Did you now skyscrapers can predict economic crashes?
And the skyscraper index is flashing red.
As economist Mark Thronton explained in his book, The Skyscraper Curse: And How Austrian Economists Predicted Every Major Economic Crisis of the Last Century, the so-called Skyscraper Index has a remarkably accurate record signaling economic downturns dating back to the late 19th century.
On several podcast episodes, Peter Schiff has talked about the warning signs we’re seeing on Wall Street through the struggles of so-called unicorn companies.
Unicorns are privately held companies valued over $1 billion. Companies like Lyft, Chewie, Uber and WeWork were the darlings of WallStreet. Their IPOs were much-anticipated by investors. They are also the poster children for easy-money induced market mania, and their IPOs were crucial for maintaining the bubble.
In particular, the demise of WeWork’s much-anticipated IPO provides a good object lesson revealing the problems of the Federal Reserve’s easy-money policy.
The stock market keeps hitting new highs and employment reports continue to look good. President Trump and central bankers at the Fed like to point to this and tell us that the economy is doing good. But as Peter Schiff explained in his latest podcast, the markets aren’t making highs because the economy is good. It’s making highs because of the Federal Reserve’s easy-money policies.
Despite the fact that the economic data is deteriorating. Despite the fact that corporate earnings are falling, it is the Fed that is pushing this market to new highs by cutting interest rates, by indicating to the markets that they don’t have to worry about rate hikes no matter what happens with inflation. The Fed’s not going to raise interest rates. Oh, and by the way, they’re doing quantitative easing, and they’re going to print as much money as they have to keep the markets going up and to keep the economy propped up.”
In a recent article published at the Mises Wire, Ryan McMaken adds another layer of analysis. He says that despite the Fed’s positive rhetoric, it’s actually worried about liquidity and growth. In fact, McMaken believes it is operating from a position of fear.
President Trump recently took aim at the Federal Reserve once again, accusing the central bank of “holding back” America’s economy. The president was responding to a FOX Business Varney & Co. segment about negative interest rates in Europe and Japan.
Trump said the Fed should follow the lead of European and Japanese central banks into the world of negative rates.
According to Elizabeth Warren, we have a problem. And like every good central planner, she believes she can fix it.
In fact, Warren has made, “I have a plan for that,” a campaign slogan.
These people never learn. They try to micromanage the economy, create all kinds of unseen consequences, blame “capitalism,” and repeat the process.
Last week, Keynesian extraordinaire Paul Krugman called for more fiscal stimulus in the form of a “government investment program.” Mike Maharrey poked fun of him in his Fun on Friday column. But while it might be amusing to crack jokes at the expense of Keynsians and their obsession with both fiscal and monetary stimulus, the policies they promote are actually quite pernicious.
In fact, the do the exact opposite of what they’re supposed to.
The following article was written by South Carolina state Rep. Stewart Jones. The views expressed do not necessarily reflect those of Peter Schiff or SchiffGold.
The Federal Reserve just lowered interest rates for the second time this year and announced more quantitative easing by injecting even more US dollars into the market. The days of cheap money will soon come to an end, and I fear that many people won’t realize what’s happening until the rug is pulled out from under them.
Central bankers suffer from what some might call fatal conceit. They actually believe that if they tinker enough, they can come up with a policy that will work “just right.” Maybe we should call it the Goldilocks Syndrome.
But the truth is they don’t know.
By Alex Lemaire
When you think of a gold nugget, you probably imagine a chunk of the yellow metal that you can hold in the palm of your hand, but you would probably strain to even pick up some of the largest nuggets ever unearthed.
Here are the top five largest nuggets still in existence. There are others that were significantly larger, but they have been melted down.
We’ve written extensively about a push toward de-dollarization by countries like Russia and China and their desire to undermine the ability of the US to weaponize the dollar as a foreign policy tool. The global gold rush on the part of central banks is part of this movement.
And it’s not just countries like Russia and China. As fund manager Ronald-Peter Stöferle wrote in an article for the Mises Wire, Europe as also joined the de-dollarization party.