Analysis Topic: Economic Trends Analysis
The analysis published under this topic are as follows.
Saturday, April 18, 2020
SILVER AND COVID-19, CAPITALISM’S BLACK SWAN / Economics / Coronavirus Depression
By: Darryl_R_Schoon
Regarding today’s markets and gold and silver, on April 15th, Sandeep Jaitly wrote:
COURSE OF THE EXCHANGE
♦♦♦♦♦♦♦
Metals update: backwardation or not?
Over the past few weeks and months, there have been seismic changes in the way people are thinking of markets – and the concept of markets – generally.
As evidenced by movements in the Federal Reserve’s sale and repurchase facility from last September, which has resulted in the TARP balance sheet reaching a record of $6,000bn and at a record rate of over $630bn/month since the year began, there are ‘issues’ with all markets – in as much as markets are markets with ‘monetary’ fiat.
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Saturday, April 18, 2020
If Stock Investors Crunched Economic Data Like This Their Expectations Would Change Dramatically / Economics / Coronavirus Depression
By: Chris_Vermeulen
New economic data being released as earnings start to hit may alter how investors perceive the recent price recovery in the US and global markets. Many institutional analysts began suggesting “the bottom is in” and recently began to issue stronger forward guidance. The new data suggests we are seeing an economic contraction that, in some cases, maybe 2x or 3x the contraction that took place in the 2008-09 Credit Crisis.
The US stock markets reacted to this news and earnings data by collapsing over -2% in early trading. Gold and Silver are both lower as we write this article which would indicate weakness across the broader market. We continue to believe a deeper price low will set up in the near future with the US and global stock prices attempting to retest recent price lows – possibly falling below these levels. We believe the collateral damage to consumer engagement, manufacturing, transportation, retail/leisure, real estate and other sectors of the economy is just now starting to become evident. What the economy may look like near Mid-May is anyone’s guess.
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Thursday, April 16, 2020
Fed Caught Off Guard by Coronavirus Economic Shock. And Gold? / Economics / Coronavirus Depression
By: Arkadiusz_Sieron
Another week passed, and the number of jobless claims increased further. That was clearly not expected by the Fed, as the recent minutes shows. What does it all mean for the gold market?
Unemployment Claims Rose Further
Initial jobless claims have become one the most important data about the US economy these days. So, let’s take a look at the chart below, which offers the updated graph revealing the number of new claims for unemployment benefits.
Wednesday, April 15, 2020
All of the Coronavirus Depression Economic Recovery Models Will Be Wrong Too / Economics / Coronavirus Depression
By: MoneyMetals
“All of the projection models were wrong. All of them,” admitted New York Governor Andrew Cuomo in an interview last week with MSNBC.
Governor Cuomo had been issuing frantic demands for tens of thousands of ventilators... that turned out not to be needed as the rate of new hospitalizations for COVID-19 infections in New York plunged with surprising speed.
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Wednesday, April 15, 2020
Saudi Arabia Releases Ambitious Plan To Diversify Economy / Economics / Saudi Arabia
By: OilPrice_Com
On Monday, Saudi Arabia released a blueprint for the future, a plan for the Kingdom that could alter the course of its history. The “Vision for the Kingdom of Saudi Arabia” could radically transform Saudi Aramco, the Saudi economy, and the country’s social structure.
The plan has been pioneered by the 30-year-old Deputy Crown Prince Mohammed bin Salman, the second in line to the King, who has emerged as one of the most powerful figures in the Saudi government. Just a week ago his influence was on display; while it is difficult to know exactly what went on behind the scenes, all signs point to the Deputy Crown Prince overruling the long-standing and respected oil minister Ali al-Naimi to kill off the OPEC deal in Doha.
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Monday, April 13, 2020
Global Trade: The War of the Throne / Economics / Global Economy
By: Stephen_Merrill
Now scribers, hear the tale of the mightiest battle of humankind. It is the war over the throne of global trade. The ongoing duel between the Rightful King and the Irresistible Force.With the Joker in the mix now, too.
Five Millenia of Global Trade
What tamed the tribalistic human into a more civilized state long ago was the logic and obvious benefits of trade and travel. From its very beginning, the global means-of -exchange facilitating trade was ultimately gold and its monetary stepchild silver. Even when Western Europeans traded with China, India and many others, the primacy of gold and silver was easily adopted by both sides based on their separate tradition.
