Financial Markets

The 1929 Stock Market Crash led to the largest economic recession in modern world history.

What determines currency exchange rates? While “experts” present a number of theories such as trade balance, the most important factor is the purchasing power of the currencies in question.

Much of the world‘s financial system is undergirded by the false claim that US government bonds are “risk-free.” The truth is that all is not well when it comes to banking and finance.

President-Elect Trump has been threatening tariffs against BRICS countries unless they abandon their plans to abandon the US dollar. While Trump may come off as being "tough" in his negotiations, he cannot bluster his way to a stronger dollar, thanks to reckless monetary policies.

The Federal Reserve‘s reckless policies have created havoc in the housing markets, with the government and monetary authorities helping to create the apartment bubble, which is in the process of bursting. As usual, bad policies bring bad people into the markets.

Thanks to the Fed's balance sheet and the Fed's policy on reverse repurchase agreements, it's hard to tell whether the Fed is being hawkish or dovish. 

As people from Generation X move toward retirement, they are starting to understand that Social Security really is in crisis and many public pension plans are underfunded. Furthermore, they find that inflation is eating through their retirement savings. This won‘t end well.

The Federal Reserve has welcomed the New Year by more of the same. As government spending continues to explode, the Fed enables it with its usual financial tricks.

GDP is a ridiculous way to gauge the strength of the economy. While prices on Wall Street remain robust, trouble lurks on Main Street.

Thorsten Polleit (TP): On November 5, 2024, Donald J. Trump was elected the new US president with a landslide victory.