Article Index

U.S. Economy

BREAKING: U.S. Debt to China Will Destroy the U.S. Dollar

US Debt

The amount of U.S. debt owned by foreign nations has never been higher.

Since Sept. 30, 2014, the U.S. Treasury has accumulated $17.8 trillion worth of debt. That’s roughly 103% of the total U.S. GDP in 2014.

And 34% of that debt – $6.1 trillion – is owned by foreign governments. Here’s why that’s such a big problem…

The Wealth Gap in America Has Reached Historic Levels

wealth gap

The wealth gap in the United States and other developed countries hasn't been this big since the 1980s, according to a new report from the Organization of Economic Cooperation and Development (OECD).

In the 1980s, the top 10% of earners in the developed world made seven times the income of the bottom 10%. But the wealth gap has expanded since. By 2013, the top 10% had 9.6 times the income of the bottom 10%. That was across 34 nations.

And the numbers in the U.S. are even worse…

U.S. Company Layoffs in 2015 Up 13% Year Over Year

U.S. company layoffs

U.S. company layoffs are up 13% in 2015 from the year before.

U.S.-based employers announced a whopping 41,034 job cuts last month.

Check out this list of employers that are slashing scary high amounts of jobs from their payrolls...

Catalyst #3: China Gold Reserves Threaten the U.S. Dollar

price of gold today

China gold reserves have been kept secret – but we know China is stockpiling faster than ever. And with enough of the yellow metal, China gold reserves could actually harm the U.S. dollar.

Watch the video to see how analysts know China is secretively stockpiling gold - and exactly why that poses a threat…

The "Unnatural Disaster" Ravaging Global Markets

global-map

The tide is turning for crude oil prices. Following some nice recent gains and despite a dip on Tuesday, the market currently remains at just below $60 a barrel for West Texas Intermediate (WTI) crude oil futures in New York. The recent rise in prices would seem to be just what the smaller operators in the U.S. need to avoid a sector meltdown. A few months back, when prices were pushing lows of $40 a barrel, there was widespread talk of a wave of bankruptcies coming in the oil patch. The picture is now better, given a recovery in crude prices.

The tide is turning for crude oil prices.

Following some nice recent gains and despite a dip on Tuesday, the market currently remains at just below $60 a barrel for West Texas Intermediate (WTI) crude oil futures in New York.

The recent rise in prices would seem to be just what the smaller operators in the U.S. need to avoid a sector meltdown.

A few months back, when prices were pushing lows of $40 a barrel, there was widespread talk of a wave of bankruptcies coming in the oil patch. The picture is now better, given a recovery in crude prices.

But there is another shoe about to fall in the ongoing fight by smaller companies to survive. Here's my take on the disaster that's brewing - and the opportunities it may bring...

Jobs Report Turns Tables on Traditional Retail Havens

july-jobs-report

The lower than expected jobs numbers that the Bureau of Labor Statistics released last week could signal a trend more disturbing than a potential rise in unemployment.

Find out why.

From Complexity to Chaos, From a Trickle to a Flood

bear-market

As a volatility trader, I loved seeing stocks drop 2% last week after having risen 3%. But as a credit trader and student of market behavior, I know all too well that this type of volatility is a forecast of stormy seas ahead.

Markets were disturbed last week by more evidence that the economy is weak, in spite of the fact that a steady stream of lousy economic news this year has done little to prevent stocks from reaching new highs.

With first quarter GDP increasingly likely to come in at well below 1% - a number that certainly can't be blamed on the weather alone - investors are now starting to sweat. Here's what they'll do next...

Use This Strategy to Profit Before the Markets Head South

Stock market futures

For the last six months, I have been warning that economic growth is faltering. In November of last year, I predicted that the U.S. economy would experience a "growth scare" in 2015.

This week, we learned that the Atlanta Fed is tracking first quarter GDP growth at a mere 0.3% and that the Federal Reserve's Open Market Committee (FOMC) has significantly downgraded its growth forecast.

Bond yields have plunged and commodity prices have collapsed. Only stocks have failed to figure out that low growth is a recipe for coming disaster.

Earn 6% When Others Are Losing Money

Money

We're living in crazy economic times.

The race to debase and stimulate has taken us into uncharted financial waters.

Zero interest rate policies (ZIRP) are being replaced with negative interest rate policies (NIRP).

It's an upside-down banking environment that presents some serious challenges.

But investors who are willing to get just a little creative can profit nicely, even as others lose money that just sits there.

And, even better, the shares are trading at an 8% discount now...

February Jobs Report: Why Wages Are Still So Low

February Jobs Report

The February jobs report showed a dip in the unemployment rate. But it also showed zero wage growth and a lower labor force participation rate.

A close look at the numbers shows this "recovery" has passed by too many people…

Here’s the real story on U.S. jobs…

U.S. Layoffs: More than 103,620 Announced in 2015

U.S. layoffs

Today's job report showed unemployment fell to 5.5% - but it doesn't seem like things are getting better when you look at the constant stream of planned U.S. layoffs and job cuts being announced.

Just two months into 2015, employers have announced a whopping 103,620 planned layoffs. That's up 19% from the 86,942 layoffs recorded during the same period in 2014.

Here's a look at some of the biggest job cuts announced so far this year...

With 40% of Americans One Bill Away from Financial Disaster, What's Next?

20150223-KFG-Varney

Despite hundreds of billions of dollars in bailout money and U.S. Federal Reserve stimulus, the U.S. economy is still not working very well for the average American.

According to a survey by Bankrate.com, 40% of Americans say they are just one big bill away from financial disaster. That tells Money Morning Chief Investment Strategist Keith Fitz-Gerald that the government's efforts to rescue the U.S. economy have failed.

He said there's one figure he's watching this week that will show if there's much hope for Main Street at this point...

In This Market, Don't Drink the Kool-Aid

bear-market

Stocks hit new records last week as central banks around the world continued writing checks to prop up still struggling economies, the price of oil stabilized, Vladimir Putin lured the West into a phony truce in the Ukraine, and Athens and the EU tried to pretend that Greece isn't hopelessly insolvent or that it even matters if it is or isn't.

In other words, investors were once again all too willing to ignore economic reality and drink the Kool Aid being served by central bankers and politicians.

We might as well call this the "Jonestown Market" because the cult leader Jim Jones could just as easily be handing out paper cups filled with colored water and investors would be swilling it down...

How to Prepare for a Stock Market Crash

stock market crash

Could a stock market crash occur in the wake of plummeting oil prices? If we continue to break certain low price barriers, it could.

All those new buyers loading up on oil, oil stocks, drillers, and explorers will dump their new bets like they were ticking bombs.

Here's everything you need to know to prepare for a potential stock market crash...

January Jobs Report Doesn't Mean What Washington Says It Does

January jobs report

The January jobs report seemed like good news.

The U.S. Labor Department said 257,000 jobs were added to the economy. That easily beat the 230,000 numbers analysts had expected.

And yet unemployment ticked up to 5.7% from 5.6%. Money Morning Chief Investment Strategist Keith Fitz-Gerald sees the conflicting data in the jobs report as more proof the recovery is not the success President Barack Obama claims.

In this video, Fitz-Gerald discusses what the funny numbers from the January jobs report mean for the U.S. economy...

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