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Sunday, April 12, 2020
Will Fed and Trump Save the US Economy And Sink Gold? / Economics / Coronavirus Depression
By: Arkadiusz_Sieron
The Trump administration will seek an additional $250 billion to support small businesses hurt by the widespread economic shutdown and slowdown. Will the government and the Fed save the US economy? What would be the consequences for the gold market?US Epidemiological Update
As of April 7, more than 360,000 people were confirmed to be infected by the coronavirus in the US, and more than 10,000 out of them died because of the COVID-19, as the chart below shows. Actually, the US is entering the worst period of the epidemic, as hospitals are struggling to maintain and expand capacity to care for infected patients.
Saturday, April 11, 2020
The Invisible Hand of Capitalism / Economics / Economic Theory
By: Jared_Dillian
The Fed is more or less doing modern monentary theory (MMT) as we speak.
But rather than giving printed dollars to the Treasury, it’s using the bond market as a conduit. Trillions in bond issuance, financed by trillions of dollars of printed money.
Don’t get me started on the pathetic levels of assistance we are offering American citizens in favor of financially irresponsible corporations.
What we are practicing here is not capitalism. In order for capitalism to work, we must allow corporations to fail. The bankruptcy process works just fine. Sure, shareholders and creditors would experience losses, and this would teach them to be more careful next time.
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Thursday, April 09, 2020
Redefining Political Economy, Globalization & Business Models Consequent on Corona Virus Pandemics / Economics / Economic Theory
By: Dr_R_M_Mathew
Corona Virus Pandemics, spread across the world, necessitates the redefining of Economics & Political Economy, Globalization, Business, Enterprises, Business Models, Education and Technology associated with Business, especially Information Technology. All our concepts of the Economy, Development, Business Enterprises, Globalization, Education, Healthcare, Science and Technology have become meaningless along with the wisdom of the great masters, including Nobel Laureates overnight. UN, World Bank, IMF and WEF have been struggling hard to find a justification for their very identity, existence and relevance./p>
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Monday, April 06, 2020
Coronavirus Crisis Exposes Consequences of Fed Policy: Americans Have No Savings / Economics / Coronavirus Depression
By: MoneyMetals
Two weeks ago, during a March 17 address to the nation in response to the COVID-19 outbreak, President Donald Trump asked that Americans work from home, postpone unnecessary travel, and limit social gatherings to no more than 10 people.
And last week, on March 27, Trump signed a stimulus package of over $2 trillion dollars to provide relief to an economy on the precipice of collapse.
The aid package includes handouts and loans to individuals, small businesses, and other distressed industries.
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Saturday, April 04, 2020
Concerned That Asia Could Blow A Hole In Future Economic Recovery / Economics / Coronavirus Depression
By: Chris_Vermeulen
Thinking somewhat far off into the future, our researchers believe China/Asia could become the next Black Hole in the global economy. China recently released its March PMI number which came in at 52.0 – showing moderate expansion in Chinese manufacturing. The February Chinese PMI level was 35.7. We strongly believe China wants to show some strength in their perceived economic recovery and that these PMI numbers are somewhat “manufactured for effect”.
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Saturday, April 04, 2020
Bracing for Europe’s Coronavirus Contractionand Debt Crisis / Economics / Pandemic
By: Dan_Steinbock
Since inadequate preparedness prevailed in Europe until recently, the consequent pandemic will cast a prolonged, dark shadow over the regionwide economy – starting with the contraction, followed by the debt crisis.
Around the world, the early economic defense against the economic impact of the novel coronavirus has been by the major central banks to cut down the rates, inject liquidity and re-start major asset purchases.
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Thursday, April 02, 2020
Could the US Become Another Weimar Republic? / Economics / HyperInflation
By: The_Gold_Report
Rudi Fronk and Jim Anthony, cofounders of Seabridge Gold, discuss the potential ramifications of current U.S. fiscal and monetary policy.
The U.S. monetary and fiscal authorities are shoveling trillions of dollars into the U.S. economy to prevent a collapse of the economy and the financial system. Will this money be repaid or otherwise withdrawn from the system? If not, what consequences can we anticipate? We know under TARP the loans and preference share funding provided to various companies in 2008/9 was largely repaid. We expect most large companies will repay the loans they receive this time also, but the terms will be very easy and they will be made easier if needed. Money for state governments, hospitals and other emergency health-related expenditures is not coming back. Most of the money to smaller companies will likely be in the form of grants if they keep employees on salary. Money directly to individuals will not be repaid.
