We Are Getting Very Close To An Inverted Yield Curve – And If That Happens A Recession Is Essentially Guaranteed

We Are Getting Very Close To An Inverted Yield Curve – And If That Happens A Recession Is Essentially Guaranteed | glass-ball-beach | Economy & Business Special Interests

If something happens seven times in a row, do you think that there is a pretty good chance that it will happen the eighth time too?  Immediately prior to the last seven recessions, we have seen an inverted yield curve, and it looks like it is about to happen again for the very first time since the last financial crisis.  For those of you that are not familiar with this terminology, when we are talking about a yield curve we are typically talking about the spread between two-year and ten-year U.S. Treasury bond yields.  Normally, long-term rates are higher than short-term rates, but when investors get spooked about the economy this can reverse.  Just before every single recession since 1960 the yield curve has “inverted”, and now we are getting dangerously close to it happening again for the first time in a decade.

On Thursday, the spread between two-year and ten-year Treasuries dropped to just 79 basis points.  According to Business Insider, this is almost the tightest that the yield curve has been since 2007…

The spread between the yields on two-year and 10-year Treasurys fell to 79 basis points, or 0.79%, after Wednesday’s disappointing consumer-price and retail-sales data. The spread is currently within a few hundredths of a percentage point of being the tightest it has been since 2007.

Perhaps more notably, it is on a path to “inverting” — meaning it would cost more to borrow for the short term than the long term — for the first time since the months leading up to the financial crisis.

So why is an inverted yield curve such a big event?  Here is how CNBC recently explained it…

An inverted yield curve, which has correctly predicted the last seven recessions going back to the late 1960’s, occurs when short-term interest rates yield more than longer-term rates. Why is an inverted yield curve so crucial in determining the direction of markets and the economy? Because when bank assets (longer-duration loans) generate less income than bank liabilities (short-term deposits), the incentive to make new loans dries up along with the money supply. And when asset bubbles are starved of that monetary fuel they burst. The severity of the recession depends on the intensity of the asset bubbles in existence prior to the inversion.

What is truly alarming is that the Federal Reserve can see what is happening to the yield curve, and they can see all of the other indications that the economy is slowing down, but they decided to raise rates anyway.

Raising rates in a slowing economy is a recipe for disaster, but the Fed has gone beyond that and has declared that it intends to start unwinding the 4.5 trillion dollars of assets that have accumulated on the Fed’s balance sheet.

Janet Yellen is trying to tell us that this will be a smooth process, but many analysts are far from convinced.  For instance, just consider what Peter Boockvar recently told CNBC

“They desperately want this to be an easy, smooth, paint-drying type of process, but there’s no chance,” said Peter Boockvar, chief market analyst at The Lindsey Group. “The whole purpose of quantitative easing was to inflame the markets higher. Why shouldn’t the reverse happen when we do quantitative tightening?”

I hope that there are no political motivations behind the Fed’s moves.  During the Obama era, interest rates were pushed all the way to the floor and the financial system was flooded with new money by the Fed.  But now the Fed is completely reversing the process now that Donald Trump is in office.

When the inevitable stock market crash comes, Trump will get most of the blame, but it will actually be the Federal Reserve’s fault.  If the Fed had not injected trillions of dollars into the system, stocks would not have ever gotten this high.  And now that they are reversing the process that created the bubble, a whole lot of innocent people out there are going to get really hurt as stock prices come crashing down.

And if you thought that the last recession was bad for average American families, wait until you see what happens this time around.  As Kevin Muir has noted, it is utter madness for the Fed to hit the breaks in a rapidly slowing economy…

There are a million other little signs the US economy is rolling over, but that’s not important. What is important is the realization that until financial conditions back up, the Fed will not ease off the brake.

To top it all off, the Fed is not only braking, but they are also preparing the market for a balance sheet unwind. This is like QE in reverse.

It’s a perfect storm of negativity. An overly tight Fed that is determined to withdraw monetary stimulus even in the face of a declining economy.

Even if the Fed ultimately decides not to unwind their balance sheet very rapidly, rising rates will still significantly slow down economic activity.

Rising mortgage rates are going to hit the housing market hard, rising rates on auto loans are horrible news for an auto industry that is already having a horrendous year, and rising rates on credit cards will mean higher credit card payments for millions of American families.

And this comes at a time when indicator after indicator is already screaming that the next recession is dead ahead.

Today, an unelected, unaccountable central banking cartel has far more power over our economy than anyone else, and that includes President Trump and Congress.  The more manipulating they do, the bigger our economic booms and busts become, and this next bust is going to be a doozy.

There have been 18 distinct recessions or depressions since the Federal Reserve was created in 1913, and if we finally want to get off of this economic roller coaster for good we need to abolish the Federal Reserve.

As many of you may have heard, I am very strongly leaning toward running for Congress here in Idaho, and one of the key things that is going to set me apart from any other candidate is that I am very passionate about shutting down the Federal Reserve.  I recently detailed why it is imperative that we do this in an article entitled “The Federal Reserve Must Go”.  Central banks are designed to create government debt spirals, and the size of the U.S. national debt has gotten more than 5000 times larger since the Fed was initially established.

If we ever want to do something about our national debt, and if we ever want to get our economy back on track on a permanent basis, we have got to do something about the Federal Reserve.

Anyone that would suggest otherwise is just wasting your time.

The post We Are Getting Very Close To An Inverted Yield Curve – And If That Happens A Recession Is Essentially Guaranteed appeared first on The Sleuth Journal.


Source: Alternative news journal

Share and Enjoy

  • Facebook
  • Twitter
  • Delicious
  • LinkedIn
  • StumbleUpon
  • Add to favorites
  • Email
  • RSS

Peak Economic Delusion Signals Coming Crisis

Peak Economic Delusion Signals Coming Crisis | surreal-money | Economy & Business Sleuth Journal Special Interests

In my article ‘The Trump Collapse Scapegoat Narrative Has Now Been Launched‘, I discussed the ongoing and highly obvious plan by globalists and international financiers to pull the plug on their fiat support for stock markets and portions of the general economy while blaming the Trump Administration (and the conservative ideal) for the subsequent crash. Numerous economic shocks and negative data which had been simmering for years before the 2016 elections are rising to the surface of the normally oblivious mainstream. This recently culminated in a surprise stock dive that stunned investors; investors that have grown used to the Dow moving perpetually upward, while the economic media immediately began connecting the entire event to Trump and the “Comey memos”, which likely do not exist.

My position according to Trump’s behavior and cabinet selection is that he is aware of this agenda and is playing along. That said, there is another important issue to consider – the participation of the ignorant in helping the Ponzi con-game continue.

