There’s been a lot of data points that have come out since the last video blog.
Many people are now talking about the “US recovery” which is finally here. Of course, this is all a bunch of fiction.
We are creating jobs, but not the ones the economy needs. These jobs are making us poorer.
We also just had the biggest trade deficit in years. We still aren’t producing goods to trade.
When the bubble bursts, these jobs will disappear. We don’t need more bubble jobs, we need real jobs.
The current account deficit is now at a 3 year high.
As interest rates rise, the account deficit is going to skyrocket. The new jobs we are creating are making bigger losses for us, not profits.
Earlier in the week, we got the results of the “Stress Tests”. The Federal Reserve released numbers that shows how banks would fare a drop in stock or real estate prices. But the next crisis won’t look like that. It will be a completely different type of crisis. Why didn’t they test a crisis in the bond market? Because they would most certainly fail.
Higher interest rates are very probable. They already made a huge move just in the last week.
All of the stress test made assumptions of near zero interest rates.
The Fed knows the economy isn’t recovering. Otherwise they wouldn’t have promised to target low interest rates through 2014.
According to the government, there is no inflation. Perhaps that is true if you don’t eat or use fuel.
The Fed has a blind eye to the real world. They just look at these phony interest numbers.
We are now discussing tapping into our oil reserves. But those are for emergencies like an embargo or a war. But now Obama wants to tap into it in order to boost his popularity.
The gold mining stocks are now at their lows. There is a tremendous amount of skepticism about the gold bull market. The gold dip is already large enough to begin buying.
There will soon be a rocketship underneath gold prices sending them higher.