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Saturday, March 28, 2020
The Great Coronavirus Depression - Things Are Going to Change. Here’s What We Should Do / Economics / Coronavirus Depression
By: John_Mauldin
In the aftermath of the coronavirus, we face the strong possibility of a deflationary depression. We cannot allow that to happen.
This is going to mean significant amounts of government debt, and much of it will have to be monetized by the Federal Reserve. I fully get that means risking an inflationary episode as a result.
In order to get inflation, there has to be a big rise in demand along with a jump in the money supply.
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Saturday, March 28, 2020
The Last Minsky Financial Snowflake Has Fallen – What Now? / Economics / Coronavirus Depression
By: Raymond_Matison
For more than a decade financial markets had been in denial of economic reality – as long as the Federal Reserve continued supporting bubbles. Numerous money managers and financial pundits cautioned investors in vain, as their warnings did not result in a market meltdown – until now.
An economist of the last century, Hyman Minsky, had likened the economy and stock market to a mountainside which is slowly accumulating snow. That snow appears stable until one last snowflake falls and it starts an avalanche. In the last month we did not just get one financial snowflake, but a huge snowstorm in the form of the corona virus – and it, with the already overextended markets caused this real financial avalanche.
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Friday, March 27, 2020
What you need to know about the impact of inflation / Economics / Inflation
By: Submissions
When it comes to investment risks, one that investors seem to overlook is the risk that their money may not be able to grow enough to keep up with inflation. It can play a significant role in the protection of an investment and therefore, should be taken into account when evaluating the potential success of an investment.
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Thursday, March 26, 2020
We Are Facing a Depression, Not a Recession / Economics / Economic Depression
By: John_Mauldin
We are already seeing large increases in request for unemployment insurance. It is going to explode. Let’s look at this data from Homebase.
A stunning 39% drop in the number of hourly employees going to work in the U.S. just in the 10 days ended Friday, March 20.
Is there anybody who thinks that’s not going to increase?
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Friday, March 20, 2020
The Coronavirus Contraction - Only Cooperation Can Defeat Impending Global Crisis / Economics / Coronavirus Depression
By: Dan_Steinbock
Despite China’s success in containment, the novel coronavirus is exploding outside China, due to complacency and inadequate preparedness. The impending contraction will compound human risks and economic damage.Although the epicenter of the outbreak is now Europe, only a few major economies have launched effective battles against the virus. Hence, the rising levels of imported cases in the borders of China and the rest of Asia.
Since complacency and inadequate preparedness prevailed outside China until recently, the consequent global pandemic casts a dark shadow over the global economy. It, too, shall pass, but only with effective global cooperation.
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Friday, March 20, 2020
Why a Second Depression is Possible but Not Likely / Economics / Economic Depression
By: Submissions
Almost everyone who deals in stocks and shares possesses at least a cursory knowledge of the 1929 stock market crash and subsequent Great Depression that crippled the US and sent economic shock waves across the entire globe. With markets tanking on fears of an extraordinarily serious coronavirus event, some are asking if the late 1920s and early 30s could repeat themselves in short order.
The short answer is this: while a second depression is entirely possible, it is not very likely. There are several systemic differences in the financial systems of 1929 and 2020. Moreover, the Great Depression cannot be blamed entirely on the stark market crash. The crash was but a symptom of a much bigger problem. It was also just one factor that went into creating what was arguably the largest financial crisis in modern history.
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Thursday, March 19, 2020
Coronavirus Most Likely GDP Economic Outcome for Q1 and Q2 2020 / Economics / Global Economy
By: Chris_Vermeulen
In this section of this multi-part research article related to the potential economic destruction of the Covid-19 virus event across the global markets (Part I, Part II).
We’re going to peer into data related to the GDP and other factors of the US economy. Remember, the US economy is the largest single economy and consumption component in the world. As we suggested in our earlier research, the US and China (combined) account for about 30% of the total global GDP each year. The top 12+ GDP nations on the planet account for just under 80% of the total annual GDP for the globe. What happens if economic activity and global GDP collapse for the next 24+ months because of the Covid-19 virus?
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