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Will the World Economy Continue to “Roll Along” in 2018?

Once upon a time, we worried about oil and other energy. Now, a song from 1930 seems to be appropriate: Today, we have a surplus of oil, which we are trying to use up. That never happened before, or did it? Well, actually, it did, back around 1930. As most of us remember, that was not a pleasant time. It was during the Great Depression. Figure 1. US ending stocks of crude oil, excluding the Strategic Petroleum Reserve. Amounts will include crude oil in pipelines and in “tank farms,” awaiting processing. Businesses normally do not hold more crude oil than […]

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Gold, The Economy, Cryptocurrencies And Irrational Exuberance

The current tax legislation isn’t some thoughtful reform to benefit Americans. It’s a quickly planned looting through a broken window in our nation’s character. – John Hussman John Hussman wrote a must-read essay titled:  “Three Delusions:  Paper Wealth, A Booming Economy and Bitcoin (link).”   The crypto/blockchain delusion has exceeded the absurdity of the dot.com and housing bubble eras.   I was shorting fraud stocks happily in both eras.  I’m short a company  now called Riot Blockchain.  If you look at its description in Yahoo Finance, it bills itself as a developer of technologies applied to animal (“non-human”) medicine.  It recently changed […]

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For Clues On The Economy, Follow The Money

“There is nothing new on Wall Street or in stock speculation. What has happened in the past will happen again, and again, and again. This is because human nature does not change, and it is human emotion, solidly built into human nature, that always gets in the way of human intelligence. Of this I am sure.” –Jesse Livermore The profitability of lending/investing money is a function of both the rate of return on the money loaned/invested and the return (payback) of the money. The historically low interest rates are squeezing lenders by driving the rate of return on the loan […]

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The Economy Is Okay? U.S. Retail Store Closings Hit A New Record High As West Coast Homelessness Soars

If the U.S. economy is doing just fine, why have we already shattered the all-time record for retail store closings in a single year?  Whenever I write about our “retail apocalypse”, many try to counter my arguments by pointing out the growing dominance of Amazon.  And I certainly can’t deny that online shopping is on the rise, but it still accounts for less than 10 percent of total U.S. retail sales.  No, something bigger is happening in our economy, and it isn’t receiving nearly enough attention from the mainstream media. Back in 2008, a plummeting economy absolutely devastated retailers and […]

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China’s Gold/Oil Play; Greg Weldon: Debt-Driven Consumer Economy Breaking Down

Welcome to this week’s Market Wrap Podcast, I’m Mike Gleason. Coming up we’ll hear from Greg Weldon of Weldon Financial and WeldonLive. Greg’s research calls for the markets to roll over, and he’s expecting some very rough waters ahead based on key metrics he’s focused on – consumer spending and debt. He also weighs in on the tricky spot the Fed is in and where this is all pointing for both stocks and for gold. Don’t miss a wonderful interview with Greg Weldon, coming up after this week’s market update. Precious metals markets pulled back earlier this week before regaining […]

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Economic Slowdown Confirmed: The U.S. Economy Lost Jobs Last Month For The First Time In 7 Years

Don’t worry – even though the employment numbers are terrible the mainstream media insists that everything is going to be wonderful for the U.S. economy in the months ahead.  According to the Bureau of Labor Statistics, the U.S. economy lost 33,000 jobs during September.  That was the first monthly decline in seven years, and as you will see below, overall 2017 is on pace for the slowest employment growth in at least five years.  But the Bureau of Labor Statistics insists that the downturn in September was due to the chaos caused by Hurricane Harvey and Hurricane Irma, and they […]

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What Labor Means in Today’s Gig Economy

Labor Day seems like a foreign concept. That’s not to say that I’m unfamiliar with the art of drinking beer while balancing a plate of barbeque as sweat gets in my eyes during the last days of summer. That one I’ve got covered. I’m referring to the idea of the labor we’re supposed to honor today, at least as I see it in my mind’s eye. In my head, labor refers to a bunch of people that punch in at a factory or coal mine, put in a long day of work, punch out, and go home. Probably carrying metal […]

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Our Disneyland Economy

Disneyland is known as a place “where dreams come true” and where every story always has a happy ending.  But there is going to be no happy ending for the U.S. economy.  Wishful thinking has resulted in one of the greatest stock market rallies in history in recent months, but like all childhood fantasies, it won’t last.  The real economy continues to deteriorate, and we can see this even right outside of the gates of Disneyland.  Every night growing numbers of homeless people sleep on the pavement just steps away from “the happiest place on Earth”.  It can be fun […]

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New Normal Could Plunge Economy into Recession

The big news from the Federal Reserve wasn’t the quarter point rate hike (which was expected). The big news was Fed chair Janet Yellen’s announcement of “balance sheet normalization.” Fed Chair Janet Yellen claims the central bankwill soon unwind its balance sheet. In plain English, the Fed claims it will begin selling off assets from its balance sheet, which remains bloated from previous Quantitative Easing programs. If “normalization” does actually proceed at full speed, it would entail $ 50 billion in financial assets per month being dumped into the market. Not even Fed officials know how markets will react to […]

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Over The Last 10 Years The U.S. Economy Has Grown At EXACTLY The Same Rate As It Did During The 1930s

Even though I write about our ongoing long-term economic collapse every day, I didn’t realize that things were this bad.  In this article, I am going to show you that the average rate of growth for the U.S. economy over the past 10 years is exactly equal to the average rate that the U.S. economy grew during the 1930s.  Perhaps this fact shouldn’t be that surprising, because we already knew that Barack Obama was the only president in the entire history of the United States not to have a single year when the economy grew by at least 3 percent.  […]

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