Posted on 09/08/2016 3:49:42 AM PDT by expat_panama
Debt terrifies people but the paradox of macro-economics is that sometimes borrowing even more is the best way out Credit: Jon Elswick
An ominous paper by the US Federal Reserve has become the hottest document in high finance.
It was intended to reassure us that the world's hegemonic central bank still has ample firepower to overcome the next downturn. But the author was too honest. He has instead set off an agitated debate, and rattled a lot of nerves. ...
...federal debt is already 105pc of GDP - up from 54pc...
...nagging question is what happens at the onset of the next recession. If elected, Hillary Clinton is likely to be...
...new orthodoxy is emerging in elite global circles that the only way to escape of the liquidity trap and soak up excess savings is concerted fiscal stimulus on a world scale. The International Monetary Fund has become the fiscal cheerleader, yet even the IMF cannot seem to marshal its own staff,,,
,,,still pushing the old contractionary view in aggregate, if you tot up its 'Article IV' advice to each country. Follies die hard...
...our desperate deflationary age, and can cast aside deeply-ingrained and totemic beliefs about debt...
...survivors - will be those most willing to seize on the cheapest borrowing costs in history to fight back, preferably combining fiscal and monetary in a radical fashion. Call it helicopter money if you want, or 'overt monetary financing' of deficits. The accounting terminology is irrelevant.
Since no country can risk watching its precious national stimulus leak away to free riders in the austerity camp - at least in a crisis - this may imply some degree of calibrated protectionism. The twin liberal pieties of progressive public policy and global free trade may ultimately come into conflict. That is tomorrow's battle.
(Excerpt) Read more at telegraph.co.uk ...
A lovely new morning!
Stocks are steady moving slightly up in slightly higher trade while our gold and silver hoards hang on to $1,348.91 and $19.96. Futures promise more of the same for stocks but their a bit jumpy on metals @ -0.75%.
Data today:
8:30 AM Initial Claims
8:30 AM Continuing Claims
10:30 AM Natural Gas Inventories
11:00 AM Crude Inventories
3:00 PM Consumer Credit
fwiw:
Top 10 Lessons From 10 Years In The Trenches - Jason Trennert, Strategas
Stocks Inch Closer to 2nd Correction of '16 - Michael Gayed, MarketWatch
The U.S. Jobs Rebound Isn't Helping the 'Missing Men' - Conor Sen, BBW
Will Fed Deliver Another September Surprise? - Anthony Mirhaydari, TFT
Cash Is Freedom, Which Is Why Gov't Hates Cash - J.D. Tuccille, Reason
New Century Brings Big Downshift in GDP Per Capita - Alex Pollock, RCM
Fear Not, 'Brexit' Is Coming to America Too - Thomas Del Beccaro, Forbes
Couples' Money Secrets Imperil Retirement Dreams - Paul Katzeff, IBD
Threads:
They say “be careful what you wish for”. A recession at this time might actually save the country. Hillary will loose big, and Obama will not be turned into a FDR.
Translation: 'we need to steal more purchasing power from everyone who holds fiat currency'.
Peter Schiff called this years ago. To paraphrase:
"There are going to be more QEs than Rocky Movies. And - just like the Rocky Movies - each QE will be worse than the one before."
“The only thing keeping the US out of recession is the US consumer.”
Thank goodness for credit.
I'm praying daily for our country's survival. As bad as another recession would be without a real recovery since the last one, it's a small price to pay for America. Even another civil war would be better than losing the legacy of freedom that our ancestors passed down to us in the Constitution and in the Bill of Rights, and a mere recession would be far better.
Indebtedness Is Freedom
"Women, Minorities Hit Softest"
We are in a recession now.
Only you would not necessarily know that as the media is working triple-overtime to cover it up.
Don't worry. The MINUTE Trump is elected, they'll add a big, fat, gray bar to this chart...about a DECADE wide!
I’ve got analysis paralysis, with just a touch of malaise and a,’smidgen’ of ennui! ;)
At which time there will no doubt be handshakes and cigars all around!
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