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THIS is What a Margin Call Looks Like: the Consequences of Stock Market Mania
THIS is What a Margin Call Looks Like: the Consequences of Stock Market Mania Financial World A couple of weeks ago, we reported on various examples of stock market mania that have exploded in 2021. Now it’s time to examine a major event that could be a clear harbinger for “the big one” to come. It starts […]
To End Budget Deficits, Restrict Political Pickpockets
TO END BUDGET DEFICITS, RESTRICT POLITICAL PICKPOCKETS Government spending is out of control. In March 2021, the Congressional Budget Office (CBO) projected that federal government spending in fiscal year 2021 (which began on October 1, 2020) will come to at least $5.8 trillion, with tax revenues of $3.5 trillion, and a resulting budget deficit of over $2.3 […]
When Central Bankers Take Credit for “Solving” Crises They Created
When Central Bankers Take Credit for “Solving” Crises They Created File under: “It is impossible to get a man to understand something when his livelihood depends on his not understanding it.” This morning I came across a Bob Murphy tweet replying to Mark Carney, the Canadian central banker and Davos darling: It turned out the […]
Suez Highlights the Fragility of Globalization
Suez Highlights the Fragility of Globalization Photo: Suez Canal Authority. The global supply chain is an elaborately choreographed ballet, nowhere more than in the flow of containers through which 60% of the world’s seaborne trade travels. Calibrating a stream of over 800 million boxes each year entails sophisticated tracking that makes sure containers reach their destination. The system reaches […]
China Isn’t the Problem, Neoliberalism Is
China Isn’t the Problem, Neoliberalism Is Photograph Source: Azureon2 – CC BY 2.0 The ascendance of Wall Street, and of a managerial bureaucracy (PMC) more generally, largely explains the political realignments that have been playing out in the U.S. Beginning in the 1970s, the American political class made decisions at the behest of business interests and […]
Nord Stream 2 Operator Warns Warships and Planes Threaten the Russia-Germany Pipeline Project
Nord Stream 2 Operator Warns Warships and Planes Threaten the Russia-Germany Pipeline Project The US is trying to prevent the project from being completed through sanctions and pressure on Germany. A senior official from Nord Stream 2 AG, the project company leading the Nord Stream 2 Russia to Germany natural gas pipeline project, has reported an […]
QE During the “Everything Mania”: Fed’s Assets at $7.7 Trillion, up $3.5 Trillion in 13 months
QE During the “Everything Mania”: Fed’s Assets at $7.7 Trillion, up $3.5 Trillion in 13 months But long-term Treasury yields have surged, to the great consternation of our Wall Street Crybabies. The Fed has shut down or put on ice nearly the entire alphabet soup of bailout programs designed to prop up the markets during […]
Rehypothecated Leverage: How Archegos Built A $100 Billion Portfolio Out Of Thin Air… And Then Blew Up
Rehypothecated Leverage: How Archegos Built A $100 Billion Portfolio Out Of Thin Air… And Then Blew Up One week after the biggest, and most spectacular hedge fund collapse since LTCM, we now have an (almost) clear picture of how Bill Hwang’s Archegos family office managed to single-handedly make a boring media stock the best performing […]
The Problem Isn’t Human Nature, The Problem Is A Few Manipulative Sociopaths
The Problem Isn’t Human Nature, The Problem Is A Few Manipulative Sociopaths The Principia Discordia is the primary text of Discordianism, which has been described as either an elaborate joke disguised as a religion or a religion disguised as an elaborate joke, depending on who you ask. One section describes a short dialogue between the Principia‘s author “Malaclypse the […]
Crisis of the 70s Compared to the 20s
Crisis of the 70s Compared to the 20s COMMENT: Hi Marty, Your post today on inflation(when people see it coming) reminds me how things have changed from the 1970s. Then, the inflation we saw came from oil rising(Opec raising prices), unions demanding wage increases, and currencies untethered to the abandoned Bretton Woods agreement. Governments then seemed […]
US Dollar’s Status as Dominant “Global Reserve Currency” Drops to 25-Year Low
US Dollar’s Status as Dominant “Global Reserve Currency” Drops to 25-Year Low Central banks getting nervous about the Fed’s drunken Money Printing and the US Government’s gigantic debt? But still leery of the Chinese renminbi. The global share of US-dollar-denominated exchange reserves dropped to 59.0% in the fourth quarter, according to the IMF’s COFER data […]
What To Expect From Today’s OPEC+ Meeting: Another Saudi Surprise?
What To Expect From Today’s OPEC+ Meeting: Another Saudi Surprise? After Wednesday’s JMMC meeting ended without reaching a recommendation (as is customary and expected), the key decision-making OPEC+ meeting – where ministers will hammer out May’s output quotas – begins at 1pm London Time. As Newsquawk notes, market expectations are skewed towards an extension of current cuts, […]
Do You Believe in Magic?
Do You Believe in Magic? The people pretending to run the world’s financial affairs do. The more layers of abstract game-playing they add to the existing armatures of unreality they’ve already constructed, the more certain it becomes that they will blow up all the support systems of a sunsetting hyper-tech economy that now has no […]
MMT Has Lit the Fuse on This Inflation Powder Keg
MMT Has Lit the Fuse on This Inflation Powder Keg An economic framework called Modern Monetary Theory (MMT) governs the financial world today, but fails to account for the consequences of its practices. In fact, MMT is leading us to an extremely dangerous financial situation that could blow up at any time. What is MMT? […]
