All posts by Daniel Lacalle

About Daniel Lacalle

Daniel Lacalle (Madrid, 1967). PhD Economist and Fund Manager. Author of bestsellers "Life In The Financial Markets" and "The Energy World Is Flat" as well as "Escape From the Central Bank Trap". Daniel Lacalle (Madrid, 1967). PhD Economist and Fund Manager. Frequent collaborator with CNBC, Bloomberg, CNN, Hedgeye, Epoch Times, Mises Institute, BBN Times, Wall Street Journal, El Español, A3 Media and 13TV. Holds the CIIA (Certified International Investment Analyst) and masters in Economic Investigation and IESE.

Sanctions did not destroy Venezuela. Socialism did.

It is shameful to see a delegation of the terrifying Grupo de Puebla “supervise” the Venezuelan elections that authoritarian leader Maduro wants to manipulate again.

Grupo de Puebla

The Puebla Group “supervising” elections is like Pablo Escobar overseeing the fight against drug trafficking. This infamous organization defends all communist murderous dictatorships and looks to the other side when human rights and freedom of expression are attacked in socialist regimes.

Continue reading Sanctions did not destroy Venezuela. Socialism did.

Central Banks Purchase Gold to Offset Their Own Money Destruction

Why is the price of gold rising if the global economy is not in recession and inflation is allegedly under control? This is a question often heard in investment circles, and I will try to answer it.

We must begin by clarifying the question. It is true that inflation is slowly decreasing, but we cannot say that it is under control. Let us remember that the latest CPI data in the United States was 3% annualised and that in the Eurozone it is 2.6%, with eight countries publishing data above 3%, including Spain.

Continue reading Central Banks Purchase Gold to Offset Their Own Money Destruction

Net zero will make you poorer. Negative real wage growth is a consequence of Keynesian policies.

If you read the latest OECD publication, “Employment Outlook 2024: The Net Zero Transition and the Labour Market,” you would imagine that the world has not gone through the largest monetary and fiscal stimulus in decades.

Net zero will make you poorer. Negative real wage growth is a consequence of Keynesian policies.

The results are so poor, they are embarrassing. Furthermore, the report illustrates the impoverishment of citizens and subtly suggests that achieving the net zero goal will present an even greater challenge. Translation: You will be even poorer.

According to the OECD report, 20% of the global workforce is in jobs that will expand due to the net-zero transition. The report basically tells us that the remaining 80% will face significant challenges.

Furthermore, it highlights that “low-income and rural households usually spend more on goods and services with larger carbon footprints, such as energy and food, because they are typically necessary goods.

Continue reading Net zero will make you poorer. Negative real wage growth is a consequence of Keynesian policies.

Americans are Poorer. The United States Misery Index Rises Again

I frequently receive comments about the strength of the United States economy and the unfairness of perceiving things as less than stellar. Is it really the “strongest economy ever”? It’s evident that it’s far from being the “strongest economy ever.”

The United States unemployment rate has risen to 4.1%, the highest in three years, which is also significantly higher than the level seen in 2019. In June, a 70,000 increase in government jobs boosted payroll employment by 206,000. One-third of job creation is public sector jobs paid with more debt. Both the employment-to-population ratio and the labour force participation ratio are below the pre-pandemic level and immigrants account for all the labour force growth since the pandemic, according to the Bureau of Labor Statistics and Ned Davis Research.

Continue reading Americans are Poorer. The United States Misery Index Rises Again