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Posts published in “Economy”

Bitcoin 2021: Patrick Byrne On The End of Fiat

Patrick Byrne spoke at Bitcoin Magazine’s Bitcoin Conference 2021 on the End of Fiat stage in what he termed a “rare, rare appearance.”  After the…

Should you invest in Bitcoin right now?

Should you invest in bitcoin right now?  When bitcoin was launched initially, it was meant to be a platform that allows for anonymous payments. The…

US Food Banks Are Overwhelmed With Demand

From Anchorage, Alaska to Miami, Florida, millions of Americans worry where from their next meal will come. Since the coronavirus outbreak began 10 months ago,…

How COVID-19 Changed The World Forever

The response to the COVID-19 pandemic will bring about serious change. Factory and service jobs, for instance, will be assumed by robots. There will be…

Biden’s “Build Back Better” Plan Is The Great Reset

Joe Biden’s “build back better” plan is far different than Donald Trump’s “America First” platform. The so-called ‘Great Lockdown’ has devastated the global economy.  Biden accused Trump of “economic policies that rewarded wealth over work and corporations over working families.” He also claimed that black and Latinos, native Americans, immigrants and women were never “ welcomed as full participants in the economy.” These groups came out in droves for Trump during the election.

IMF: Governments Should Use “Equity-Like” Stimulus

International Monetary Fund chief economist Gita Gopinath has advised governments to implement “equity-like” support instead of loans as firms increasingly become insolvent due to lower…

IMF Lowers Global Growth Forecast

The International Monetary Fund lowered its global growth forecast for this year and next in the wake of “The Great Lockdown.” The IMF forecasts a…

The Second Great Depression Started In 2020

As economies begin to close again, with politicians citing increases in COVID-19 cases, retail sales have been on the increase. For instance, retail sales rose…

IMF: The SDR’s Time Has Come

75 years after the creation of the Bretton Woods conference, The IMF is saying now is the hour of the Special Drawing Right (SDR), which…

Is A Dollar Crash Inevitable?

Stephen Roach, a leading authority on Asia, is worried of a quickly shifting global order and the U.S. budget deficit, suggesting it might spark a…

NBER: US Economy Now In Recession

The National Bureau of Economic Research Monday said that the COVID-19 crisis launched the US economy into a recession, thus ending the longest economic expansion…

Manhattan Real Estate Contracts Plunge

Number of contracts for Manhattan apartments were down nearly 84% from May 2020 to May 2019. While there were a total of 160 contracts signed…

Consumer, Corporate Debt Undermines Coronavirus Recovery

Before the coronavirus pandemic lockdown, total household debt was more than $1.6 trillion higher than during the previous peak in 2008, increasing to $155 billion in Q1 to total $14.3 trillion, according to data released by the New York Fed.

$3 Trillion Economic Stimulus Bill Likely To Be Rejected By Senate

The House passed a $3 trillion Democratic economic stimulus bill on Friday that was largely rejected by Republicans and President Donald Trump. Passed 208-199, the bill would provide insolvent states and local governments with more than $1 trillion, and most Americans with another $1,200 check.

A Quarter of Americans Have Sought Unemployment

Americans seeking unemployment benefits increased by nearly three million last week, bringing total jobless claims to 36 million––nearly a quarter of the American workforce of about 156 million. “Today’s unemployment claims continue their ascent on a cumulative weekly basis; not since the Great Depression has the US job market been in such a sorry state,” said Richard Flynn, UK managing director at Charles Schwab.

US Grocery Prices Increase Most Since 1974

The Labor Department reported Tuesday that prices US consumers paid for groceries increased 2.6% in April, marking the largest one-month increase since February 1974.

The Federal Reserve’s Response To Coronavirus

“The coronavirus outbreak has harmed communities and disrupted economic activity in many countries, including the United States,” the Federal Reserve said as it cut interest rates to essentially zero and embarked upon a $700 billion quantitative easing program to shelter the economy from the effects of the virus.

New Orleans Businesses Required To Keep Logs Of Customers Upon Reopening

New Orleans business owners will be required to maintain records of their customers as the city eases lockdown restrictions, according to Mayor LaToya Cantrell said Tuesday. The city’s goal is to track down residents who may have come into contact with people found to be infected with COVID-19. City officials instructed businesses to create their own method of tracking employees with further details forthcoming.

“The Great Lockdown” Could Lead To a Second Great Depression

White House senior adviser Kevin Hassett said last week that the U.S. faces a Second Great-Depression due to the COVID-19 pandemic. Major business leaders say there is no way we will experience a substantial economic rebound before the fall.

Central Banks May Cease Targeting Inflation Rates

The Federal Reserve may stop targeting inflation, the measure of price increases for goods and services over time, as the coronavirus response threatens economic depression…

Global Central Banks Meet To Discuss More QE

Global central banks have already set interest rates at record lows and earmarked trillions of dollars on asset purchases as an economic response to the coronavirus pandemic. 

Cities and States Need a Bailout, And Your Pension Is At Risk

Instead of bailing out states at the federal level, Senate Majority Leader Mitch McConnell said he prefers states struggling with high public employee pension costs to declare bankruptcy.

“I would certainly be in favor of allowing states to use the bankruptcy route,” he said Wednesday. “It’s saved some cities, and there’s no good reason for it not to be available.”

Public Debt Skyrockets Worldwide

Public debt is skyrocketing as central banks expand their balance sheets to record levels. 

“The amounts being purchased are enormous, and it just tells you how much support is needed when the economy is closed down,” said Torsten Slok, Deutsche Bank’s chief economist. “Just have a look at how long it took to unwind from the financial crisis of 2008 and 2009. Now we are adding at a pace that is multiples faster.”

Global Fund Managers See “Extreme Investor Pessimism”

Bank of America’s survey of global fund managers showed “extreme investor pessimism” regarding cash held to the bleak outlook they hold for the global economy.

Paul Singer’s Elliott Management said global stocks might lose half or more of their value from the high reached in February, predicting a 1930s-esque Great Depression. In a letter to clients, the New York-based hedge fund wrote that the sharp market decline seen between late February and late March “provided a heavy bookend to a dozen years of basically nonstop positive returns in global stocks, bonds, and real estate.”