Submitted by Gail Tverberg via Our Finite World blog,
We have been living in a world of rapid globalization, but this is not a condition that we can expect to continue indefinitely.
Figure 1. Ratio of Imported Goods and Services to GDP. Based in FRED data for IMPGS.
Submitted by Ben Hunt via Salient Partners' Epsilon Theory blog,
Once again we find that it is only after they leave their official posts that central bankers finally tell the truth.
Last night, it was Alan Greenspan who blasted the state of the economy, saying that "we’re in trouble basically because productivity is dead in the water" and when asked if he is optimistic going forward, Greenspan replied "no, I haven't been for quite a while."
Another crazy day in the markets...
While stocks dropped and popped on the day... with a panic-buying scramble into the close to get Nasdaq unch...
On SPY's lowest volume day of 2016
Given the vicious downward spiral of competitive devaluation that is washing around the world's economic bathtub, it appears - just as we saw during The Great Depression - that currency wars have given way to mal-investment-fueled protectionism as US launches the first missile in the trade wars with a massive 266% tariff on imports of cold-rolled steel. “There’ll be a short-term benefit,“ said John Packard of Steel Market Update. ”However, in the long run, the U.S.