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PAUL TUDOR JONES: The next recession will be ‘frightening’
Published June 19, 2018 "I don’t think monetary policy is sustainable, and clearly fiscal policy - Are you kidding me?!” said legendary investor, Paul Tudor Jones in an interview with Goldman Sachs’ CEO on Monday Jones said assets are overvalued and the next recession will be “really frightening.” “Just imagine the next recession comes. Oh my God! It’s going to be interesting,” Jones said. Monetary and fiscal policy is unsustainable and the next recession will be "really frig
Social Security must reduce benefits in 2034 if reforms aren't made
Updated 2215 GMT (0615 HKT) June 5, 2018 New York (CNN) In 16 years, Social Security will have to cut benefits by 21% if lawmakers do nothing to cure the program's long-term funding shortfall. That's what the Social Security and Medicare trustees projected in their 2018 annual report released Tuesday. The trustees estimate that by 2034 the combined trust funds for Social Security — which help fund the old age and disability programs — will run dry. At that point Social Secu
Don't Be a Sucker
The two charts below reveal what is going on in the boardrooms of corporate America and on Wall Street, where those in the know are doing what they do best – hurting average American families. The Trump tax cuts are taking full effect. Corporations will pay $60 billion less in taxes this year. It appears they are taking all $60 billion in savings, borrowing another $80 billion from Wall Street, and buying back their own stock at near all-time high prices. If you thought the n
Crypto Collapse Accelerates As Bitcoin Miners Turn Cashflow Negative
Another day, another leg lower in cryptocurrencies as FUD spreads, this time on the back of headlines exposing market manipulation during last year's meltup and collapsing margins for miners as prices tumble below breakevens. It's been one heck of a week for cryptos... After the Coinrail hack prompted scaredy-cat South Koreans to dump their crypto, Bitcoin and Ethereum both broke critical technical support levels (BTC $7,000 and 2018 lows; ETH 50DMA & $600 figure). Bitcoin lo
On Donald Trump's "Madness" & A New Gold Standard
Way back in 1995, when Mexico was in the throes of another financial crisis, I figured out the problem of the existing world's monetary system, based on the paper dollar as the fundamental currency of the world. In my ignorance, I did not know that a man named Triffin had already pointed out that problem, which became known as "Triffin's Dilemma". The problem is really very simple: If the dollar - such as it is - is going to be the basis of the world's monetary system, and th
Is The Federal Reserve 'Public Enemy Number One'?
When currency was backed by gold, a central bank’s main function was to maintain the value of the issued currency in terms of gold. For example, if a central bank created too much money against the gold reserves in the banking system, an increasing number of people would begin to exchange their currency for gold. To combat this, a central bank would be forced to raise interest rates and decrease the money supply. The higher interest rates would incentivize people to exchan
World War III Will Be An Economic War
There is a mass delusion in the mainstream created I think in large part by too much exposure to movie fantasy and TV fiction. It is an immediate assumption; one that I believe is far more dangerous than many people give it credit for. The assumption is that the next great war, should it occur, will inevitably be a nuclear one, and the doom surrounding it will end everything as we know it. Many people even get excited at the idea of World War III and the notion that it will
America Loses When The Trade War Becomes A Currency War
There has been a longstanding narrative in economic circles that no matter what crisis occurs the U.S. dollar is essentially invincible. I have never been one to buy into this assumption. Reason 1: Because I remember distinctly just before the derivatives and credit crisis in 2007/2008 the majority of mainstream economists were so certain that U.S. housing and debt markets were invincible, and they were terribly wrong. Whenever the mainstream financial media are confident of
Here's Why All Pension Funds Are Doomed, Doomed, Doomed
There are limits on what the Fed can do when this bubble bursts, as it inevitably will, as surely as night follows day. It's no secret that virtually every pension fund is dead man walking, doomed by central banks' imposition of low yields on safe investments, i.e. Zero Interest Rate Policy (ZIRP). Given that both The Economist and The Wall Street Journal have covered the impossibility of pension funds achieving their expected returns, this reality cannot be a surprise to any
