|#SubscriberNotes have been updated on the website. The countertrend rally is getting long in the tooth now.|
Monday, February 29, 2016
Sunday, February 28, 2016
|#SubscriberNotes have been updated on the website. While it's a bear market, a substantial percentage of stocks remain in uptrends.|
Friday, February 26, 2016
|Tesla shares have been on a tear lately. Buyers are pouring money into the stock at a great rate as our Money Flow indicator shows:
Electric vehicles could be as cheap as gas-guzzlers soon:|
Thursday, February 25, 2016
|Bloomberg predicts that by 2023, more people will be driving electric, which will cause the demand for oil to drop by 2,000,000 barrels a day. When that happens, it says there will be another crash in oil prices. Read more...|
|#SubscriberNotes have been updated on the website. Why stocks are acting like little puppy dogs now.|
Wednesday, February 24, 2016
Tuesday, February 23, 2016
|Can you imagine a retirement fund that earns less than 0%?
Negative interest rates may soon arrive in the United States—which means you could be “taxed” on previously interest-paying investments, such as CDs, savings accounts, and US government bonds.
Several European countries, the ECB, and now Japan have already established a NIRP (negative interest rate policy).
Fed heads from Janet Yellen to Stanley Fischer have stated they may be in favor of it if the economic situation in the US “warranted” it… which, as we all know, could mean anything.
Two of Mauldin Economics’ top editors—Tony Sagami and Jared Dillian—sat down for a video interview to discuss their thoughts on the possible advent of NIRP:
Monday, February 22, 2016
Sunday, February 21, 2016
|#SubscriberNotes #WeekendAnalysis have been updated on the website. More rally ahead for equities this week, but dip first.|
Thursday, February 18, 2016
|#SubscriberNotes have been updated on the website. Investors, not trusting the stock market, decided to patch up the piggy bank today.|
Wednesday, February 17, 2016
|#SubscriberNotes have been updated on the website. Where are investors pulling funds to buy stocks again? The bond market!|
Tuesday, February 16, 2016
Monday, February 15, 2016
|By Ron Paul
Last week US stock markets tumbled yet again, leaving the Dow Jones index down almost 1500 points for the year. In fact, most major world markets are in negative territory this year. There are many Wall Street cheerleaders who are trying to say that this is just a technical correction, that the bottom is near, and that everything will be getting better soon. They are ignoring the real message the markets are trying to send: you cannot print your way to prosperity.
People throughout history have always sought to acquire wealth. Most of them understand that it takes hard work, sacrifice, savings, and investment. But many are always looking for that "get rich quick" scheme. Monetary cranks throughout history have thought that just printing more money would result in greater wealth and prosperity. Every time this was tried it resulted in failure. Huge economic booms would be followed by even larger busts. But no matter how many times the cranks were debunked both in theory and practice, the same failed ideas kept coming back.
The intellectual descendants of those monetary cranks are now leading the world's central banks, which is why the last decade has seen an explosion of money creation. And what do the central bankers have to show for it? Lackluster employment numbers that have not kept up with population growth, increasing economic inequality, a rising cost of living, and constant fear and uncertainty about what the future holds.
The past decade has been a lot like the 1920s, when prices wanted to drop but the Federal Reserve kept the price level steady through injections of easy money into the economy. The result in the 1920s was the Great Depression. But in the 1920s prices were dropping because of increased production. More goods being produced meant lower prices, which the Fed then tried to prop up by printing money. Unlike the "Roaring 20s" however, the economy isn't quite as strong today. It's more of a gasp than a roar.
Production today is barely above 2007 levels, while heavily-indebted households already hurt during the financial crisis don't want to keep spending. The bad debts and mal-investments from the last Federal Reserve-induced boom were never liquidated, they were merely papered over with more easy money. The underlying economic fundamentals remain weak but the monetary cranks who run the Fed keep trying to pump more and more money into the system. They fail to realize that easy money is the cause, not the cure, of recessions and depressions. They didn't realize that prices needed to drop in order to clear all the bad debt and mal-investments out of the system. Because they don't realize that, we are on the verge of yet another financial crisis.
Don't be confused by any stock market rallies over the next few months and think that the worst is over. Remember that after Black Tuesday in 1929 the Dow Jones rallied over the next year before it began slowly and steadily to sink again. The central bankers will do everything they can to delay the inevitable. If they had allowed housing prices to fall in 2008 and hadn't bailed out the big Wall Street banks, the economy would have corrected itself. Yes, it would have been a severe correction, but it would have been nothing compared to the inevitable correction that will present itself when the Fed runs out of easy money options. The Fed may try to cut interest rates again, maybe even going negative, or it will do more quantitative easing, but that won't work. Creating more money does not lead to economic growth and well-being. The more money the Federal Reserve creates, the more ordinary Americans will end up suffering.
Copyright © 2016 by RonPaul Institute. Permission to reprint in whole or in part is gladly granted, provided full credit ad a live link are given.
Sunday, February 14, 2016
|When you ask a large fossil fuel extractor like BP (didn't they tell us BP stood for “Beyond Petroleum?”) what the future will look like, of course you get what they want you to see. Steve Hanley writes in BP Energy Outlook Sees The World Through Oil Colored Glasses:
|A preliminary version of #SubscriberNotes have been updated on the website. We'll have more later on Sunday.|
Thursday, February 11, 2016
|David Haggith writes:
|#SubscriberNotes have been updated on the website. What does the dog do after he catches the car he was chasing?|
Wednesday, February 10, 2016
Tuesday, February 09, 2016
Monday, February 08, 2016
Sunday, February 07, 2016
Thursday, February 04, 2016
|#SubscriberNotes have been updated on the website. Employment Report should be a market force Friday morning. Be very careful.|
|Scott Adams makes a very good case for the Iowa primary to have been rigged to stop Trump. In News Flash: Cartoonist Gets One Wrong!, Adams says,
Wednesday, February 03, 2016
|#SubscriberNotes have been updated on the website. It was a Wednesday Turnaround for oil and it pulled commodities higher.|