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Reaching the End of Early Stimulus – What’s Ahead?
Reaching the End of Early Stimulus – What’s Ahead? Many people thought that COVID-19 would be gone with a short shutdown. They also thought that the world’s economic problems could be cured with a six month “dose” of stimulus. It is increasingly clear that neither of these assumptions is correct. Despite the claims of epidemiologists, our […]
The Debt Crisis Is Mounting For Oil Economies
The Debt Crisis Is Mounting For Oil Economies Dubai. Abu Dhabi. Bahrain. And, of course, Saudi Arabia. The two emirates this year issued debt for the first time in years. So did Bahrain. Saudi Arabia stepped up its debt issuance. The moves are typical for the oil-dependent Gulf economies. When the going is good, the […]
Keynesian Ideas Can Only Make Things Worse
KEYNESIAN IDEAS CAN ONLY MAKE THINGS WORSE In the New York Times on September 8, 2020, Paul Krugman suggested that “The CARES Act, enacted in March, gave the unemployed an extra $600 a week in benefits. This supplement played a crucial role in limiting extreme hardship; poverty may even have gone down”. For Krugman and […]
Hyperinflation, Fascism and War: How the New World Order May Be Defeated Once More
Hyperinflation, Fascism and War: How the New World Order May Be Defeated Once More While the world’s attention is absorbed by tectonic shifts unfolding across America as “a perfect storm of civil war, and military coup threatens to undo both the elections and the very foundations of the republic itself, something very ominous has appeared “off […]
“Panicking” Central Banks to Power Gold Higher
“Panicking” Central Banks to Power Gold Higher This week, Your News to Know rounds up the latest top stories involving gold and the overall economy. Stories include: Institutions will be the drivers of gold demand, Ray Dalio issues warning about the greenback, and silver believers could soon be rewarded. Institutional demand will power gold prices […]
Blain’s Morning Porridge – Sept 22nd 2020: Rocketmen and Viruses
Blain’s Morning Porridge – Sept 22nd 2020: Rocketmen and Viruses “I’m the King of rock and roll, completely…” From the Ministry of Common Sense: “To celebrate this morning’s Autumn Equinox, we’ve decided to commit economic suicide.” The pandemic is a pernicious little beast. It clearly eats away brains. Rising infections are a risk. In the […]
The ‘new normal’ has been postponed (and probably canceled)
The ‘new normal’ has been postponed (and probably canceled) There remains a hope that once we get past the economic and social effects of the pandemic, all of us will be able to return to something resembling normal life before the pandemic—even if it is a “new normal” marked by heightened vigilance and protection against […]
Inflation as a Tool of the Radical Left
Inflation as a Tool of the Radical Left “Lenin is said to have declared that the best way to destroy the Capitalist System was to debauch its currency….Lenin was certainly right. There is no subtler, no surer way of overturning the existing basis of society than to debauch the currency. The process engages all the […]
How to Tackle the Depression Head On
How to Tackle the Depression Head On “I want to see people get money.” – Donald J. Trump, U.S. President, September 17, 2020 “Now is not the time to worry about shrinking the deficit or shrinking the Fed balance sheet.” – Steven Mnuchin, U.S. Secretary of the Treasury, September 14, 2020 Money for the People The real […]
Fed’s GDP and Unemployment Projections: Who Believes Them?
Fed’s GDP and Unemployment Projections: Who Believes Them? In addition to its blather about interest rates, the Fed also made numerous economic projections. Economic Projections Please consider the Economic Projections of FOMC Participants under their individual assumptions of appropriate monetary policy, September 2020. Fed’s GDP, Unemployment, PCE Inflation Projections GDP Projection The Fed believes GDP will only […]
Unspoken Truth
Unspoken Truth We all know it yet the unspoken truth deserves to be said out aloud. You all heard the phrases ‘Don’t fight the Fed’, and ‘ there is no alternative’. Can we be clear what these phrases really mean? They mean people are buying assets at prices they otherwise wouldn’t because a central planning committee is […]
“Inflation” and America’s Accelerating Class War
“Inflation” and America’s Accelerating Class War Those who don’t see the fragmentation, the scarcities and the battlelines being drawn will be surprised by the acceleration of the unraveling. I recently came across the idea that inflation is a two-factor optimization problem: inflation is necessary for the macro-economy (or so we’re told) and so the trick for policy makers […]
Collapse Is A Process, Not An Event
Collapse Is A Process, Not An Event How does one ‘get ahead’ during hard times? Look, I’m a systems guy. I think in systems terms. You should as well. Why? Because we’re entering a period of time when the major systems that have supported humanity are going to fail. Or, put more accurately: they are already failing. […]
America’s Fiscal Follies Are Dangerously in the Red
AMERICA’S FISCAL FOLLIES ARE DANGEROUSLY IN THE RED The Congressional Budget Office has recently issued a federal “Budget Outlook Update” for the next ten years in the context of the government’s fiscal condition in the face of the coronavirus and Washington’s spending spree. The message: the deficit for fiscal year 2020 is huge, and the national debt […]
Corruption is Neither Left nor Right
Corruption is Neither Left nor Right QUESTION: The supporters of the left side and of the state/public sector always mention that the private sector is the one that suffers as in general (ex. 2008/2009 AIG case) the public always comes at the end as a fire brigade to save the world. How would we answer technically […]
