will expand, on everything from financial management companies to electricity generation and personal energy use. The power of labor unions will substantially increase, beginning with repeal of secret ballot voting to decide on union representation. Free speech will be curtailed through the reimposition of the Fairness Doctrine to limit the conservative talk radio that so irritates the liberal establishment. These policy changes will be the beginning of the Europeanization of America.
Gary Edwards

The Implications Of Velocity: John Mauldin on the crisis of US Debt to GDP ratio - 0 views

www.businessinsider.com/mplications-of-velocity-2010-3

obammunism financial-crisis deficit-debt-disaster banksters

shared by Gary Edwards on 16 Mar 10 - Cached
  • Gary Edwards on 16 Mar 10
     
    The Federal Reserve and central banks in general are running a grand experiment on the economic body, without the benefit of anesthesia. They are testing the theories of Irving Fisher (representing the classical economists), John Keynes (the Keynesian school) Ludwig von Mises (the Austrian school), and Milton Friedman (the monetarist school). For the most part, the central banks are Keynesian, with a dollop of monetarist thrown in here and there. Over the next few years, we will get to see who is right about debt and stimulus, the velocity of money, and other arcane topics, as we come to the End Game of the Debt Super Cycle, the decades-long cycle during which debt has grown. I have very smart friends who argue that the cycle is nowhere near an end, as governments are clearly increasing debt. My rejoinder is that it is nearing an end, and we need to think hard about what that end will look like. It will not be pretty for a period of time. The chart below shows the growth in debt, both public and private.
Gary Edwards

Clifford S. Asness: Uncertainty Is Not the Problem - WSJ.com - 1 views

online.wsj.com/...4259304576375950266610760.html

obammunism financial-collapse

shared by Gary Edwards on 15 Jun 11 - No Cached
  • Gary Edwards on 15 Jun 11
     
    Bulls-eye!! Uncertainty isn't the problem.  Bad government policies are exactly what's wrong and the reason things are certain to get worse.  It's a huge mistake to hire a hardcore Marxist to fix a capitalist-constitutional problem!! By CLIFFORD S. ASNESS Many commentators blame our continuing economic woes on "uncertainty." They allege that recent and anticipated dramatic policy changes make business planning difficult, and that this is retarding growth and employment. This view is not wrong-but our main problem is not the uncertainty surrounding new policies. It is the policies. Consider two uncertain situations. In the first, our business is waiting to find out the location decision for a customer's new industrial plant, so we know where to build our new supply facility. Until this is resolved, we will not invest in building nor will we hire staff. In the second situation, we know we are in for some pain, someone is going to make our business less productive and profitable, but we do not yet know how much. Planning is marginally more difficult, but the main reason we will not grow in the second situation is that investment is less attractive regardless of the precise resolution of uncertainty.
Gary Edwards

Lipsky: Obama Making Same Mistakes That Led to Great Depression - 0 views

www.moneynews.com/...415818

Banksters Federal-Reserve-Bankster-Cartel WSJ Seth-Lipsky gold-standard banksters

shared by Gary Edwards on 27 Oct 11 - No Cached
  • Gary Edwards on 27 Oct 11
     
    Interview with Seth Lipsky, former Wall street Asia - NY Sun editor, and journalist.  Seth explains the constitutional requirements that Congress control and protect a hard currency.  He also explains his support for Ron Paul, the Paul-Perry-Cain "flat tax" proposals, and the Federal Reserve Bankster Cartel.  Hard to believe Seth worked for the Wall Street Journal, otherwise known as the globalist bankster voice.  IMHO, no one has done more to confuse the public with free market - capitalism posturing while promoting outrageous banksterism, crony capitalism and a militaristic global corporatism that threatens the sovereignty of the USA than the WSJ.  Seth however is great. excerpt: The founding fathers named the U.S. currency after a coin called a Spanish-milled dollar, which represented 371.25 grains of pure silver, and put protecting its value in the hands of Congress. "They meant the dollar to be a measure of value and in fact they gave Congress the power to coin money and regulate the value thereof in the same sentence of the Constitution in which they gave Congress the power to fix the standards of weights and measures," Lipsky told Newsmax.TV. _________________________________________________________ Editor's note: To get 'It Shines for All' at a great price - Click Here Now. _________________________________________________________  "What the reform movement that we have been covering in The Sun wants Congress to do is to step up to that Constitutional responsibility to establish a proper value to the dollar, and then we wouldn't have to worry about inflation and rising prices," he said. "We would have to conduct the government's budgetary operations in a way that didn't result in a collapse in the value of our currency," said Lipsky. Under President Obama, the White House has enacted stimulus measures to incentivize job creation while the Federal Reserve has flooded the economy with money and swollen its balance sheet in an effort to spur
Paul Merrell

New Trade Data Come at the Worst Possible Time for Obama | The Nation - 0 views

www.thenation.com/...come-worst-possible-time-obama

financial-collapse U.S.-trade-deficit trade-agreements Korea TPP

shared by Paul Merrell on 10 Feb 15 - No Cached
  • President Obama’s push for a massive new trade deal with Asia is predicated on the idea it will help everyday Americans: that it will “level the playing field for the middle class,” in Obama’s words. But as the debate over the Trans-Pacific Partnership enters its endgame, newly released government data about the US trade deficit shows recent trade deals have done the opposite of what was promised—and have inflicted added damage on American jobs. The Census Bureau’s annual trade data for 2014, released Thursday morning, shows the US trade deficit in 2014 jumped 6 percent to $505 billion in 2013. This increase received a late boost from the December 2014 numbers, which showed at 17.1 percent increase in the trade deficit—resulting in the biggest trade imbalance since December 2012. A country’s trade balance is a crucial economic indicator; a nation that is exporting far more goods than it is importing is generally in good economic health. Conversely, a country that is increasingly importing more than it exports—as is the case with the United States—is watching valuable dollars and jobs flow overseas.
  • The data shows a small, 1 percent growth in US exports for 2014, though the domestic oil and gas boom accounts for much of that. US manufacturing exports fell by more than $5 billion in 2014, and the US goods trade deficit rose to $736.8 billion. (More on that number in a minute; it doesn’t tell the full story.) There’s a simple explanation for the widening trade deficit: the US dollar is strong, and there’s weak growth overseas, which would naturally depress exports. But congressional critics of the TPP seized on a broader point on Thursday morning—robust promises about the benefits of past trade deals have turned out to be empty. “We signed those trade deals, and the result has been the opposite,” said Representative Rosa DeLauro on a Thursday morning conference call with reporters. “The administration continues to pursue the same failed policies of the past several years.”
  • Of particular note is the increasing trade deficit with Korea, which increased a whopping 20 percent in 2014, to $25.1 billion. Obama signed a free-trade agreement with Korea during his first term, calling the deal “a major win for American workers and businesses,” and it took effect in early 2012. But the US goods trade deficit with Korea was 81 percent higher in 2014 than in 2011. That translates to a loss of 74,000 jobs, by the administration’s own metrics for measuring job gains from trade. “[The new information] basically confirms a lot of our suspicions, and our positions and votes over the years about how these trade agreements have really been a bad deal for the American worker,” said Representative Tim Ryan.
  • ...1 more annotation...
  • DeLauro also offered some broadsides about how the administration was spinning the Census report.
Paul Merrell