There is a famous investor’s anecdote from Joe Kennedy, the father of John F. Kennedy, about the onset of the Great Depression – he relates that one day, just before the crash of 1929, a shoe shine boy tried to give him stock tips. He realized at that moment that when the shoe shiner is offering market tips the market is too popular for its own good. He cashed out of the market and avoided the crash that many people now wrongly assume was the “cause” of the Great Depression.

I don’t know that this story is true, but if it is, it is an interesting example of peak economic delusion. We do not have quite the same investment environment as existed in those days. Today, algorithmic computers dominate the functions of the stock market, chasing headlines and each other, but this does not and will not save the economy from another depression. In fact, all they have done along with substantial aid from central banks is artificially elevate equities while every other fiscal indicator implodes.

But this farce in stocks could not succeed for so many years without help. I would say the real “shoe shine boys” of our era are actually the dullards in the mainstream financial media, stabbing in the dark and desperate to believe that the astonishing “recovery” since 2009 is real.

This attitude is evident in a recent article published by Bloomberg titled ‘Prophets Of Doom With Too Much Gloom’. The piece focuses not on alternative analysts like myself which are usually targeted with the mentally lazy “doom and gloom” label by the MSM. Rather, the targets are “big names” in the investment world who now finally agree with what alternative analysts have been saying for some time. Names like Bill Gross and Paul Singer.

Bloomberg laments the sudden tide of negative predictions for their beloved Dow Jones and other exchanges from people who have the ear of the larger mainstream. Instead of considering their warnings and looking at the available evidence, Bloomberg instead decides to craft a conspiracy theory in which bond traders and hedge fund managers like Gross and Singer feel jilted by the unnatural rise in stocks and now scheme to lure investors away from the infinite fountain of wealth. Yes, that’s right, Bloomberg accuses Gross and Singer of “stock envy”.

I say, Bloomberg is a modern day shoe shine boy.

Some might argue that Bloomberg is perfectly cognizant of the fact that the economy is in severe decline and that they are helping their central banker buddies keep the public in the dark through misinformation. While this may be true for Bloomberg himself and media elites like him, I think the average analyst at Bloomberg news is just as ignorant of the fiscal situation as most people. I think they are legitimately biased and will conjure whatever story they need to help them and others believe that the system is in ascendance rather than decline.

For those of us who were analysts before the derivatives crash of 2008, this mindset is nothing new. I remember the complete arrogance present in the mainstream just before the implosion; the sneering and attacks that were used in an attempt to silence anyone with the guts to openly suggest the fundamentals and the data did not support the investment exuberance. I remember many people asserting that that the economy’s progress was unstoppable, that another crash like 1929 was impossible, that the real estate market was an invincible engine. They were all wrong, yet, they were so confident. Most of these same people still work in the financial press to this day. Imagine that…

I would prefer to point to the hard data on hand than mere mainstream opinion. Maybe I’m a little paranoid, but I’ve already seen mainstream analysts fail on numerous occasions.

First, consider the fact that the Federal Reserve, the key component along with other central banks around the world in the rise of stock markets, is now cutting off the flow of easy money through continued interest rate hikes. I predicted this move back in 2015 when almost everyone said the Fed would go to negative rates instead. Without no-cost Fed money to feed the machine, stock markets have essentially stalled, and now, there is talk of a “tech dump” on the horizon.  With the vast majority of gains in equities the past year attributed to only five major companies, all of them tech oriented, this would be a disaster for stocks.

This is a considerable shift away from the last few years, in which it was expected by many that markets would expand exponentially for the foreseeable future. Now that the Fed’s quantitative easing and near-zero interest rates have been removed as fuel, the true economic picture is becoming clear, even to the mainstream.

According to the Atlanta Fed, US GDP in the first quarter of 2017 has declined to 0.7% , going back to lows touched on in 2014 after the Fed reduced QE.

The US has lost 5 million manufacturing jobs since the year 2000, and this trend has accelerated in recent years. Manufacturing in the US only accounts for 8.48% of all jobs according to May statistics.

102 million working age Americans do not currently have a job. This includes the 95 million Americans not counted by the Bureau of Labor because they assume these people have been unemployed so long they “do not want to work”.

Thousands of retail outlet stores, the primary engine of the American economy, are set to close in 2017.  Sweeping bankruptcies and downsizing are ravaging the retail sector, and internet retailers are not taking up the slack despite highly publicized growth.  In 2016, online retail sales only accounted for 8.1% of all retail sales.

Oil inventories continue to amass as US energy demand declines. Declining energy demand is a sure sign of overall economic decline. OPEC and other entities continue to argue that “too much supply” is the issue; an attempt to distract away from the reality of lower consumption and the falling wealth of consumers.

Corporate earnings expectations continue their dismal path, suggesting that stock markets have been supported by central bank stimulus and blind investor faith in central bank intervention. The stimulus is now being cut off. How long before investor faith is finally lost?

Peak Economic Delusion Signals Coming Crisis | earnings-exp1 | Economy & Business Sleuth Journal Special Interests

These are only a few of the MANY data points that paint a very ugly picture for the US economy. The rest of the world is just as tenuous if not worse.

This is why when I hear the phrase “doom and gloom” I have to laugh and think of the shoe shine boys. These are people with limited experience in tracking the economy, or very short memories, or both. This is also the product of a vast misconception about economic crisis or collapse – the assumption that crisis and collapse are “events”, that they happen suddenly and without warning. If the nation does not look like a television zombie drama tomorrow, there must not be a collapse. In truth, economic collapse NEVER happens without warning, because as I have said ten thousand times and will say ten thousand times more, collapse is a process, not an event. The data points above show an economy that is in severe deterioration, not recovery. Stock markets are next, not that stock markets matter much in the grand scheme of things.

It is unfortunate that so many people only track stocks when accounting for economic health. They have crippled themselves and their own observations, and actually condescend when confronted with counter-observations and data. They help globalists and international financiers by perpetuating false narratives; sometimes knowingly but often unconsciously. And, when the system does destabilize to the point that they actually realize it, they will blame all the wrong culprits for their pain and suffering.

The question is not “when” we will enter collapse; we are already in the midst of an economic collapse. The real question is, when will the uneducated and the biased finally notice? I suspect the only thing that will shock them out of their stupor will be a swift stock market drop, since this is the only factor they seem to pay attention to. This will happen soon enough. In the meantime, anyone who discusses legitimate data and warns of the dangers to come is a “doom and gloomer”. Mark my words, one day this label will be considered a badge of honor.

