For those wondering when economic growth will be getting back to normal…the US Census has made it clear there is a new abnormal…in the new abnormal population growth is among the old and flat among the young, wage growth is next to nil, and the only hope for those awaiting “trend” growth is another doubling or tripling of credit / debt every seven years or so to move the needle along. Never mind that’s pretty much next to impossible without the wheels coming off the cart.
And for those curious, even during the great depression, there was generally continuing population growth among the young to maintain rising consumption…but this time around in the Greater Depression, the world faces overcapacity, too much debt, and declining flat to declining young the world over (except Africa) only offset by the liability that is the rapidly rising older population. For those believing the rest of the world will carry the day here is an article outlining the breakdown of population growth worldwide (again, except for huge gains in Africa). Welcome to the new abnormal which the Fed, Federal .Gov, nor Wall St. will ever acknowledge.
51% Rise in Scottish children going to school hungry and stealing food ~ link ~
“It’s not unusual for students to steal food from the staff room because they haven’t been given a packed lunch,” one secondary school teacher from Edinburgh, who chose to remain anonymous, told the EIS. “There’s an unbelievable level of poverty which I see every day,” the teacher added.
The derivatives genie is now well out of the bottle, and these instruments will almost certainly multiply in variety and number until some event makes their toxicity clear. Central banks and governments have so far found no effective way to control, or even monitor, the risks posed by these contracts. In my view, derivatives are financial weapons of mass destruction, carrying dangers that, while now latent, are potentially lethal.Since the last financial crisis, the big banks in this country have become even more reckless. And that is a huge problem, because our economy is even more dependent on them than we were the last time around. At this point, the four largest banks in the U.S. are approximately 40 percent larger than they were back in 2008. The five largest banks account for approximately 42 percent of all loans in this country, and the six largest banks account for approximately 67 percent of all assets in our financial system.
But later this week, something extraordinary will happen: Air temperatures at the Earth’s most northernly region, in the middle of winter, will rise above freezing for only the second time on record.
On Wednesday, the same storm system that last week spun up deadly tornadoes in the American southeast will burst into the far north, centering over Iceland. It will bring strong winds and pressure as low as is typically seen during hurricanes.
That low pressure will suck air out of the planet’s middle latitudes and send it rushing to the Arctic. And so on Wednesday, the North Pole will likely see temperatures of about 35 degrees Fahrenheit, or 2 degrees Celsius. That’s 50 degrees hotter than average: It’s usually 20 degrees Fahrenheit below zero there at this time of year.