Securing Our Digital Economy | Internet Society - 0 views

www.internetsociety.org/...securing-our-digital-economy

surveillance state Internet encryption G20 Internet-Society

shared by Paul Merrell on 10 May 17 - No Cached
  • Germany wants G20 leaders to agree to a concrete plan – one that includes affordable Internet access across the world by 2025, common technical standards and a focus on digital learning. Today, the G20 economies, like so many other economies around the world, are digital and interconnected. Digital services have opened up new avenues for sustainable economic growth. But, the digital economy will only continue to thrive and generate opportunities for citizens if the Internet is strong, secure, and trusted. Without this foundation, the global digital economy is at risk. Currently, there are 360 million people that take part in cross-border e-commerce. 28% of output in mature economies is digital. The Internet is set to contribute $6.6 trillion a year, or 7.1% of the total GDP in the G20 countries. And, by 2020, it’s estimated that more than 1 billion users will be added and there will be 30-50 billion additional connected devices. This level of interconnection will only boost the market. However, this cannot happen without a serious commitment by all parties to security and privacy. The truth is that economies can only function within a secure and trusted environment. Which brings us to encryption. Strong encryption is an essential piece to the future of the world’s economy and the Internet Society believes it should be the norm for all online transactions. It allows us to do our banking, conduct local and global business, run our power grids, operate, communications networks, and do almost everything else.
  • Encryption is a technical building block for securing infrastructure, communications and information. It should be made stronger and universal, not weaker. However, rather than being recognized as the way to secure our online transactions or our conversations, all too often the debate focuses on the use of encryption as a way to thwart law enforcement. To undermine the positive role of encryption in the name of security could have devastating consequences. Many great minds have already devoted considerable effort to resolving the conundrum posed by competing public policy objectives: providing security, safety and trust on the one hand, and law enforcement and legitimate policy goals on the other. But, it is time to stop kicking the encryption football up and down the field. Instead, we should recognize that encryption is key to the future digital economy and stop treating it as simply an obstacle to law enforcement. We need to deconstruct the issues faced by law enforcement and policy makers and agree together how we can achieve a trusted digital economy underpinned by encryption. This is the first time the G20 countries are holding a Ministerial on digital matters. It is also the first time that the G20 is inviting non-government stakeholders to contribute to these issues. This is a turning point that should not be missed. All views, including the technical perspective, must be at the table if we are to achieve progress on the G20’s ICT goals. If the G20 countries are serious about strengthening their economies and continuing to deliver economic and social prosperity to their citizens in future, there are three key principles they should endorse and implement immediately:
  • 1. Encryption is an important technical foundation for trust in the digital economy and should be the norm. All users (whether government, business or individual) should use encryption to protect infrastructure, communications and the privacy and integrity of their data. Encryption technologies should be strengthened, not weakened. 2. The security of the digital economy is a shared responsibility that needs the expertise and experience of all stakeholders, across border and across disciplines. It is an urgent need that will require open, inclusive collaboration. 3. Users’ rights should be at the heart of any decisions related to the digital economy. They are both the customers and the contributors to the success of the digital economy. The Internet Society calls for ubiquitous encryption for the Internet. We strongly believe that this is the best foundation for trust in the digital economy, and we urge the G20 nations to stand behind encryption.
Paul Merrell

E.U. Is Pressed to Reconsider Cuts as Economic Cure - NYTimes.com - 0 views

www.nytimes.com/...der-cuts-as-economic-cure.html

financial-collapse depression eurozone

shared by Paul Merrell on 28 Apr 13 - No Cached
  • Unemployment has surpassed Great Depression-era levels in Southern Europe. Recession is drifting to the once resilient economies of the north. Even some onetime hawks on government spending say they cannot cut any more.
  • After years of insisting that the primary cure for Europe’s malaise is to slash spending, the champions of austerity, most notably Chancellor Angela Merkel of Germany, find themselves under intensified pressure to back off unpopular remedies and find some way to restore faltering growth to the world’s largest economic bloc.
Gary Edwards

The Debate Dogs That Didn't Bark | RedState - 0 views

www.redstate.com/...he-debate-dogs-that-didnt-bark

debate-dogs election-issues

shared by Gary Edwards on 24 Oct 12 - No Cached
  • Gary Edwards on 24 Oct 12
     
    Great comprehensive list of issues not discussed at the foreign affairs debate.  Bookmark this article!
  • Paul Merrell on 24 Oct 12
     
    Not a comprehensive list. A few to add as examples: -- Can we afford to continue fight multiple foreign wars concurrently and still stabilize the currency and balance the budget? -- Why haven't we embargoed trade with and sale of weapons to the apartheid state of Israel, which has drawn us into repeated foreign wars in western Asia? -- Why have there been no criminal prosecutions of the banksters whose fraudulent activities caused the collapse of the world economy? -- Why have both candidates surrounded themselves with economic advisers who participated in bringing us that economic meltdown? -- Why do both candidates offer platitudes rather than concrete and credible plans to stimulate economic growth? -- On and on.
Paul Merrell

