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Category Archives: Economics
Unhappy Thoughts For the Fourth of July
Unhappy Thoughts For the Fourth of July The human race, being a collection of stupids, continues to make decisions that imperil itself. For example, a simple mistake in a warning system about incoming ICBMs can end all life on earth. The supersmart idiots who invented nuclear weapons did not think about the possible unintended consequences of […]
U.S. Stock Market Hits a New Record High, but What’s Really Going On?
U.S. Stock Market Hits a New Record High, but What’s Really Going On? As Americans head off to Independence Day celebrations, they’ll be greeted with a plethora of headlines about record highs in the U.S. stock market. What I find most interesting about the latest bout of exuberance is the fact that priced in gold, […]
You had better memorize the term: de-dol-la-ri-za-tion
You had better memorize the term: de-dol-la-ri-za-tion Some say it was Colonel Muammar Qaddafi, who wanted to dethrone the dollar, and so he paid for it with his own life. Others say it was Iraq’s President Saddam Hussein, who wanted to make settlements in a currency other than the US dollar, and he was hanged. […]
How the Fed Wrecks the Economy Over and Over Again
How the Fed Wrecks the Economy Over and Over Again When people talk about the economy, they generally focus on government policies such as taxation and regulation. For instance, Republicans credit President Trump’s tax cuts for the seemingly booming economy and surging stock markets. Meanwhile, Democrats blame “deregulation” for the 2008 financial crisis. While government […]
Interest Rates, Global Value Chains and Bank Reserve Requirements
INTEREST RATES, GLOBAL VALUE CHAINS AND BANK RESERVE REQUIREMENTS Interest Rates, Global Value Chains and Bank Reserve Requirements Global Value Chains have suffered since 2009 Despite low interest rates, financial costs remain too high Bank profitability has not recovered, yet banks are still too big to fail In a recent speech, Hyun Song Shin, Head […]
Australia Lowers Rate to Historic Low of 1%
Australia Lowers Rate to Historic Low of 1% The Reserve Bank of Australia has cut the official cash rate for the second month in a row to 1%. As we head into the turning point of the Economic Confidence Model come January 2020, the unemployment rate increased to 5.2% in April. GDP growth remains very […]
The Economic Bubble Bath
The Economic Bubble Bath At the end of a long, tiring day, we may choose to treat ourselves to a soothing bubble bath. Surrounded by steaming water and a froth of sweet-smelling bubbles, it’s easy to forget the cares of everyday life. This fact is equally true of economic bubbles. When the markets are up, […]
Rabobank: “There Are Lots Of Comparisons One Can Make To The 1930s At The Moment, None Flattering”
Rabobank: “There Are Lots Of Comparisons One Can Make To The 1930s At The Moment, None Flattering” Yesterday’s 1 July handover day celebrations in Hong Kong did not go as smoothly at all. After rain had forced the flag-raising ceremony indoors for the first time, early clashes between police and protestors were a harbinger of […]
French Bond Yields Slide Below Zero, Hit All Time Record Lows
French Bond Yields Slide Below Zero, Hit All Time Record Lows Ten days ago when global bond yields tumbled amid renewed fears that the global economy was headed for a recession, we reported that a record $13 trillion in global sovereign debt was trading with a negative yield. And while we don’t have the latest numbers from […]
Following in Rome’s Footsteps: Moral Decay, Rising Inequality
Following in Rome’s Footsteps: Moral Decay, Rising Inequality Here is the moral decay of America’s ruling elites boiled down to a single word. There are many reasons why Imperial Rome declined, but two primary causes that get relatively little attention are moral decay and soaring wealth inequality. The two are of course intimately connected: once the […]
Markets Might Hafta Grapple with “Patient”: Fed Rate Cut in July After This Inflation?
Markets Might Hafta Grapple with “Patient”: Fed Rate Cut in July After This Inflation? Not a rate-cut economy. The inflation index that the Fed has anointed to be the yardstick for its inflation target – the PCE price index without the volatile food and energy components – rose 0.19% in May from April, according to […]
No, Autos Are Not “Cheaper Now”
No, Autos Are Not “Cheaper Now” According to the BLS, inflation in the category of “New Vehicles” has been practically non-existent the past 21 years. Longtime readers know I’ve long turned a skeptical gaze at official calculations of inflation, offering real-world analyses such as The Burrito Index: Consumer Prices Have Soared 160% Since 2001 (August 1, 2016) […]
Weekly Commentary: History Rhymes
Weekly Commentary: History Rhymes President Trump and President Xi are meeting in Osaka as I write. We’ll know much more in the morning. Pre-meeting reports had the two sides agreeing to a “truce.” Heading into the meeting, President Trump said progress was made in Friday trade talk preparations, as he seeks to “even it up” […]
Paul Singer Warns A 40% Market Crash Is Coming
Paul Singer Warns A 40% Market Crash Is Coming Earlier today, in a stark reversal from its traditionally cheerful demeanor, a Goldman Sachs strategist warned that “purely based on elevated equity valuations, as measured by the S&P 500 Shiller P/E, and current growth, according to our US Current Activity Indicator (CAI), the risk of an […]
