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What’s Wrong with the Economy: 9 Toxic Dynamics

What’s Wrong with the Economy: 9 Toxic Dynamics These nine dynamics are mutually reinforcing. Beneath the surface signals of an eternally rising stock market and expanding GDP, we all sense something is deeply, systemically wrong with the U.S. economy. These nine structural dynamics generate secondary dynamics, all of which are toxic to social mobility, sustainable […]

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Weekly Commentary: Q1 2018 Z.1 Flow of Funds

Weekly Commentary: Q1 2018 Z.1 Flow of Funds The first-quarter 2018 Z.1 “flow of funds” report can be viewed in two ways. From one perspective, key conventional data are un-extraordinary. Household debt expanded at a 3.3% rate during the quarter, down from Q4’s 4.6%. Home Mortgage borrowings slowed from 3.4% to 2.9%. Total Business debt […]

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The Gently Rotting Debt-Ridden EU

The Gently Rotting Debt-Ridden EU The EU as a political construction is in a state of terminal decay. We know this for one reason and one reason alone: its core principle is the state is superior to its people. A system of government can only work over the longer term if it recognises that it […]

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America Goes Full Imbecile

America Goes Full Imbecile Credit has a wicked way of magnifying a person’s defects.  Even the most cautious man, with unlimited credit, can make mistakes that in retrospect seem absurd.  But an average man, with unlimited credit, is preeminently disposed to going full imbecile.   Let us not forget about this important skill…  [PT] Several […]

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Debt Doesn’t Matter, Because “We Owe It to Ourselves”? Why Krugman and Keynes Are Wrong about This

Debt Doesn’t Matter, Because “We Owe It to Ourselves”? Why Krugman and Keynes Are Wrong about This It is an undeniable fact that debt, whether private or public, must, eventually, be repaid. Creditors have better memories than debtors. This elegant line was coined by Benjamin Franklin—political philosopher, prolific writer, humorist and American ambassador to France. […]

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Total U.S. Public Debt & Interest Expense Hit A New Record High

Total U.S. Public Debt & Interest Expense Hit A New Record High The total U.S. public debt hit a new record high of $21.145 trillion on the last day in May.  As the U.S. debt increased, so did the interest expense which jumped by more than $26 billion in the first seven months of the […]

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Ten Ways the Democratic Northern Hemisphere Nations Became the Orwellian West

Ten Ways the Democratic Northern Hemisphere Nations Became the Orwellian West In his book, “1984”, George Orwell envisioned a future crushed by the iron grip of a collectivist oligarchy. The narrative told of the INGSOC Party which maintained power through a system of surveillance and brutality designed to monitor and control every aspect of society.  […]

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One Word: Contagion

One Word: Contagion Terrible news, I’m afraid. The trainwreck that is Italian politics has always been a hoot to watch. But this time around the implications to what happens in Rome are, as Trump would say, yuuuge. You’ve probably seen the news-flow out of Europe. Tasked with finding a suitable candidate to head a coalition […]

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Flip This Well: How Fracking Company CEOs Get Rich While Losing Billions

Flip This Well: How Fracking Company CEOs Get Rich While Losing Billions Last year the fracking company Halcón Resources announced a new strategy that was sold as the path to profits for the previously troubled shale oil and gas firm. The company had sold its stake in the Bakken oil fields in order to double down […]

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Blowing Up: The Italian Debt Crisis, the Experts That Missed it – And What’s Next

Blowing Up: The Italian Debt Crisis, the Experts That Missed it – And What’s Next With the crisis unfolding in Italy, I can’t help but remember the lessons from the underrated book – Fat Tail by Ian Bremmer. This book is an excellent read and explains how political risks can lead to severe economic and social risks. […]

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GLOBAL FINANCIAL BREAKDOWN CONTINUES: Economic Growth Chokes On Massive Debt Increases

GLOBAL FINANCIAL BREAKDOWN CONTINUES: Economic Growth Chokes On Massive Debt Increases The U.S. and global economies are choking on a massive amount of debt.  While Wall Street and the Mainstream financial media continue to rationalize the skyrocketing debt as merely the cost of doing business, the disintegrating fundamentals point to an economic catastrophe in the […]

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Why America Is Heading Straight Toward The Worst Debt Crisis In History

Why America Is Heading Straight Toward The Worst Debt Crisis In History Today, America is nearly 70 trillion dollars in debt, and that debt is shooting higher at an exponential rate.  Usually most of the focus in on the national debt, which is now 21 trillion dollars and rising, but when you total all forms […]

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Fed’s Dilemma: Debt-to-GDP Ratios Dramatically Understate the Debt Problem

Fed’s Dilemma: Debt-to-GDP Ratios Dramatically Understate the Debt Problem Reader Lars writes Debt-to-GDP ratios understate the true nature of the problem. He uses Greece as an example. Reader Lars from Oslo, the capital of Norway, and a long-time reader of this blog, questions the widespread use of debt-to-GDP as the true measure of the debt […]

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Canadian Banks See Mortgage Growth Stall As Interest Rates Rise

Canadian Banks See Mortgage Growth Stall As Interest Rates Rise As anybody who was around for the housing collapse will remember, nothing bursts a bubble in home prices faster than rising mortgage rates. And while US home prices have surpassed their pre-crisis peak, Canadian home prices have risen much more quickly than home prices in […]

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A Summer Of Disappointments Will Lead To An Extended Economic Crash

A Summer Of Disappointments Will Lead To An Extended Economic Crash The summer season is often about renewed hope and revelry in comfort, and this goes for economic comfort as much as anything else. In parallel to the old tale of The Ant And The Grasshopper, we are all tempted to act like the grasshopper, […]

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Olduvai IV: Courage
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Olduvai II: Exodus
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