China stakes claim in Central and Southeast Europe | Business New Europe - 0 views

www.bne.eu/...m-central-and-southeast-europe

war & peace economic-warfare EU China infrastructure-investments

shared by Paul Merrell on 22 Dec 14 - No Cached
  • A Chinese agreement to finance a high-speed railway from Belgrade to Bucharest was one of around $10bn worth of investments, mainly in the energy and infrastructure sectors, signed during a China-Central and Eastern Europe summit this week. By funding the railway, Beijing hopes to establish a rapid connection from Greece’s Pireaus Port through the Balkans to the EU member states of Central Europe. Several agreements on the €1.5bn railway, which will be financed by soft loans from state-owned China Exim Bank, were signed between China, Hungary and Serbia on December 17. When the line is operational, the travel time between Belgrade and Budapest will be slashed from the current eight hours to just 2.4 hours. Macedonian counterpart Nikola Gruevski was also in attendance as there are plans to extend the line south to Macedonia and Greece in future. Chinese Prime Minister Li Keqiang, who headed a 200-strong delegation to Belgrade, said he expected the line would benefit both China and the countries of Central and Eastern Europe and the EU, according to a Serbian government statement.
  • Chinese shipping giant Cosco Pacific took over the management rights to half of Piraeus port and is now expanding two container terminals under a 35-year concession agreement, with the aim of turning the Greek port into one of Europe’s top five container ports. However, to take full advantage of Cosco’s investment in Piraeus and its potential to become a gateway to the CEE region, investments into transport links across the Balkans are needed. "We will propose construction of a rapid land and maritime route based on the Budapest-Belgrade railroad and the Greek port of Piraeus to improve regional connectivity," Li told journalists in advance of the summit, South China Morning Post reported. Investments into infrastructure to transport raw materials into China and Chinese manufactured goods to foreign markets is nothing new. Closer to home, Beijing is looking to fund a railway across Central Asia to create a direct rail link between its factories and the massive wholesale bazaars of Kyrgyzstan and Uzbekistan. Further afield, in May 2014, China signed an agreement in Kenya to build a new line from Mombasa to Nairobi that will extend to four other East African states in future.
  • While land rail routes across Eurasia to Europe are also being developed, sea shipping remains the cheapest route from the Far East to Europe, and Piraeus is a convenient entry point to the continent. While growth in the region has been patchy since the recent global economic crisis, in the longer-term the EU member states of Central and Eastern Europe and future entrants from the Balkans are expected to converge with longer-established EU members from Western Europe in terms of spending power. Since 2012, when the first China-CEE summit was held in Warsaw, Chinese attention on the region has steadily increased, with a focus on energy and infrastructure. Aside from the access to new markets, there are further commercial benefits for China, as Chinese companies are selected for lucrative construction contracts on projects funded by Chinese state-owned banks. On December 16, the opening day of the summit, Li told the 16 regional leaders to attend that China would launch a $3bn investment fund for the region.
  • ...2 more annotations...
  • Also on December 16 Albania signed a deal with Exim Bank on funding for the completion of construction works on the Arber motorway that links the capital Tirana with Macedonia. In the energy sector, Serbian and Chinese officials have signed a loan agreement for the second stage of the Kostolac B thermal power project, which includes the construction of a new 350MW plant and the expansion of the adjacent Drmno open-pit coal mine. The value of the project is expected to be $715mn, of which $608mn will come from a 20-year China Exim Bank loan. In neighbouring Bosnia, Eximbank has signed an agreement with the Bosnian Federation government for a €667.8mn credit to fund construction of the 450MW unit 7 at the thermal power plant Tuzla. China's Gezhouba Group is expected to build the unit.
  • The timing of the summit, amid a sharp falling off of Russia’s influence, may also have helped China extend its influence in the region. With some exceptions, notably Serbia, most of the would-be EU member states in Southeast Europe have opted to join EU and US sanctions against Russia over Ukraine. Tit for tat sanctions imposed by Moscow caused trade between Eastern Europe and Russia to drop, a trend that is likely to continue amid the new economic crisis in Russia. Meanwhile, in a further retrenchment from the region, Russian President Vladimir Putin announced on December 1 that Russia will scrap the planned South Stream pipeline that would have supplies numerous states across the region with gas. China, meanwhile, has no political axe to grind in Eastern Europe, but hopes to take advantage of Russia’s weakness to make further inroads commercially. Poland and other countries in the region are, for example, looking to China as a potential market for food products following the Russian embargo. This would add to already booming trade ties. According to Chinese Commerce Minister Gao Hucheng, trade between China and Eastern Europe may top $60bn in 2014 - five times its 2003 level, AFP reported.
Paul Merrell

