Financial System
Financial System
free trade agreement
Free Trade Whether You Like It or Not
free trade agreementHow you or I feel about the controversial Trans-Pacific Partnership doesn’t seem to matter, though. Questions, comments and protests have all been ignored by governments of all 11 remaining nations. Trump’s America has chosen the route of isolation and protectionism. A short-sighted path that’s usually far more destructive to jobs, and whole economies, than free trade.
Why the BOE Will Take Over the World
blockchain technologyThe Bank of England (BoE) is responsible for monetary policy in the UK. They decide whether to move interest rates within the British economy. They do this to achieve a ‘stable’ rate of inflation. However, you need to ask - Is the current structure of government and central banks working? The future of financial and economic systems is with the new BOE. Except this isn’t the BOE as above...
Why The US Debt Ceiling Limit is an Economic Time Bomb
US debt ceilingIf the debt ceiling doesn’t get raised, it means the US government can’t borrow more money. The risk then is that the Treasury might run out of money and literally be unable to make payments on US Treasury bonds. That’s the US government defaulting to every other nation, most notably China.
Get Ready for Even Lower Interest Rates
interest rates could go lowerJust because rates have been at records lows doesn’t mean they can’t go any lower. For one, there’s the Aussie property market to think about. However, by looking at what the big banks are doing, we can glean what the RBA is likely to do in the future.
Central Banks Still Behind the Curve
Central banks still behind the curveRight now, pass the cash parcel is in full swing, and central banks are only very timidly trying to reduce the size of the parcel. That’s basically why you’ve seen the US stock market rise unimpeded for the past two years. Central banks are behind the curve. There is too much cash in the system given the positive investor psychology that is unfolding.
The End of the Strong Aussie Dollar
aussie dollarThe Aussie dollar is getting a boost from stronger commodity prices. Recent price rises have helped push the dollar higher. The Aussie dollar has had a strong start to the year. However, it may be more cyclical than anything to do with the underlying strength in the Aussie dollar.
When’s a Tax Cut Not a Tax Cut?
tax cuts not really tax cutsI’m all for tax cuts, but personal tax cuts are what needs to be on the table. And the issue of fairness needs to be addressed too. Society can’t function when the only people paying tax are honest middle-class workers.