Amazing that the entire article's most valuable insight and advice are the last two sentences: Decrease uncertainty by not dwelling on time-consuming worries that do not help you achieve your goals. Don’t be your own worst enemy.
Most people have no idea that the U.S. financial system is on the brink of utter disaster. If interest rates continue to rise rapidly, the U.S. economy is going to be facing an economic crisis far greater than the one that erupted back in 2008. At this point, the economic paradigm that the Federal Reserve has constructedonly works if interest rates remain super low. If they rise, everything falls apart. Much higher interest rates would mean crippling interest payments on the national debt, much higher borrowing costs for state and local governments, trillions of dollars of losses for bond investors, another devastating real estate crash and the possibility of a multi-trillion dollar derivatives meltdown. Everything depends on interest rates staying low. Unfortunately for the Fed, it only has a certain amount of control over long-term interest rates, and that control appears to be slipping. The yield on 10 year U.S. Treasuries has soared in recent weeks. So have mortgage rates. Fortunately, rates have leveled off for the moment, but if they resume their upward march we could be dealing with a nightmare scenario very, very quickly. ...
People are confused about the Fed, and I think it would be better if everybody had a clear understanding of what the Federal Reserve is and what it is not.First of all, the Federal government thinks of the Federal Reserve as a service bureau, whose function it is to print money that the government can spend. As long as the Federal Reserve performs that function--reliably printing, let's say, a trillion or more each year to top off the Federal budget--then Congress will be happy with the Federal Reserve (their rainmaker) and will follow its advice and try to keep it happy.
It should be emphasized here that the whole Keynesian smokescreen and sideshow has very little to do with the reality of the relationship here. The Federal Reserve's job is not just to lend Uncle Sam some money during a recession so as to provide temporary stimulus. The Fed is a milk cow for Uncle Sam. Its job is to give milk all the time.
So to summarize this first point, the Fed is a service bureau ...
Our generation is in the process of inheriting a world in unprecedented systemic crisis. Inequality, poverty, climate change, corporate control of our democracy—these are symptoms of interconnected economic, political and ecological system failures. The overarching trends are so grim that some have already thrown in the towel, dismissively labeling the current cadre of folks under forty “Generation Screwed.”
A new set of regulations that most people have never even heard of that was developed by an immensely powerful central banking organization that most people do not even know exists is going to have a dramatic effect on the global financial system over the next several years. The new set of regulations is known as "Basel III", and it was developed by the Bank for International Settlements. The Bank for International Settlements has been called "the central bank for central banks", and it is headquartered in Basel, Switzerland. 58 major central banks (including the Federal Reserve) belong to the Bank for International Settlements, and the decisions made in Basel often have more of an impact on the direction of the global economy than anything the president of the United States or the U.S. Congress are doing. All you have to do is to look back at the last financial crisis to see an example of this. Basel II and Basel 2.5 played a major role in precipitating the subprime mortgage meltdown. Now a new set of regulations known as "Basel III" are being rolled out. The implementation of these new regulations is beginning this year, and they will be completely phased in by 2019. These new regulations dramatically increase capital requirements and significantly restrict the use of leverage. Those certainly sound like good goals, the problem is that the entire global financial system is based on credit at this point, and these new regulations are going to substantially reduce the flow of credit. The only way that the giant debt bubble that we are all living in can continue to persist is if it continues to expand. By restricting the flow of credit, these new regulations threaten to burst the debt bubble and bring down the entire global economy. ...
You might think that we’re shipping out so many Cokes and Big Macs that we’re remaking the world in our image, but it turns out we might not be very good at reaching the developing world with our products.
The story’s been told countless times: Globalization by America’s corporations has created the world in its image, no matter if you’re in London or Luanda. Travel anywhere abroad and you’ll find the familiar comforts of home: like fast food, Coca-Cola and rap music.
But it turns out that American companies are not really that great at globalization, particularly in the emerging economies where most of the world’s economic growth is currently happening. That’s the argument in a forthcoming paper by Tufts economist Bhaskar Chakravorti, which was summarized by Quartz’s Tim Fernholz earlier this week.
