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Wall Street Has Now Morphed Into A Full Blown Soviet Sausage Factory
Wall Street Has Now Morphed Into A Full Blown Soviet Sausage Factory To paraphrase the police officer who told me my old neighborhood had burned down during the 2017 NorCal fires, “the markets are no more.” After the Fed announced it is bailing out junk bonds today, Wall Street has now morphed into a full-blown “Soviet […]
Monetary failure is becoming inevitable
Monetary failure is becoming inevitable This article posits that there is an unpleasant conjunction of events beginning to undermine government finances in advanced nations. They combine the arrival of a long-term trend of rising welfare commitments with an increasing certainty of a global-scale credit crisis, in turn the outcome of a combination of the peak […]
Weekly Commentary: The Perils of Stop and Go
Weekly Commentary: The Perils of Stop and Go Please join Doug Noland and David McAlvany this coming Thursday, April 18th, at 4:00PM EST/ 2:00pm MST for the Tactical Short Q1 recap conference call, “What are Central Banks Afraid of?” Click here to register. China’s Aggregate Financing (approximately system Credit growth less government borrowings) jumped 2.860 billion […]
The Bank Of Japan Bought 5.6 Trillion Yen In Stocks Last Year
The Bank Of Japan Bought 5.6 Trillion Yen In Stocks Last Year There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final […]
The Art of Defaulting
The Art of Defaulting … the debt-financed overspending of the 1960s had continued into the early 1970s. The Fed had funded this spending with easy-credit policies, but by paying back its debts with depreciated paper money instead of gold-backed dollars, the U.S. effectively defaulted. Ray Dalio Principles for navigating big debt crises Ray Dalio of […]
Clinging to Old Theories of Inflation
Clinging to Old Theories of Inflation QUESTION: Mr. Armstrong, I think I am starting to understand your view of inflation. It is very complex. I think some people cannot think beyond a simple one dimension concept as you often say. So I am trying to be more dynamic in my thinking process. Here you point […]
How “Wealthy” Would We Be If We Stopped Borrowing Trillions Every Year?
How “Wealthy” Would We Be If We Stopped Borrowing Trillions Every Year? These charts reflect a linear system that is wobbling into the first stages of non-linear destabilization. The widespread presumption is the U.S. is wealthy beyond words, and will remain so as far as the eye can see: wealthy enough to fund trillion-dollar weapons […]
Our “Prosperity” Is Now Dependent on Predatory Globalization
Our “Prosperity” Is Now Dependent on Predatory Globalization Nowadays, trade and “prosperity” are dependent on currencies that are created out of thin air via borrowing or printing. So here’s the story explaining why “free” trade and globalization create so much wonderful prosperity for all of us: I find a nation with cheap labor and no […]
China Announces New Stimulus Measures
China Announces New Stimulus Measures Another day, another stimulus announcement by China. One day after Beijing threw in the towel, and in addition to monetary easing announced it would be far more “proactive” in fiscally stimulating the country, Chinese banks received notice from regulators on Wednesday that a core capital requirement will be eased in […]
Inflation Rearing Its Ugly Head
Inflation Rearing Its Ugly Head The world of finance and investment, as always, faces many uncertainties. The US economy is booming, say some, and others warn that money supply growth has slowed, raising fears of impending deflation. We fret about the banks, with a well-known systemically-important European name in difficulties. We worry about the disintegration […]
Deutsche Bank: This Does Not Make Sense
Deutsche Bank: This Does Not Make Sense Amid the growing debate whether rates will keep rising once they hit 3.00%, or they will fall as asset managers find the new level attractive enough to dip their toes and buy duration, one analyst laughs at everyone calling for lower rates from here onward. In a note […]
Dutch Central Bank Warns Of Market Calm Before The Storm:
Dutch Central Bank Warns Of Market Calm Before The Storm: With one foot out of the door of Germany’s finance ministry, the former head of the German economy, Wolfgang Schäuble, 75, delivered a fire and brimstone warning over the weekend, telling the FT in an interview that there was a danger of “new bubbles” forming […]
Money Multiplier is Really About Credit Out of “Thin Air”
MONEY MULTIPLIER IS REALLY ABOUT CREDIT OUT OF “THIN AIR” According to traditional economics textbooks, the current monetary system amplifies the initial monetary injections of money. The popular story goes as follows: if the central bank injects $1 billion into the economy and banks have to hold 10% in reserve against their deposits the initial […]
The Chart of Doom: When Private Credit Stops Expanding…
The Chart of Doom: When Private Credit Stops Expanding… Once private credit rolls over in China and the U.S., the global recession will start its rapid slide down the Seneca Cliff. Few question the importance of private credit in the global economy. When households and businesses are borrowing to expand production and buy homes, vehicles, etc., […]
The Chart That Explains Everything
The Chart That Explains Everything Why is the economy barely growing after seven years of zero rates and easy money? Why are wages and incomes sagging when stock and bond prices have gone through the roof? Why are stocks experiencing such extreme volatility when the Fed increased rates by a mere quarter of a percent? […]
