Tag Archive: growth

Could a Trade War Send Gold Higher?

Markets have a lot on their plate right now, including the notion of higher interest rates, overstretched valuations and accelerating inflation. If that is not enough for stock market bulls to contend with, how about adding the potential for a global trade war. Stocks are set to open lower again on Monday, as the threat of a trade war begins to sink into investor psyche. Last week, President Donald Trump made waves as he discussed heavy tariffs on steel and aluminum products. The 25 percent... Continue Reading

IMF Slashes Growth Forecasts

The International Monetary Fund, or IMF, recently slashed its growth forecasts for the U.S. for this year and next. The IMF lowered its expectations for growth from 2.3% to 2.1% for this year, and from 2.5% to 2.1% for 2018. Needless to say, this is far below the 4% growth target that has been discussed in recent months and it remains stubbornly below the 3% mark. The IMF listed numerous factors regarding its decision to lower forecasts, with a very poor showing in the first... Continue Reading

ECB Ready for More Printing?

The European Central Bank met yesterday and as expected, kept interest rates at record lows in an attempt to revive growth and spur inflation. The central bank also added that it intends to maintain rates at current levels, or possibly even lower for an extended period of time. Back in March, the ECB cut its deposit rates deeper into negative territory and increased its stimulus measures. While no action was taken yesterday, the overall message appears to be pretty clear: Rates could remain low and... Continue Reading

A Black Hole of Debt

In the German language, the word for debt – ‘schuld’ – means the same thing as guilt. Someone who has a tremendous amount of guilt would seek forgiveness. So the term many economists are now using – forgiveness – in regards the world’s growing debt problem would seem appropriate. But this term does not encapsulate the crises that would result if a large portion of debt was erased by policy makers. Until recently, the term ‘debt forgiveness’ in regards to government and corporate debt was... Continue Reading