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How to Prepare For the Coming Wealth Grab
How to Prepare For the Coming Wealth Grab And here comes the next round of stimulus. As long as large portions of the economy remain on lockdown, the government will be forced to perform massive stimulus programs/ social spending. As I write this Friday morning, the House is preparing to vote on a $3 trillion […]
Weekly Commentary: Global Bubbles are Deflating
Weekly Commentary: Global Bubbles are Deflating “Bubble” is commonly understood to describe a divergence between overvalued market prices and underlying asset values. And while price anomalies are a typical consequence, they are generally not among the critical aspects of Bubbles. I’ll start with my basic definition: A Bubble is a self-reinforcing but inevitably unsustainable inflation. […]
Here’s What Would Happen If The Fed Launched Negative Rates
Here’s What Would Happen If The Fed Launched Negative Rates On Thursday, May 7, an unprecedented event took place: after a violent repricing in Eurodollar contracts as near as November 2020, for the first time ever the market was pricing in that negative interest rates are not only coming to the US, but would arrive […]
Globalization and Financialization Are Dead, and so Is Everything That Depended on Them
Globalization and Financialization Are Dead, and so Is Everything That Depended on Them Financialization was never sustainable, and neither was the destructive globalization it enabled. All the happy-story analogies to past pandemics being mere bumps in the road miss the mark. A popular claim is that the 1918-1919 flu pandemic killed millions but no biggie, the […]
Industrial Production Declines Most in 101 Years
Industrial Production Declines Most in 101 Years On the heels of miserable retail sales numbers comes the worst ever industrial production numbers. The Fed’s Industrial Production report provides another grim look at the Covid-19 wrecked economy. Total industrial production fell 11.2 percent in April for its largest monthly drop in the 101-year history of the index, as […]
Petrobras Expects Permanent Damage to Oil Demand as It Writes Off Billions In As
Petrobras Expects Permanent Damage to Oil Demand as It Writes Off Billions In As Petrobras has warned its shareholders that the coronavirus pandemic could leave a permanent mark on the global economy, including on consumer behaviors, as it reported a first-quarter loss and massive writeoffs on assets that have stopped being economical. The company booked a $9.7 […]
How to Maintain a Bull Market After Coronavirus
HOW TO MAINTAIN A BULL MARKET AFTER CORONAVIRUS Everyone thinks they know the cause and effect of the Federal Reserve’s response to crises such as 2008 and 2020. The Fed prints money to buy assets. This increases the quantity of money. And this causes prices to rise. The Fed wants this, because it thinks that inflation eases the burden on […]
It’s Time to Investigate the Players to Prove the Public Has Been Manipulated for Personal Gain
It’s Time to Investigate the Players to Prove the Public Has Been Manipulated for Personal Gain COMMENT: Marty; it seems you write and other do listen. I remember when you posted that China should stop buying bond from the bankers at inform the Treasury they will only buy directly. The US never did that. They did […]
The Fed’s Visible Hand: Powell Buys $305 Million In ETFs In Two Days
The Fed’s Visible Hand: Powell Buys $305 Million In ETFs In Two Days On Tuesday, the US officially crossed over into some bizarro version of a crony, centrally-planned mandated pricing model that is anything but a market when the Fed started buying corporate bond ETFs for the first time ever. Then, moments ago in its […]
No Stimulus for the Weary: The US is Now Sitting on an Inflation Time Bomb
No Stimulus for the Weary: The US is Now Sitting on an Inflation Time Bomb The White House budget office doesn’t know if the $2.2 Trillion-dollar stimulus package and Trump’s $1,200 stimulus checks might cause an inflationary spiral. But many economists have no doubt it will. The consequences of the $2.2 trillion stimulus package are […]
No to the ECB madness
No to the ECB madness The latest ruling of the Federal Constitutional Court is a drop of bitterness in the idyll of the ECB’s excessive money printing. What Super Mario (Draghi) did and what the IMF-imported Christine Lagarde mercilessly continues – 2.6 trillion euros (since 2015), invested in government, corporate and other securities to boost […]
The Biggest Economic Threat Today
The Biggest Economic Threat Today Kind heaven, no! A fresh economic scourge is upon the land. Announces CNN: “New Threat to the Economy: Americans Are Saving Like It’s the 1980s.” Is a higher evil possible? Thus we are informed: Americans are slashing their spending, hoarding cash and shrinking their credit card debt as they fear […]
Panic Sets In: Fed Promotes More Free Money
Panic Sets In: Fed Promotes More Free Money Lawmakers need to do more says Minneapolis Fed President Neel Kashkari. Free Money for 18 Months The Fed cannot directly give money away so that burden falls on Congress. Kashkari follows Fed Chair Jerome Powell in seeking Congressional Action. “They are going to need more. If this is […]
The Black Death Killed Feudalism. What Does COVID-19 Mean for Capitalism?
The Black Death Killed Feudalism. What Does COVID-19 Mean for Capitalism? How will the coronavirus transform the relationship between state and market? A look at oil, food, and finance. Shutterstock You pay little attention to the systems of your body — circulatory, digestive, pulmonary — unless something goes wrong. These automatic systems ordinarily go about […]
