Central banks and a global soft default: Current interest payments on public debt now exceed $415 billion per year. In 2000 $1 trillion in Fed debt was held by foreigners while today it is up to $6 trillion.
Global central banks are fully addicted to the opiate of debt. The financial system has created a rentier class that chases investment yield even when the economy isn’t necessarily growing. Think about that for a second. Why should someone expect a guaranteed return at any point in an economic cycle if the real economy is […]
You are too broke to own a home in America! The typical American household making $50,000 a year cannot afford to purchase the typical $200,000 median priced home without straining their budget.
People continue to scratch their heads as to why regular home buyers in America are unable to enter the housing market. Prices are up but this is mostly because of investor money that is obsessed with chasing yield in a low yield environment orchestrated by the Federal Reserve. The reason home sales figures continue to […]
Inflation conundrum, price increases without wage growth are unsustainable: Central banks around the globe aim at inflationary targets but have a hard time inflating wages.
Inflation has a slow corrosive power that few people ever see. We all realize that rust will occur on exposed metal through a slow process of oxidation. One rain will not do this. It takes time. Little by little the destruction occurs. I’m always thrown aback when I hear some people say something like they […]
Is college worth a lifetime of debt? Student debt reaches critical tipping point at $1.2 trillion as annual price increases enter the moment of truth.
The cost of going to college has come into deep questioning. In our inflation addicted market, the answer to every question regarding affordability involves more debt. Can’t afford a home? How about taking on a massive mortgage with a small down payment. Can’t afford a car? How about a 0 percent 0 down loan. Having […]