Hurricane Harvey is looking like it will be the costliest natural disaster to ever occur in the United States. This devastation has destroyed the lives of millions of people. The Keynesians view disasters as a good jobs program that can boost the economy and keep spending going. How ridiculous is this!? But this is really how these “economists” think and it’s crazy that people can believe this garbage. Price gouging is seen as a negative but allowing prices to rise during disasters allows goods to flow to their most efficient uses. It’s basic economics and the government shouldn’t be interfering because they screw things up just like they always do!
Janet Yellen gave a speech in Jackson Hole Wyoming last week and she didn’t address monetary policy at all! Many commentators were surprised by this and she focused mainly on regulations. She pointed out how the FED and congress responded correctly during the 2008 financial crisis by imposing more regulations on the financial sector. She says these regulations have made our economy more resilient than it was 10 years ago! The main point missed by all commentators out there is that she’s doing this to set up the narrative that deregulation will be to blame for the next financial crisis! This will be the way to protect her legacy and the democrat party and it will leave all the blame on Donald Trump and the Republican Party! Everything is political my friends.
Household debt has hit a record high of $12.8 Trillion! This is the highest we have seen since the financial crisis bottomed in 2009. 30 day credit card delinquencies are on the rise standing at 6.2%. One year ago that same figure was 5.1%! 90 day credit card delinquencies are on the rise and this is a sign that the average consumer is being squeezed. The cracks in the very faulty U.S. economy are beginning to appear and this is not the recovery most people think that’s taking place. $51 Billion worth of auto loans last quarter went to people with a credit score under 660. (this is considered subprime) Folks, crap is about to hit the proverbial fan and understanding what’s coming next puts you leap years ahead of everyone else out there. Stay tuned.
Is bitcoin money? Keith Weiner discusses why gold is crucial in an economy and that bitcoin isn’t money. Keith also discusses why the system if failing today. His view of why the system is failing is much different than the mainstream view. You don’t want to miss this insightful interview with Keith Weiner!
Keith Weiner talks about money and what real money (gold) is. He argues that gold can’t circulate without an interest rate so his big push is to give gold a yield. So to transition to a gold standard, Keith argues gold must have an interest rate first. Also, many confuse the terms of speculation vs. investment and Keith makes a clear distinction between these two terms and they’re actually opposites. And should the average person invest in gold miners? All this and more answered! Don’t miss Part 2 of this in depth discussion of money with Keith Weiner!