-- Published: Monday, 5 August 2019 | Print  | Disqus 

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Highlights

• Dr. Paul Craig Roberts of the Institute for Political Economy, author of several best-selling tomes, rejoins the show with his latest economic insights.
• Our guest notes the Fed's decision to slash rates this week and the implications for PMs aficionados.
• The domestic total debt outstanding concerns our guest, especially the Fed's balance sheet, still $3 trillion higher than before the Great Recession.
• Today, the $800 billion seemed enormous, now it's more than 4 times higher, a perpetual debt that can never be repaid according to our guest.
• Chris Waltzek posits if the Fed's debt is unpaid, this could be viewed in the future as the inception of runaway inflation via monetary stimulus.
• Economic policymakers will keep the house-of-cards intact as the entire global currency system is interconnected.
• The inevitable fiat death spiral leaves merely a few safe havens, such as the PMs, fairly valued real estate and cryptocurrencies.
• Dr. Roberts notes that lower US research and development via capital expenditures is at least partly due to the on cap executive salaries.
• Due in part to stock option bonuses and the unbalanced desire to boost share prices, index prices may be reaching unsafe levels. 
  Chris Waltzek suggests that executive salaries should be uncapped using scaled and quantifiable performance metrics for salary determination.
• Metrics such as employee retention, nonprofit donations, community programs and an overall societal benefit rating are advisable.
• Overly aggressive corporate buybacks artificially inflate stock prices via hidden leverage, increasing overall risk to unwary investors, essentially morphing a simple stock purchase or mutual portfolio asset into a bullish ETF or options call.

Dr. Paul Craig Roberts from the Institute for Political Economy, author of several best-selling tomes, rejoins the show with his latest economic insights on the Fed's decision to slash rates this week and the implications for PMs aficionados. Dr. Roberts is watching the domestic total debt outstanding, especially the Fed's balance sheet, still $3 trillion higher than before the 2008-2009 Great Recession where $800 billion seemed enormous, now it's more than 4 times higher, a perpetual debt that can never be repaid according to our guest. Chris Waltzek posits, that one assumes the balance sheet is never balanced, this could be viewed on a forward basis as the inception of runaway inflation via monetary stimulus. Nevertheless, economic policymakers will keep the house-of-cards intact as the entire global currency system is interconnected in a fiat death spiral with only a few safe havens, such as the PMs, fairly valued real estate and cryptocurrencies. While Dr. Roberts notes that lower US research and development via capital expenditures is at least partly due to legislatures decision to cap corporate executives salaries, which lead to stock option bonuses and an unbalanced desire to boost share prices. Chris Waltzek suggests that executive salaries should be uncapped using scaled and quantifiable performance metrics for salary determination, such as employee retention, nonprofit donations, community programs and an overall societal benefit rating as merely a starting point, in tandem with a cap on corporate buybacks, which artificially inflates stock prices via hidden leverage, increasing overall risk to unwary investors, essentially morphing a simple stock purchase or mutual portfolio asset into a bullish ETF or options call.

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 -- Published: Monday, 5 August 2019 | E-Mail  | Print  | Source: GoldSeek.com

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