 

This article was republished from Alt-Market.com.

After 8 long years of ultra-loose monetary policy from the Federal Reserve, it’s no secret that inflation is primed to soar. If your IRA or 401(k) is exposed to this threat, it’s critical to act now! That’s why thousands of Americans are moving their retirement into a Gold IRA. Learn how you can too with a free info kit on gold from Birch Gold Group. It reveals the little-known IRS Tax Law to move your IRA or 401(k) into gold. Click here to get your free Info Kit on Gold.

If you would like to support the publishing of articles like the one you have just read, visit our donations page here.  We greatly appreciate your patronage.

The post Peak Economic Delusion Signals Coming Crisis appeared first on The Sleuth Journal.


Source: Alternative news journal

Share and Enjoy

  • Facebook
  • Twitter
  • Delicious
  • LinkedIn
  • StumbleUpon
  • Add to favorites
  • Email
  • RSS

Over The Last 10 Years The U.S. Economy Has Grown At EXACTLY The Same Rate As It Did During The 1930s

Over The Last 10 Years The U.S. Economy Has Grown At EXACTLY The Same Rate As It Did During The 1930s | great-depression-food-line-392x3001 | Economy & Business Sleuth Journal Special Interests

Even though I write about our ongoing long-term economic collapse every day, I didn’t realize that things were this bad.  In this article, I am going to show you that the average rate of growth for the U.S. economy over the past 10 years is exactly equal to the average rate that the U.S. economy grew during the 1930s.  Perhaps this fact shouldn’t be that surprising, because we already knew that Barack Obama was the only president in the entire history of the United States not to have a single year when the economy grew by at least 3 percent.  Of course the mainstream media continues to push the perception that the U.S. economy is in “recovery mode”, but the truth is that this current era has far more in common with the Great Depression than it does with times of great economic prosperity.

Earlier today I came across an article about President Trump’s new budget from Fox News, and in this article the author makes a startling claim…

The hard fact is that the past decade’s $10 trillion in deficit spending has produced the worst economic growth as measured by Gross Domestic Product in our nation’s history.  You read that right, in the past decade our nation’s economy grew slower than even during the Great Depression. This stagnant, new normal, low-growth economy is leaving millions of working age people behind who have given up even trying to participate, and has led to a malaise where many doubt that the American dream is attainable.

When I first read that, I thought that this claim could not possibly be true.  But I was curious, and so I looked up the numbers for myself.

What I found was absolutely astounding.

The following are U.S. GDP growth rates for every year during the 1930s

1930: -8.5%
1931: -6.4%
1932: -12.9%
1933: -1.3%
1934: 10.8%
1935: 8.9%
1936: 12.9%
1937: 5.1%
1938: -3.3%
1939: 8.0%

When you average all of those years together, you get an average rate of economic growth of 1.33 percent.

That is really bad, but it is the kind of number that one would expect from “the Great Depression”.

So then I looked up the numbers for the last ten years

2007: 1.8%
2008: -0.3%
2009: -2.8%
2010: 2.5%
2011: 1.6%
2012: 2.2%
2013: 1.7%
2014: 2.4%
2015: 2.6%
2016: 1.6%

When you average these years together, you get an average rate of economic growth of 1.33 percent.

I thought that was a really strange coincidence, and so I pulled up my calculator and ran all of the numbers again and I got the exact same results.

The 1930s certainly had more big ups and downs, but the average rate of economic growth during that decade was exactly the same as we have seen over the past 10 years.

And of course the early 1940s turned out to be a boom time for the U.S. economy, while it appears that our rate of economic growth is actually slowing down.  As I noted yesterday, U.S. GDP growth during the first quarter of 2017 was just 0.7 percent.

But you don’t hear any talk like this on the mainstream news, do you?

Instead, they tell us that everything is just peachy.

I often wonder what things would be like right now if Barack Obama and his minions in Congress had not added more than 9 trillion dollars to the national debt.  By stealing all of that money from future generations of Americans and spending it now, Obama was able to artificially prop up the U.S. economy.  If we were able to go back and remove 9 trillion dollars of government spending from the economy over the past 8 years, we would be in a rip-roaring economic depression right now.  For an extended analysis of this, please see my previous article entitled “The Shocking Truth About How Barack Obama Was Able To Prop Up The U.S. Economy”

But even though we have been adding more than a trillion dollars to the national debt each year, and even though the Federal Reserve pushed interest rates all the way to the floor during the Obama era, the U.S. economy has not grown by three percent or more on an annual basis since 2005.

When you take an honest look at the numbers, there is no way that anyone can possibly claim that the U.S. economy is doing well.  The best that you can say is that we have been staving off a complete economic meltdown and another Great Depression, but of course the measures that our leaders have been taking to do this have just been making our long-term problems even worse.

I feel bad for President Trump, because he has inherited the biggest economic mess in U.S. history.  When we finally reach the point when it is impossible to artificially prop up the U.S. economy any longer, he is going to get most of the blame, but he won’t deserve it.

It is not going to be possible for Trump or anyone else to fix our system, because it was fundamentally flawed from the very beginning.  The Federal Reserve was designed to create an endless spiral of government debt, and since the day it was created the U.S. national debt has gotten more than 5000 times larger and the value of the U.S. dollar has declined by about 98 percent.

If we truly want to fix the economy, the Federal Reserve must be abolished.  If I was President Trump, I would look to start issuing debt-free U.S. currency just like President Kennedy did in 1963 as soon as possible.

In addition, we need to push tax rates as low as possible.  Personally, I would like to see the day when the personal income tax is completely eliminated and the IRS is shut down.  The greatest period of economic growth in all of U.S. history was when there was no income tax and no Federal Reserve.  America once thrived in such an environment, and I believe that we can do it again.

Of course we need to also dramatically reduce the size and scope of the federal government.  Our founders intended to create a very limited federal government, but instead the left has just kept pushing to make it larger and larger.

Businesses all over America are being strangled to death by mountains of federal regulations, and if we could just get the government off of their backs the business community could start thriving again.  There are quite a few government agencies that could be shut down entirely, and I think that the EPA would be a good place to start.

Once upon a time the United States showed the world the power of free markets and capitalism, and if we want to make America great again, we should go back and do the things that made America great in the first place.

But would the American people be willing to go down that path?


Subscribe to The Sleuth Journal Newsletter for Daily Articles!


The post Over The Last 10 Years The U.S. Economy Has Grown At EXACTLY The Same Rate As It Did During The 1930s appeared first on The Sleuth Journal.


