The crisis in the retail sector, briefly mentioned in Newsletter 161, is ironically speeding up as the sector loses steam if one views the consumer-driven American economy as a train pulled by a 19th century locomotive. The number of store closings may be more than 8,000 in 2017 if the rate current in Q1 continues. Hundreds of mall anchor stores are on schedule to be closed if the train runs on time.
Some economists expect the Fed to resume its plan of increasing key interest rates at a gradual pace if the US economy outperforms itself this year. Do you share this point of view?
I do not think the economy really needs to outperform to make the Federal Reserve raise rates. If the economy evolves as expected, the Fed will be hiking interest rates. The Federal Open Market Committee feels that the economy is performing well and that monetary policy needs to be in a normal position. Currently, monetary policy in the US is accommodative, but with the economy close to normal, the FOMC believes that policy should be close to normal too.
Canada’s government is aiming to pass legislation that will legalise the recreational use of marijuana: the federal government is scheduled to table in Parliament legislation that will legalize the recreational sale of marijuana in the country.
Prime Minister Justin Trudeau has acknowledged that will require selling cannabis at a price that is equal to or cheaper than its going rates on the black market and he has already endorsed one of its key recommendations: that marijuana should be legal for people who are of legal drinking age – 18 or 19 years old, depending on the province they live in.
Germany and China continue to have great trade surpluses while the US trade deficit has not yet been corrected by the Trump administration. Oil is still the most important source of energy with the Middle East a main supplier. Given these additional factors, it should be clear that any disturbance will have far-reaching consequences since the Fed, ECB and BoJ cannot lower interest rates to fend off a recession or depression. The huge injections of liquidity into the global financial system in recent years have had the result among others of producing little or no growth.
The football associations of the United States, Canada and Mexico have announced their intention to submit a joint bid to host the 2026 World Cup. The CONCACAF countries confirmed their plan to bring the tournament to North America at a press conference at One World Trade Centre in New York.
"Especially with what’s going on in the world today, we believe this is a hugely positive signal and symbol of what we can do together in unifying people," U.S. Soccer Federation President Sunil Gulati said at Monday’s bid launch, "especially in our three countries."
Gulati didn’t directly mention President Donald Trump in that particular remark, but the impact of the policies of the fledging administration on a World Cup bid involving feuding neighbors was a constant theme during the press conference.
Donald Trump earned more than $150 million in the year 2005-and paid just a small percentage of that in regular federal income taxes. The documents show Trump and his wife Melania paying $5.3 million in regular federal income tax-a rate of less than 4%. Trump made a total income of $253 million in 2005, but wrote off $103 million in losses, according to the document, the first two pages of which were obtained by Pulitzer Prize-winning journalist David Cay Johnston and first shared on “The Rachel Maddow Show.
Jeffrey Sachs, director of the Earth Institute at Columbia University, where he is a professor, decided to address the Government of the United States in his latest book, Building the […]
President Donald Trump pledged Thursday he will soon unveil a “phenomenal” tax cut plan. "Lowering the overall tax burden on American business is big league. That’s coming along very well. We’re way ahead of schedule," Trump said during a White House meeting with airline industry executives on Thursday.
Trump and GOP congressional leaders have come under fire recently from some conservatives for not taking action on popular campaign promises like cutting taxes and repealing Obamacare.
