Advancing Time: Demystifying Macroeconomic Events Is Challenging

Advancing Time: Demystifying Macroeconomic Events Is Challenging: When we take a deep dive into finance, it is like going down a rabbit hole. It is an Alice in Wonderland place where things go here and ther...

Demystifying Macroeconomic Events Is Challenging

When we take a deep dive into finance, it is like going down a rabbit hole. It is an Alice in Wonderland place where things go here and there and then twist back on themselves. This tends to all work like the edge of a cliff, or slipping into an abyss with risks increasing as we move towards the edge which in this case is a debt trap. Since everything moves along until it doesn't the risk of such an event is often discounted until it occurs.

The WTFinance videos or channel is the passion project of Anthony Fatseas. I interpret this to mean he does not pursue it to make money but because he enjoys pursuing economic and financial truth. In a recent episode of the WTFinance podcast,  Anthony had the pleasure of welcoming back Alasdair Macleod. Alasdair the Head of Research for Goldmoney.  

The reason this merits mentioning is because Mr. Macleod over many years has formed a lot of well-based views. Most sovereign fiat currencies are in a debt trap and politicians are showing little interest in reducing spending. One of his insights focuses on the idea that GDP increases based on government spending create the illusion things are better than they really are. 

       SPECULATION FUELS BUBBLES AND DEBT CREATES CRASHES 

Macleod to his credit points out that debt in the public center is the problem, Growing debt in the private sector directed to increasing production is not. Macleod is Head of Research for GoldMoney and advocates for sound money through demystifying finance and economics. For most of his career in the finance industry, he has centered much of  his efforts on demystifying macroeconomic events for his investing clients.

Mr. Macleod is convinced that the government's unsound monetary policies are a destructive weapon used against the common man and we must protect ourselves from the consequences. While Macleod has a lot of solid well-based views, I contend he may overestimate the UK and underestimate America. The UK is much farther down the path to decline. 

China is selling dollars because it needs to bring in wealth to fill in the holes being exposed as its economy continues to implode. As for the Chinese people's savings, when China's economy implodes much of its citizens' wealth is being sucked into a black hole never to be seen again. An example is, real estate investments gone bad. These investments yield no return and leave only the debt which often goes bad. In short, China has squandered much of the wealth that has flowed from America during the last two decades.

As always, in the comments section of the video, we find a few hidden gems. Such as: "This song was written and sung in the 1970s and here we are 50 years later." We tend to forget that eventually can be a very long time. This comment stands as a monument and reminder that some declines are long in the making. Another comment centered on, and used an interesting term I had not stumbled across before, it goes something like, Financial fuckery will be the death of us. This has occurred across the world and the financialization of everything is destroying the system. 

                        "We Must Always Remember It's A Relitve Game"

Yes, banking should be boring lending to real businesses that make stuff that results in true economic growth, but it has evolved into something else. True productivity has become masked by financial gimmickry, and the economy has become a fake facade, leaving rational economic watchers to question, "where's the beef?"

Across the world, a game is being played to take the wealth generated by the working classes and transfer it to governments, this is evident in soaring national deficits and debt. This is so they can continue playing the game of appropriating it to their minions. In this case, I'm using the term "minion" in reference to, or to mean those who obey or do their bidding and follow their orders. As such, governments become the "boss" with the people becoming the servants.

Deciphering the economy is not an easy task, it is cluttered with scads of variables. This is evident in the fact economists and financial pendants never reach the same conclusion as to where we are headed. A system based on currency debasement, the wealth effect, money passively invested into retirement funds, and financial engineering through stock buybacks all add to the growth of risk. Yes, eventually, the "Fed put" based on pouring the fuel of liquidity on the fire will prove problematic.

 

(Republishing this article is permitted with reference to Bruce Wilds/AdvancingTime Blog)

Advancing Time: Tariffs Are A Way Of Putting A Finger On The Scale

Advancing Time: Tariffs Are A Way Of Putting A Finger On The Scale: Tariffs are a way of putting a finger on the scale, metaphorically speaking. While we are hearing the negatives about how they raise prices ...

Tariffs Are A Way Of Putting A Finger On The Scale

Tariffs are a way of putting a finger on the scale, metaphorically speaking. While we are hearing the negatives about how they raise prices for consumers, they also have the positive effect of making products made in our country more competitive in our local market.

