THE USA'S FAILING ECONOMY

The dangerous zombie identities.

The U.S. trade deficit soared 12% in 2017.

The U.S. trade deficit in December and for the full year both rose to the highest levels since 2008.

U.S. trade deficit in Trump's first year soars

According to a report by London's Longview Economics, if US interest rates rise rapidly above 3 percent, a number of US companies will be bankrupt.

12 percent of US companies are 'zombies.'

Their earnings do not cover their interest payments.

A sudden rise in interest rates would send the 'zombie' companies into bankruptcy.

According to a report carried out by the Bank of America Merrill Lynch, 9 percent of companies in Europe are 'zombies'. 

This compares to 6 percent in the period before the crash of 2008.

Dow Records Biggest Ever One-day Point Fall.

The Dow Jones plummeted around a thousand points in the biggest one day drop in the history of Wall Street. Feb 5, 2018. However, Trump Did Not Tweet About the 'Dow Joans' .

The February 2018 economic statistics in the USA show:

1. The jobless rate for men has increased.

2. Inflation has increased.

News Corp expands its pro-Trump #fakenews despite failing US economy - 7 February 2018.

USA today

The USA's annual growth rate of gross domestic product (GDP) ranks 121st in the world.

It has just been beaten by The Congo.

The USA is one of only four countries with debt above 100% of GDP and still rising rapidly.

The others are Mozambique, Bhutan, and Lebanon.

News Corp expands its pro-Trump #fakenews despite failing US economy - 7 February 2018. 

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NICK VERSUS LORD BRAMALL

Brian Gerrish - police child abuse whistleblower 

HEATH AND JERSEY; ROTHSCHILDS; BIN LADEN; KRAY TWINS...

ASSET PRICES TO FALL?

Ambrose Evans-Pritchard reports that the Bank for International Settlements (BIS) is worried that the world has too much debt.

Since 2007, combined public and private debt in the the developed economies has jumped by 36 percentage points to 265pc of GDP.

"Global debt levels are dangerously high and central banks cannot keep the game going indefinitely."

An increase in interest rates by the US Federal Reserve could create an economic crisis.

BIS fears emerging market maelstrom as Fed tightens.

If the 'bubble' bursts, there could be a drop in the value of various 'assets' such as gold, shares (equities), bonds and houses.

Banks are worried?

Deutsche Bank plans to cut staff by 25pc



The above graph shows that currently the price of bonds, shares and property is above historical norms.

According to Deutsche Bank, there is the chance that profits or valuations will return to their historical norms.

If that happens, Deutsche reckons the average real return from equities over the next 10 years will be negative. 

The same is true for Treasury bonds, European corporate bonds and American residential property.

Read more: http://www.afr.com/