Global Intelligence
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 […]
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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 […]
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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 […]
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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 […]
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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 […]
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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 […]
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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 […]
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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 […]
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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 […]
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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 […]
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