Russia Just Pulled Itself Out Of The Petrodollar | Zero Hedge - 0 views

www.zerohedge.com/...-pulled-itself-out-petrodollar

war & peace economic-warfare de-dollarization Russia oil-wars pipelinestan-war

shared by Paul Merrell on 16 Jan 15 - No Cached
  • Back in November, before most grasped just how serious the collapse in crude was (and would become, as well as its massive implications), we wrote "How The Petrodollar Quietly Died, And Nobody Noticed", because for the first time in almost two decades, energy-exporting countries would pull their "petrodollars" out of world markets in 2015.  This empirical death of Petrodollar followed years of windfalls for oil exporters such as Russia, Angola, Saudi Arabia and Nigeria. Much of that money found its way into financial markets, helping to boost asset prices and keep the cost of borrowing down, through so-called petrodollar recycling. We added that in 2014 "the oil producers will effectively import capital amounting to $7.6 billion. By comparison, they exported $60 billion in 2013 and $248 billion in 2012, according to the following graphic based on BNP Paribas calculations."
  • The problem was compounded by its own positive feedback loop: as the last few weeks vividly demonstrated, plunging oil would lead to a further liquidation in foreign  reserves for the oil exporters who rushed to preserve their currencies, leading to even greater drops in oil as the viable producers rushed to pump out as much crude out of the ground as possible in a scramble to put the weakest producers out of business, and to crush marginal production. Call it Game Theory gone mad and on steroids. Ironically, when the price of crude started its self-reinforcing plunge, such a death would happen whether the petrodollar participants wanted it, or, as the case may be, were dragged into the abattoir kicking and screaming. It is the latter that seems to have taken place with the one country that many though initially would do everything in its power to have an amicable departure from the Petrodollar and yet whose divorce from the USD has quickly become a very messy affair, with lots of screaming and the occasional artillery shell. As Bloomberg reports Russia "may unseal its $88 billion Reserve Fund and convert some of its foreign-currency holdings into rubles, the latest government effort to prop up an economy veering into its worst slump since 2009." These are dollars which Russia would have otherwise recycled into US denominated assets. Instead, Russia will purchase even more Rubles and use the proceeds for FX and economic stabilization purposes. 
  • "Together with the central bank, we are selling a part of our foreign-currency reserves,” Finance Minister Anton Siluanov said in Moscow today. “We’ll get rubles and place them in deposits for banks, giving liquidity to the economy." Call it less than amicable divorce, call it what you will: what it is, is Russia violently leaving the ranks of countries that exchange crude for US paper.
  • ...3 more annotations...
  • Bloomberg's dready summary of the US economy is generally spot on, and is to be expected when any nation finally leaves, voluntarily or otherwise, the stranglehold of a global reserve currency. What Bloomberg failed to account for is what happens to the remainder of the Petrodollar world. Here is what we said last time: Outside from the domestic economic impact within EMs due to the downward oil price shock, we believe that the implications for financial market liquidity via the reduced recycling of petrodollars should not be underestimated. Because energy exporters do not fully invest their export receipts and effectively ‘save’ a considerable portion of their income, these surplus funds find their way back into bank deposits (fuelling the loan market) as well as into financial markets and other assets. This capital has helped fund debt among importers, helping to boost overall growth as well as other financial markets liquidity conditions. ... [T]his year, we expect that incremental liquidity typically provided by such recycled flows will be markedly reduced, estimating that direct and other capital outflows from energy exporters will have declined by USD253bn YoY. Of course, these economies also receive inward capital, so on a net basis, the additional capital provided externally is much lower. This year, we expect that net capital flows will be negative for EM, representing the first net inflow of capital (USD8bn) for the first time in eighteen years. This compares with USD60bn last year, which itself was down from USD248bn in 2012. At its peak, recycled EM petro dollars amounted to USD511bn back in 2006. The declines seen since 2006 not only reflect the changed global environment, but also the propensity of underlying exporters to begin investing the money domestically rather than save. The implications for financial markets liquidity - not to mention related downward pressure on US Treasury yields – is negative.
  • Considering the wildly violent moves we have seen so far in the market confirming just how little liquidity is left in the market, and of course, the absolutely collapse in Treasury yields, with the 30 Year just hitting a record low, this prediction has been borne out precisely as expected. And now, we await to see which other country will follow Russia out of the Petrodollar next, and what impact that will have not only on the world's reserve currency, on US Treasury rates, and on the most financialized commodity as this chart demonstrates...
  • ... but on what is most important to developed world central planners everywhere: asset prices levels, and specifically what happens when the sellers emerge into what is rapidly shaping up as the most illiquid market in history.
Paul Merrell

Tomgram: Pepe Escobar, Inside China's "New Normal" | TomDispatch - 0 views

www.tomdispatch.com/...ide_china%27s_%22new_normal%22

economic-growth China

shared by Paul Merrell on 23 Feb 15 - No Cached
  • as time goes by, the magnetic power of the Chinese economy is moving ever closer to Europe.  Just two years ago, the Chinese became the Middle East’s largest trading partner, leaving the European Union in second place and the United States in third.  By then, China was already Africa’s largest trading partner, having displaced the U.S. some years earlier. This may not be making headlines here, but it’s no small thing.  The economic rise of China, especially in areas where the U.S. had committed so much in blood, sweat, and drones, should take anyone’s breath away.  Fortunately, TomDispatch’s peripatetic Eurasian correspondent Pepe Escobar (the man who invented the term “Pipelineistan” for the web of energy conduits that crisscross that vast continental area) arrives in the nick of time to offer us a view from Beijing of an economy still staggeringly on the rise and the plans of the Chinese leadership, from Asia to Europe, for knitting together what, if it happened, might indeed someday be seen as a new world economic order. Tom
  • Paul Merrell on 23 Feb 15
     
    Pepe Escobar gives us an inside view of China's burgeoning economy. 
Gary Edwards

The Fourth Industrial Revolution: what it means and how to respond - Agenda - The World... - 0 views

agenda.weforum.org/...at-it-means-and-how-to-respond

shared by Gary Edwards on 26 Dec 15 - No Cached
  • The First Industrial Revolution used water and steam power to mechanize production. The Second used electric power to create mass production. The Third used electronics and information technology to automate production. Now a Fourth Industrial Revolution is building on the Third, the digital revolution that has been occurring since the middle of the last century. It is characterized by a fusion of technologies that is blurring the lines between the physical, digital, and biological spheres.
  • Like the revolutions that preceded it, the Fourth Industrial Revolution has the potential to raise global income levels and improve the quality of life for populations around the world. To date, those who have gained the most from it have been consumers able to afford and access the digital world; technology has made possible new products and services that increase the efficiency and pleasure of our personal lives. Ordering a cab, booking a flight, buying a product, making a payment, listening to music, watching a film, or playing a game—any of these can now be done remotely.
  • In the future, technological innovation will also lead to a supply-side miracle, with long-term gains in efficiency and productivity. Transportation and communication costs will drop, logistics and global supply chains will become more effective, and the cost of trade will diminish, all of which will open new markets and drive economic growth.
  • ...16 more annotations...
  • As automation substitutes for labor across the entire economy, the net displacement of workers by machines might exacerbate the gap between returns to capital and returns to labor. On the other hand, it is also possible that the displacement of workers by technology will, in aggregate, result in a net increase in safe and rewarding jobs.
  • I am convinced of one thing—that in the future, talent, more than capital, will represent the critical factor of production.
  • This will give rise to a job market increasingly segregated into “low-skill/low-pay” and “high-skill/high-pay” segments, which in turn will lead to an increase in social tensions.
  • In addition to being a key economic concern, inequality represents the greatest societal concern associated with the Fourth Industrial Revolution.
  • The largest beneficiaries of innovation tend to be the providers of intellectual and physical capital—the innovators, shareholders, and investors—which explains the rising gap in wealth between those dependent on capital versus labor.
  • Technology is therefore one of the main reasons why incomes have stagnated, or even decreased, for a majority of the population in high-income countries: the demand for highly skilled workers has increased while the demand for workers with less education and lower skills has decreased. The result is a job market with a strong demand at the high and low ends, but a hollowing out of the middle.
  • A winner-takes-all economy that offers only limited access to the middle class is a recipe for democratic malaise and dereliction.
  • An underlying theme in my conversations with global CEOs and senior business executives is that the acceleration of innovation and the velocity of disruption are hard to comprehend or anticipate and that these drivers constitute a source of constant surprise, even for the best connected and most well informed. Indeed, across all industries, there is clear evidence that the technologies that underpin the Fourth Industrial Revolution are having a major impact on businesses.
  • On the supply side, many industries are seeing the introduction of new technologies that create entirely new ways of serving existing needs and significantly disrupt existing industry value chains. Disruption is also flowing from agile, innovative competitors who, thanks to access to global digital platforms for research, development, marketing, sales, and distribution, can oust well-established incumbents faster than ever by improving the quality, speed, or price at which value is delivered.
  • Major shifts on the demand side are also occurring, as growing transparency, consumer engagement, and new patterns of consumer behavior (increasingly built upon access to mobile networks and data) force companies to adapt the way they design, market, and deliver products and services.
  • A key trend is the development of technology-enabled platforms that combine both demand and supply to disrupt existing industry structures, such as those we see within the “sharing” or “on demand” economy. These technology platforms, rendered easy to use by the smartphone, convene people, assets, and data—thus creating entirely new ways of consuming goods and services in the process. In addition, they lower the barriers for businesses and individuals to create wealth, altering the personal and professional environments of workers. These new platform businesses are rapidly multiplying into many new services, ranging from laundry to shopping, from chores to parking, from massages to travel.
  • On the whole, there are four main effects that the Fourth Industrial Revolution has on business—on customer expectations, on product enhancement, on collaborative innovation, and on organizational forms.
  • Overall, the inexorable shift from simple digitization (the Third Industrial Revolution) to innovation based on combinations of technologies (the Fourth Industrial Revolution) is forcing companies to reexamine the way they do business. The bottom line, however, is the same: business leaders and senior executives need to understand their changing environment, challenge the assumptions of their operating teams, and relentlessly and continuously innovate.
  • governments will increasingly face pressure to change their current approach to public engagement and policymaking, as their central role of conducting policy diminishes owing to new sources of competition and the redistribution and decentralization of power that new technologies make possible.
  • Ultimately, the ability of government systems and public authorities to adapt will determine their survival. If they prove capable of embracing a world of disruptive change, subjecting their structures to the levels of transparency and efficiency that will enable them to maintain their competitive edge, they will endure. If they cannot evolve, they will face increasing trouble.
  • In the end, it all comes down to people and values. We need to shape a future that works for all of us by putting people first and empowering them. In its most pessimistic, dehumanized form, the Fourth Industrial Revolution may indeed have the potential to “robotize” humanity and thus to deprive us of our heart and soul. But as a complement to the best parts of human nature—creativity, empathy, stewardship—it can also lift humanity into a new collective and moral consciousness based on a shared sense of destiny. It is incumbent on us all to make sure the latter prevails.
Paul Merrell

