These Surprising Events Are Now Unfolding Across The Globe
KingWorldNews.com
December 17, 2016
After a wild trading week, these surprising events are now unfolding across the globe.
Stephen Leeb: “For Fed watchers, December 14 was a day of note, marking only the second time since the Great Recession the central bank raised interest rates, albeit still keeping them below 1 percent. Even more important, it was the first time Fed Chair Janet Yellen assessed the economy as strong and resilient, enough so as to suggest three more rate rises in 2017. Brave words…
1973 & 1980, U.S. Begins To Move Into Recessions
For a while the economy now shows strength, it faces a potentially toxic combination of challenges posed by the concurrence of a strong dollar, rising commodity prices, and rising interest rates. The only other two times in the past 50 years we’ve seen this combo in the context of an economy operating at full capacity was in late 1973 and the start of 1980 – the starts of recessions of epic proportions.
Ironically, in praising the economy’s resilience, Yellen may actually have accelerated the trends that could undermine the strength she referred to. Specifically, her remarks boosted investors’ confidence in the dollar, which strengthened sharply after she spoke. In the context of rising commodities, a stronger dollar isn’t something to applaud. Rather, it’s likely to hasten a new monetary system in which the dollar plays second fiddle, pushed aside by a monetary system revolving around a basket of currencies backed by gold.
The Rest…HERE
