We’re all for technology. We love any technology that helps improve things. But a central bank-controlled e-money system isn’t an improvement.
China is churning out oceans full of unprofitable steel because it’s the only way it can keep economic growth from stalling. To state the obvious, this is an unsustainable growth model.
It’s a Tom and Jerry market. Here’s how it works… The Fed thinks the economy is recovering and makes noises about raising rates at some time in the future.
What we are witnessing in the US and Europe is the tip of the ‘social and political revolution iceberg’. When people lose jobs, money and hope, the social mood darkens.
Australian apartments could soon experience a rapid drop in prices. But not just any apartment. Off-the-plan apartments seem to be in for the worse of it.
People assume the value of their home will offset their incredible mortgages. That is until it doesn’t. The day of reckoning is coming.
If taxpayers are the implicit backers of troubled banks, the banks should pay a fee for it. As it stands, they’re getting a free ride, and no doubt loving it.
The price of gold is on the launch pad…and it may be poised for a moonshot. We already saw the price of gold ‘lift-off’ after the Brexit announcement.
Typically, central banks use monetary policy (interest rates) to stimulate or stymie demand. It’s all about finding the right balance of growth and inflation — not too hot, and not too cold. Or as the phrase goes: the ‘Goldilocks economy’.
There are no good outcomes with negative interest rates. The lower rates go, the greater the risk of unintended and disastrous consequences coming into play