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How Easy Money Is Rotting America from the Inside-Out
How Easy Money Is Rotting America from the Inside-Out How much of our gleaming new infrastructure will fall into disrepair? The Federal Reserve has been the main cause of business cycles in America since 1913. For several decades, it has tried to hide the consequences of its policies by enabling easy credit during each recession. […]
World’s Biggest Ever Junk Bond Bubble in Pictures: What Hath Draghi Wrought?
World’s Biggest Ever Junk Bond Bubble in Pictures: What Hath Draghi Wrought? In regards to ECB QE bond purchases, inquiring minds may be asking: What hath ECB president Mario Draghi wrought? I can explain in one picture. The answer in words: The world’s biggest junk bond bubble. I prefer gold. On August 4, I commented on […]
The 5 Steps to World Domination
The 5 Steps to World Domination You don’t need an army to achieve World Domination; all you need is enough cheap credit to buy up everything that generates the highest value and/or income. World Domination–it has a nice ring, doesn’t it? Here’s how to achieve it in 5 steps: 1. Turn everything into a commodity […]
2016 Theme #5: The Systemic Failure of High Finance
2016 Theme #5: The Systemic Failure of High Finance This week I am addressing themes I see playing out in 2016. A number of systemic, structural forces are intersecting in 2016. One is the failure of high finance to fix the global economy’s systemic problems. The operative conceit of the past 7 years has been […]
Carnage in US Natural Gas as Price Falls off the Chart
Carnage in US Natural Gas as Price Falls off the Chart All eyes are on Chesapeake. The price of natural gas in the US has gotten completely destroyed. The process started in July 2008, at over $13 per million Btu and continues through today, at $1.77 per million Btu. In between, natural gas traded at […]
Our “Star Wars” Economy: The Fed-Farce Awakens
Our “Star Wars” Economy: The Fed-Farce Awakens The Fed’s hubris has led it to the Dark Side. It’s not just a movie, it’s real life: the Fed-Farce awakens. Now that the Federal Reserve has finally voted to “restore order to the galaxy” with a tiny .25% rate increase, the true measure of our travesty of a mockery […]
Sell The Bonds, Sell The Stocks, Sell The House —–Dread The Fed!
Sell The Bonds, Sell The Stocks, Sell The House —–Dread The Fed! There is going to be carnage in the casino, and the proof lies in the transcript of Janet Yellen’s press conference. She did not say one word about the real world; it was all about the hypothecated world embedded in the Fed’s tinker toy […]
On US Interest Rates
On US Interest Rates The first US interest rate increase since June 2006 is a pivotal moment for the global economy, launching what Mohamed El-Erian, Chief Economic Adviser at Allianz, calls the “great policy divergence,” with repercussions in every region and financial market. The impact will be particularly powerful in emerging countries, where currencies are vulnerable to […]
The zombie apocalypse in oil: Why it’s a bad sign for all of us
The zombie apocalypse in oil: Why it’s a bad sign for all of us The dramatic drop in oil prices has created what are called “zombie” companies, oil companies which can still afford to pay interest on huge debts, but little else. If oil prices stay low, the problem is likely to spread and become an […]
If We Don’t Change the Way Money Is Created and Distributed, Rising Inequality Will Trigger Social Disorder
If We Don’t Change the Way Money Is Created and Distributed, Rising Inequality Will Trigger Social Disorder Centrally issued money optimizes inequality, monopoly, cronyism, stagnation, low social mobility and systemic instability. If we don’t change the way money is created and distributed, wealth inequality will widen to the point of social disorder. Everyone who wants […]
Political Climate Shifting Against The Oil And Gas Industry
Political Climate Shifting Against The Oil And Gas Industry Oil and gas companies have had a tough time over the past year trying to weather the storm of falling oil prices. But the political and financial winds are moving in the wrong direction for the industry, raising more “above ground” problems at a time that […]
How the easy money boom ends
How the easy money boom ends Through the door there came familiar laughter I saw your face and heard you call my name Oh, my friend we’re older but no wiser For in our hearts the dreams are still the same Those were the days – “Those Were the Days” by Gene Raskin POITOU, France […]
Experts Fear a Stealth Crash Has Already Begun: “Risk is Flashing Red”
Experts Fear a Stealth Crash Has Already Begun: “Risk is Flashing Red” It is more clear than ever that the Federal Reserve’s quantitative easing program will eventually bring destruction to the planet. The world doubled down on risk after the 2008 crisis with nearly unlimited liquidity, and now debt is threatening to drown the global […]
This Is Why It’s Going to Get Even Tougher
This Is Why It’s Going to Get Even Tougher The third quarter was tough for US corporations. Worse than the prior two quarters. They got waylaid by weak global demand and lack of pricing power. The easiest way to increase revenues and profits is to raise prices, so via inflation, but that strategy isn’t working […]
