economic analysis

National Debt Balloon Bearish for U.S. Dollar, Positive for Metals

By Friday, March 27, 2015

National Debt  turning into Debt crisisWith the U.S. government forecast to incur budget deficits year-over-year through to 2025, our rising national debt is turning into a debt crisis that will have long-term negative effects on our economy and currency valuation. In particular, two ticking debt time bombs are lurking nearby.
Official National Debt Figures to 2025
According to the Congressional Budget Office, the U.S. government is expected to incur budget deficits each year until at… Read More

Canadian Dollar Forecast 2015: Worse Times Ahead for Canadian Economy?

By Friday, March 20, 2015

Canadian dollar forecastLet’s get right to it: the Canadian dollar faces serious headwinds—largely due to lower oil prices and a weakening economy. My forecast for the Canadian dollar in 2015 calls for continued weakness and potential for further downside.
Canadian Dollar Outlook 2015: The Technical Take
How times have changed. During April 2011, the Canadian dollar was worth as much as approximately USD$1.06. Over the ensuing years, a slowly improving U.S. economy… Read More

U.S. Economy to Enter Recession by 2016?

By Friday, March 13, 2015

US Economy recession 2016Don’t buy into the false optimism. While the mainstream media and economists are convinced there’s prosperity, I am concerned the U.S. economy will enter a recession in late 2015 or early 2016.
The simple fact is that consumer spending is the biggest factor driving the U.S. economy, and it is presently experiencing its own recession.
Retail Sales Declining, Store Inventory Increasing
Wholesale sales in the U.S. economy are plummeting, while… Read More

U.S. Dollar Strength the Real Threat to Investors, Not Higher Interest Rates

By Friday, March 13, 2015

US Dollar strengthThere are issues brewing in the stock market with interest rates fears and the strengthening greenback that could drive the S&P 500 lower by five percent or more.
When Will the Fed Increase Interest Rates?
First, we have the fears surrounding rising interest rates after the strong improvement in the unemployment rate to a pre-recession low of 5.5%. This is well below the target, previously set by former Federal Reserve… Read More

Why Ugly Inflation Is Showing Up Everywhere Except in CPI Numbers

By Monday, March 9, 2015

Inflation is Showing Up EverywhereAccording to the U.S. Bureau of Labor Statistics (BLS), between February 2014 and January 2015, overall prices in the U.S. economy declined by 0.1%. (Source: Bureau of Labor Statistics, last accessed March 5, 2015.) In 2014, inflation ran at the slowest pace since 2008.
When I look at these statistics, I can’t help but ask myself, how is this possible? Something seems very wrong. Aside from gas and housing, I… Read More

Economic Collapse Headed for U.S. in 2015

By Sunday, March 1, 2015

U.S. Economic Collapse 2015The last thing Wall Street is thinking about is an economic collapse in 2015… Read More. After all, the stock markets are at record highs, unemployment is down, and inflation is in check. But the fact of the matter is that these same indicators were also in check before the markets crashed in 1987, 2000, and 2008/09.
Back in 2008/09, everyone on Wall Street, save for Michael Lombardi and Peter Schiff,

The “Grexit” Explained: What’s Behind Greece’s Possible Eurozone Exit

By Sunday, March 1, 2015

Greece Stock MarketWhat to Know About Greece’s Potential Eurozone Exit (or “Grexit”)
Is anything more gripping right now than wondering how close Germany will let Greece get to the precipice before a crisis is averted at the last second?
Greece’s six-year recession came to a quiet end at the start of 2014. Since then, its recovery has been anemic. In 2014, the country’s economy expanded by 0.7%. It might gain traction this… Read More

Massive U.S. Debt ($57k+ a Person) Will Force Interest Rates Higher

By Friday, February 27, 2015

Interest rates will riseThis week, the “official” U.S. national debt hit $18.12 trillion. That’s a debt of about $57,000 for each American citizen, regardless if you are a child, adult, or senior! And factors like defaulting student debt and higher interest payments will only push our debt much higher.
Consider this: at the turn of the century (in 2000), the U.S. national debt stood at $5.7 trillion. (Source: Treasury Direct, last accessed February… Read More

What Happens If Greece Exits the Eurozone?

By Thursday, February 26, 2015

Greece Exits the EurozoneGreece’s Anti-Austerity Platform Reimagined… Read More
What happens if Greece exits the eurozone? We’ll have to wait until the end of June to find out. Or at least be subject to four more months of pundits explaining what could happen.
That’s because Greece’s creditors, the “Troika” (the European Central Bank, the European Commission, and the International Monetary Fund), agreed to a four-month extension on Friday, February 20. With an extension until the

The Greece Debt Crisis: Back in Four Short Months

By Monday, February 23, 2015

Greek Debt CrisisThis past Friday, we got news of Greece’s debt extension. The headline at the Financial Post said it all: “Greece and its EU paymasters reach accord to keep bailout funds flowing for four months.” (Source: Financial Post… Read More, February 20, 2014.)
With the news, the Dow Jones Industrial Average, which spent most of the day flat, jumped 157 points to a new record closing of 18,140. Yes, the Dow Jones

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