US Economy

Even after five years of crisis, recession — some even say depression — this US economy is still the largest in the world.

It has enormous influence over the direction of financial markets and your investments. But will its trillion dollars in government debt prove the end of the Empire? Or can resurgent industries like technology and energy put America back on the front foot?

We’ll leave it to you to make up your own mind after reading from this diverse group of analysts.

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  • US Economy
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    Forget the Russia Meddling Story
    The Russian meddlers spent a trivial amount of money putting out dumb messages, most of which were never delivered and never read. They organised protest marches, to which no one showed up…and must have had zero impact on the election. And now that Mr Mueller has brought the heavy hammer of justice down on their heads, we can all sleep more soundly.
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    Is This the Most Absurd Government Agency?
    The feds will tell us when it is safe to buy…and when we should run for the hills. But what’s this? Now, 10 years later, stocks are three times as expensive. Debt is far higher, too. The feds alone have borrowed an additional $10 trillion. And the Office of Financial Research (OFR) was specifically charged with warning us about coming volatility spikes. But here we are… And no warning.
    US stock market
    Here’s Why the Stock Market Correction Could Be Over
    Bitcoin is a failure. Few people use it as a currency. It’s too volatile, the transaction costs are too high, and it’s difficult to store and secure. That’s why we keep on saying that you should stick to what’s known to work: stocks. In a world influenced by central banks, we should expect the unexpected. That’s why it’s worth asking: Is the stock correction over or are we due for another dip?
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    The Nanny State’s Crowning Glory
    This latest ‘no sex with staffers rule’ to pretty much stop ministers from being immoral jerks is the Nanny State’s crowning glory. Meanwhile, politicians elsewhere threaten to bring an end to the first decent bout of post-2008 coordinated global growth by starting a trade war.
    US inflation leaving consumers money out of their pockets
    Americans Are ‘Skint’
    We used to count on the Republicans to push back on deficits. They believed in small government and balanced budgets. But now, most of them lack all conviction — except in getting re-elected! And the worst are full of passionate intensity… eager to snatch away every penny of other people’s savings.
    US budget proposal
    Bye-Bye, Balanced Budgets
    This budget proposal comes from a Republican president, faced with neither war, nor recession, nor financial emergency. It comes also at the late stage of a business cycle…with unemployment about as low as it ever gets, stock and bond prices near record highs, and inflation already making a comeback.
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    Selling Cryptocurrencies and Buying Stocks
    Cryptocurrencies are a terrible investment, in my view. They are difficult to buy, attacked by governments and hackers worldwide, and in a major downtrend. So, with too many risks to worry about, I suggest sticking to the stock market. That’s where you can sleep at night, while making potentially massive gains during the day.
    How Dumb Is the Fed?
    Most likely, interest rates will rise…and speculators will begin front-running the Fed. For the last 10 years, the fool was easily identifiable. It was the Fed. The US central bank slashed interest rates to near zero to juice up the stock market.
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    This Bull Run Still Has Legs to Run
    Stock markets can be volatile. You’ve been reminded of that over the last week. It’s led some to make sweeping statements about a market crash. Just keep a couple of things in mind when reading such analysis. One, the US economy remains strong.
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    Roadkill Headlines
    We get the news no sooner than anyone else. Many times, we’ve tried to guess what tomorrow’s news will bring. We have done enough tests to know that either it can’t be done reliably…or we are no good at it. But that doesn’t stop us from trying. Herewith, for what it is worth, we look at the headlines for the months ahead.
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    The Age of Inflation Is About to Begin
    In the coming crisis, monetary policy alone will not be enough; the Fed doesn’t have enough room to cut interest rates. As we predicted when Mr Trump was elected, the critical fraud is shifting from monetary policy to fiscal policy (government deficit spending). Yes, the Age of Inflation is coming. Fiscal stimulus. Big spending by both parties.
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    Death Star Headed for the US Economy
    Markets go up and down. This market will go down, no doubt about it. If not now, later. That would be nothing new. Hardly worth mentioning. But there’s more to the story: In addition to plunges for stocks and bonds, the entire financial system is headed for a long, painful destruction.
    US market falls are no cause for concern
    Why the US Market Fall Is Just Noise
    Overnight, the US market threw a tantrum. Both the Dow Jones and the S&P 500 did the unthinkable, falling 4.6% and 4.1% respectively. This is important to note. But there’s no need to overreact to this. Instead, watch and learn what’s driving US market movements. While the Aussie market may head down in the interim, I don’t believe there’s much cause for alarm.