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Best Laid Schemes
Best Laid Schemes A Really Neat Bridge But, Mousie, thou art no thy-lane,In proving foresight may be vain;The best-laid schemes o’ mice an’ menGang aft agley,An’ lea’e us nought but grief an’ pain,For promis’d joy! – Robert Burns, To a Mouse, on Turning Her Up in Her Nest With the Plough (in extract), 1785 Installation of the […]
We Are On Our Own In The Post-Covid World
We Are On Our Own In The Post-Covid World It’s time to be our own heroes, because those in charge sure won’t be Even before the coronavirus pandemic hit, things weren’t all that great for the bottom 90% of households. The median household was barely scraping by with ultra-low financial reserves, meager retirement savings and […]
Explaining the credit cycle
Explaining the credit cycle This article summarises why the credit cycle leads to alternate booms and slumps. It is only with this in mind that they can be properly understood as current economic conditions evolve. The reader is taken through three monetary models: a fixed money economy, one governed by changes in bank credit, and […]
Why the Unraveling Will Accelerate
Why the Unraveling Will Accelerate Sclerotic, hidebound institutions optimized for linear stability and permanent growth are simply not designed to adapt to non-linear change and disruption of permanent growth. Since the first news of pandemic in late January, I’ve been discussing potential accelerants to the unraveling of our fragile financial system: second-order effects (initial travel restrictions and layoffs were first-order […]
US Facing Mounting Debt Amid Global Pandemic – ABC
US Facing Mounting Debt Amid Global Pandemic – ABC Good interview with Professor Barry Eichengreen of UC Berkeley, a good friend of GMM, and odds on favorite to be a Nobel laureate one day. We agree with him that now is not the time to worry about the public debt as we are already down this rabbit hole and […]
The Numbers Tell Us That The ‘Economic Recovery’ Is Dead And Businesses Are Failing At A Staggering Pace
The Numbers Tell Us That The ‘Economic Recovery’ Is Dead And Businesses Are Failing At A Staggering Pace Even though economic conditions were absolutely awful, during the month of June the mainstream media kept insisting that the U.S. economy was “recovering” and the stock market kept surging on every hint of good news. But now […]
Media Continues to Misreport Unemployment: 31.8 Million People on State & Federal Unemployment Insurance. Week 18 of U.S. Labor Market Collapse
Media Continues to Misreport Unemployment: 31.8 Million People on State & Federal Unemployment Insurance. Week 18 of U.S. Labor Market Collapse I get tired of reporters or bots who don’t read beyond the 2nd paragraph of Labor Department press releases. 2.35 million initial state and federal unemployment claims. PUA claims (gig workers) now 41% of […]
Shortage of $50 Canadian Bills?
Shortage of $50 Canadian Bills? A reader sent in this photo that was posted at the head office branch of Bank of Montreal in Vancouver, which is one of the largest banks in Canada. This is a trend that is beginning to appear around the world. However, central banks are using the virus as an […]
More Than Half of Business Closures are Permanent
More Than Half of Business Closures are Permanent A Yelp study finds that 55% of business closures are closed for good. Yelp reports Increased Consumer Interest in May correlates with more Covid outbreaks and closures in June and July. Consumer Interest vs Outbreaks Business Closures Fluctuate Across the Nation There were 140,000 total businesses closures on […]
Super Bull
Super Bull You know where I stand: Markets have been bloated to high heaven via unlimited and unprecedented liquidity injections creating the illusion of a bull market when there is none. Yes indices such as $SPX and $NDX show incredible strength driven by a few single stocks, but as we discussed the rest of the […]
Introducing the “Everything Bubble” Sentiment-o-Meter
Introducing the “Everything Bubble” Sentiment-o-Meter Since human wetware remains stuck in OS1.01, we can predict a remarkable reversal. The “Everything Bubble” has been a sight to behold. With central banks providing trillions to the big players and margin debt enabling small punters to leverage up, the hot money rotation has been a real merry-go-round as one asset and […]
Blain’s Morning Porridge, July 23 2020: This time it’s different?
Blain’s Morning Porridge, July 23 2020: This time it’s different? “Bubbles are far more dangerous when they are fuelled by debt” “This time it’s different”, is one of the most dangerous beliefs in financial markets. This time, things are different – but for a reason. Global Central Banks have pumped liquidity into the financial system […]
Federal Reserve IR Policy – Longer, Lower, and ZIRP Until Something (or Everything) Breaks
Federal Reserve IR Policy – Longer, Lower, and ZIRP Until Something (or Everything) Breaks The current interest rate cycle began in August of 2019 when the Fed cut rates from the previous cycle high of 2.4% to 2.1%. The Fed was then fighting the “repo-crisis” in which the Fed was incapable of setting interest rates…and […]
UPDATE: Silver Breaks Out Above $21, What’s Next For Investors?
UPDATE: Silver Breaks Out Above $21, What’s Next For Investors? The long-awaiting day has finally arrived. After five long years, silver has finally reached its previous high of $21 set back in 2016. So, now that the silver price has reached and broken through the $21 level, what’s next for investors? Before I show the […]
