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Foreign exchange market 
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Stock and commodities markets
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Business And Politics News
Raygan's Former Advisor Accuses the Fed of a Big Fraud
U.S. Labor Market Disappoints, Economy Slows Down
iPhone as a Payment Terminal: Apple Bought a Startup For That
China Makes Blockchain Professions Official
South Korea Invests Billions In Blockchain Technologies
Black Lives Matter - Investors Keep Ignoring Major Riot In US In 50 Years. Why?
Raygan's Former Advisor Accuses the Fed of a Big Fraud
U.S. Labor Market Disappoints, Economy Slows Down
iPhone as a Payment Terminal: Apple Bought a Startup For That
China Makes Blockchain Professions Official
South Korea Invests Billions In Blockchain Technologies
Black Lives Matter - Investors Keep Ignoring Major Riot In US In 50 Years. Why?
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Business And Politics News
Raygan's Former Advisor Accuses the Fed of a Big Fraud
Sun, 23 Aug 2020 07:32:00 +0000
The former budget advisor under Ronal Raygan's administration, of the founders of the so-called Rayganomics, David Stockman, is a big adversary of the Federal Reserve's policies. He thinks that artificial interest rate cuts coupled with uncontrolled QE (money printing) creates madness in financial markets, thus separating asset evaluation from their intrinsic value of those assets.
He publishes his articles in major economic periodicals and on related websites. In 2014, he started an online newspaper named Contra Corner. In one of his articles named "The Biggest Threat To Your Financial Well-Being And What You Can Do About It", he describes the current state of the American economy as difficult. In particular, he writes that while stocks are around all-time highs, companies are destroying their balances to buy back their stocks, implementing bloated mergers and takeovers, while politicians are destroying the economy and depriving millions of their means to provide for their families. At the same time Washington doesn't seem to be able to handle the fiscal problems.
In his opinion all of that is the result of a big financial fraud (7 trillion dollars), and the Fed is to be blamed for that. While working in Raygan's administration, Mr. Stockman was skeptical about controlling the economy through controlling the money mass. What the Fed has been doing for a while is beyond the scope of any sane monetary recommendations.
The central bank's balance has been growing much faster than the national economy. Over the last 17 years, the Fed's balance has increased by 983% against a 192% GDP increase. As a result, the excessive liquidity favors speculative and faulty investments, coupled with the collapse of the financial discipline in all the layers of the American society.
Thoughtless Wall Street Traders and Washington Politicians
All of them got false price signals and changed their behavior accordingly. Wall Street investors turned into traders speculating the assets through various financial leverages.
At the same time, corporate managers have been focused on financial engineering instead of engineering the ways to leverage the production efficiency. Middle-class households have now turned into debt salves living at the expense of the funds they borrowed while Washington politicians are having "free lunches" at the expense of the growing sovereign debt, without caring about the future.
The tragedy boils down to the fact that thoughtless Wall Street traders and Washington politics, once in an an extremely inflated financial bubble, do not understand that all of that is a joke, Mr. Stockman writes. With that being said, he predicts that this wreckless policy of the Fed's is doomed to end up with a major crash never seen before, and most people aren't ready for this.
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U.S. Labor Market Disappoints, Economy Slows Down
The employment rate in the United States increased by 167.000 people in July 2020. It's important to mention the fact that the data came in much worse than expected. According to Reuters, this increase was expected to reach 1.5 million people. At the same time, July's figures were much worse than those revealed in June 2020.
Publication date: 06 August 10:06 AM
iPhone as a Payment Terminal: Apple Bought a Startup For That
Apple has recently acquired Mobeewave, a startup specializing in online payments. The price of the deal is 100 million dollars. According to Bloomberg, the company's technology may allow Apple to turn iPhones into mobile payment terminals accepting mobile payments. To be more specific, Mobeewave developed a technology making it possible to make financial transactions between mobile devices through the built-in NFC module.
Publication date: 05 August 09:27 AM
China Makes Blockchain Professions Official
There are 1838 officially recognized professions in China. Now, there list is up by 2 professions - blockchain engineer and blockchain app operator. The Chinese Ministry of Human Resources and Social Security (MOHRSS) has recently confirmed that by updating the list of official professions.
Publication date: 20 July 11:42 AM
South Korea Invests Billions In Blockchain Technologies
By 2025, South Korea is planning to invest over 48 billion dollars in blockchain. The goal is to digitize all of the industrial sectors of the national economy in this post-pandemic era. According to ZDNet Korea, the president highly rated some of the benefits this process may bring to South Korea.
Publication date: 18 July 09:40 AM
Black Lives Matter - Investors Keep Ignoring Major Riot In US In 50 Years. Why?
Everyone has probably heard of the #BlackLivesMatter riots, which have been going on in the United States for a while. However, international financial markets seem to have been underestimating this event, which happens to be the biggest riots in the USA in 50 years! Why is that?
Publication date: 18 June 07:56 AM
Only 4 Of All Existing Billionaires Made Their Fortunes With Cryptocurrencies
Forbes has recently published the list of 2095 billionaires from different parts of the world. It turns out that 4 of them owe it to cryptocurrencies. Who they are, the cryptocurrency billionaires?
Publication date: 13 April 11:54 AM
USA May Take Steps To Support National Economy After COVID-19 Pandemic
Publication date: 07 March 08:15 AM
Fed Cuts Key Interest Rate For The First Time In 10 Years
The U.S. Federal Reserve is reported to have cut the key interest rate, which is something really outstanding since the Fed has done it for the first time since 2009.
Publication date: 11 August 03:05 AM