Source: Alternative news journal

Share and Enjoy

  • Facebook
  • Twitter
  • Delicious
  • LinkedIn
  • StumbleUpon
  • Add to favorites
  • Email
  • RSS

Financial Weapons Of Mass Destruction: The Top 25 U.S. Banks Have 222 Trillion Dollars Of Exposure To Derivatives

Financial Weapons Of Mass Destruction: The Top 25 U.S. Banks Have 222 Trillion Dollars Of Exposure To Derivatives | Arrows-Going-All-Over-The-Place-Public-Domain | Banks Economy & Business

The recklessness of the “too big to fail” banks almost doomed them the last time around, but apparently they still haven’t learned from their past mistakes.  Today, the top 25 U.S. banks have 222 trillion dollars of exposure to derivatives.  In other words, the exposure that these banks have to derivatives contracts is approximately equivalent to the gross domestic product of the United States times twelve.  As long as stock prices continue to rise and the U.S. economy stays fairly stable, these extremely risky financial weapons of mass destruction will probably not take down our entire financial system.  But someday another major crisis will inevitably happen, and when that day arrives the devastation that these financial instruments will cause will be absolutely unprecedented.

During the great financial crisis of 2008, derivatives played a starring role, and U.S. taxpayers were forced to step in and bail out companies such as AIG that were on the verge of collapse because the risks that they took were just too great.

But now it is happening again, and nobody is really talking very much about it.  In a desperate search for higher profits, all of the “too big to fail” banks are gambling like crazy, and at some point a lot of these bets are going to go really bad.  The following numbers regarding exposure to derivatives contracts come directly from the OCC’s most recent quarterly report (see Table 2), and as you can see the level of recklessness that we are currently witnessing is more than just a little bit alarming…

Citigroup

Total Assets: $1,792,077,000,000 (slightly less than 1.8 trillion dollars)

Total Exposure To Derivatives: $47,092,584,000,000 (more than 47 trillion dollars)

JPMorgan Chase

Total Assets: $2,490,972,000,000 (just under 2.5 trillion dollars)

Total Exposure To Derivatives: $46,992,293,000,000 (nearly 47 trillion dollars)

Goldman Sachs

Total Assets: $860,185,000,000 (less than a trillion dollars)

Total Exposure To Derivatives: $41,227,878,000,000 (more than 41 trillion dollars)

Bank Of America

Total Assets: $2,189,266,000,000 (a little bit more than 2.1 trillion dollars)

Total Exposure To Derivatives: $33,132,582,000,000 (more than 33 trillion dollars)

Morgan Stanley

Total Assets: $814,949,000,000 (less than a trillion dollars)

Total Exposure To Derivatives: $28,569,553,000,000 (more than 28 trillion dollars)

Wells Fargo

Total Assets: $1,930,115,000,000 (more than 1.9 trillion dollars)

Total Exposure To Derivatives: $7,098,952,000,000 (more than 7 trillion dollars)

Collectively, the top 25 banks have a total of 222 trillion dollars of exposure to derivatives.

If you are new to all of this, you might be wondering what a “derivative” actually is.

When you buy a stock you are purchasing an ownership interest in a company, and when you buy a bond you are purchasing the debt of a company.  But when you buy a derivative, you are not actually getting anything tangible.  Instead, you are simply making a side bet about whether something will or will not happen in the future.  These side bets can be extraordinarily complex, but at their core they are basically just wagers.  The following is a pretty good definition of derivatives that comes from Investopedia

A derivative is a security with a price that is dependent upon or derived from one or more underlying assets. The derivative itself is a contract between two or more parties based upon the asset or assets. Its value is determined by fluctuations in the underlying asset. The most common underlying assets include stocks, bonds, commodities, currencies, interest rates and market indexes.

Those that trade derivatives are essentially engaged in a form of legalized gambling, and some of the brightest names in the financial world have been warning about the potentially destructive nature of these financial instruments for a very long time.

In a letter that he wrote to shareholders of Berkshire Hathaway in 2003, Warren Buffett actually referred to derivatives as “financial weapons of mass destruction”…

The derivatives genie is now well out of the bottle, and these instruments will almost certainly multiply in variety and number until some event makes their toxicity clear. Central banks and governments have so far found no effective way to control, or even monitor, the risks posed by these contracts. In my view, derivatives are financial weapons of mass destruction, carrying dangers that, while now latent, are potentially lethal.

Warren Buffett was right on the money when he made that statement, and of course the derivatives bubble is far larger today than it was back then.

In fact, the total notional value of derivatives contracts globally is in excess of 500 trillion dollars.

This is a disaster that is just waiting to happen, and investors such as Buffett are quietly positioning themselves to take advantage of the giant crash that is inevitably coming.

According to financial expert Jim Rickards, Buffett’s Berkshire Hathaway Inc. is hoarding 86 billion dollars in cash because he is likely anticipating a major stock market downturn…

Far from a bullish sign, Buffett’s cash hoard could mean he’s preparing for a market crash. When the crash comes, Buffett can walk through the wreckage with his checkbook open and buy great companies for a fraction of their current value.

That’s the real Buffett style, but you won’t hear that from your broker or wealth manager. If Buffett has a huge cash allocation, shouldn’t you?

He knows what’s coming. Now you do too.

Warren Buffett didn’t become one of the wealthiest men in the entire world by being stupid.  He knows that stocks are ridiculously overvalued at this point, and he is poised to make his move after the pendulum swings in the other direction.

And he might not have too long to wait.  In recent weeks I have been writing about many of the signs that the U.S. economy is slowing down substantially, and today we received even more bad news

Despite high levels of economic confidence expressed by business owners and consumers, one key indicator shows that it has not translated into much action yet.

Loan issuance declined in the first quarter from the previous three-month period, the first time that has happened in four years, according to an SNL Financial analysis of bank earnings reports filed for the period. The total of recorded loans and leases fell to $9.297 trillion from $9.305 trillion in the fourth quarter of 2016.

This is precisely what we would expect to see if a new economic downturn was beginning.  Our economy is very highly dependent on the flow of credit, and when that flow begins to diminish that is a very bad sign.

For the moment, financial markets continue to remain completely disconnected from the hard economic data, but as we saw in 2008 the markets can plunge very rapidly once they start catching up with the real economy.

Warren Buffett is clearly getting prepared for the crisis that is ahead.

Are you?


Subscribe to The Sleuth Journal Newsletter for Daily Articles!


The post Financial Weapons Of Mass Destruction: The Top 25 U.S. Banks Have 222 Trillion Dollars Of Exposure To Derivatives appeared first on The Sleuth Journal.


