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With the Fed lying about unwinding balance sheet, the central bank appears to have no intention of letting stocks tank

Since the end of summer, Janet Yellen stated during one of the Fed's FOMC meetings that the central bank would begin unwinding its $4.8 trillion balance sheet in October since the economy 'appeared' to be able to stand on its own.  But according to analyst Dave Kranzler over at Investment Research Dynamics, not only has the Fed not begun to unwind, but their balance sheet has actually increased between Octo ...

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Incoming Fed Chairman dreaming up ‘new tools’ for next recession since central banks haven’t normalized from previous one

In a recent discussion on monetary policy, President Trump's incoming Fed Chairman stated that he believes there is a need for central banks to work on 'new tools' to deal with the next worldwide recession. Central banks as a whole, which include the Bank of Japan, Bank of England, the European Central Bank, and of course the Fed, have not normalized their monetary policies since the last recession eight ye ...

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Obamacare premium spikes in 2018 now greater than two thirds of a family’s wages in some areas

Just as in 2016, Obamacare could remain one of the major hot button topics for voters going into the 2018 mid-term elections.  And unless the Congressional Republicans can hammer out some form of repeal, replace, or adaptation of the Healthcare Act before the end of 2017, then premiums are expected to once again skyrocket for the majority of American families next year. And how high might some of these prem ...

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Initial jobless claims spike just as economy is entering into holiday shopping season

If one learns to ignore the artificially propped up stock markets and manipulated accounting that is America's corporate earnings, they would discover that most of the underlying data tied to the general economy has been stagnant or even in decline for most of this 'decade long' recovery.  And just as the time between Thanksgiving and December 31 is a major barometer for how retail businesses will succeed o ...

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Rising prices as consumer spending falls are a bad omen for the economy heading into Christmas holiday season

Normally a decrease in consumer spending should coincide with retailers and producers lowering prices to entice buyers into the markets, however this has not been the case here in the middle of November and just before Black Friday and the Christmas holiday shopping season is about to get under way. On Nov. 15 two economic reports came out which show that core price inflation is rising at the same time reta ...

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No new ideas: Congressional Democrats want to bail out state pension debts with… more debt

If there is one thing you can always set your watch to is that with Democrats in Congress, the solution to any problem is to spend more money and create more debt.  And as such it should come as no surprise when a week ago a Senator from Ohio announced plans to introduce a new bill intended to help bailout state pension funds with... Treasury debt. That's right... the solution for underfunded debt obligatio ...

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The business of America is no longer business, but caring for the sick

Exactly 100 years ago, a label was given to the dying Ottoman Empire where the coalition tied to the Central Powers during World War I was called the Sick Man of Europe.  And this label would eventually become part of the mainstream as it would one day be tagged to nearly every European country during the 20th century. Now here in the 21st century the 'sick man' title could easily be placed on the American ...

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Record number of retail stores have not made it to Black Friday here in 2017

One of the more interesting byproducts of the Housing Bubble that took place during the first decade of this century was the inordinate number of businesses that sprung up in and around new communities.  And while using the tenor of continual growth as the catalyst to keep pushing up their stock prices between 2002 and 2008, many of these corporations would end up shuttering store locations when the foreclo ...

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Combined consumer debt back at all-time highs heading into Christmas shopping season

After a brief respite earlier in 2017, all of a sudden consumer debt across the board has surged in the areas of student loans, auto loans, and credit card debt just weeks before retailers hope to have their biggest selling period of the year. In fact credit card debt has soared back over the $1 trillion mark after falling below this Maginot lone during the summer, leading to a validation of a recent survey ...

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Trump’s tax reform will be meaningless unless he stops the Fed from imposing the hidden tax of inflation

For producers and consumers there are two primary ways to be taxed... directly and indirectly.  And judging by how the Fed has been allowed to hold sway over both fiscal and monetary policies since the 2008 Financial Crisis, President Trump's tax reform plan will end up being meaningless if he doesn't reign in the central bank's programs that have led to rising inflation. Over the past several years the Fed ...

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Economic recovery for average Americans still nothing more than Hope and no Change

One of the most important things to remember when differentiating between economics and finance is that one is a social science while the other is a mathematical one.  And because of this, many times professionals and academics confuse the two when speaking about an economy as a whole. In fact the financial world, as well as the economic, are both full of opposing dichotomies.  For example earlier this week ...

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Is the near all-time high in consumer confidence signalling we have reached a Minsky Moment?

On Oct. 31 the newest survey on consumer confidence was published and the results were the highest level of euphoria since the peak of the Dot Com stock bubble.  And with the markets continuing to grow to new all-time highs without even as much as a 5% correction in the past 12 months, is this high level of confidence signalling that we are on the cusp of a new Minsky Moment like the one that occurred in 19 ...

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