The sign of massive bubbles blowing up in the economy is evident with the cruise ship industry. This Royal Caribbean has came out with its new ship, “Symphony of the Seas.” It’s the largest cruise ship the world! This sort of event is consistent with the Austrian view of the Business Cycle. Listen to this episode as I explain why an economy booms and why it busts. Recessions are also the necessary correction phase to actually have a firm foundation on the economy. I explain all this here and more so don’t miss it!
The yield curve is continuing to flatten with 2 year treasury bills at the highest they’ve been since 2008! The yield curve inverting is a very strong predictor of a recession. So how much longer will this tightening cycle by the FED go on until this bubble pops and the inevitable happens? When this bubble pops, 2008 will seem like a nonevent. Please protect yourself and be prepared.
The economic collapse in Venezuela has worsened and is now in the midst of hyperinflation. The average Venezuelan has lost 25 lbs. not by choice, but rather because people are starving to death! Folks, this is what 20 years of socialism gets you! It gets misery and equality of misery! The government doesn’t create prosperity, but rather gets in the way of it and makes it harder for you to achieve. When will people wake up and learn from history!? I won’t be holding my breath.
Under Republican President, Donald Trump, the $1.3 Trillion omnibus spending bill has been signed. This bill increase spending more than Obama did! This spending bill actually increases the budgets to many projects that Obama and the democrats love! Seriously why are people still playing the party game when we are heading the way of hyperinflation and a currency collapse just like what’s going on in Venezuela today! Trump will spend 41% more than Obama did! Where’s the tea party for this one?
Federal Reserve has raised interest rates for the first time under the new fed chair, Jerome Powell, to the rage of 1.5% to 1.75%. The Fed and the “experts” out there think that the Fed will for sure raise rates 3 times this year but I wouldn’t be too sure about that. I think there’s a good chance that the only other time rates will go up in 2018 is in December. Listen to this episode to find out my reasons behind this and what I think about Larry Kudlow as Trump’s new chief economic advisor.