Why Lower Gas Prices Are NOT �Bullish Indicators�
I don�t think the data is bullish at all.Lower gas prices put more money in consumers� pockets.
But there�s an alternative to spending� Which is saving or reducing debt � which is the same thing.
I don�t consider these bullish indicators. They tell me an economy is running out of steam.
An economy is nothing more than two things: How many people are working and how productive are they?
Labor force participation is going down � which means fewer people are working. And productivity is also going down. Real wages are stagnant. 50 million people are on food stamps. 7 million people have part-time jobs who wish they had full-time jobs.
These data points are not bullish indicators.
We�re in a global depression.
There�s a slow down in Japan, China, Europe and the U.S. � the whole world is in a global depression.
There�s enough fights to go around, but in a fight between the ECB (European Central Bank) and Germany, Germany wins.
The ECB is only doing $2.5 billion worth of asset buying, while the FED has been doing almost $1 trillion a year. So the ECB is going through the motions but they�re not doing anything like QE. They�re not buying soveirgn debt. They�re buying some asset-backed securities, but there aren�t even enough of those to have much of an impact.
The ECB�s Mario Draghi is the best Central Banker in the world. He understands that Central Banks are essentially impotent.
When you�re impotent you have to talk a good game � so Draghi says little and does less.
The U.S. FED is the opposite. They don�t understand how impotent they.
China is the biggest credit bubble in the world.
The U.S. has created a bubble in housing and stocks with easy money, but there�s no bigger bubble in the world than China. They have a greater capacity to keep it going because their investors have fewer alternatives.
But there�s an alternative to spending� Which is saving or reducing debt � which is the same thing.
I don�t consider these bullish indicators. They tell me an economy is running out of steam.
An economy is nothing more than two things: How many people are working and how productive are they?
Labor force participation is going down � which means fewer people are working. And productivity is also going down. Real wages are stagnant. 50 million people are on food stamps. 7 million people have part-time jobs who wish they had full-time jobs.
These data points are not bullish indicators.
We�re in a global depression.
There�s a slow down in Japan, China, Europe and the U.S. � the whole world is in a global depression.
There�s enough fights to go around, but in a fight between the ECB (European Central Bank) and Germany, Germany wins.
The ECB is only doing $2.5 billion worth of asset buying, while the FED has been doing almost $1 trillion a year. So the ECB is going through the motions but they�re not doing anything like QE. They�re not buying soveirgn debt. They�re buying some asset-backed securities, but there aren�t even enough of those to have much of an impact.
The ECB�s Mario Draghi is the best Central Banker in the world. He understands that Central Banks are essentially impotent.
When you�re impotent you have to talk a good game � so Draghi says little and does less.
The U.S. FED is the opposite. They don�t understand how impotent they.
China is the biggest credit bubble in the world.
The U.S. has created a bubble in housing and stocks with easy money, but there�s no bigger bubble in the world than China. They have a greater capacity to keep it going because their investors have fewer alternatives.
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