Financial System

banking restrictions eased in the US
Why Trump Is Easing Banking Restrictions
Donald Trump campaigned to become US President on conflicting promises about big banks. Some of the populist talk followed Trump into office. But clearly, actions speak louder than words. The steps taken by the new government have been towards pure deregulation. This is how the cycle repeats.
financial system bitcoin outweighing dollar
The Old Financial System Is Dead
Whether or not cryptocurrencies are the answer to the banking system’s many flaws remains to be seen. But the attempts by governments to quell the rise of this technology only speaks to the bourgeoning power of this asset class. What we do know for certain is that the financial sector is in a state of flux, and change is occurring rapidly.
global economy and debt
I’ve Had Enough — I Quit
I give up trying to understand the economics profession. This obsession they have with artificial growth — the headline number — is totally and utterly misleading. The easiest way to boost short-term GDP growth is to double the population and debt load. Is that formula for growth sustainable in the long term?
interest rates could go lower
Get Ready for Even Lower Interest Rates
National Australia Bank has a consensus view that the RBA will start increasing the cash rate around August. But there’s a problem with that line of thinking. Just because rates have been at records lows doesn’t mean they can’t go any lower. For one, there’s the Aussie property market to think about.
markets and controlling your investments
No Margin for Error
The wisdom of the old saying ‘banks give you an umbrella when the sun is shining and take it away when it’s raining’ is forgotten when greed — by all parties in the transaction — is in the air. When it comes to investing, there’s a well-recognised equation: the higher the market, the lower the investor IQ.
US economy is a swamp that cannot be drained
History Proves It — You Can’t Drain the Swamp
The rich get richer. And richer. And richer. The Swamp gets deeper. And deeper. And deeper. Then, suddenly, a ‘levelling’ comes along — plague, war, revolution… or the collapse of government. Then, people are much more equal in income… but usually, much more dead, too.
Australian property market
How to Own Almost 200 Properties
It’s not the number of properties that makes you rich; it’s the percentage you own. For example, imagine two investors. One owns 20 properties, the other owns three. Who’s better off? To decide, we need more information.
first-world problem
The Real First-World Problem
Our first-world standard of living sits atop an increasingly unstable debt pile. The world’s next (and even more severe) debt crisis is going to be the ‘solution’ to our real first-world problem of entitlement.
Trump economic policies will turn to big losses for US
Trump’s Short-Term Economic Policies Will Result in Huge Losses
These policies do nothing to alleviate any of these problems. In fact, they exacerbate them by putting pressure on future governments to cut spending. There’s a strong chance that the US will never pay their debts back. In the past the only two ways a country would get out of such a mess is by strongly devaluing their currency. Such a move would end the US’s economic dominance.