Source: Alternative news journal

Share and Enjoy

  • Facebook
  • Twitter
  • Delicious
  • LinkedIn
  • StumbleUpon
  • Add to favorites
  • Email
  • RSS

Is Gold Signaling The Next Financial Crisis?

Is Gold Signaling The Next Financial Crisis? | gold | Economy & Business Multimedia Special Interests

Gold and silver have been sold down pretty hard since April 18th. But the structure of the weekly Commitment of Traders report, which shows the long and short positions of the various trader classifications (banks, hedgers, hedge funds, other large investment funds, retail) had been flashing a short term sell signal for the last few weeks. The net short position of the Comex banks and the net long position of the hedge funds had reached relatively high levels. Except Thursday (May 4th), almost all of the price decline action was occurring after the London p.m. gold fix and during the Comex floor trading hours, exclusively. This tells us all we need to know about the nature of the selling, especially given the enormous amount of physical gold currently being accumulated by the usual eastern hemisphere countries. The table above calculates the Comex banks’ paper gold positioning going back to 2005. As you can see, currently the net short position and the net short position as a percent of total open interest had reached a relatively high level. This typically when the banks engage in raiding the Comex by unloading massive quantities of paper gold in bursts in order to trigger hedge fund stop-loss selling. It serves the dual purpose of pushing down the price of gold and providing a relatively riskless source of profits for the banks.

Is Gold Signaling The Next Financial Crisis? | COT-300x233 | Economy & Business Multimedia Special Interests This is cycle that has repeated numerous times per year since 2001. This time, however, more than any other time since 2001, the sell-off in the price of gold is counter-intuitive to the collapsing financial and economic condition of the United States, specifically, and the entire world in general. The likely reason for the current price take-down of gold is an attempt by the elitists to remove the batteries from the “fire alarm” mechanism embedded in a rising price of gold. An alarm that lets the populace know that there’s a big problem that will hit the system sooner or later; an alarm that lets public know systemic failure is beyond Government and Central Bank Control.

A similar manipulated take-down of the price of gold and silver occurred in the spring of 2008, ahead of the great financial collapse crisis. Gold was pushed down to $750 from $1050 and silver was taken down from $20 to $10. This price decline was counter-intuitive to the collapsing financial condition of the U.S. financial system, which had become obvious to anyone not blinded by the official propaganda at the time. Of course, after the financial collapse occurred and was addressed with money printing, the price of gold ran up to an all-time high.

It’s likely a similar situation if taking place now. Only this time around all “assets” are in price-bubbles fomented by record levels of fiat money creation and the interminable expansion of credit. The debt portion of this equation is getting ready to hit the wall, the only question is timing. This explains the parabolic move in the price of Bitcoin. Bitcoin is nearly impossible to manipulate. Once the western Central Banks lose the ability to manipulate the price of gold in the derivatives markets, the price of gold and silver will go on their own parabolic price journey – one that will leave the price of Bitcoin in the rear view mirror.

The Shadow of Truth further elaborates on the current price-action in the precious metals market and why latest sell-off is likely signalling the next financial crisis:

Sharing is caring!


Subscribe to The Sleuth Journal Newsletter for Daily Articles!


The post Is Gold Signaling The Next Financial Crisis? appeared first on The Sleuth Journal.


Source: Alternative news journal

Share and Enjoy

  • Facebook
  • Twitter
  • Delicious
  • LinkedIn
  • StumbleUpon
  • Add to favorites
  • Email
  • RSS

Empty Gold Vaults and Fresh Out of Bombs

Empty Gold Vaults and Fresh Out of Bombs | public-domain-dollar-nwo | Economy & Business Special Interests

As the global economic and power shift continues to unfold if we look at history we will see that most, if not all, transfers of power happened after a major war. The odds of war being the catalyst for the coming change increases with each passing day. The endless saber rattling coming out of Washington DC is beginning to incite many of the world leaders who, over the past 15 years, have either kept quiet about the endless unConstitutional wars launched by the U.S. or have done their best to remain calm and collected as they attempt to negotiate with blood-thirsty warlords that occupy the Pentagon and State Department.

All the while China, Russia, India and most of the rest of Asia along with South Africa and Brazil, have all been working towards the next shift of power, economics and finance in a more realistic manner.

China sits at the head of several major economic partnerships including the Shanghai Cooperation Organization (SCO), BRICS and One Belt One Road (OBOR).

Russia is the driving force behind the Eurasian Economic Union (EEU) and is working closely with several of the former Soviet block nations in a way that lifts the entire region and ties it together with economical and financial incentives that help all the members and all the citizens. Russia is also a major player in the One Belt One Road project as well as a member of BRICS.

These massive partnerships have been built on a foundation of mutual cooperation, economic independence and growth. It almost appears as if China and Russia learned from what the U.S. did when NAFTA was signed by President Clinton and did the exact opposite in developing their plans for regional partnerships and economic unions.

As the U.S. continues to threaten, bomb and exploit nations and people around the world the Eastern economies continue to focus on business and being a good neighbor. I am not saying that Russia nor China are the “good guys” and the U.S. is the “bad guy”, I am simply reviewing what is on the table at this moment with these 3 superpowers. If I were the Prime Minister of one of the Baltic States or, any other South Pacific rim nation, the only question that would need addressing is – why would a nation do business with a country that has proven to ignore terms of treaties, invoke economic sanctions and financially attack a nation that hyper inflates their currency? These are the tactics the U.S. has used around the world. How could anyone see these tactics as anything less than barbaric and acts of war?

Since the derivatives implosion in 2008 the financial and economic world has changed. The global economy is saturated in debt. Nations, regions and citizens are all levered up as high as possible with un-payable debt. The primary reason for all this debt is bubble economics and abuse of the World Reserve Currency – Federal Reserve Note.

Paul Volker was the last central bankster to actually do the right thing and push interest rates to 21%. Can you imagine that happening today? The entire global financial system would blow apart before lunch.

As U.S. politicians are in a constant state of bickering and arguing, not only with the world, but within our borders, how are we to compete with an economic machine the size of China and Russia? The citizens of this country need to understand these projects are happening and will change the course of history. The economic and power shift is happening right now. The now unavoidable economic collapse coming to the shores of America is happening. The Western economies began unraveling in earnest in 2008 and, as we are seeing today, will continue to accelerate until its bitter end.

The pieces of the puzzle involving war have been shifting and being put into place since 2011 and will be completed by 2020 – 3 years from today. This assumes the warmongers at the CIA/State Dept/White House don’t develop an ichy trigger finger and begin firing long before 2020.

