Real inflation 39% since 2000

We know that inflation is not accurately described based on the data alone.  Inflation is one of the big secrets that they need to keep low, like the unemployment numbers.  Other numbers are not so important, like the Dow.  It’s good if the markets up, but if it’s down, it’s not end of the world. […]

What keeps Bill Gross up at night: Winged Eagles

When the “Bond King” who manages the world’s largest bond fund at Pimco loses sleep, we should ask why.  Bill Gross is famous (or infamous) for writing self-certified philosophical pontifications of the markets.  In his latest, he agrees with his partner Mohamed, but that the “T” the markets might experience might resemble more a “winged […]

Banks warn Fed of possible charges to depositors, negative interest rate

Banks have warned that if the Fed lowers the deposit rate on deposits they hold at the Fed (currently .25%) they would need to pass on the cost to the end user (depositor) to cover costs of Federal Insurance (FDIC) and other overhead costs associated with holding deposits.  Passing on fees to customers would likely […]

Switzerland Rejects Proposal To Limit Executive Pay

In a bold pro-corporate move, Switzerland has rejected a proposal that would limit executive pay.  Only 6 months ago, 70% of Switzerland supported and applauded this proposal.  See infographic.  More from Zero Hedge: Confirming that the brotherhood of the “fairness doctrine” in which everyone is equal to everyone else (but some are too big to fail […]

Economics revolution brewing against neoclassical, orthodox economics

The Soviets had an expression about the paradoxes in the Capitalist West, that they would sell each other nooses to kill themselves.  It appears that due to the transformation of the educational system to a market based system, and less so of an abstract academic, intellectual nature (where students pay and expect to get a […]

Bitcoin Mining Report

With the recent attention to Bitcoin, GIH has been researching how the process of Bitcoin works.  The team has read many articles about it and even suggested to investors to invest in it more than 6 months ago. The Bitcoin community has grown with the price.  In the beginning, it was a small group of […]

Top Economists Say War Is Bad for the Economy

Contrary to what is taught in economics school by lesson plans financed by the military industrial complex, economists are now saying that war is bad for the economy.  It seems common sense that destruction of property couldn’t possibly be a net gain.  Yet we are led to believe that $1 invested in the military industrial […]

Brief history of labor and it’s significance in the US economy last 40 years

Arguably, what makes any economy strong is labor, and manufacturing.  The US has shifted from a manufacturing base economy to a financial / service based economy.  Corporations are making profits, but not creating anything.  By giving China and other countries jobs, it’s given them economic power.  An anti-labor trend that began in the 1980’s has […]

RBS Shock Chart: Fed monetizing 70% of net bond supply

The US Fed is really breaking new ground for something that’s never been done before, monetizing capital markets at an unprecedented level.  RBS released data today showing that the Fed is monetizing 70% of net bond supply: The following statement and chart from the RBS’ Drew Brick pretty much explains it all: “QE has seen […]

Retail investors become private subprime lenders

Middle class boomers have become desperate to fund their retirements, as a low interest rate environment is killing their annuities and other fixed income components of their IRAs and 401ks.  Their generation has a component who simply doesn’t feel comfortable with stocks, due to their volatility and risk, going for more solid steady returns of […]

Confessions of a Quantitative Easer

The person responsible for running the Fed’s QE program from the beginning, provides an inside look at how the program benefited a small group of banks, juiced the stock market, but did little to spur growth or trickle down to main street. By Andrew Huszar, also posted at the WSJ.  Mr. Huszar, a senior fellow […]

The 0.01% Have Never Had It Better

Worry over inequality occupies Wall Street, says the WSJ.  The worry is based on the suspicion that what’s keeping corporate profits up is largely artificial.  Many corporations are profitable because they’ve fired people; the unemployed don’t spend, thus not boosting the consumer driven economy.  The 0.01% are profiting hugely, but do they really contribute to […]

Do central bankers really know what they are doing

Bankers like Alan Greenspan, Ben Bernanke, Mervyn King, and many others, have a sense of posture and way with their words that projects an image of confidence in their policies, with near mystic quality.  But even the Grand Wizard of banking Alan Greenspan admitted later that he made a mistake in not avoiding the financial […]

Real US Economy Trampled by White Elephants

Marc Faber points out the growing disconnect between the real economy, and the financial economy, referring to asset bubbles as “white elephants.” In a real economy, the debt and equity markets as a percentage of GDP are small and are principally designed to channel savings into investments. In a financial economy or “monetary-driven economy,” the […]

America’s income gap stats

According to data released by the Social Security Administration, 23 Million Americans make less than $5,000 a year, while only 166 make more than $50 Million per year.  Some other data highlights: 119,400 Americans make more than $1 Million per year 81 Million Americans make less than $29,999.99 per year 92.5% of Americans make less […]

Europe’s Delusion, Dilemma, And Endgame

This 9 minute video explains succinctly the real driving force behind the EU crisis and the possible endgame, the destruction of the EU nation-state. For more economic animations see http://www.davidmcwilliams.ie/ When I was still in primary school, punk rock emerged – it seemed to me – out of nowhere and re-invented music. Before, music to […]

Lack of price discovery killing capitalism

The economic problem with government bail-outs and intervention is they act as a huge economic player, keeping rates artificially low and stimulating those companies that work directly with the government.  The economic problem with this is that while the large companies can remain afloat with this support, very little ‘trickles down’ to small enterprises which […]

Greenspan admits markets are result of screwy people, difficult to forecast

Alan Greenspan made a shocking statement on the Daily Show: “We really can’t forecast all that well. We pretend that we can but we can’t. And markets do really weird things sometimes because they react to the way people behave, and sometimes people are a little screwy.” – Alan Greenspan, speaking this week on “The […]

The Fed will ultimately debase the US Dollar

Since 1980 those in power have become used to the idea that debt is growing faster than income.  The majority of economic and policy debate doesn’t focus on the real issue causing the financial crisis (which is the rapid expansion of the Fed’s US Dollar denominated assets), it’s actually very simply as Chris Martenson points […]

Saudi Arabia begins end of Petro Dollar – shift away from US to China

One of the components keeping the US Dollar as a global reserve currency was the agreement between the United States and Saudi Arabia to price oil in US Dollars.  As the regions largest producer, this caused other oil producers to follow suit, and forced customers to use USD if they wanted oil.  Of course this […]