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Philip Haslam: When Money Destroys Nations
Philip Haslam: When Money Destroys Nations Understanding how currencies collapse The global debt glut, plus the related money printing efforts by the world’s central banks to try to stimulate further credit growth at all costs, leads us to conclude that a major currency crisis — actually, multiple major currency crises — are practically inevitable at […]
Amid “US Coup”, Venezuela Takes Another $5 Billion Loan From China
Amid “US Coup”, Venezuela Takes Another $5 Billion Loan From China The people of Venezuela can rejoice… not so fast. Amid paranoid-sounding (though not unlikely) rantings about US-created coups (and blaming ‘economic’ war for his nation’s Socialist utopia hyperinflation), it appears President Maduro just got another life-line (or more rope to hang himself). After begging China’s leader […]
Understanding True Credit and False Credit
Understanding True Credit and False Credit There are two kinds of credit: that which would be offered in a market economy with sound money and banking (true credit), and that which is made possible only through a system of central banking, artificially low interest rates, and fractional reserves (false credit). Banks cannot expand true credit […]
SPIEGEL Interview with Greek Prime Minister Tsipras: ‘We Don’t Want to Go on Borrowing Forever’
SPIEGEL Interview with Greek Prime Minister Tsipras: ‘We Don’t Want to Go on Borrowing Forever’ Alex Tsipras seems almost inconspicuous as he stands in his enormous office in Athens’ Maximos Mansion, and very relaxed. Greece’s new, 43-year-old leftist prime minister, a thorn in the side of German leaders in Berlin, has a soft handshake. On the […]
Is the IMF About to Make Greece an Offer It Can’t Refuse?
Is the IMF About to Make Greece an Offer It Can’t Refuse? “The bailout programs that were proposed for Greece and approved for Greece were much too one-sided. They relied too much on sacrifices on the part of Greece and not enough sacrifices on the part of Greece’s creditors.” These words belong to a Brazilian economist called Paulo Nogueira Batista Jr. who […]
The One Chart You Need to Predict the Future
The One Chart You Need to Predict the Future We are witnessing a profound secular sea-change: the failure of expanding debt and leverage to lift the real economy of wages and household income. When push comes to shove, you only need one chart to predict the future: debt and wages ( credit and compensation). This […]
The Global Problem: Monetary Policy Can’t Fix an Economy’s Structural Problems
The Global Problem: Monetary Policy Can’t Fix an Economy’s Structural Problems When we look back from 2025, it will be painfully obvious that central bank policies exacerbated the systemic crises that brought down the global financialization machine. What with all the praise being heaped on central banks for “saving” the world from economic doomsday in […]
BREAKING BAD (DEBT) – EPISODE ONE
BREAKING BAD (DEBT) – EPISODE ONE “At this juncture, the impact on the broader economy and financial markets of the problems in the subprime market seems likely to be contained.” – Fed chairman, Ben Bernanke, Congressional testimony, March, 2007 “Capitalism without financial failure is not capitalism at all, but a kind of socialism for the rich.” –James Grant, […]
Failed Discipline, Failed Reforms and Grexit: Why the Euro Failed
Failed Discipline, Failed Reforms and Grexit: Why the Euro Failed There is no substitute for the discipline of a market that cannot be manipulated by political elites. It’s not that difficult to understand why the euro is doomed to fail. Given its structure, there is no other possible outcome but failure. Greece’s exit (Grexit) will simply […]
Rates Don’t Matter–Liquidity Matters
Rates Don’t Matter–Liquidity Matters The cure for systemic fragility is not low interest rates forever–it’s a market that transparently prices credit and risk for lenders and borrowers, qualified and marginal alike. One of the most unquestioned narratives out there is that the Federal Reserve raising interest rates from 0% to .25% (or .50%) will crush […]
Norway Regulator Fears Housing Bubble “Isn’t Sustainable”
Norway Regulator Fears Housing Bubble “Isn’t Sustainable” Amid the collapse in crude oil prices, the Norwegian central bank cut rates in December (after 1000 days on hold) and is likely to cut again as economic growth stalls. However, the country’s financial regulator iswarning falling interest rates risk pushing the Norwegian housing market beyond its breaking […]
The Scale Of The Chinese Real Estate Crash Is Terrifying
The Scale Of The Chinese Real Estate Crash Is Terrifying We hear a great deal about the credit binge in advanced economies that helped lay the foundation for the 2008 financial crisis and is also widely blamed for holding back the pace of the recovery. Well, while the West has been unwinding some of this […]
When This Ends, Everybody Gets Hurt
When This Ends, Everybody Gets Hurt And the end is uncomfortably close Central banks around the globe have taken us all into unchartered territory, where the possible paths boil down to a binary outcome: either it all works out or it doesn’t. Unfortunately, the ‘it all works out’ outcome has a very low probability of […]
Exter’s Pyramid “In Play” (And Is Martin Armstrong Right?)
Exter’s Pyramid “in play” (and is Martin Armstrong right?) In a global debt bubble, it concerns us when the benchmark debt security still looks good value, albeit on a relative basis. In spite of this, the consensus is (once again) calling for higher US yields and FOMC “lift off.” The two-year Treasury yield has […]
The Fed and the Price of Oil
The Fed and the Price of Oil Given the potential for financial losses triggered by oil’s price collapse to cascade into the financial sector at large, the Fed may well be forced to intervene either directly or indirectly. An email dialog with correspondent Mark G. last month alerted me to the key role the Federal […]
