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09/10/20 – Andrew Moran: The Fed Promises More Dollar Destruction

The Federal Reserve has potentially had the most memorable year in its more than a century–long history. What started out as a year of “Will they or won’t they cut interest rates?” blossomed into a time of slashing rates to near zero, unleashing unlimited quantitative easing, purchasing corporate and municipal bonds, and growing its balance sheet to a record high. Now, as the economic consequences from the covid-19 pandemic linger, the Fed has taken advantage of the crisis to modify its policies to be more expansionary—which will inevitably blow bubbles and wreak havoc on households everywhere. Read More.

09/08/20 – Tuomas Malinen: There is no recovery

Central banks, China, Financial crisis, Global depression, Global economy, Recession
We have been watching, with disbelief and bemusement, how the “recovery-narrative” has been touted in the financial media and among some economists and analysts. Categorically, an economic recovery is a period of expansion, where we eventually exceed the previous peak in employment and output. There’s no such thing coming (anytime soon). Read More.

09/07/20 – Daniel Lacalle: Bankruptcies Rise Despite Trillions in New Liquidity

Misguided lockdowns have destroyed the global economy and the impact is likely to last for years. The fallacy of the “lives or the economy” argument is evident now that we see that countries like Taiwan, South Korea, Austria, Sweden, and Holland have been able to preserve the business fabric and the economy while doing a much better job managing the pandemic than countries with severe lockdowns. Read More.

08/14/20 – Charles Hugh Smith: Here’s Why the “Impossible” Economic Collapse Is Unavoidable

A collapse of major chunks of the economy is widely viewed as “impossible” because the federal government can borrow and spend unlimited amounts of money because the Federal Reserve can create unlimited amounts of money: the government borrows $1 trillion by selling $1 trillion in Treasury bonds, the Fed prints $1 trillion dollars to buy the bonds. Rinse and repeat to near-infinity. Read More.

Market Update Wednesday 07/15/20

“Up, Up and Away” returned on Wall Street, as the SkyNet BuyBots gained control in the overnight futures session, sending US stocks sharply higher at the open of trading on Wall Street. The rally continued with a vengeance all the way into the close, on renewed hopes of progress in the battle against Covid. The DJIA jumped another 227 points (0.8%) and the NASDAQ tacked on 62 points (0.6%).

Stay tuned as the battle 0of the SkyNet StockBots continues.

07/21/20 – Daniel Lacalle: The World Is Drowning in Debt

According to the International Monetary Fund (IMF), global fiscal support in response to the crisis will be more than $9 trillion, approximately 12 percent of world GDP. This premature, clearly rushed, probably excessive, and often misguided chain of so-called stimulus plans will distort public finances in a way which we have not seen since World War II. The enormous increase in public spending and the fall in output will lead to a global government debt figure close to 105 percent of GDP. Read More.

07/19/20 – David Morgan: Is There A Great Depression Coming?

We’ve only had one depression in modern times: the Great Depression, the worst economic downturn in the history of the U.S. and the industrialized world.

With unemployment at levels unseen since the Great Depression — the worst economic downturn in the history of the industrialized world — one has to be wondering if the country will eventually dip into a major depression.

Market Update Wednesday 07/08/20

It was pretty much another “Up, Up and Away” day on Wall Street, as the SkyNet BuyBots took control in the overnight futures leading to a sharply higher open of trading on Wall Street. From there, stocks went a net nowhere as they zigged and zagged into the close. The DJIA gained 177 points (0.7%) and the NASDAQ zoomed higher by 148 points (1.4%).

Stay tuned as the battle 0of the SkyNet StockBots continues.