Why the Job Recovery is a Farce. The Labor Force Participation Rates Among Various Age Groups Show Serious Weakness in the Labor Market. The main stream media has been trumpeting the wonderful state of the U.S. labor market. Superlatives like “Robust” “Buoyant” “Solid” “Strengthening” are used to describe the job market. But…. The Job Recovery … Read More →
HP Fires 55,000 Employees, Buys Back Shares Jewlett Packard’s actions illustrates an unintended consequence of artificially low interest rates. Companies get a better return on investment buying back shares than hiring employees or investing in capital equipment. Buying back a company’s own shares is so attractive, it even makes sense to fire employees and reinvest … Read More →
Mainstream Media Economic Cheerleading Major international media outlets continue to tout the U.S. economy as “solid”, “robust” and “accelerating”. Podcast Summary Intro: 0:00-5:15 Retail Sales Review 5:15-7:10 discussion of the low retail figures in light of the supposed increase that was supposed to happen because of lower gas prices. Consumer spending is approximately 2/3 of … Read More →
New Home and New Car Sales During the Great Recession. New Car Sales Soar, New Home Sales Don’t. Low interest Rates, Easy Credit Boost New Car Sales. New Home Sales are at Multi Decade Lows Despite Historically Low Interest Rates. Consumers saddled with mortgage sized health insurance costs, rising food costs and car payments find … Read More →
Russia and De-Dollarization and Rebalancing Reserves Russia has spent over a year of de-dollarizing and rebalancing its reserves Russia’s Gold Reserves vs. U.S. Treasury holdings. Russia boosted gold reserves 16% in 2014 while lowering their U.S. Treasury Holdings by nearly 30% as part of its de-dollarization strategy. Russia added 18.7 tons of gold to its … Read More →
European Central Bank Announces Quantitative Easing Program. ECB acts in part on advice from U.S. Federal Reserve Vice Chairman. Will Buy Bonds with a Negative Yield. The European Central Bank Set to Start its own Quantitative Easing Program. European Quantitative Easing Plan to top €1.1 trillion. Quantitative easing has gone transcontiental, now reaching continental Europe. … Read More →
Real Estate Predictions for 2015. Economic Predictions for 2015. Gold and Silver Predictions for 2015. The economy will not boost home sales, rather government stimulus and programs may do the trick. Interest rates will remain low as the Fed engages in “Quantitative Patience” and talks about raising rates only. Gold and silver demand will out … Read More →
The False Housing Recovery. Housing Outlook for 2015. The False Housing Recovery of 2013 continued in 2014. After a few years of false starts, the housing market remains stalled. Existing Home Sales Down 3% in 2014. Housing Recovery? What Housing Recovery? The definition of recovery is a temporary period between sickness and wellness. The housing … Read More →
Gold to Crude Oil Ratio Oil falls by more than half in less than six months. Gold is up 8% from its November 2014 low. UPDATE: January 17, 2016- Gold Crude Oil Ratio Hits All Time High (charts updated regularly-click to see most current ratio) An Ominous Sign As oil plummets and gold rises, the … Read More →