Precious metals guru David Morgan returns to address the great threat to the global financial/monetary system from derivative risk.
He sees the world at an unprecedented moment in history where the interconnected nature of the global economy makes all players vulnerable to the mind-boggling volume of outstanding derivatives, which makes the sum of all world equity + debt look tiny in comparison (if you haven't seen it yet, look at this visual from The Money Project).
Geologist Arthur Berman explains why today's low oil prices are not here to stay, something investors and consumers alike should be very aware of. The crazy-low prices we're currently experiencing are due to an oversupply created by geopolitics and (historic) easy credit, not by sustainable economics.
And when the worm turns, we are more likely than not to experience a sudden supply shortfall, jolting prices viciously higher. This will be a situation not soon resolved, as the lag time for new production to come on-line will be much longer than the world wants. » Read more
Actuary Gail Tverberg explains the tight correlation between the rates of GDP growth and growth in energy supply. For decades, energy has been becoming more costly to obtain, and instead of accepting lower GDP growth, we have been using debt to fund further energy exploration and extraction.
That strategy has diminishing returns, Tverberg warns. And we are close to the moment of reckoning. » Read more
For those who enjoyed his encyclopedic 2015: Year In Review, this week we spend an hour with David Collum to ask: After processing through all of that information, what do you think the future is most likely to bring?
Perhaps it comes as little surprise that he sees the global economy headed back down into recession, one that will be deeper and more damaging than the 2008 crisis. » Read more
Grant Williams returns this week to set the context for this week's FOMC meeting, where the Federal Reserve is widely expected to hike interest rates for the first time in nearly a decade. To say he is very skeptical of the Fed's ability to continue to control market forces much longer is a gross understatement. » Read more
Precious metals sank to 5-year lows during this past week. The long painful price decline that began at the end of 2011 still continues unabated. Holders of gold & silver are understandably wondering if their faith in precious metals has been misplaced. » Read more
Automation and artificial intelligence are changing the landscape of work. Tens of millions of jobs are on track to be eliminated over the next decade or so by these advancing technological innovations in the US alone.
The way in which our current economy is constructed, the fruits of those cost savings are likely to go into a very small number of private pockets, while the millions of displaced workers will find themselves with no income and no work to do. It's a huge looming problem that is not being address in national dialog right now.
But there's opportunity to course-correct here. To use our new technologies to increase total productivity in a way that empowers rather than diminishes the individual worker. » Read more
As existential questions go, this one's a biggie. Each of us, to varying extents, continually wrestles with answering it as we make our way in the world.
But tackling such a big question is really hard, and often overwhelming for most of us. How do we know where to start? How do we know what we truly enjoy? What we're truly good at? What truly fulfills us?
Having solid, science-based data points to help guide us in our our exploration and decision making would sure be useful. Especially with the big decisions, like what to study in school, what type of career path to choose, and how to play to our strengths in what we do. » Read more