Even one small interest rate increase by the Fed could have a sweeping impact on U.S. and world economies, Komal Sri-Kumar told CNBC on Monday.
“I think they are going to hike” on March 15, Sri-Kumar said on “Squawk Box,” echoing a theory shared by many analysts. “But that is going to prompt capital outflows from the euro zone, especially with the political risk. It is going to increase the capital outflow from China, and the U.S. economy will feel the impact.”
These moves would strengthen the dollar against other currencies, putting downward pressure on the euro, said Sri-Kumar, president of Sri-Kumar Global Strategies. Continue reading →
It’s not oil that is America’s Achilles Heel, it’s the U.S. Dollar. It’s the global reserve currency and was given that status by trading the world’s lifeblood of economies: oil. Take away the Dollar in trading of oil and you can take down the entire house of cards, in this case the U.S. The last couple of times this move was made, Ghadafi and Saddam Hussein were killed.
People politicized and speculated it was over oil, but missed the mark. America has all the oil it could ever need in its own backyard but not always the support it needs to sustain its lifestyle via waning Dollar hegemony when nations are banding together.
(ANTIMEDIA) Following President Donald Trump’s ban on travelers from seven predominantly Muslim countries, the Iranian government announced it would stop using the U.S. dollar “as its currency of choice in its financial and foreign exchange reports,” the local Financial Tribune reported.
Iran governor Valiollah Seif’s central bank announced the decision in a television interview on January 29. The change will take effect on March 21, and it will impact all official financial and foreign exchange reports. Continue reading →
WASHINGTON (AP) — The International Monetary Fund on Monday raised its forecast for the U.S. economy over the next two years, saying President-elect Donald Trump’s policies should boost economic growth, particularly in 2018. But officials warned that if Trump’s protectionist trade proposals set off a trade war, that could be “quite destructive” for the global economy.
The IMF also increased 2017 growth projections for a number of other countries including China, Germany, Japan and Britain, but warned that the global economy faced a number of downside risks from rising protectionism to a jump in interest rates. Continue reading →
BEIJING – There’s a Chinese saying that stems from the philosophy in Sun Tzu’s ancient text “The Art of War”: You can kill 1,000 enemies, but you would also lose 800 soldiers.
Centuries later, the proverb is suddenly apt again, being mentioned frequently in discussions around Beijing. Now, it highlights the potential damage U.S. President-elect Donald Trump could inflict if he makes good on his threat to start a trade war with China, the world’s second-biggest economy.
Having backed off some other campaign pledges, it’s unclear if Trump will end up slapping punitive tariffs on China — and Beijing has signaled some optimism he will be more pragmatic in office. Still, the message from China is that any move to tax Chinese imports would bring retaliation: The U.S. economy would take a hit and America would damage its long-standing ties with Asia. Continue reading →
The International Monetary Fund is downgrading its forecast for the U.S. economy this year and says America should raise the minimum wage to help the poor and offer paid maternity leave to encourage more women to work.
Janet Yellen’s remarks today confused the people who think the world turns on the Jobs numbers since they remain clueless with respect to the changing trend in employment. They do not take into consideration the technology shift, so they are still trying to trade from 20th-century concepts. Yellen gave an outlook of the U.S. economy and said that interest rate hikes are coming. Higher rates are needed for pension funds, and the decision will cause the stock market to take off which will appear like asset inflation. Continue reading →
If you had to make a sudden visit to the emergency room, would you have enough money to pay for it without selling something or borrowing the funds from somewhere? Most Americans may not realize this, but this is something that the Federal Reserve has actually been tracking for several years now. And according to the Fed, an astounding 47 percent of all Americans could not come up with $400 to pay for an emergency room visit without borrowing it or selling something. Various surveys that I have talked about in the past have found that more than 60 percent of all Americans are living to paycheck to paycheck, but I didn’t realize that things were quite this bad for about half the country. If you can’t even come up with $400 for an unexpected emergency room visit, then you are just surviving from month to month by the skin of your teeth. Unfortunately, about half of us are currently in that situation. Continue reading →
Republican presidential front-runner Donald Trump predicted that the United States is on course for a “very massive recession,” warning that a combination of high unemployment and an overvalued stock market had set the stage for another economic slump.
“I think we’re sitting on an economic bubble. A financial bubble,” the billionaire businessman said in an interview with The Washington Post published on Saturday.
What’s the best way for a country like China to exert its influence over the U.S. economy? Acquire American-owned companies like Chinese-owned Haier just did when they purchased General Electric’s (GE) appliance business for $5.4 billion.
So much for American independence and authentic Independence Day celebrations on July 4th.
America can no longer claim to be an independent nation when our manufacturing base is under foreign ownership or foreign control. After all, ownership equals control, and control equals sovereignty. We lose our sovereignty as a nation when foreign companies buy our land, factories, and companies.
Remember the mass layoffs of 2008-2009? The US economy shed millions of jobs quickly and relentlessly, as companies died and the rest fought for survival.
Then the Fed and the US government flooded the banks and the corporate sector with bailouts and handouts. With those giga-tons of liquidity sloshing around, as well as taking on massive amounts of new cheap debt, companies were able to finance their working capital needs, hire workers back, and even buy-back their shares en mass to make themselves look deceptively profitable. The nightmare of 2008 soon became a golden era of ‘recovery’.
Well, 2016 is showing us that that era is over. And as stock prices cease to rise, and in fact fall within many industries, layoffs are beginning to make a return as companies jettison costs in attempt to reduce losses. Continue reading →
Billionaire Donald Trump sees economic clouds hovering above the U.S. economy. And if it’s going to rain, he wants the precipitation to fall while President Barack Obama is still in the White House.
“Remember the word bubble? You heard it here first,” the Republican presidential front-runner told about 1,200 people at a rally Saturday afternoon in Cedar Rapids, Iowa. “I don’t want to sound rude, but I hope if it explodes, it’s going to be now, rather than two months into another administration.” Continue reading →
The China Investment Corp (CIC), the government’s $747 billion sovereign wealth fund, is shifting its focus to U.S. investments and broader global ambitions as it prepares to move its North American headquarters to New York from Toronto early next year, according to people familiar with the matter.
With its major Canadian investments in the red as energy and mining companies reel from tumbling oil and metal prices, CIC is looking to cut its exposure, and could move to New York as early as March 1, one source said. Continue reading →
Lets get one thing straight. The U.S. economy crashed in 2008 and never recovered since. The amount of Americans out of work (95,000,000+) alone prove just that, yet we’re told a second recession is coming. Since we never recovered, this statement essentially means the second wave of the crash is coming. If you’re wondering why the normally-thought-of ensuing chaos hasn’t happened after the crash, it’s because America is in the free-fall phase. Simply put: The chaos doesn’t ensue until impact at the bottom. Those who see the free-fall are making preparations to take cover and those who are blissfully unaware will continue to remain blissfully unaware.
The moral of the story is: If anyone you know or talk to ever asks you when the economy is supposed to crash, tell them 2008.
LONDON (Reuters) – The outlook for the global economy next year is darkening, with a U.S. recession and China becoming the first major emerging market to slash interest rates to zero both potential scenarios, according to Citi. Continue reading →