U.S. Intelligence Agencies See a Different World in 2030 - Bloomberg - 0 views

www.bloomberg.com/...a-different-world-in-2030.html

decline of the American Empire

shared by Paul Merrell on 12 Dec 12 - No Cached
  • New technologies, dwindling resources and explosive population growth in the next 18 years will alter the global balance of power and trigger radical economic and political changes at a speed unprecedented in modern history, says a new report by the U.S. intelligence community.
  • The 140-page report released today by the National Intelligence Council lays out dangers and opportunities for nations, economies, investors, political systems and leaders due to four “megatrends” that government intelligence analysts say are transforming the world. Those major trends are the end of U.S. global dominance, the rising power of individuals against states, a rising middle class whose demands challenge governments, and a Gordian knot of water, food and energy shortages, according to the analysts.
Paul Merrell

The Fed caused 93% of the entire stock market's move since 2008: Analysis - Yahoo Finance - 0 views

finance.yahoo.com/...-2008--analysis-194426366.html

banksters Federal-Reserve-Bankster-Cartel stock-market-manipulation

shared by Paul Merrell on 17 Mar 16 - No Cached
  • The bull market just celebrated its seventh anniversary. But the gains in recent years – as well as its recent sputter – may be explained by just one thing: monetary policy. The factors behind that and previous bubbles can be illuminated using simple visual analysis of a chart. The S&P 500 (^GSPC) doubled in value from November 2008 to October 2014, coinciding with the Federal Reserve Bank’s “quantitative easing” asset purchasing program. After three rounds of “QE,” where the Fed poured billions of dollars into the bond market monthly, the Fed’s balance sheet went from $2.1 trillion to $4.5 trillion. This isn’t just a spurious correlation, according to economist Brian Barnier, principal at ValueBridge Advisors and founder of FedDashboard.com. What’s more, he says previous bull runs in the market lasting several years can also be explained by single factors each time.
  • Barnier first compiled data on the total value of publicly-traded U.S. stocks since 1950. He then divided it by another economic factor, graphing the ratio for each one. If the chart showed horizontal lines stretching over long periods of time, that meant both the numerator (stock values) and the denominator (the other factor) were moving at the same rate. “That's the beauty of the visual analysis,” he said. “All we have to do is find straight, stable lines and we know we've got something good.”
  • Scouring hundreds of different factors, Barnier ultimately whittled it down to just four factors: GDP data five years into the future, household and nonprofit liabilities, open market paper, and the Fed’s assets. At different stretches of time, just one of those was the single biggest driver of the market and was confirmed with regression analyses.
  • ...2 more annotations...
  • He isolated each factor in a separate chart, calling them “eras” for the stock market. From after World War II until the mid-1970s, future GDP outlook explained 90% of the stock market’s move, according to statistical analysis by Barnier. GDP growth lost its sway on the market in the early 1970s with the rise of credit cards and consumer debt. Household liabilities grew with plastic first, followed by home mortgages, until the real estate crash of the early 1990s. Barnier’s analysis shows debt explained 95% of the entire market’s move during this time. The period between the mid- to late-1990s until 2000 was, of course, marked by the tech bubble. While stocks took much of the headline, that time also saw heightened activity in the commercial paper market. Startups and young companies sought cash beyond their stratospheric share values to fund their operations. Barnier’s regression analysis shows commercial paper increases could explain as much as 97% of the tech bubble. Shortly after the tech bubble burst, a housing bubble began, once more in the form of mortgages and other debt. That drove 94% of the market’s move for the first several years of the current century.
  • As the financial crisis reached a fevered pitch in 2008, the Federal Reserve took to flooding the financial market with dollars by buying up bonds. Simultaneously, interest rates fell dramatically, as bond yields move in the opposite direction of bond prices. Barnier sees the Fed as responsible for over 93% of the market from the start of QE until today. During the first half of 2013, the Fed caused the entire market’s growth, he said. Since the Fed stopped buying bonds in late 2014, the S&P 500 has been batted around in a 16% range and is more or less where it was when the QE came to a close. Investors need to anticipate the next driver, said Barnier. “Quantitative easing has stopped, but now we're into the interest rate world,” he said. “That means for any investor trying to figure out what to do, step one is starting with a macro strategy.”
Paul Merrell

