America flirts with a fate like Japan’s. An excerpt:
The stalling of the US recovery raises big, scary questions. After a recession, this economy usually gets people back to work quickly. Not this time. Progress is so slow, the issue is not so much when America will return to full employment but what ‘full employment’ will mean by the time it does.
Send in the Magicians. An excerpt:
With the aforementioned end of quantitative easing, it’s tough to see where any thrust is going to come from. As Northern Trust’s redoubtable Paul Kasriel and his very able subaltern, Asha Bangalore, observe in a recent commentary, “The Federal Reserve is responsible for all of the combined Fed and commercial-bank credit created since the launching of the second round of quantitative easing at the beginning of November 2010.” And they add that “unless commercial banks miraculously crank up credit creation, combined Fed and bank credit will dry up.”
You can’t trade successfully off this stuff, but maybe it makes a little sense to be aware of current economic chaos…in case of riots!