Posts Tagged ‘Economy’

“Americans have almost no control over their own capital. And if you don’t use capital under your ownership and control, you will rely on those who do. This is fundamentally why so many purchases in today’s economy are financed through third-party lending.” -Ryan Griggs

“So many people spend so much time worrying about elections and the economy. They miss so much of what is really going on around them in their own families, the things that really matter. We miss a lot… simply because we are not here.” -Unknown

Affordable?

Posted: October 30, 2018 in Economics
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“Our economy can’t afford our government.” -Porter Stansberry

“Who did the most damage: Greenspan, Bernanke, or Yellen?…  When Mr. Greenspan took over at the Fed in August 1987, the government owed about $3 trillion… or about 40% of GDP.  Today, the national debt approaches $21 trillion – more than 100% of GDP.  Household and corporate debt levels have shown similar expansions. Overall, for the last 30 years, total (private and public) debt has grown about twice as fast as the economy that supports it….  And now, hundreds of millions of people depend on the EZ money economy created by Greenspan, Bernanke, and Yellen. Their jobs, their incomes, their investments, their retirements – all depend on keeping the fantasy alive.” -Bill Bonner

  • Despite the long bull market, more Americans today have more debt than money in the bank than at any point since 1962, according to Deutsche Bank.
  • American household savings levels are at levels last seen in December 2007… right before the economy slipped into a recession that spurred the global financial crisis.
  • And total U.S. consumer debt – credit cards, auto loans, and student loans – just surged by the most in two years to $3.8 trillion.
  • And government debt is creeping toward a $1 trillion deficit per year. The national debt has topped $20 trillion.

 

If these folks can’t save or make their payments in a strong economy… how will they do it when interest rates go up and the next inevitable recession hits?

The answer is that they won’t.

-Steve Longenecker

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“Here’s a chart based on research from the Economic Policy Institute that describes the problem. As you can see, productivity in this country grew nearly 250% between 1948 and 2014, but median wages only grew 109%…You’ll also notice that the divergence begins around 1971… the year President Nixon removed the U.S. dollar from gold.

Why? Because paper money doesn’t transmit gains in productivity like real, sound money should.

In short, when the dollar was unlinked from gold, the government was granted the ability to create unlimited amounts of new money. But this money doesn’t flow to everyone equally. It is created in the banks, and then works its way through the financial system before eventually trickling down through the real economy. The result is that asset and consumer prices have risen far faster than wages.” -Justin Brill

Share Nicely?

Posted: March 4, 2017 in Economics
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“Nobody is sharing.  It’s not the sharing economy.  It’s the Access Economy.” -Chip Conley