Sunday, November 16, 2014

Economy

This guy identifies lack of competition as the problem in the US broadband market. He even recognizes government is the problem. He fails when he proposes government is the solution.

Government interference in the economy is producing a shortage of chocolate.

Deceleration in TMS2 warns of a bust coming soon.
"As readers of THE CONTRARIAN TAKE are aware, given the size of the monetary largesse injected into the economy during this inflation cycle, this kind of deceleration in the rate of monetary inflation is a huge yellow light for both the economy and markets. If it continues, a bust awaits."
We've heard nothing from Yellen to make us believe it won't continue.
"Yes, at 7.7%, the year-over-year rate of growth in TMS2 is not sporting the same sub 5% year-over year rates that ushered in the last two busts.  But consider this: The latest installment of the Federal Reserve’s QE asset purchase program is history with the last $15 billion in asset purchases now complete. Over the last 12 months, that program accounted for roughly three quarters of the growth in TMS2. And while the U.S. banking system, the other money creation engine in the economy, has of late been helping to offset the money creation void being vacated by the Federal Reserve, it is going to have to really step it up to ward of a continuing deceleration in the overall the rate of money creation. If not, we could be very well staring a bust directly in the face."
This is the most solid warning of a bust I've seen.

Japan in triple-dip recession.

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