I think that
we're going back up and making new highs
on interest rates which of course is
going to be problematic for every aspect
of the economy that is in debt including
you know the consumers who are taking on
more debt to continue to spend because
they're not earning that money.
Jun 4, 2018
Jun 1, 2018
Forex: The Consensus Is Extremely Bullish On The US Dollar
The consensus is
extremely bullish now on the US dollar. it was quite bearish a few months ago
and now all of a sudden everybody is
bullish everybody is looking for the
dollar to go up it's probably almost as
strong the bullishness on the dollar and
bearish this on the euro is probably
almost as extreme as it was at the
beginning of last year and of course
that ushered in the worst the biggest
decline in 14-year
the dollar.
May 29, 2018
The National Debt Disaster
The 21 trillion dollar
national debt which of course is now
closer to 21.2 trillion and
rising rapidly - the problem there is not
just the enormity of the debt but the
cost of financing it.
One of the
things that candidate Trump promised was
to take advantage of these ultra-low
long-term interest rates by locking them
in and moving the debt more towards
long-term rates. Well, he actually did the
opposite as President. He's actually
shortened the maturity even shorter. We're relying even more heavily now on
short-term financing than ever before.
But as interest rates are rising the
cost of servicing this debt is exploding
and that is one of the principal drivers
of the deficits now being over
a trillion dollars a year is the extra
cost of paying the interest on the money
that we've already borrowed. Not the
money we're borrowing now to fund the
current deficit but the money we have to
constantly borrow
to fund the 21 trillion of debt that we
already have.
So this is not a
disaster for the future this is a
disaster that we're gonna be dealing
with in the here and now.
May 25, 2018
The Highest The Fed Gets Is About 2.50%
If you look at what the Federal Reserve is saying, they're also talking about the fact that we're a lot closer to a neutral rate of interest than they might have felt in the past and that there's really not that many rate hikes left.
I mean maybe the markets are looking for two or three interest rate hikes this year but I think what people are now starting to think is that that may be it. I mean after this year the Federal Reserve is done hiking and so maybe the highest the Federal Reserve gets is about two and a half percent and then they're done hiking.
May 22, 2018
Stock Market: Celebrating The Cease Fire In The Trade War
Peter Schiff discusses the markets on this 30 minute podcast.
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