Top Stories - U.S. Government Redistributes Wealth…to the Rich - AllGov - News - 0 views

www.allgov.com/...butes-wealthto-the-rich-121224

class warfare income inequality

shared by Paul Merrell on 26 Dec 12 - No Cached
  • For about thirty years now, the federal government has been implementing policies that take tax dollars from middle class Americans and give them to the rich, supposedly as a way to spur economic growth. Although Americans actually want greater economic equality, the net effect has been to redistribute wealth to the rich and create the most unequal developed society on earth.   According to a series of reports by Reuters, since 1989 inequality has risen all across the U.S. to levels not seen since before the Great Depression:
  • • Inequality has increased in every state except Mississippi, which is the poorest state in the Union;   • The poverty rate increased in 43 states;   • In 28 states inequality and poverty rose while median income fell;   • In every state, the richest 20% of households far outpaced the income gains of any other quintile;   • Income for the median household fell in 28 states.
  • Three specific aspects of federal policy—low taxes for the rich, outsourcing government functions to private companies, and the financial clout of Washington lobbyists—have been the major drivers of growing inequality.
Paul Merrell

The Anti-Empire Report #126 - March 7th, 2014 - William Blum - 0 views

williamblum.org/126

war & peace Ukraine Russia NED NATO banksters

shared by Paul Merrell on 09 Mar 14 - No Cached
  • Since the end of the Cold War the United States has been surrounding Russia, building one base after another, ceaselessly looking for new ones, including in Ukraine; one missile site after another, with Moscow in range; NATO has grabbed one former Soviet Republic after another. The White House, and the unquestioning American mainstream media, have assured us that such operations have nothing to do with Russia. And Russia has been told the same, much to Moscow’s continuous skepticism. “Look,” said Russian president Vladimir Putin about NATO some years ago, “is this is a military organization? Yes, it’s military. … Is it moving towards our border? It’s moving towards our border. Why?” The Holy Triumvirate would love to rip Ukraine from the Moscow bosom, evict the Russian Black Sea Fleet, and establish a US military and/or NATO presence on Russia’s border. (In case you were wondering what prompted the Russian military action.) Kiev’s membership in the EU would then not be far off; after which the country could embrace the joys of neo-conservatism, receiving the benefits of the standard privatization-deregulation-austerity package and join Portugal, Ireland, Greece, and Spain as an impoverished orphan of the family; but no price is too great to pay to for being part of glorious Europe and the West!
  • The Ukrainian insurgents and their Western-power supporters didn’t care who their Ukrainian allies were in carrying out their coup against President Viktor Yanukovych last month … thugs who set policemen on fire head to toe … all manner of extreme right-wingers, including Chechnyan Islamic militants … a deputy of the ultra-right Svoboda Party, part of the new government, who threatens to rebuild Ukraine’s nukes in three to six months. … the snipers firing on the protestors who apparently were not what they appeared to be – A bugged phone conversation between Urmas Paet, the Estonian foreign minister, and EU foreign policy chief Catherine Ashton, reveals Paet saying: “There is now stronger and stronger understanding that behind the snipers it was not Yanukovych, but it was somebody from the new coalition.” … neo-Nazi protestors in Kiev who have openly denounced Jews, hoisting a banner honoring Stepan Bandera, the infamous Ukrainian nationalist who collaborated with the German Nazis during World War II and whose militias participated in atrocities against Jews and Poles. The Israeli newspaper Haaretz reported on February 24 that Ukrainian Rabbi Moshe Reuven Azman advised “Kiev’s Jews to leave the city and even the country.” Edward Dolinsky, head of an umbrella organization of Ukrainian Jews, described the situation for Ukrainian Jews as “dire” and requested Israel’s help. All in all a questionable gang of allies for a dubious cause; reminiscent of the Kosovo Liberation Army thugs Washington put into power for an earlier regime change, and has kept in power since 1999.
  • The now-famous recorded phone conversation between top US State Department official Victoria Nuland and the US ambassador to the Ukraine, wherein they discuss which Ukrainians would be to Washington’s liking in a new government, and which not, is an example of this regime-change mentality. Nuland’s choice, Arseniy Yatseniuk, emerged as interim prime minister. The National Endowment for Democracy, an agency created by the Reagan administration in 1983 to promote political action and psychological warfare against states not in love with US foreign policy, is Washington’s foremost non-military tool for effecting regime change. The NED website lists 65 projects that it has supported financially in recent years in Ukraine. The descriptions NED gives to the projects don’t reveal the fact that generally their programs impart the basic philosophy that working people and other citizens are best served under a system of free enterprise, class cooperation, collective bargaining, minimal government intervention in the economy, and opposition to socialism in any shape or form. A free-market economy is equated with democracy, reform, and growth; and the merits of foreign investment in their economy are emphasized. The idea was that the NED would do somewhat overtly what the CIA had been doing covertly for decades, and thus, hopefully, eliminate the stigma associated with CIA covert activities. Allen Weinstein, who helped draft the legislation establishing NED, declared in 1991: “A lot of what we do today was done covertly 25 years ago by the CIA.”
  • ...2 more annotations...
  • NED, receives virtually all its financing from the US government ($5 billion in total since 1991 ), but it likes to refer to itself as an NGO (Non-governmental organization) because this helps to maintain a certain credibility abroad that an official US government agency might not have. But NGO is the wrong category. NED is a GO. Its long-time intervention in Ukraine is as supra-legal as the Russian military deployment there. Journalist Robert Parry has observed: For NED and American neocons, Yanukovych’s electoral legitimacy lasted only as long as he accepted European demands for new “trade agreements” and stern economic “reforms” required by the International Monetary Fund. When Yanukovych was negotiating those pacts, he won praise, but when he judged the price too high for Ukraine and opted for a more generous deal from Russia, he immediately became a target for “regime change.” Thus, we have to ask, as Mr. Putin asked – “Why?” Why has NED been funding 65 projects in one foreign country? Why were Washington officials grooming a replacement for President Yanukovych, legally and democratically elected in 2010, who, in the face of protests, moved elections up so he could have been voted out of office – not thrown out by a mob? Yanukovych made repeated important concessions, including amnesty for those arrested and offering, on January 25, to make two of his adversaries prime minister and deputy prime minister; all to no avail; key elements of the protestors, and those behind them, wanted their putsch.
  • Carl Gershman, president of NED, wrote last September that “Ukraine is the biggest prize”. The man knows whereof he speaks. He has presided over NED since its beginning, overseeing the Rose Revolution in Georgia (2003), the Orange Revolution in Ukraine (2004), the Cedar Revolution in Lebanon (2005), the Tulip Revolution in Kyrgyzstan (2005), the Green Revolution in Iran (2009), and now Ukraine once again. It’s as if the Cold War never ended. The current unbridled animosity of the American media toward Putin also reflects an old practice. The United States is so accustomed to world leaders holding their tongue and not voicing criticism of Washington’s policies appropriate to the criminality of those policies, that when a Vladimir Putin comes along and expresses even a relatively mild condemnation he is labeled Public Enemy Number One and his words are accordingly ridiculed or ignored. On March 2 US Secretary of State John Kerry condemned Russia’s “incredible act of aggression” in Ukraine (Crimea) and threatened economic sanctions. “You just don’t in the 21st century behave in 19th century fashion by invading another country on completely trumped up pre-text.” Iraq was in the 21st century. Senator John Kerry voted for it. Hypocrisy of this magnitude has to be respected.
Gary Edwards

