Headlines this week show that once again, the world faces major
problems. Two headlines in particular that are most disturbing are:
"Deutsche Bank Profit Plunges 98% And The Worst Is Yet To Come," and
"Ford Plunges After Warning, We Don’t See Growth, Warns US Auto Industry Has Plateaued."
War drums are beating louder with warnings continually coming for Russia and China against the United States. The Russians and Chinese have announced a joint naval exercise in the disputed waters of the South China Sea. War tensions are rising and not receding.
The world economy remains in recession and is dragging the U.S. lower
despite the safe-haven aspects of the U.S. Demand is simply higher than supply but
commodities may have bottomed.
The Middle East remains a powder-keg. Turkey is headed to becoming
the next Islamic state.
Negative interest rates do not seem to create growth based upon
Japan's and Europe's experiences to date ... the law of
unintended consequences continues to befuddle Keynesian economists.
Keynesian economists control the world’s central banks and are responsible for creating booms and busts
since the 1920s. Each cycle has accentuated the wave of economic and
financial conditions that eventually will shake the world’s economic order to its foundations
after a Minsky moment.
To read the full article