Prolific author and web writer, Charles Hugh Smith discusses his 2013 Themes with Gordon T Long.
Highlights of the 2013 Themes Discussed:
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Rising Systemic Fragility is increasing the odds of an "unexpected" breakdown.
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It is now reaching the "Threshold of Vulnerability".
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The FED Losses Political Capital in 2013.
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We are witnessing a reduced impact of each QE version,
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Expect Hope to Turn to Fear when this occurs.
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Economic Stagnation and Permanent Adolescence
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Using the Japanese Model, diminishing opportunities are resulting in a completely new youth behavior.
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Probabilities of a Stock Market Decline increased.
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Revisitng the Coppock Killer Curve.
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The debate about recession or no recession is meaningless; incomes are declining for most households and corporate profits will take a hit as the global slowdown increases and the US dollar rises.
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The Velocity of Money dooms the Fed's liquidity/stimulus policies.
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People either are afraid to invest, don't see any viable investments or it is FEAR and a growing Crisis of Trust.
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The Fed has done its best for four years to push investors into risk assets (by lowering yields on safe savings to near-zero) and to push households to borrow and spend more. The fundamental failure of their policies is that all the liquidity is simply now becoming "dead money."
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Income is the foundation of real economic growth. It is declining in real terms.
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Nominally income appears to have grown 24% since 2000. Adjusted for inflation, it has declined by almost 10%.
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However, the Middle Class have seen their income decline by MORE than 10%
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Small Business--the Engine of Growth--is in a Long Term Structural Decline.
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Uncertainty, higher taxes and regulatory fees/costs have eroded the incentives to risk capital and the time to start and expanding a small business.
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25 Minutes, 29 Slides
