The “Productivity Of Debt” Myth

By Steve Saville – Re-Blogged From http://www.Silver-Phoenix500.com

Page 4 in Hoisington Investment Management’s latest Quarterly Review and Outlook contains a discussion about the falling productivity of debt problem. According to Hoisington and many other analysts, the problem is encapsulated by the falling trend in the amount of GDP generated by each additional dollar of debt, or, looking from a different angle, by the rising trend in the amount of additional debt required to generate an additional unit of GDP. However, there are some serious flaws in the “Productivity of Debt” concept.

There are three big problems with the whole “it takes X$ of debt to generate Y$ of GDP” concept, the first being that GDP is not a good indicator of the economy’s size or progress.

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98,750,067,000,000 Reasons To Buy Gold In 2018

By Mark O’Byrne – Re-Blogged From http://www.Gold-Eagle.com

World equity index market capitalization touching distance of $100 trillion dollars at beginning of December
– Key indicators across global financial markets are looking decidedly bubble-like
– Little indication that we are through the worst of the financial crisis that started in 2007

– Apparent lack of concern regarding the over-heated and overpriced markets
– Since financial crisis gold has climbed nearly 124% in EUR, 190% in GBP and 98% in USD
– Goldcore’s latest podcast covers gold’s role in 2018 in the land of bubbles

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The Cotton Candy Market

By Keith Weiner – Re-Blogged From http://www.Silver-Phoenix500.com

As I have discussed previously…if you borrow cash, then it’s not income. This is why no one in his right mind borrows to buy consumer goods. Those who try cannot sustain it for long.

What if someone else borrows? Suppose someone else—let’s call her Jordyn—buys your house from you, at a higher price than you originally paid for it. You can spend some of the gain.

Of course she is just paying you with her borrowed proceeds, but most people think this is totally different than if you borrow to spend yourself. They feel comfortable spending part of the profit from the sale of a house or other asset.

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