Tag Archives: Economics

Fed’s Zero Interest Rate Cost Savers A Trillion Dollars

Posted on by

“While there is a lot of support for low interest rates – from stock market investors, home buyers, business borrowers, etc. – it has not been a cost-free policy.  While bank savings rates have traditionally been able to earn savers a little more than inflation, they have consistently lagged behind inflation during this era of extraordinarily low interest rates. That means that depositors in CDs, savings accounts and money market accounts have been losing purchasing power. This lost purchasing power is the hidden cost of the Fed’s policies.  The question is, what has this three-quarters of a trillion dollars in lost purchasing power bought us?”

http://www.investorsinsight.com/blogs/forecasts_trends/archive/2014/05/13/fed-s-zero-interest-rate-cost-savers-a-trillion-dollars.aspx

Scan to Donate Bitcoin to Freedomwat.ch Staff
Did you like this?
Tip Freedomwat.ch Staff with Bitcoin
Donate via Installed Wallet

In Europe, Job Protections for Older Generation Are Barriers for Youth

Posted on by

“The older generation benefited from decades of rock-solid job protection, union-guaranteed salary increases and the promise of a comfortable retirement. All this has allowed them to weather Europe’s longest postwar crisis reasonably well.  By contrast, many younger Europeans can hope for little more than poorly paid, short-term contracts. Employers in many countries are reluctant to hire on permanent contracts because of rigid labor rules and sky-high payroll taxes that go to funding the huge pension bill of their parents. The breach is widening: Median income for people over 60 rose between 2008 and 2012 in nearly every EU country; it declined for people under 25 in almost half.”

http://online.wsj.com/articles/in-europe-job-protections-for-older-generation-are-barriers-for-younger-workers-1407541533

Scan to Donate Bitcoin to Freedomwat.ch Staff
Did you like this?
Tip Freedomwat.ch Staff with Bitcoin
Donate via Installed Wallet

Lawrence Reed of FEE on the Expansion of Free-Market Thinking

Posted on by

the-daily-bell-top-logo61

“We can’t just make the case for capitalism based on the fact, as indisputable as it is, that capitalism produces more stuff. Even if you convince someone of that, they are vulnerable to the first charlatan who comes along and says it’s not fair, that if we only empower politicians and bureaucracies we can improve things. The case for liberty must ultimately rest upon a deep and abiding moral dimension. It’s right because it’s what humans were made for. We’re not a fleet of homogenous robots that function best when somebody programs us. We’re at our best when we’re free to be ourselves, to be responsible for our decisions without the power to impose our mistakes at gunpoint.”

http://www.thedailybell.com/exclusive-interviews/35546/Anthony-Wile-Lawrence-Reed-on-the-Progress-of-FEE-the-Importance-of-Personal-Responsibility-and-the-Expansion-of-Free-Market-Thinking/

Scan to Donate Bitcoin to Freedomwat.ch Staff
Did you like this?
Tip Freedomwat.ch Staff with Bitcoin
Donate via Installed Wallet

Bill Bonner: This Market Is a Titanic in Search of an Iceberg

Posted on by

Bill-Bonner2

“Think how nice Julius Caesar’s life might have been if he had just stayed home on the Ides of March, as his wife, Calpurnia, advised. Think how much better the passengers would have enjoyed their cruise if they could just forget the night the Titanic hit an iceberg.  As for investors, had they just stayed in cash for the 10 worst days in the last 25 years, their annual rate of return would have been about 60% higher.  Don’t worry. Yesterday was hardly one of the 10 worst days. It wasn’t a good day. But it wasn’t terrible. Just a bump. Which makes us wonder. Are our worst days behind us, like icebergs astern? Or ahead?”

http://www.bonnerandpartners.com/this-market-is-a-titanic-in-search-of-an-iceberg/

Scan to Donate Bitcoin to Freedomwat.ch Staff
Did you like this?
Tip Freedomwat.ch Staff with Bitcoin
Donate via Installed Wallet

Bill Bonner: The God-Like Vanity of Central Planners

Posted on by

Bill-Bonner2

“Large-scale central planning can be effective, but only by pulverizing the delicate fabric of evolved civilized life.  It is a future that practically no one wants, because it means destroying the many different futures already in the works – marriages, businesses, babies, baptisms, hunting trips, shopping, investments and all the other activities of normal life.  Not all central planning produces calamities on that scale, of course. But all, to the extent they are effective, are repulsive. The more they achieve the planners’ goals, the more they interfere with private goals, and the more they retard or destroy the progress of the human race.”