It is wise to remember that companies in many other countries are not burdened by paying workers healthcare costs or in many cases, any type of benefits. This gives them a tremendous advantage even before factoring in wages that are often a fraction of those paid in more developed societies. Also, if you add in subsides they are getting from their government it is game over

This all flows back to the importance of where and what consumers buy matters a great deal when it comes to a nation's economic health. Considering that free trade is not necessarily fair trade, makes using a finger to balance the scale even more necessary. This becomes very clear when looking at China's plan to export millions of low-cost EVs into countries. With our domestic manufacturers unable to compete, without tariffs, they would go out of business.

How can a company in America that is forced to pay high wages, provide expensive medical coverage, and pay for benefits such as paid holidays and vacations even think about competing with those that don't? To make matters worse, countries such as China, that under stand the value of providing workers with jobs, tip the scale even further. They do this by giving companies subsidies in many forms, some less visible than others. 

While people involved in giving investment advice such as  Rick Rule take the stand tariffs are simply a tax around 18 and a half minutes into this video, that view is a bit simplified. What Rule fails to take into account is that fair and free trade are not the same thing. Cheap goods entering a country may help lower costs to consumers but they have a hidden cost.

The claim that tariffs are a tax has some merit. Still, if you agree that there is no such thing as a free lunch, then you should be open to the idea that entitlements need to be paid for in some way or form.  

In short, we need productive jobs, this means jobs that build things and create wealth, not simply keeping people occupied. Without people in America working and paying taxes, outsourcing the production of the goods we use to other countries is not sustainable. Trade deficits bleed a country of its wealth and result in debt.

When a county, like China, subsidies production which lowers cost, they crush the fairness we expect when it comes to trade. Plugging the holes in a trade system that is not as transparent as we tend to think is not easy. An example of this is how China exploits the rules by using Mexico as a way to get goods into America by sidestepping tariffs. 

Tariffs are a way to protect domestic producers and halt jobs from being pilfered by exploiting nations like China. History has many examples of empires being created by those who understand the power of selling far more than you buy. Fortunately for America, China has squandered its opportunity to accumulating great wealth through stupidity and corruption. The evidence of China's missteps are visible in its ghost cities and first-class infrastructure in the middle of nowhere.   

Some economic watchers have warned that increasing the number and amount of tariffs could escalate into a global trade war with massive ramifications. This occurred during the Great Depression, I think the danger of this is overblown. Most rational people understand the best result of trade is to create a win-win situation. Trade imbalances generally fail to accomplish this.

 

(Republishing this article is permitted with reference to Bruce Wilds/AdvancingTime Blog)

Advancing Time: Fox Grilled Vice President Kamala Harris On Issues

Advancing Time: Fox Grilled Vice President Kamala Harris On Issues:   Vice President Kamala Harris was grilled by Fox News chief political anchor Bret Baier on 'Special Report. In just over a 25-minutes, ...

Fox Grilled Vice President Kamala Harris On Issues

 

Vice President Kamala Harris was grilled by Fox News chief political anchor Bret Baier on 'Special Report. In just over a 25-minutes, they discussed immigration, the economy, responding to U.S. adversaries, and more. Prior to the event, there was a great deal of fanfare about Harris's courage to enter the lion's den and face what was predicted to be a tough interview that might well decide the Presidential election. 

Immediately after the interview, the left-tilting media rushed to paint a picture of a triumphant Harris not only surviving the ordeal but dispelling all doubt as to her ability to field tough questions. Also, it seems, that claims Baier was overbearing and rudely interrupted Harris were also put out there to create sympathy for Harris. 

Surprisingly, this important interview was a bit difficult to find on the internet, but when located and watched in its entirety, viewers may come away with a different opinion than what many newsgroups alleged. Many of the almost 20,000 comments below the interview video focused on her not answering the questions, blaming everything on Trump, and telling Baier, "come on, be honest, you know what I mean." Below are a few of those comments:

*She spent 27 minutes blaming a man who hasn't been in office almost 4 for yrs for everything. 

*Always Trump's fault yet she's been VP for 4 years. Deflect, deflect. I LOVED how he pushed her but she still didn't answer his questions. 

*I am not a Trump supporter. With that being said, it is beyond infuriating watching her refuse to take responsibility for ANYTHING.

*The woman who never earned a single vote in a primary is concerned about "democracy." You just can't make this up.

*When your main platform is to criticize the opposition, it simply means you have no platform.   

There is no reason to bore you with more, here is the link to the interview, decide for yourself.  https://www.youtube.com/watch?v=80DaR2CVNNk

 

(Republishing this article is permitted with reference to Bruce Wilds/AdvancingTime Blog)

Advancing Time: MISINFORMATION, Using Doublespeak As Censorship

Advancing Time: MISINFORMATION, Using Doublespeak As Censorship:   The word of the day is misinformation. Those using it are often trying to censor speech and opinions, which they call "dangerous,&quo...