America’s Elderly Are Twice as Likely to Work Now Than in 1985

By Bloomberg – Re-Blogged From Newsmax

Just as single-income families began to vanish in the last century, many of America’s elderly are now forgoing retirement for the same reason: They don’t have enough money.

Rickety social safety nets, inadequate retirement savings plans and sky high health-care costs are all conspiring to make the concept of leaving the workforce something to be more feared than desired.

For the first time in 57 years, the participation rate in the labor force of retirement-age workers has cracked the 20 percent mark, according to a new report from money manager United Income.

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Will The Fed Cut Its Interest Rate Forecast

By Arkadiusz Sieroń – Re-Blogged From Gold Eagle

Some important pieces of the US economic reports, including the latest nonfarm payrolls, have disappointed recently. May indicators (including the leading ones) have hit a soft patch it seems. Will that push the Fed to downgrade its dot-plot or fine-tune the monetary policy mix anyhow? Can gold jump in reaction to the Wednesday’s FOMC policy meeting?

February Payrolls Disappoint

U.S. nonfarm payrolls plunged in February, falling way short of expectations. The economy added just 20,000 jobs last month, following a rise of 311,000 in January (after an upward revision) and significantly below 172,000 forecasted by the economists. The number was the smallest increase since September 2017, as one can see in the chart below. On an annual basis, the pace of job creation increased slightly last month to 1.8 percent.

Chart 1: Monthly changes in employment gains (red bars, in thousands of persons) from February 2014 to February 2019

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More Evidence That The Bears Have It Dead Right

By David Haggith – Re-Blogged From The Great Recession Blog

In my last article, “The Bears Have it Right: Economy went Polar Opposite of Bullish Predictions,” I laid out my first prediction for 2019 — a recession by summer. I don’t want the following revelations and facts that I have since come across to get lost in comments I recently posted to that article, so I’m bringing them all together here.

How bad was 2018?

The Wall Street Journal just said it was “one of Buffett’s worst years ever.

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A Wave Of Retail Stores Close

By Mac Slavo – Re-Blogged From Freedom Outpost

Another economic red flag has appeared and its the closure of retail stores.  According to a new report detailing the precarious situation of the current economy, there is “no light at the end of the tunnel” as the closure of brick and mortar stores will continue.

Coresight Research released an outlook of 2019 store closures Wednesday, saying, there’s “no light at the end of the tunnel,” according to several reports, including one from Yahoo News.  According to the global market research firm’s report, a mere six weeks into 2019, United States retailers have announced 2,187 closings of physical stores.  That’s up 23 percent compared to last year. Those closings include 749 Gymboree stores251 Shopko store,  and 94 Charlotte Russe locations.

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Why Monetary Easing Will Fail

By Alasdair Macleod – Re-Blogged From Gold Eagle

The major economies have slowed suddenly in the last two or three months, prompting a change of tack in the monetary policies of central banks. The same old tired, failing inflationist responses are being lined up, despite the evidence that monetary easing has never stopped a credit crisis developing. This article demonstrates why monetary policy is doomed by citing three reasons. There is the empirical evidence of money and credit continuing to grow regardless of interest rate changes, the evidence of Gibson’s paradox, and widespread ignorance in macroeconomic circles of the role of time preference.

The current state of play

The Fed’s rowing back on monetary tightening has rescued the world economy from the next credit crisis, or at least that’s the bullish message being churned out by brokers’ analysts and the media hacks that feed off them. It brings to mind Dr Johnson’s cynical observation about an acquaintance’s second marriage being the triumph of hope over experience.

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Modern Monetary Theory: A Cargo Cult

By Keith Weiner – Re-Blogged From Gold Eagle

Newly elected Representative Alexandria Ocasio-Cortez recently said that Modern Monetary Theory (MMT) absolutely needed to be “a larger part of our conversation.” Her comment shines a spotlight on MMT. So what is it? According to Wikipedia, it is:

“a macroeconomic theory that describes the currency as a public monopoly and unemployment as the evidence that a currency monopolist is restricting the supply of the financial assets needed to pay taxes and satisfy savings desires.”

It is uncontroversial to say that the Federal Reserve has a monopoly on the dollar. So let’s look at the second proposition. Unemployment, MMT holds, is evidence that the supply of dollars is restricted.

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Dem Lawmakers Push for $15 Minimum Wage Will Have Disastrous Consequences

By Rachel Greszler – Re-Blogged From Blabber Buzz

House Democrats are looking to double the minimum wage, with little eye to the consequences.

Led by Virginia Democrat Bobby Scott, House Democrats introduced the Raise the Wage Act, which would more than double the federal minimum wage from $7.25 to $15 per hour by the year 2024.

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