Jerry Robinson: The pivot to Asia that took place back in 2011, under then President Obama. Has now led, as you so cleverly show in the documentary (The Coming War on China) about 400 military bases that surround China. It’s very difficult to imagine a country not feeling threatened by that. You really draw that out in the film. It really forces the Westerner, as they’re watching the film, to think outside of their own skin, their own country, their own nationality and to realize that this military industrial complex that has been built is now, basically, noosing-up the second largest superpower in the world on our watch. It’s difficult for many Americans to imagine a hot war, a hot full scale war with China, but that is the thesis of your film….Does the Trump administration aggravate this, from your perspective, does he make things better?

John Pilger: Well. the theme of willful ignorance on the part of the United States and the American people, particular American elites has been the theme of most of my films. Several times in your question you said “we don’t really know about this.” I think the question your listeners should like to ask themselves is why they don’t know. Because the pivot to Asia announced by President Obama in 2011 was not a secret, but as you say, very few people know about it. It meant most of the U.S. naval and air forces to the Pacific – Asia Pacific region by the year 2020. Source

This is not news and it is not anything the American people have paid attention to for a second. I guarantee they could name the winner of the last Superbowl, but to even recognize the Asia Pivot would be a stretch for most Americans.

The Asia Pivot has hit a dump in the road with the Trump administration. According to The Diplomat the Asia Pivot is going to either be reworked or cast aside.

In a press conference on Monday [March 13, 2017] discussing U.S. Secretary of State Rex Tillerson’s inaugural trip to Asia, Susan Thornton, the assistant secretary of state for East Asian and Pacific Affairs, had this to say about the Obama administration’s “pivot” or “rebalance” to Asia:

On the issue of pivot, rebalance, et cetera, that was a word that was used to describe the Asia policy in the last administration. I think you can probably expect that this administration will have its own formulation and it hasn’t actually, we haven’t seen in detail what the formulation will be or if there even will be a formulation.

Those words aren’t necessarily surprising in the context of the Trump administration, but it’s quite something to hear from the top dedicated U.S. diplomat for East Asian policy that the “rebalance” is officially over. The Obama administration had staked out the policy late in its first term, seeking to launch a sustained adjustment of U.S. foreign policy attention away from the Middle East and Europe toward Asia. Source

In light of the events over the past several weeks I wonder how the Asia Pivot fits with the latest Trump agenda regarding foreign policy? Trump, it seems, has resigned himself to doing his masters bidding. Whether it be bombing innocent people or backing away from pursuing the Clinton crime machine and their treasonous acts or something as small as replacing Janet Yellen. Trump is no match for the power plays happening at this time in history. Our world is changing and the U.S. will awaken, in the not-too-distant future, to find the power has shifted from West to East and the warmongering will no longer pay the bills. Personally, I believe the only thing that will pay the bills will be gold.

When you are asked to pay your bill/debt with a credit card other than the one you are currently offering, it can be rather embarrassing to find the alternative payment is just as empty as the original. When the U.S. is ask to, by another nation, to conduct an audit and bring real, physical gold to the table as payment, we will learn, very quickly, how much gold is being held by the Federal Reserve. When that day happens, will we see what DARPA has up it’s sleeve and just how many nuclear bombs can be set off in one day?


Subscribe to The Sleuth Journal Newsletter for Daily Articles!


The post Empty Gold Vaults and Fresh Out of Bombs appeared first on The Sleuth Journal.


Source: Alternative news journal

Share and Enjoy

  • Facebook
  • Twitter
  • Delicious
  • LinkedIn
  • StumbleUpon
  • Add to favorites
  • Email
  • RSS

Stanley Fischer, We Will Never Forget Who Created This Nightmare (VIDEO)

Stanley Fischer, We Will Never Forget Who Created This Nightmare (VIDEO) | bank-public-domain | Economy & Business Federal Reserve Bank Multimedia US News

The first thing you have to remember is anything and everything the Federal Reserve says or does is for the specific purpose of benefiting and protecting the Federal Reserve and it’s member banks, period. The Federal Reserve was designed as a way to transfer the wealth of the many to the few by way of theft using the Department of U.S. Treasury. Please see Mike Maloney’s most excellent and very easy to understand explanation of how this works – There is a total of 7 episodes. Episode 6 explains how the Federal Reserve works and how we are nothing more than an ATM for the upper 0.01%

One would think, based on Stanley Fischer’s comments below, the Federal Reserve was an innocent bystander in the ongoing economic and financial nightmare that we, the citizens of the U.S. and around the world, are forced to deal with every single day. It was the actions of the Federal Reserve and the member banks – the banks that own the Federal Reserve – that caused the whole situation we are dealing with. Mr. Fischer, we know what you did, we know how the Federal Reserve has swindled trillions of dollars of wealth from the American people and we will never forget that you played the biggest part.

When the day of reckoning comes you will be reminded, hopefully face-to-face, by one of the patriotic Americans that has dealt with your ongoing lies, deceit and theft beginning in 1913. We are not as stupid as you think. We remember that it was the printed money handed over to the banks, around the world, that spawned the, now, runaway inflation that steals a little more of our wealth every time we make a purchase or need a service.

Hey, Stanley Fischer, wasn’t it Richard Fischer out of the Dallas Federal Reserve that spoke of a “front loaded wealth effect” created by the Federal Reserve? Yes, as a matter of fact it was the other Fischer Fed head. Now you want to come out and say that if there are actual regulations it will be harmful to the economy? Are you kidding me? It is the lack of regulations, you know Glass-Stegall, that allowed your criminal enterprise to damn near collapse the entire global economy. You make me sick, you PoS.

  • Fischer issued strong caution against changes to the Dodd-Frank banking reforms implemented after the financial crisis.

  • The Fed vice chair also said he still believes the central bank is on track for three rate hikes this year.

“We seem to have forgotten that we had a financial crisis which was caused by behavior in the banking and other parts of the financial system and it did enormous damage to this economy,” Fischer told CNBC in a live interview. “Millions of people lost their jobs, millions of people lost their houses.”

****

“The strength of the financial system is absolutely essential to the ability of the economy to continue to grow at a reasonable rate, and taking actions which remove the changes that were made to strengthen the structure of the financial system is very dangerous,” he added.

Source

In other words, if the government begins regulating the banking crime syndicates it will severely cut into the Federal Reserves means of wealth transfer. Stanley Fischer sees that as being very dangerous to his personal wealth.


Subscribe to The Sleuth Journal Newsletter for Daily Articles!


The post Stanley Fischer, We Will Never Forget Who Created This Nightmare (VIDEO) appeared first on The Sleuth Journal.


