CREDIT CRUNCH TWO? Fears for US economy grow as credit card lending reaches 9-year high

The US economy grew far less than expected in the second quarter of 2016 taking the annualised rate to just 1.2 per cent – below expectations of 2.5 per cent.

At the same time, credit card and overdraft lending has soared to its highest level since 2007. Continue reading

IMF downgrades outlook for US economy

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.

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Yellen Says Interest Rates Will Go Higher

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

47 Percent Of Americans Cannot Even Come Up With $400 To Cover An Emergency Room Visit

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

Trump predicts ‘massive recession’

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.

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China acquiring USA one company at a time

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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.

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Mass Layoffs To Return With A Vengeance

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

Trump Predicts U.S. Economic ‘Bubble’ Could Soon Burst

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

Exclusive: China’s sovereign wealth fund to open first U.S. office – sources

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

Watch for U.S. recession, zero interest rates in China next year, Citi says

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

The Clock Is Ticking On The U.S. Dollar As World’s Reserve Currency

The View From Hubbert’s Peak

In 1971, the American President put an end to a 2,500 year trend; the Wall Street Journal called it “Nixon’s Worst Weekend.” Considering the old boy had some really bad ones, this must have been something special. In August of that year (on Friday the 13th) it was decided that the U.S. would no longer pay out gold for its paper dollars. OPEC Ministers took note, and in September they met, deciding it would be necessary to collect more paper dollars, if possible, since gold was no longer on offer and oil was the only asset they had to sell.

The Wizard of Oz

The ultimate irony for this generation of investors is that, despite the occasional obligatory chant about ‘free markets’ and the wonders of capitalism, most of the day is spent obsessing about what the world’s most important central planner will do next. By Supreme Central Planner, I mean, the Fed. Continue reading

The US Economy Is One Giant Bubble

 

Peter Schiff on Free Talk Live 9/6/2015 Continue reading

The Great Global Power Transfer

A dated article with relevancy for today’s times:

 

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Ten years of news watching reveals a definite trend, and it’s not to the advantage of the American and British peoples.

“With the approach of a new year, the most conspicuous trend in global affairs is a proliferation of disasters, real and potential.” So Alan T. Sorensen, associate editor of Current History, summed up his views on what the world could expect in the year 2007.

Not too heartening, to say the least.

Yet we here at the Trumpet remain, even increase, in great optimism about the future! There is a reason why.

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Gold Repatriation From Federal Reserve Would Shatter US Economic Hegemony

Repatriation of foreign gold reserves from the Federal Reserve would undermine the geopolitical role of the US economy in the world.

The largest gold reserve stored by the Fed belongs to Germany, at 674 tons. On the whole, the country holds nearly 3,500 tons of gold. However, both sides were content with the situation: the US received money for storage, and Germany knew its reserves were finely protected. Continue reading

Doomsday clock for global market crash strikes one minute to midnight as central banks lose control

China currency devaluation signals endgame leaving equity markets free to collapse under the weight of impossible expectations

When the banking crisis crippled global markets seven years ago, central bankers stepped in as lenders of last resort. Profligate private-sector loans were moved on to the public-sector balance sheet and vast money-printing gave the global economy room to heal.

Time is now rapidly running out. From China to Brazil, the central banks have lost control and at the same time the global economy is grinding to a halt. It is only a matter of time before stock markets collapse under the weight of their lofty expectations and record valuations.

The FTSE 100 has now erased its gains for the year, but there are signs things could get a whole lot worse.

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