Statism: Whether Fascist or Communist, It's The Deadly Opposite of Capitalism - Forbes - 0 views

www.forbes.com/...2

shared by Gary Edwards on 02 Jan 14 - No Cached
  • So, we observe a fundamental difference: one system grants the state unlimited power, holding that the individual is the rightless slave of the state; the other system holds individual rights to be supreme and inalienable, with the state limited to a single function: the protection of those rights from physical force and fraud.
  • That is the distinction that must be made. We can expect no clarity in political discussion until the pure, consistent poles are identified: the opposition between dictatorship and liberty, between the individual as the nothing and the individual as sovereign. “Left” and “Right” have to be defined accordingly.
  • But “Left” and “Right” are informal shorthand. The actual terms are: “statism,” on the Left, and “capitalism,” on the Right.
  • ...4 more annotations...
  • Today’s political-economic system is not capitalism–not pure, consistent, uncontrolled, laissez-faire capitalism. Today in America we live in the Entitlement State and the Regulatory State.
  • A government that taxes 40 percent or more of our income, that controls our medical care, that regulates business so thoroughly that every firm large enough to afford it has a department of “compliance,” a government that controls the money supply, sets bank reserve-ratios, regulates stock offerings, margin-ratios, home construction, determines what pharmaceuticals and medical innovations can be sold, operates schools and universities, runs the passenger rail system, forbids “offensive” speech, increasingly intervenes in diet, subsidizes agriculture and “green” businesses, imposes tariffs, decides which businesses may merge, and, we have just learned, spies on its own citizens–is not a government remotely consistent with capitalism.
  • The closest the world ever came to actual capitalism was the United States in the 19th Century, the era of this country’s fastest economic growth. Even in that era, the capitalist, industrial North had to fight a bloody Civil War to end the South’s infamous anti-capitalist institution: slavery.
  • the political spectrum–Left vs. Right–must be defined in terms of statism vs. individual liberty.
  • Gary Edwards on 02 Jan 14
     
    The political spectrum of Left vs Right must be defined in terms of STATISM vs Individual Liberty. Liberty as understood by the Founding Fathers, and baked into the founding documents.
Gary Edwards

The secret corporate takeover of trade agreements | Business | The Guardian - 0 views

www.theguardian.com/...e-takeover-of-trade-agreements

New-World-Order TTP

shared by Gary Edwards on 13 May 15 - No Cached
  • The US and the world are engaged in a great debate about new trade agreements. Such pacts used to be called free-trade agreements; in fact, they were managed trade agreements, tailored to corporate interests, largely in the US and the EU. Today, such deals are more often referred to as partnerships, as in the Trans-Pacific Partnership (TPP). But they are not partnerships of equals: the US effectively dictates the terms. Fortunately, America’s “partners” are becoming increasingly resistant. It is not hard to see why. These agreements go well beyond trade, governing investment and intellectual property as well, imposing fundamental changes to countries’ legal, judicial, and regulatory frameworks, without input or accountability through democratic institutions. Perhaps the most invidious – and most dishonest – part of such agreements concerns investor protection. Of course, investors have to be protected against rogue governments seizing their property. But that is not what these provisions are about. There have been very few expropriations in recent decades, and investors who want to protect themselves can buy insurance from the Multilateral Investment Guarantee Agency, a World Bank affiliate, and the US and other governments provide similar insurance. Nonetheless, the US is demanding such provisions in the TPP, even though many of its partners have property protections and judicial systems that are as good as its own.
  • The real intent of these provisions is to impede health, environmental, safety, and, yes, even financial regulations meant to protect America’s own economy and citizens. Companies can sue governments for full compensation for any reduction in their future expected profits resulting from regulatory changes. This is not just a theoretical possibility. Philip Morris is suing Uruguay and Australia for requiring warning labels on cigarettes. Admittedly, both countries went a little further than the US, mandating the inclusion of graphic images showing the consequences of cigarette smoking. The labeling is working. It is discouraging smoking. So now Philip Morris is demanding to be compensated for lost profits. In the future, if we discover that some other product causes health problems (think of asbestos), rather than facing lawsuits for the costs imposed on us, the manufacturer could sue governments for restraining them from killing more people. The same thing could happen if our governments impose more stringent regulations to protect us from the impact of greenhouse gas emissions.
  • When I chaired Bill Clinton’s council of economic advisers, when he was president, anti-environmentalists tried to enact a similar provision, called “regulatory takings”. They knew that once enacted, regulations would be brought to a halt, simply because government could not afford to pay the compensation. Fortunately, we succeeded in beating back the initiative, both in the courts and in the US Congress. But now the same groups are attempting an end run around democratic processes by inserting such provisions in trade bills, the contents of which are being kept largely secret from the public (but not from the corporations that are pushing for them). It is only from leaks, and from talking to government officials who seem more committed to democratic processes, that we know what is happening.
  • ...3 more annotations...
  • Fundamental to America’s system of government is an impartial public judiciary, with legal standards built up over the decades, based on principles of transparency, precedent, and the opportunity to appeal unfavourable decisions. All of this is being set aside, as the new agreements call for private, non-transparent, and very expensive arbitration. Moreover, this arrangement is often rife with conflicts of interest; for example, arbitrators may be a judge in one case and an advocate in a related case. The proceedings are so expensive that Uruguay has had to turn to Michael Bloomberg and other wealthy Americans committed to health to defend itself against Philip Morris. And, though corporations can bring suit, others cannot. If there is a violation of other commitments – on labour and environmental standards, for example – citizens, unions, and civil society groups have no recourse. If there ever was a one-sided dispute-resolution mechanism that violates basic principles, this is it. That is why I joined leading US legal experts, including from Harvard, Yale, and Berkeley, in writing a letter to Barack Obama explaining how damaging to our system of justice these agreements are.
  • American supporters of such agreements point out that the US has been sued only a few times so far, and has not lost a case. Corporations, however, are just learning how to use these agreements to their advantage. And high-priced corporate lawyers in the US, Europe and Japan will likely outmatch the underpaid government lawyers attempting to defend the public interest. Worse still, corporations in advanced countries can create subsidiaries in member countries through which to invest back home, and then sue, giving them a new channel to bloc regulations. If there were a need for better property protection, and if this private, expensive dispute-resolution mechanism were superior to a public judiciary, we should be changing the law not just for well heeled foreign companies but also for our own citizens and small businesses. But there has been no suggestion that this is the case.
  • Rules and regulations determine the kind of economy and society in which people live. They affect relative bargaining power, with important implications for inequality, a growing problem around the world. The question is whether we should allow rich corporations to use provisions hidden in so-called trade agreements to dictate how we will live in the 21st century. I hope citizens in the US, Europe and the Pacific answer with a resounding no. Joseph Stiglitz, a Nobel laureate in economics, is a professor at Columbia University. His most recent book, co-authored with Bruce Greenwald, is Creating a Learning Society: A New Approach to Growth, Development, and Social Progress
  • Gary Edwards on 13 May 15
     
