About: Wesley D. C.
- W.D. Crowder is an American published author. His background and areas of expertise include history, economics, expatriate living, international relations, investments and personal finance. A widely read and top of his class graduate of Stetson University, he obtained his bachelor of arts degree in History with minors in Latin American Studies and International Relations and a special emphasis in Economics. He was President of his Phi Alpha Theta (National History Honors Fraternity) Stetson University chapter and a Phi Beta Kappa (National Honors Fraternity) member.
Posts by Wesley D. C.:
Over the last few weeks, bond price have spiked even as yields have plunged. Investors are waking up to a coming recession. Their knee-jerk reaction has been to pour their money into safe haven Treasuries, thinking this will save them. The 10 year Treasury yield dropped to 2.26 percent last week on May 29th. This graph reveals the trend: [caption id="attachment_14802" align="aligncenter" width="700"] Chart appears courtesy of CNBC.com[/caption] This has led to a yield curve inversion, which has historically (and very accurately) indicated a recession looming on the horizon. Economist Peter Schiff has been warning about the end of the… Read More
Lately it seems the economic news only continues to get worse. In the last few weeks, consumer credit has reached all- time highs and auto delinquencies have neared those not seen since the worst point of the Great Recession. This past week, lenders had still more negative news to digest. The subprime category of credit card charge offs are still at record levels not seen since the Global Financial Crisis. Consider the first quarter of the year 2019. In all excluding the biggest 100 banks in the U.S., the rates for credit card charge offs have now been over seven… Read More
The most recent data out of the New York Fed is ominous. The current auto loans that are in serious delinquency (meaning that they are over 90 days past due) has jumped to a percentage of 4.69 percent for first quarter 2019. In the darkest days of the Great Recession, they only peaked a bit higher at 5.27 percent. These car loan delinquencies have now stretched up to their greatest amount dating back to 2011 and are nearing those scary Great Recession peaks. In actual dollars, the debt of delinquent auto accounts is already massively higher than witnessed in the… Read More
This past week, the Federal Reserve released their most recent report on consumer debt. It did not paint a pretty picture. Overall consumer debt increased by a sobering $10.3 billion for March. This brought it up to an all time high of over $4 trillion ($4.05 trillion to be exact). The chart below shows the year long trend in consumer debt: This means that through the conclusion of the first quarter in 2019, the total American consumer indebtedness rose at a yearly rate of 4.25 percent. Yet March's increase was a mere 3.1 percent. This March total actually came in… Read More
Last week, the U.S. Treasury revealed that it will not need to borrow so much money for the third quarter of 2019 as it had originally forecast. This had many people scratching their heads. The reason has nothing to do with the government reigning in its spending though. Reuters demystified the mystery in a cite from a Treasury official. His statement explained this as changes having to do with fiscal activity. The Treasury official put a positive spin on it with: "The fiscal change related to the Fed's plans to stabilize its massive portfolio of bonds relative to the size… Read More
The most recent Treasury Report is out and it reveals disturbing news. The net worth of the United States is now officially reduced to minus $21.5 trillion. The country's total national debt has catapulted up to pass $22 trillion. Every month, President Trump's administration adds to the debt pile with multiple billion dollar deficits. This graph depicts the shocking rise in national debt: The real question is: Can the government indefinitely sustain this debt fiasco? Economist and analyst Wolf Richter argues that the United States is in a select club of financially troubled nations. The U.S. shares the deteriorating financial… Read More
The key metric for U.S. manufacturing did not grow in March, data released this week revealed. This statistic followed two consecutive months of declines. Together, it led to the first quarterly production drop within the presidency of Donald Trump. This was especially disconcerting news as observing economists had forecast a minor rise in March's manufacturing numbers. For the first quarter of 2019, the factory production metric declined 1.1 percent on an annualized rate as the graphic below demonstrates: Reuters commented on the decline with their own explanation, stating: "Soft manufacturing and slowing economic growth reflect the ebbing stimulus from a… Read More
This past week the World Gold Council revealed that recent central bank purchases of gold bullion have reached a point not witnessed since year 2008 in middle of the Global Financial Crisis. This happened in January and February of 2019. Global central banks net bought an additional 90 tons of gold for the year's first two months, per the most recent report of the World Gold Council. Compare this amount of the yellow metal to only 56 tons in the two first months of 2018 and you start to understand why it is a big deal. This chart below shows… Read More
The World Gold Council recently revealed that global central banks bought up a net total of 651.5 tons of gold in just the past year. This represented the greatest level of yearly net central bank gold buying since the dollar was suspended from conversion into gold back in 1971. It also notched the record for second greatest yearly total ever recorded. It begs a few questions: who has been buying all of this gold and why suddenly? The answer is not just one central bank or even two. The most aggressive purchasers have been gold buying leader Russia and also… Read More
The news came out this last week that the crucial U.S. consumer confidence measure is still in trouble (once again). For February, the fourth month in five, this important confidence measure declined yet again. Even economists were surprised as they had anticipated a rise in the consumer optimism number. The Conference Board reported that U.S. consumer confidence declined to 124.1 from 131.4. This deplorable drop missed all estimates from every economist surveyed by Bloomberg. They had an average expectation for a rise up to 132.5. Worse still, the views of consumers on the current national economic situation declined to its… Read More