We are well into the third quarter of 2018. In our perpetual fast-forward world, analysts are already looking toward Q4. What will the last quarter of the year bring?
It’s virtually impossible to predict the short-term. Who knows what kind of political event, natural disaster or emerging trend will drive the markets over the next few months?
Of course, we can’t predict the future at all. We’re not fortune tellers or Old Testament prophets, but as Dan Kurz notes in his latest post at DK Analytics, it is a bit easier to project what will happen to the economy in the long run because we can clearly see the big-picture dynamics and fundamentals underlying it. As he put it, he’s less sure where America is headed in Q4 than ‘down the road’ in general. The whole thing (political, financial, economic) could fall apart at any time.”
One of the biggest enduring economic myths is the notion that the minimum wage laws only help workers and have no real negative effects. The fallacy inherent in this line of thinking becomes immediately clear if we simply propose a $1,000 per hour minimum wage. After all, if $15 is good, $1,000 would be fantastic, right?
Of course, nobody would pay somebody $1,000 per hour to perform a low-skill task. It’s obviously unaffordable. A $15 per hour minimum is just as unaffordable.
Are US Treasuries a good investment right now?
Not if you consider the rising inflation rate. In fact, in his most recent podcast, Peter Schiff called US Treasuries a “lousy deal.”
The SchiffGold Friday Gold Wrap podcast combines a succinct summary of the week’s precious metals news coupled with thoughtful analysis. You can subscribe to the podcast on iTunes.
The cost of living continues to ratchet up in the United States.
You don’t need me to tell you this. You probably feel the squeeze in your own wallet. As Peter Schiff pointed out in his most recent podcast, the average wage rate has gone up 2.7% in the last year. Meanwhile, the Consumer Price Index (CPI) has increased by 2.9% during the same period. The CPI almost certainly understates the cost of living, but even if you take that number at face value, Americans are losing ground.
Most people accept inflation as “part of life.” But why? Why do prices steadily increase? As Nick Giambruno put it in an article published by the International Man, “This is all a predictable consequence of the US abandoning sound money.”
As we approach the 10-year anniversary of the 2008 financial crisis, some things don’t seem a whole lot different. Everybody is optimistic, and as Peter Schiff noted in his most recent podcast, ignoring all of the warning signs.
We’re seeing a lot of warning signs people should be worried about, but again they’re dismissing them, much the way they did 10 years ago You know, we’re getting close to the 10-year anniversary of the 2008 financial crisis. Remember, the whole thing started in August of 2008. Here we are August 2018, 10 years later. I think we’re heading for an even bigger crisis and the same people are even more clueless.”
The SchiffGold Friday Gold Wrap podcast combines a succinct summary of the week’s precious metals news coupled with thoughtful analysis. You can subscribe to the podcast on iTunes.
I was on vacation last week, so there wasn’t any Fun on Friday. But I am back, and I have some really fantastic news for you – especially if you live in Venezuela. And even if you don’t reside in that South American hell-hole, you’ll want to keep reading because the ramifications here are huugggee!
Venezuela President Nicolas Maduro fixed the country’s hyperinflation problem.
Last month, we reported that the global yield curve inverted, signaling the possibility of a looming recession. While narrowing to levels not seen since right before the 2008 financial crisis, the yield curve has not inverted in the US. In his most recent podcast, Peter Schiff said he doesn’t think it’s going to happen. He said we may even see a steepening yield curve in the coming months. But this is not because there’s not going to be a recession.
Gold got off to a roaring start in 2018, with the price rising more than 4% during the first quarter. But the yellow metal finished June down the same amount and has continued to fall during July. Despite the weakness in gold over the last couple of months, the World Gold Council says several factors provide some optimism for the rest of the year. In its mid-year outlook report, the WGC pinpointed three primary macro trends that will likely boost gold in the coming months