One of capitalism's central attributes is opportunism. Capitalism is not loyal to any person, nation, corporation or ideology. It doesn't care about the planet or believe in justice, equality, fairness, liberty, human rights, democracy, world peace or even economic growth and the "free market." Its overriding obsession is maximizing the return on invested capital. Capitalism will pose as a loyal friend of other beliefs and values, or betray them in an instant, if it advances the drive for profit ... that's why it's called the bottom line! Growth is important because it tends to improve the bottom line. And ultimately, capitalism may not last without it. But those who profit from this economic system are not about to throw up their hands and walk off the stage of history just because boom has turned to bust. Crisis, conflict and collapse can be extremely profitable for the opportunists who know where and when to invest.
David Stockman, author of “The Great Deformation: The Corruption of Capitalism in America”, accuses the Federal Reserve of corrupting savings and the stock market by continually injecting liquidity, or as he calls it “monetary cocaine”, into the...
Would you be angry if you had to pay a big Wall Street bank a fee before you could get the money that you worked so hard to earn? Unfortunately, that is exactly the situation that millions of American workers find themselves in today. An increasing number of U.S. companies are paying their workers using payroll cards that are issued by large financial institutions. Wal-Mart, Home Depot, Walgreens and Taco Bell are just some of the well known employers that are doing this. Today, there are 4.6 million active payroll cards in the United States, and some of the largest banks in the country are issuing them. The list includes JPMorgan Chase, Bank of America, Wells Fargo and Citigroup. The big problem with these cards is that there is often a fee for just about everything that you do with them. Do you want to use an ATM machine? You must pay a fee. Do you want to check your balance? You must pay a fee. Do you want a paper statement? You must pay a fee. Did you lose your card? You must pay a big fee. Has your card been inactive for a while? You must pay a huge fee. The big Wall Street banks are systematically extracting enormous fees from the working poor, and someone needs to do something to stop this. ...
"The problem with central banking has been mainly the old problem of power -- it corrupts.
"Central bankers are supposed to be more capable of restraint than ordinary politicians, and maybe some are, but they are not always or even often capable of the necessary restraint. One market intervention encourages another and another and increases the political pressure to keep intervening to benefit special interests rather than the general interest -- to benefit especially the financial interests, the banking and investment banking industries. These interventions, subsidies to special interests, increasingly are needed to prevent the previous imbalances from imploding.
"And so we have come to an era of daily market interventions by central banks -- so much so that the main purpose of central banking now is to prevent ordinary markets from happening at all.
"Central banking controls the value of all labor, services, and real goods, and yet it is conducted almost entirely in secret -- because, in choosing winners and losers in the economy, advancing infinite amounts of money to some participants in the markets but not to others, administering the ultimate patronage, central banking cannot survive scrutiny.
"Yet the secrecy of central banking now is taken for granted even in nominally democratic countries."
Some would argue that the most recent global financial crisis was caused by a failure of capitalism, lack of regulation and greed. However, the truth of the matter is that Central Banks and global banking cartels are the real villains and are directly responsible for the demise of the western world.
Economic Times Wall St. gets a lift from Bernanke's flexible Fed view Reuters Hiring at wallstreet banks drop by 9%. I mean why would they hire as long as they are being fed by the Fed with cheap money.
Bernanke Supports Continuing Stimulus Amid Debate over QE Proactive Investors UK The Fed chairman spoke just three hours after the central bank released minutes of the June 18-19 gathering showing that about half of the 19 participants in the...
Sharing your scoops to your social media accounts is a must to distribute your curated content. Not only will it drive traffic and leads through your content, but it will help show your expertise with your followers.
How to integrate my topics' content to my website?
Integrating your curated content to your website or blog will allow you to increase your website visitors’ engagement, boost SEO and acquire new visitors. By redirecting your social media traffic to your website, Scoop.it will also help you generate more qualified traffic and leads from your curation work.
Distributing your curated content through a newsletter is a great way to nurture and engage your email subscribers will developing your traffic and visibility.
Creating engaging newsletters with your curated content is really easy.