u.s. economy 2013
Today I'm going to show you three charts Obama hoped you'd never see.
You're about to get a very different view of the "recovery" picture that the administration keeps painting for us.
This one, for starters, is accurate.
It also explains why incoming Fed Chair Janet Yellen can't cut stimulus, which is one of the reasons you have an opportunity to make some money here... especially if you follow my "mid-December plan." More on that in a minute.
Let's start with the charts...The White House positively hates this first one...
Currency Trading Today: Follow the FOMC to Profits
While last week certainly had its share of risk events that helped move currencies, the major theme in currency trading was continued weakening/consolidation for the U.S. dollar.
This week, the weakening will be a key focus for us. We have some very weighty top-tier data events occurring in the next few days.This window of opportunity won't stay open for long, however...
Will United States Debt Holders Bail on Treasuries?
Since the mid-1990s, China and a host of other foreign governments have quietly acquired one-third of all United States public debt. Foreign holders of United States debt held more than $5.6 trillion in Treasury securities as of August 2013.
But continued debt-ceiling drama in the United States is starting to change that.
Debt Ceiling Deal Doesn't Fix This Larger Global Issue with United States
Senate leaders finally hammered out a debt ceiling deal today (Wednesday) that avoided a looming potential debt default. It also reopened the government that has been shut down for more than two weeks.
Investors cheered the news and sent stocks up 205 points, or 1.36%, today.
While a deal solves short-term problems, it's not doing much to help the long-term nightmare.To continue reading, please click here...
What a Debt Ceiling Stalemate Will Do to the Market
Yesterday (Monday), Money Morning Chief Investment Strategist Keith Fitz-Gerald appeared on FOX Business' "Varney & Co."to make projections about what a stalemate on the debt ceiling will do to the market.
We are a little more than 24 hours away from the day that Treasury Secretary Jack Lew has said we'll exhaust the "extraordinary measures" and go over our debt limit. But even with the impending deadline, over the last five days the market has shakily climbed, with the Dow up 2.35%, Nasdaq up 1.16%, and the S&P 500 up slightly to 1.9%.To continue reading, please click here...
This Trend in the U.S. Economy Is Putting Your Job at Risk – But Can Make You Rich
The biggest, and most ignored, trend in the U.S. economy is the ongoing divide between the wealthiest members of society and the average American worker.
Real wages are falling, while unemployment is stagnant. Politicians blame greed, but that's because class warfare is a valuable tool to gain power.
I argue instead that disruptive technologies have accelerated this divide.
Just recently, I noted that the U.S. wage-productivity gap has been driven heavily by the use of automation and technology in the U.S. economy, which is displacing workers at a faster pace than new jobs and job categories have been created.
Put a different way, robots are taking our jobs.
Recession 2013: The Signs Don't Look Good
You won'thear any talk about a Recession 2013 from the president, or from whoever happens to be the next Fed Head, or from anyone of either party in Congress. You won't hear about it on the news, either.
Listen to them and you'll hear that the economy's turning a corner. "Growth has returned... unemployment is falling... the markets are at all-time highs... things are looking up all over."
What a relief, right?Read more...
Brace Yourself: This Is What the Fed’s QE Has Done for Our Economy
The Fed's QE (quantitative easing) program has created multiple trillions of dollars since it first started in 2008.
But now there are signs the QE policy will finally come to a close.
One Sure Winner as We Fight Deflation
[Editor's Note: We are constantly surveying the investment world for ideas, hidden stories and unique perspectives to share with you. One of our favorite spots to look is The Aden Forecast, which has been written by Mary Anne and Pam Aden for decades. This recent article they crafted for you is testament to why we value their insight and analysis.]
For the past six months or so, we've talked a lot about the velocity of money and its effects. Increasingly, it's become the most important factor in understanding the markets and the uncharted waters we're currently navigating.
For years we've been delicately sailing between the Scylla and Charybdis of our day, between inflation and deflation. And the sharp drop in gold was yet another slide towards deflation's shores.
Meanwhile, the world's central bankers have been at the helm, doing all they can to keep deflationary pressures at bay and steer hard toward inflation.
But despite their unprecedented global efforts, including massive money stimulus and near zero interest rates, the rocky shores of deflation loom larger and larger. Here's why...
Symptoms Don't Lie
A good doctor will not simply make a diagnosis based on measurements. The symptoms and complaints expressed by the patient are at least as important in making a determination as the data provided by diagnostic tools.
When the data says one thing and the symptoms continuously say another, it makes sense to question the reliability of the instruments.
This would be particularly true if the instruments are furnished by a party with a stake in a favorable diagnosis, say an insurance company on the hook for treatment costs.