Source: Alternative news journal

Share and Enjoy

  • Facebook
  • Twitter
  • Delicious
  • LinkedIn
  • StumbleUpon
  • Add to favorites
  • Email
  • RSS

Economic Demise Breeds Public Unrest (VIDEO)

Economic Demise Breeds Public Unrest (VIDEO) | economists-Feature | Economy & Business Multimedia Special Interests

The Government reported its “advance” estimate of first quarter 2017 GDP today. The data-monkeys at the Bureau of Economic Analysis (BEA) reported that the economy grew at just 0.7% annualized in Q1. This is down from the alleged 2.1% annualized growth rate in the fourth quarter of 2016. It was also 36% below the 1.1% forecast of the average Wall Street monkey economist.

Next to the monthly employment report, the GDP report is subjected to the highest degree of statistical manipulation in order to make the reported reality look better than reality itself. If the Government was willing to release a report showing a 67% decline in economic growth from Q4 2016 to Q1 2017, imagine how bad the real numbers would show the economy to be.

The report itself, like the employment report, serves no purpose other than as tool for political goal-seeking and propaganda. The consumer spending component of the report fell to a .23% annualized growth rate. It was the worst level of consumer spending since 2009. If the Government were to apply a realistic GDP deflator (price change index) to its numbers, rather than the 2% used to calculate the final number, consumer spending would have been negative.

Worse, the various Government agencies are reporting inconsistent numbers. The Census Bureau’s monthly retail sales report showed a .4% gain in retail sales for January followed by .3% and .2% declines in February and March, respectively. To be sure, retail sales do not encompass the entirety of the “consumer spending” category. But, with average real disposable income declining, it’s difficult to believe that consumers were spending money on anything other than necessities in Q1.

The problem with the phony economic reports is that eventually the public begins to see and feel the truth. Fake economic news does not create real economic activity or real jobs. The economic separation between the “haves” and “have nots” has never been wider, both in the size of each cohort and the degree of separation.

When someone who is working two menial part-time jobs to make ends meet and reads that 200k jobs were allegedly created in a given month, that person knows and feels the truth. That person also begins to get angry. In fact, the general level of anger across the U.S. population is rising at an alarming rate. When 2x part-time jobber is driving in a high-mileage vehicle in need of repairs next to a brand new Ferrari with “FLIPPER” on the license plate, it foments anger. When this occurs daily across the country, it foments civil unrest.

If the economy were producing real growth in employment and wealth, as purported by the Government, not many people would care which person or political party occupies the White House. In fact, the party in power would get credit. But the growing political discord among the population is a reflection of a middle and lower class that is rapidly transitioning to lower and poverty class – and they are getting pissed. The stock market bubble, which is another form of propaganda, is only serving to intensify the anger.

The Shadow of Truth discusses the idea that the increasing civil discord is seeded in a collapsing economy in today’s podcast, along with a brief conversation about developments in the precious metals market.

Sharing is caring!


Subscribe to The Sleuth Journal Newsletter for Daily Articles!


The post Economic Demise Breeds Public Unrest (VIDEO) appeared first on The Sleuth Journal.


Source: Alternative news journal

Share and Enjoy

  • Facebook
  • Twitter
  • Delicious
  • LinkedIn
  • StumbleUpon
  • Add to favorites
  • Email
  • RSS

A World In Change – Shanghai Cooperation Organization: Alasdair Macleod, Craig Hemke and Dave Kranzler (VIDEO)

A World In Change – Shanghai Cooperation Organization: Alasdair Macleod, Craig Hemke and Dave Kranzler (VIDEO) | china-gold | Economy & Business Multimedia Special Interests

We present a comprehensive review of the Shanghai Cooperation Organization, including the members, the economics, the resources involved and the people. We show how this global organization is going to impact every person, business and country world wide. The US Dollar hegemony is dying. The Eastern countries are preparing for what is coming next. We hope you will heed the warning and begin doing your on research and plan accordingly.

Everything is going to change and tomorrow will not look, nor operate, as it does today. Alasdair Macleod from GoldMoney.com and FinanceandEconomics.org begins by introducing who is currently involved and how they relate to one another economically. Craig Hemke from TFMetalsReport.com introduces us to the economics, currency swaps and the possibility of a gold back currency. Dave Kranzler from InvestmentResearchDynamics.com introduces us to some of the history and comprehensive look at the members list and explains how China may be “playing along” with the IMF regarding the SDR (Special Drawing Rights) fiat currency. If you need to have a task completed you usually need people involved. The SCO will encompass approximately 3 billion people. That is not a typo, 3 billion people. This represents approximately half the global population.

Twenty years ago most of these people were considered “poor” and from a “third world country”. Today, their wealth is growing and the countries in which they reside are becoming economic powerhouses. When the United States decided in the 1990’s that we no longer wanted to be bothered with manufacturing, we shipped all those good paying, prosperous jobs to these “third world countries” because they had lots of people willing to work for a lot less money. This is to say nothing of the overbearing regulations that spew from Washington DC and strangle American business. Want to open a new business? Well, you better be prepared to meet with the EPA, OSHA and Codes Administration before you begin pursuing your desire to provide for yourself, your family and your community. All of these “third world countries” are not strapped with regulations on top of regulations.

China and Russia have both opened their form of the SWIFT system. The SWIFT system is a currency clearing system that allows countries to conduct business with one another. Prior to January 2015 all currencies, the world over, were forced to use the US SWIFT. The US abused this privilege in 2012 when Iran was shut out and could not conduct business on a global scale. Their currency immediately experienced a 40% devaluation and Iran went into hyperinflation. Russia stepped in and began trading gold for oil. China quickly followed suit. Iran and Russia have been global enemies every since. What currency will we use to conduct business? Will it be a gold backed currency? Will the US Dollar be around forever? Will China, Russia and the other US creditor nations continue funding the US credit card? While some of these questions seem obvious, they are not as easily answered as you may think. The USDollar is dying. The Renminbi is rising in prominence and being used in trade all over the world. There are Renminbi/Yuan currency hubs in Vancouver, Los Angeles and The City of London, just to name some of the larger cities where one can easily conduct business, including everyday transactions, in Chinese Renminbi/Yuan. Times are changing and changing very rapidly. According to Voxeu.org the Renminbi (RMB) is rising quickly on the global stage:

Since the Chinese government announced the establishment of its pilot Shanghai free-trade zone (FTZ) in September 2013, the renminbi has gone from being a largely unusable currency to nudging its way into the top-10 most used around the world. However, for a country that dominates international trade flows and with a forecast GDP of 6.3% of 2015 – compared with global forecasts of 3.5% – the currency has not yet reached anything close to its full potential. “The currency is underutilised at an international level,” says Astrid Thorsen, head of business intelligence at Swift. But its modest use is not down to a lack of interest from the global markets. The results on the question around RMB usage recorded in Euromoney’s Trade Finance Survey presented some of the most conclusive figures in the poll. The frequently predicted rise of RMB use looks certain to stay on track, as 38% of respondents stated their belief that 5% of their total trade will be denominated in renminbi in the next 12 to 24 months. The expectation that the use of the RMB will rise is marked. Even more emphatic is that 70% of respondents believe up to 25% of their trade will be conducted in RMB in the next two years. Crucially, this is a trend that goes far beyond China’s near neighbours.

