Juggling Dynamite

Danielle was a guest today on Talk Digital Network with Jim Goddard, talking about recent developments in the world economy and markets.  You can listen to an audio link of the segment here.

Global growth is evaporating. Since January 1st, no less than 15 ‘surprised’ central banks have cut lending rates in the hopes of stimulating exports by weakening their currency. When everyone wants to be more competitive through cheaper currencies, no one is more competitive with cheaper currencies. Global trade volumes are falling even as export prices are deflating, as shown in this chart courtesy of ECRI.

For more relevant discussion on these points, here is a direct video link.

To which I would add, it is not just that low wage growth is hurting consumption.  Low interest and dividend rates (because stocks have been goosed to QE highs) are as well.

With a globe swimming in toxic debt levels, and the bulk of those who do have savings being over 50 and increasingly looking to live off their savings, low yields are also serving  to crimp consumption.  As central banks are stuck in the mad, destructive loop of trying to push rates lower, they are only making demand weaker.

In case you have missed it, we compile an archive of some worthwhile books and video segments on Juggling Dynamite, under the Recommended tab which can be found along the top bar.

For videos, select Multimedia and thereunder you will find Business and Finance picks as well as Health and Wellness.  Educational and entertaining food for thought. Enjoy.