The train, which takes sightseers to the Jungfraujoch in the Bernese Alpes, carried 916,500 passengers in 2016, significantly fewer than the year before. In 2015, a record 1,007,000 made the journey. Despite the decline, 2016 was still the second best performance recorded. And, at the price of CHF 218.80 for a first class round trip, brought in a lot of money. The ski season saw a large drop in the number of passengers...
Read More »We Can Only Afford One, So Choose Wisely: Social Security/Medicare, Cartel Cronyism or Inflation (a.k.a. Central Banking)
Here’s the problem with central banks seeking higher inflation: costs go up but wages don’t. It’s easy to quantify the annual cost of Social Security/Medicare, and not so easy to calculate the cost of Cartel Cronyism and Central Bank-created inflation.Cartel cronyism is a hidden tax on the entire economy, as is Central Bank-created inflation. That makes it easy for the financial-political Oligarchy to continue their...
Read More »Gold Rises In All Currencies In 2016 – 9 percent In USD, 13 percent In EUR and 31.5 percent In GBP
– Gold gains in USD, GBP, EUR, CAD, AUD, NZD, JPY – Gold gains in CNY, INR & most emerging market currencies– Gold surges 31.5% in British pounds after Brexit shock– Gold acted as hedge and safe haven in 2016 … for those who need safe haven– Furthers signs of market having bottomed and bodes well for 2017 – What drivers will gold respond to in 2017? – EU elections and contagion risk, Geo-politics, terrorism, war...
Read More »Gold Rises In All Currencies In 2016 – 9 percent In USD, 13 percent In EUR and 31.5 percent In GBP
– Gold gains in USD, GBP, EUR, CAD, AUD, NZD, JPY – Gold gains in CNY, INR & most emerging market currencies– Gold surges 31.5% in British pounds after Brexit shock– Gold acted as hedge and safe haven in 2016 … for those who need safe haven– Furthers signs of market having bottomed and bodes well for 2017 – What drivers will gold respond to in 2017? – EU elections and contagion risk, Geo-politics, terrorism, war...
Read More »FX Daily, January 06: Dollar Consolidates Losses, Peso Firms while Yuan Reverses
Swiss Franc EUR/CHF - Euro Swiss Franc, January 06(see more posts on EUR/CHF, ) - Click to enlarge I am reading a lot about the pound in 2017 which is likely to be as volatile as in 2016. But the Franc is a harder beast to predict. Loosely tracking the euro but subject to its own rules and trends GBP/CHF could be an interesting pair to watch in 2017. There are numerous global events which can shape the...
Read More »A Few Thoughts Ahead of the US Jobs Report
Summary ADP and Non-Manufacturing ISM lend credence to our fear of a disappointing national jobs report. Economists estimate only a small part of the manufacturing jobs loss can be traced to trade policy. 19 states increased min wage at the start of the year, but the impact on the nation’s average weekly earnings will likely be too small to detect. We have suggested the risk of disappointment with the US...
Read More »Prosperity = Abundant Work + Low Cost of Living
An economy that only serves the prosperity of the protected top 5% is an economy doomed to rising inequality, stagnation and widespread social discontent. If we seek a coherent context for the new year, we would do well to start with the foundations of widespread prosperity. While the economy is a vast, complex machine, the sources of widespread prosperity are not that complicated: abundant work and a low cost of...
Read More »Consumer Prices in Europe Compared: The Energy Price Turn-Around
Energy prices in Switzerland turned around from a minus 2.4% in November to a +6.8% in December. Oil prices had seen its trough exactly one year ago. Especially in Germany and Spain, this translated into inflation rates, that are close to the ECB target rate of 2%. Switzerland still saw downwards pressures caused by cheaper imports. Despite rising energy costs, total prices of imported goods are down 0.6%. Consumers...
Read More »Basic Income Arrives: Finland To Hand Out Guaranteed Income Of €560 To Lucky Citizens
Just over a year ago, we reported that in what was set to be a pilot experiment in “universal basic income”, Finland would become the first nation to hand out “helicopter money” in the form of cash directly to a select group of citizens. As of January 1, 2017, the experiment in “basic income” has officially begun, with Finland becoming the first country in Europe to pay its unemployed citizens the guaranteed monthly sum...
Read More »FX Daily, January 05: Dollar Slide but Resilience Demonstrated while Yuan Squeezed Higher
Swiss Franc EUR/CHF - Euro Swiss Franc, January 05(see more posts on EUR/CHF, ) - Click to enlarge The Swiss Franc has limited data releases to note for the upcoming weeks therefore I expect news from the Brexit story and UK economic data to influence exchange rates this month. At present we are awaiting the decision from the Supreme Court in regards to if UK Prime Minister Theresa May needs to seek Government...
Read More »