‘Big Mac Index’ Shows US Dollar Strongest in 30 Years

Re-Blogged From Newsmax

The U.S. currency is at its strongest level in 30 years, according to the Economist newspaper’s January 2019 “Big Mac Index.”

The newspaper’s “lighthearted guide to exchange rates” measures the purchasing power of currencies against each other. The gauge also compares the prices of McDonald’s flagship hamburger, the Big Mac, in different countries with the actual exchange rate between the currencies to determine whether a currency is over- or undervalued.

For example, “a Big Mac costs 3.19 pounds in Britain and $5.58 in the United States. The implied exchange rate is 0.57 [pound per dollar]. The difference between this and the actual exchange rate, 0.78, which suggests the British pound is 27% undervalued,” the Economist said.

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Liquidating Civilization

By Keith Weiner – Re-Blogged From http://www.Gold-Eagle.com

Further to our ongoing theme of capital destruction, let’s look at a topic which is currently out of favor in the present market correction. Keynes called for pushing the interest rate down near to zero, as a way of killing the savers, whom be believed are functionless parasites. The interest rate has been falling since 1981.

It did not merely fall near to zero. Nor even to zero. It has gone beyond zero, into negativeland. This alone ought to wipe out the mainstream notions of how interest rates are set in our very model of a modern monetary system. You know, the rubbish about bond vigilantes, inflation expectations, real interest rates, risk, etc. Might as well add unicorns, dragons, and leprechauns!

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“Tech Wreck,” “Techlash,” “Techmageddon” – Whatever You Call It, Wall Street Is Terrified Of It

By John Rubino – Re-Blogged From Dollar Collapse

Back in the 1990s, critics of the dot-com bubble used to point out that the global economy depended on the US stock market and the US stock market depended on, like, ten Internet stocks with negative aggregate earnings. The resulting inverted financial pyramid was, the critics claimed, very easy to tip over.

They were right of course. But apparently not right enough to keep us from repeating the same mistake. From today’s Wall Street Journal:

Warning Sign: Tech Stocks Are Dominating Global Markets Like Never Before

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Consumers In Surprising Places Are Borrowing Like Crazy

By John Rubino – Re-Blogged From Dollar Collapse

The Money Bubble is inflating at different speeds in different places. But apparently no culture is immune:

Household Debt Sees Quiet Boom Across the Globe

(Wall Street Journal) – A decade after the global financial crisis, household debts are considered by many to be a problem of the past after having come down in the U.S., U.K. and many parts of the euro area.

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Comparing Homicide Rates to Gun Ownership

Bu Onan Coca – Re-Blogged From Freedom Outpost

If you keep an eye on the media these days, you may notice that whenever they talk about guns, they talk about “gun homicide” as well. As if these two figures are inextricably linked and tell the whole story of the gun debate.

It’s simply not so.

An interesting graph that appeared on Facebook reminded me of the lies the anti-gunners tell using cherry-picked crime stats.

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Will The FED Tell Every American To Buy Gold Before It Destroys The Dollar?

By Egon von Greyerz – Re-Blogged From http://www.Gold-Eagle.com

Western Central Banks have a real knack for timing the sale of their gold reserves. They are absolute experts when it comes to picking the bottom of the gold market. Central banks in the UK, Switzerland and Norway, to mention a few, timed their sales to perfection. The only problem is that they all sold at the absolute bottom between 1999 and 2004. That was of course the time to buy gold and not to sell. But the Finance ministers in charge of Western economies have no understanding of economics. They don’t even understand that their absolute destruction of paper money is always revealed by the gold price.

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US Economic Freedom Has Hit a Historic Low. What Happened?

By Anthony B Kim – Re-Blogged From Daily Signal

It’s already been eight years since the Great Recession, yet the U.S. economy has been just inching along, with its productivity flagging and millions being locked out of the labor market.

One critical underlying factor for this lack of economic dynamism has been the startling decline of America’s economic freedom, an unfortunate legacy of Barack Obama’s eight-year presidency.

The Heritage Foundation’s 2017 Index of Economic Freedom—an annual global study that compares countries’ entrepreneurial environments—highlights the urgent need for the U.S. to change course. For the ninth time since 2008, America has lost ground.

According to the 2017 index, the U.S. ranks 17th out of 180 rated economies, lagging behind other comparable advanced economies such as Switzerland (fourth), Australia (fifth), Canada (seventh), and the United Kingdom (12th).

The U.S. remains mired in the ranks of the “mostly free,” the second-tier economic freedom status into which it dropped in 2010.

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