The top story is the global economy. It’s not fixed and there is no real recovery. Yes, I know the stock market hit all-time highs again, but that’s because the market believes the Fed; and now the European Central Bank will continue the easy money policies. The ECB just announced it will go to negative interest rates of -.1% on deposits. That’s right. In, Europe you have to pay a bank to hold your money! If Europe was really in a so-called “recovery” as we have been told constantly for several years, would it need to go negative on interest rates? Of course, it wouldn’t. ZeroHedge.com called the move for negative interest rates “Officially Entering the Monetary Twilight Zone.” It is no less than confirmation that nothing the ECB has done to date has fixed anything, and, in fact, the economy has gotten worse. Please keep in mind, the Eurozone is in trouble despite the tens of trillions of dollars the Fed pumped into it through its swap lines.
Back here in the U.S., we are continually told there is a recovery. Check out this headline in the USA Today newspaper: “Fed: Economy expands across USA.” Listen to this quote from the article that says, “While manufacturing picked up smartly across much of the country, consumer spending and housing were mixed as remnants of the adverse weather conditions continue to have some effects in the Northeast.” What planet are they living on? It’s June and they are still blaming the weather for the economic slowdown? Retail and housing numbers have rolled over–they are not “mixed.” They have tanked. 10 million homeowners still have negative equity in their homes. Despite a near 4% 30-year mortgage rate, home prices, according to one new report, are still falling. With this low rate, home sales should be taking off like a rocket—they are not. Maybe this is why 70 % of Americans think the housing crisis is not over, or the worst is yet to come, according to a new survey. Also, what we now know is the first quarter of 2014 had a -1% contraction, and that was a stunning drop from the 2.6% growth the government “officially” reported in 4th quarter of 2013.