    Economist Joseph Stiglitz takes on the TPP (Trans Pacific Partnership) trade agreement, explaining how corporations will use the agreement to side step environmental and regulatory laws of sovereign nations. Amazing stuff. No doubt Wall Street Money is behind these trade agreement. The Banksters are said to own over 40% of the world's corporations and these agreements are designed to establish corporate sovereignty while greatly diminishing state sovereignty. It's the New World Order. "Terms such as 'investor' and 'partner' are taking on new meanings as multinationals manipulate deals to take legal action against sovereign states"
Paul Merrell

The Debt To GDP Ratio For The Entire World: 286 Percent Washington's Blog - 0 views

www.washingtonsblog.com/...46790.html

economy debt global-GDP-debt-ratio banksters central-banks

shared by Paul Merrell on 19 May 15 - No Cached
  • Did you know that there is more than $28,000 of debt for every man, woman and child on the entire planet?  And since close to 3 billion of those people survive on less than 2 dollars a day, your share of that debt is going to be much larger than that.  If we took everything that the global economy produced this year and everything that the global economy produced next year and used it to pay all of this debt, it still would not be enough.  According to a recent report put out by the McKinsey Global Institute entitled “Debt and (not much) deleveraging“, the total amount of debt on our planet has grown from 142 trillion dollars at the end of 2007 to 199 trillion dollars today.  This is the largest mountain of debt in the history of the world, and those numbers mean that we are in substantially worse condition than we were just prior to the last financial crisis.
  • When it comes to debt, a lot of fingers get pointed at the United States, and rightly so.  Just prior to the last recession, the U.S. national debt was sitting at about 9 trillion dollars.  Today, it has crossed the 18 trillion dollar mark.  But of course the U.S. is not the only one that is guilty.  In fact, the McKinsey Global Institute says that debt levels have grown in all major economies since 2007.  The following is an excerpt from the report… Seven years after the bursting of a global credit bubble resulted in the worst financial crisis since the Great Depression, debt continues to grow. In fact, rather than reducing indebtedness, or deleveraging, all major economies today have higher levels of borrowing relative to GDP than they did in 2007. Global debt in these years has grown by $57 trillion, raising the ratio of debt to GDP by 17 percentage points (Exhibit 1). That poses new risks to financial stability and may undermine global economic growth. What is surprising is that debt has actually grown the most in China.  If you can believe it, total Chinese debt has grown from 7 trillion dollars in 2007 to 28 trillion dollars today.  Needless to say, that is absolutely insane…
  • What all of this means is that our long-term global economic problems have gotten much, much worse.  This short-lived period of relative stability that we have been enjoying has been fueled by unprecedented amounts of debt and voracious money printing.  Anyone with half a brain should be able to see that this is a giant financial bubble, and in the end it is going to unwind very, very painfully.  The following comes from a Canadian news source… At the beginning of 2008, government accounted for a smaller portion of the debt pie than corporate, household or financial debt. It now exceeds each of those other categories. “The current situation is much worse than in 2000 or 2007, and with interest rates near or at zero, the central banks have already used up their ammunition. Plus, the total indebtedness, especially the indebtedness of governments, is much higher than ever before,” said Claus Vogt, a Berlin-based analyst and co-author of a 2011 book titled The Global Debt Trap.
  • ...3 more annotations...
  • “Every speculative bubble rests on some kind of a fairy tale, a story the bubble participants believe in and use as rationalization to buy extremely overvalued stocks or bonds or real estate,” Mr. Vogt argued. “And now it is the faith in the central-planning capabilities of global central bankers. When the loss of confidence in the Fed, the ECB etc. begins, the stampede out of stocks and bonds will start. I think we are very close to this pivotal moment in financial history.” But for the moment, the ridiculous stock market bubble continues.
  • Internet companies that didn’t even exist a decade ago are now supposedly worth billions upon billions of dollars even though some of them don’t make any money at all.  There is even a name for this phenomenon.  Internet companies that have gigantic valuations without gigantic revenue streams are being called “unicorns”… A dizzying mix of bold ideas and lavish investments has catapulted dozens of privately held start-ups to unicorn status, defined as having market valuations of at least $1 billion often without soaring revenues to match. Social-sharing site Pinterest has soared to $11 billion. Ride-hailing company Uber is now worth a staggering $50 billion. How long can the party last?
  • Sadly, the truth is that Wall Street is headed for a very painful awakening. What we are experiencing right now is the greatest financial bubble of all time. What comes after that is going to be the greatest financial crash of all time. 199,000,000,000,000 dollars of debt is about to come crashing down, and the pain of this disaster will be felt by every man, woman and child on the entire planet.
« First ‹ Previous 61 - 80 of 106 Next › Last »
Showing 20▼ items per page