A World In Change – Shanghai Cooperation Organization: Alasdair Macleod, Craig Hemke and Dave Kranzler (VIDEO) | transaction-services-renminbi | Economy & Business Multimedia Special Interests

What about war? History has shown time and again when there is a major monetary change there is war. The current regime does not want to relinquish power and wealth. We are hopeful this will change with the current situation. Russia, believe it or not, is actually the wild card. The East is only concerned with doing business. The Chinese are traveling the world over to insure the Yuan/Renminbi is on a steady pace to replace the USDollar regardless of what happens. We hope you give this a listen, allow it digest and then listen again. Above all, we hope you are aware that tomorrow will not look like yesterday. Everything is changing. Are you ready for your world to function differently?

Sharing is caring!


Subscribe to The Sleuth Journal Newsletter for Daily Articles!


The post A World In Change – Shanghai Cooperation Organization: Alasdair Macleod, Craig Hemke and Dave Kranzler (VIDEO) appeared first on The Sleuth Journal.


Source: Alternative news journal

Share and Enjoy

  • Facebook
  • Twitter
  • Delicious
  • LinkedIn
  • StumbleUpon
  • Add to favorites
  • Email
  • RSS

Technological Innovation Will Make You Retire Earlier

Technological Innovation Will Make You Retire Earlier | technology-human-transhuman | Economy & Business Science & Technology Special Interests

(The Real Agenda News) The losers will be those who work to live, those who simply go to work every day to carry out tasks that do not satisfy them at all.

Three American entrepreneurs founded Marble two years ago. In the heat of cars driving alone, they saw an opportunity in short-distance logistics.

Based on robotics, artificial intelligence, GPS and endless new technologies they created a robot that, seen from the outside, looks like a simple ice-cream cart. But that is able to move around the city by itself.

“Our long-term goal is to reduce costs and ensure that it is useful in every city in the world,” one of Marble’s founders, Matthew Delaney, told AFP. It may be the end of urban couriers and delivery agents.

Messaging, as the final link in logistics, transport and distribution, was already featured in the seminal report of 2013 by two Oxford University professors, Carl Benedikt Frey and Michael Osborne, on the future of work and listed more than 700 occupations and their degree of susceptibility to computerization and automation, making the humans who perform them until now dispensable.

Carriers, clerks, librarians, officials … but also insurance agents, secretaries, watchmakers, bankers …

“As machines learn to do more things, they also make them better and better, much better than people, and at a lower cost, to think that there will be more employment of the type we know today as employment is simply absurd “, says the professor of IE Business School, Enrique Dans.

“If we restrict employment to what we know today as such, forget it: there will be much less. But what we have to think about is that we are going to a world where many people will do things that today we would not consider employment, but they will be,” he adds.

Last December, the White House, still chaired by Barack Obama, published a report on the impact of automation and artificial intelligence on the US economy.

Along with promises of economic growth and new job sites, it also noted that the jobs most threatened by the new wave of technologies have one thing in common: in general, they are the lowest paid and the least qualified.

Dans explains it this way:

“Losers will be the ones who work to live, those who simply go to work every day to perform tasks that do not satisfy them at all, but that they need to do to obtain money that is essential to them. These jobs, in their vast majority, will disappear and will be replaced by machines whenever there is an economic interest to make them more efficient and competitive.”

This destructive side of technology is the first thing people see. The REIsearch project, promoted by the Atomium – European Institute for Science, Media and Democracy, has just launched a large public survey calling on Europeans about the impact of the new generation of internet technologies on the different aspects of life, from employment to politics.

Although the survey has only been running for a few days, only 10% agree or strongly agree with the statement that the digitization of the economy will offer “meaningful employment for all, and will generate wages equivalent or higher than the current ones.”

However, more than half of the future’s employment is yet to be invented, according to various studies. And the machines will not be able to do many other jobs.

Professor Frey from Oxford explained that there will be at least three areas that will remain human.

“It will be creativity, the development of new ideas and artifacts, the most complex social interactions, where people negotiate, persuade or manage equipment, and the third has to do with the perception and manipulation of irregular objects.”

The wave of technological innovations is not only putting work backward, it is also altering businesses and business sectors that had adapted well to the first technological changes, those of the end of the last century.

The biggest impact is taking place at the platforms of the so-called collaborative economy like Uber, eBay or TaskRabbit. One of them is Airbnb, which allows individuals to offer rooms or houses for a few days.

Airbnb today has an offer of more than two million rooms in 34,000 cities in 190 countries. Neither the top 10 hotel chains in the world have an equal offer.

A study promoted by the Foundation for Innovation Cotec, Adigital, the Spanish association of the digital economy, the Circle of Entrepreneurs and the Foundation of Financial Studies, is being finalised and an ample report will be made public on this type of platforms and their impact on the economy and the sectors that can be most affected by the end of their intermediation.

Although their results will not be known for a few weeks, they believe they will allow an in-depth discussion, with data, of what needs to be regulated and to what extent for these new phenomena to take advantage of the whole society.

Otherwise, in case the balance of the impact of technology on humans is negative, a reaction may occur. “Technological creativity depends to a large extent on those political structures that allow us to progress.

“If the majority do not feel that they do not benefit from these structures, they will go against it in some way or another.” For the Oxford professor, this explains in part the rise of populism in Europe and the USA:

“If we look at the outcome of the US election, we see that the Republican candidate -Donald Trump- was supported by the places that have been the most susceptible to automation in recent years. People are worried about the future of those regions and their desire for change.”


Subscribe to The Sleuth Journal Newsletter for Daily Articles!


The post Technological Innovation Will Make You Retire Earlier appeared first on The Sleuth Journal.


Source: Alternative news journal

Share and Enjoy

  • Facebook
  • Twitter
  • Delicious
  • LinkedIn
  • StumbleUpon
  • Add to favorites
  • Email
  • RSS