US company earnings continue to falter, and the gap between actual and expected earnings continues to grow.
Wall Street believes that US companies will increase earnings by 16%. See for yourself. When was the last time that happened?
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.
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’.
US stocks aren’t trading at a record because the US economy is booming, or because it has recovered from the recession. The same goes for the Aussie market.
Instead of a return to sound money under a gold standard, we potentially have something far worse than paper money — government or central bank-issued digital money.
When markets ultimately collapse from the insiders’ manipulation, central bankers are going to go from being ‘deified’ to ‘vilified’. And rightly so.
At the time of writing the Brexit vote is still not entirely certain. However, the markets have delivered their verdict.
I’ve explained in recent weeks how the monetary elites are looking to engineer higher gold prices to generate inflation since nothing else has worked.
When debt grows faster than GDP, the net debt as a percentage of GDP gets larger. If only GDP were growing faster, then maybe the debt wouldn’t be such a drag.