economic analysis

Central Banks Creating Global Stock Market Bubbles

By Friday, April 17, 2015

Central banksIrrationality prevails in global stock markets and I believe it’s because of the actions of central banks. What’s happening with central banks and their involvement with equity markets not only is unprecedented, but it also will not end well.
Japanese Stock Market Topping 20,000
Just look at the chart below of the Tokyo Nikkei Average—a key measure of Japanese stocks.
Tokyo Nikkei Average Index
‘Tokyo Nikkei Average Index, 1996-2015,’
Chart courtesy of StockCharts.com… Read More
The

U.S. Economy: These Three Data Points Show Growth Has Stopped

By Monday, April 13, 2015

Economic growth stoppedIf you think the U.S. economy is improving, this story says that, truth be told, it’s the complete opposite for the economy, as recent data suggest there is no growth.
U.S. Economy’s Jobs Market Tormented
In March of this year, only 126,000 jobs were added to the U.S. economy. That’s well below the increase of 264,000 jobs in the previous month, less than half the average of 260,000 a month… Read More

U.S. Economy: Why We’re Headed for a Bumpy Ride in 2015

By Monday, April 6, 2015

US economyDon’t be fooled by what you hear from the mainstream media and the politicians. The U.S. economy continues to struggle. In fact, looking at the economic data closely, it suggests we are headed for an outright slowdown.
U.S. Economy to Be Fine Without Consumer Spending?
Consumer spending makes up two-thirds of U.S. gross domestic product (GDP) and right now, Americans are refusing to spend, as evidenced by meager consumption figures…. Read More

U.S. Jobless Claims Low, but Labor Market Still in Turmoil

By Saturday, April 4, 2015

U.S. Jobless Claims LowThe U.S. Department of Labor released its latest weekly unemployment insurance claims data on March 26, 2015. Seasonally adjusted U.S. jobless claims fell again to 282,000, their lowest level since mid-February, and have been in decline since their peak level of 665,000 claims in March of 2009. Despite this, wages are stagnant and underemployment is rampant as the U.S. labor market fails to heal.
Unemployment claims
Chart courtesy of www.StockCharts.com… Read More
U.S. Jobless

Economic Collapse Headed for U.S. in 2015

By Wednesday, April 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 Wednesday, April 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

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

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