Well it seems that we have entered the negative
era! Negative rates, negative growth, negative jobs. I’m sure it will
all work out.
19 trillion debt, 47 million on SNAP, 95 million out of work force.
Go USA you’re #1 again!
19 trillion debt, 47 million on SNAP, 95 million out of work force.
Go USA you’re #1 again!
The Limits of Monetary Policy Have Been Reached
The real world of the economy is bleak.Global growth is slowing both because of weakness in developed economies like Europe and Japan, and weakness in some of the emerging markets champions such as China, Brazil and Russia. The limits of monetary policy have been reached.
The evidence is now clear that negative interest rates don’t stimulate spending; they are only good for devaluation in the ongoing currency wars. World trade is shrinking; a rare phenomenon usually associated with recession or depression.
The US is held up as a beacon of strength in this barren real world landscape, but that’s also deceiving. US manufacturing is already in recession. Dismissing manufacturing as a small part of GDP in a service-driven economy is facile.
When gross manufacturing supply chain sales are counted – rather than net value-added used for GDP purposes — manufacturing looms much larger. It is also the source of higher-paying jobs compared to the service sector. These high-paying manufacturing jobs (now lost) are the key to real wage gains and aggregate demand.
Strength in auto sales is also deceiving because sales are based on shipments to dealers, not final sales. In fact, inventories of unsold autos are sky high and will need to be worked off or else assembly lines will slow down. Distress in the energy sector is another well-vetted vector.
http://www.dailyreckoning.com.au/118681/2016/03/30/
Go on, guess: The global rate-cut tally since 2008
No cheating. How many interest rate cuts do you think there have been around the world since the collapse of Lehman Brothers in September 2008?
http://www.ft.com/fastft/2016/03/29/go-on-guess-the-global-rate-cut-tally-since-2008/
Attention President Obama: One Third Of U.S. Households Can No Longer Afford Food, Rent And Transportation
While the Fed has long been focusing on the revenue part of the
household income statement (which unfortunately has not been rising
nearly fast enough to stimulate benign inflation in the form of nominal
wages rising at the Fed’s preferred clip of 3.5% or higher), one largely
ignored aspect of said balance sheet has been the expense side: after
all, for any money to be left over and saved, expenses have to
surpass income. However, according to a striking new Pew study while
household spending has returned to pre-recession levels (the average
household spent $36,800 in 2014) incomes have not.Specifically, while the median income had fallen by 13% from 2004 levels over the next decade, expenditures had increased by nearly 14%. But nobody was more impacted than the one-third of households which the study defines as “low-income.” Pew finds that while all households had less slack in their budgets in 2014 than in 2004, lower-income households went into the red by over $2,300.
In other words, approximately one third of American households were no longer able to cover the core necessities – food, housing and transportation – with average income.
According to Pew, households spent more in 2014 than they did in 1996, after adjusting for inflation; this holds whether the figures are based on averages (means) or medians. The typical household saw its expenditures grow by more than 25 percent, from $29,400 in 1996 to $36,800 in 2014. Mean expenditures grew 27 percent since 1996, rising from $43,200 to $54,800.
http://www.zerohedge.com/news/2016-03-30/attention-president-obama-one-third-us-households-can-no-longer-afford-food-rent-and
The problems facing #ECB's Draghi and his stimulus measures http://bloom.bg/1pMtSkv via @annaedwardsnews
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