Category: DEBT
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China’s Debt Problem
The debt problem is so severe that it is significantly greater than the 23 trillion total debt held by the country’s national government, and there are concerns that the debt burden could reach 360% of China’s GDP. The debt problem is compounded by deflation, which is causing goods and services to become cheaper in China,…
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Evergrande Disaster
China’s property collapse, particularly with Evergrande, can be attributed to the country’s one-child policy, declining birth rate, and faulty population data. Evergrande’s growth strategy of borrowing money for land acquisition and selling homes before they were built resulted in massive debt for the company. Evergrande has over $320 billion in debt, making it the most…
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Dalio
Ray Dalio, in his talk at the All-In Summit, focuses on the rise and fall of nations and the changing world order. He highlights the importance of studying history to understand the patterns and drivers of societal shifts. Dalio identifies three significant factors that are shaping the current world order: debt and money creation, internal…
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The World’s Worst Person to Trade With…
Some industry executives are calling for a fresh crackdown on Former MF Global CEO Jon Corzine and a ban on his ability to trade futures. They cite his past actions and the fallout from the MF Global incident, where he oversaw the disappearance of $1 billion in customer funds. “The regulator announced a settlement with…
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The End of the Dollar….
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This is why the world has gone crazy….
This video explains opinions of the effects of monetary policies in Japan, China, and Hong Kong. It explains the role of quantitative easing (QE) in Japan and its effectiveness, as well as the impact of the European sovereign crisis on the Chinese economy. The importance of capital influx and trade deficits in funding industrialization is…
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Warren Buffett Doesn’t Care and Neither Should You…
As noted yesterday….the ratings agencies are full of it. https://www.cnbc.com/2023/08/03/warren-buffett-says-hes-not-worried-about-fitchs-us-downgrade.html
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Econ 101?
Senator Kennedy questions Federal Reserve Chairman Jerome Powell about inflation and capital requirements for banks. **Powell explains that we had very little inflation for 25 years** and that inflation depends on whether tax increases or spending cuts are part of a congressional budget plan. If there were no spending cuts, he believes there would be…
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Balaji Panics….
Balaji Srinivasan discusses the recent financial crisis and compares it to the one that happened in 2008. He explains that over the course of 2021, many people were saying that inflation was going to happen, but the Federal Reserve continued to sell hundreds of billions of dollars in bonds during this period. However, in December…
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JUNE FOMC
https://assets.realclear.com/files/2023/06/2201_fomc.pdf June FOMC Meeting: Saying They Will If They Have To, But Hoping They Won’t Have To? › The FOMC made no change to the Fed funds rate target range, leaving the mid-point of the target range at 5.125 percent › The updated dot plot implies a terminal Fed funds rate target range mid-point of…