Greatest Demographic Shift In History

By Marin Katusa – Re-Blogged From Silver Phoenix

The economy depended on the spending habits of baby boomers the last three decades.

The success and failure of many companies depended on the spending habits of those same baby boomers.

It was all about the baby boomers.

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Items Hit Hardest By Tariffs

By Mac Slavo – Re-Blogged From Freedom Outpost

The Trump administration’s insistence on a trade war will affect three items the most. Americans will be footing the bill for president Donald Trump’s trade war and tariffs, and vacuums, tires, and computer parts will be the items hit the hardest.

By now, hopefully, Americans have put two and two together and figured out that it isn’t the Chinese government that will pay for Trump’s tariffs, but the Chinese consumer. Much like the American government will not pay for China’s tariffs, it will be the American consumer. Those costs are passed on directly to the public in the form of higher cost of goods. And if you’re looking for a new vacuum or tires, or maybe you’d like to upgrade your computer, expect much higher prices immediately.

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The Hidden Cost of Zero Interest Rate Policies

By Laurence B Siegel & Thomas S Coleman – Re-Blogged From http://www.advisorperspectives.com

Should the Fed raise interest rates? Some believe that ultra-low interest rates are good for investors because they drive up the prices of stocks and real estate, fattening household balance sheets. Others counter that zero rates are an insidious tax, transferring wealth from borrowers to lenders, distorting incentives and misallocating capital for individuals and government and making the American investor poorer over time.

Where you stand on the Fed raising rates is likely to depend on which of these two positions you support.

We think the latter. Zero interest rates – which translate to negative real interest rates after inflation – are a massive transfer of wealth from investors to governments and other borrowers around the world. We’ll show that the scale of the transfer is nearly $1 trillion per year in the U.S. alone and will argue that the zero-interest-rate policy lowers expected returns on stocks and real estate as well.

Low interest rates hurt more than just investors. Everyone suffers because low rates distort consumption and investment decisions, potentially causing economic growth to be slower than it otherwise would be. Initially, in 2008-2009, low interest rates were an element or consequence of a policy of liquidity injection needed to avoid a collapse of the banking system and serious depression. Since then, however, they have become a tool of stimulative macro policy with limited success.

They are disastrous as an ongoing strategy.

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Lower Oil Prices

cropped-bob-shapiro.jpg   By Bob Shapiro

Oil prices have been falling recently. As with so many things, this creates winners and losers. Consumers of oil & oil products, consumers of oil substitutes, and consumers of goods produced using oil all benefit. The steeper the drop (30% off the most recent high) the greater these consumers benefit.

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