http://www.bonnerandpartners.com/the-god-like-vanity-of-central-planners/

Scan to Donate Bitcoin to Freedomwat.ch Staff
Did you like this?
Tip Freedomwat.ch Staff with Bitcoin
Donate via Installed Wallet

Bill Bonner: The Fed’s Next Move

Posted on by

Bill-Bonner2

“Janet Yellen is being pushed into a corner by the Fed’s own pronunciamientos. It has been threatening to raise interest rates when its inflation and employment targets are hit. And hit they have been. So what’s she gonna do?  Our guess is she means what she says. She is a smart woman. But she is not smart enough to see that she has been talking claptrap… and not courageous enough to admit that her career is built on it.  If she sees any sign the ‘recovery’ has been put in danger by her attempts to normalize interest rates… she will back up. That is the history of the last seven years of Fed policy… and it is probably the best guide to the months ahead.”

http://www.bonnerandpartners.com/the-feds-next-move/

Scan to Donate Bitcoin to Freedomwat.ch Staff
Did you like this?
Tip Freedomwat.ch Staff with Bitcoin
Donate via Installed Wallet

Marc Faber on Commodity Cycles and the Wealth Redistribution Craze

Posted on by

“We have a two-tier economy. We have an economy of well-to-do people from which I have benefited because I’m in the financial sector. My asset value has gone up, I benefit from rising asset prices because I own shares and I’m on the board of companies that own shares, fund management companies and so forth, but I’m not happy about the fact that the typical household and the working class worldwide is not doing well. And what will eventually happen and has begun to happen when you have rising wealth inequality, eventually you have politicians that will not assume personal responsibility for the rising wealth inequality that is largely fostered by monetary policies by central banks.”

http://www.thedailybell.com/exclusive-interviews/35527/Anthony-Wile-Marc-Faber-on-Commodity-Cycles-Monopoly-Central-Banking-and-the-Wealth-Redistribution-Craze/

Scan to Donate Bitcoin to Freedomwat.ch Staff
Did you like this?
Tip Freedomwat.ch Staff with Bitcoin
Donate via Installed Wallet

Bill Bonner: Never Never Land

Posted on by

“Bill Bonner’s presentation from The Sprott Vancouver Natural Resource Symposium 2014 held July 22nd to 25th, 2014.”

http://www.bonnerandpartners.com/never-never-land/

Scan to Donate Bitcoin to Freedomwat.ch Staff
Did you like this?
Tip Freedomwat.ch Staff with Bitcoin
Donate via Installed Wallet

Peter Schiff and Doug Casey on the Real State of the Economy

Posted on by

“The president is bragging now that the deficit is finally below $1 trillion, but that’s the deficit in the recovery. If we slip into a legitimate or acknowledged recession, where are the deficits going to go, $1.5 trillion, $2 trillion? And how can we possibly finance that when the world is already saturated with the debt that we’ve issued to stimulate us out of prior recessions?  [..]  I think we are on the edge of something that is much worse than what we had in 2008 and 2009. I look around the world at places where you can put your capital, real estate is overpriced, the stock market is greatly overpriced, the bond market is in a historic bubble, that’s about the best short sale I can think of in the world.”

http://www.internationalman.com/articles/peter-schiff-and-doug-casey-on-the-real-state-of-the-economy

Scan to Donate Bitcoin to Freedomwat.ch Staff
Did you like this?
Tip Freedomwat.ch Staff with Bitcoin
Donate via Installed Wallet

Why the Fed’s Taper Hasn’t Hurt the Stock Market… Yet

Posted on by

“Normally, monetary tightening produces undesirable effects. But none of those effects has shown up yet. Stocks continue to rise. Long-term interest rates remain ultra-low. The unemployment rate is improving. And inflation—at least as the government reports it—is rising only modestly.  Naturally, the question is: how has the Fed managed to taper without roiling markets?  The answer: the Fed has printed so much money in the past few years that it can afford to take a breather. Since 2013, the Fed has been growing its balance sheet (by buying Treasuries and mortgage-backed securities) faster than the government debt has grown.”

http://www.caseyresearch.com/cdd/why-the-feds-taper-hasnt-hurt-the-stock-market-yet

Scan to Donate Bitcoin to Freedomwat.ch Staff
Did you like this?
Tip Freedomwat.ch Staff with Bitcoin
Donate via Installed Wallet