Sharing his wisdom and insight on CNBC’s Futures Now program, Paul chastised the money changers for what he maintains is their endless game of “play[ing] havoc” with the stock market. The Federal Reserve has been in the business of artificially pumping fake fiat currency into the markets for more than a century, it turns out, and such activity is nearing the end of its shelf life.
According to Paul, the Fed’s “fallacy of economic planning” is responsible for all the market “bubbles” that are constantly waning and waxing between “booms” and “busts.” The instability caused by this Keynesian model of economics, he contends, will only end in disaster, whether it culminates in years, months, or even weeks. Continue reading
The United States is already experiencing a false recovery to begin with. While the Dow Jones might very well be going up, it’s quite a poor indicator of the economy’s overall health. Jobs are still being lost while entire sectors are propped up and subjugated through government bailouts. Meanwhile, the healthcare industry will soon be in shambles under the weight of heavy politics, law and regulation.
The next economic crash will hit harder than the last due to this current false recovery already being a mere sugar high from ‘quantitative easing’ and accounting tricks. Yet, the real crippling crash to worry about is likely to be the tsunami not seen after the markets already received the next hit. This is the one that will make the Geat Depression look like a Sundays picnic. The United States is not untouchable and is one significant event away from a total meltdown.
As the global equity and bond markets grind ever higher, abundant signs exist that we are once again living through an asset bubble – or rather a whole series of bubbles in a variety of markets. This makes this period quite interesting, but also quite dangerous. Continue reading
China and Brazil agreed to trade in each other’s currencies just hours ahead of the BRICS summit in South Africa.
The deal, which extends over a three-year period and amounts to an exchange of about $30 billion in trade per year, marks the latest effort among two of the world’s largest emerging economies to shift the dynamics of international trade that have long favored the U.S. dollar. Continue reading