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An Eye on M1, Cyclicals, and Junk Bonds: What Matters?

An Eye on M1, Cyclicals, and Junk Bonds: What Matters? Rosenberg says “Keep an eye on M1”, others watch Cyclicals, and still others have an eye on junk bonds. An Eye on M1 View image on Twitter All of the monetary aggregates have slowed substantially, and real M1 growth is flagging a 1% stall-speed growth economy […]

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An Inflation Indicator to Watch, Part 1

An Inflation Indicator to Watch, Part 1 “Inflation is always and everywhere a monetary phenomenon.” —Milton Friedman Have you ever questioned Milton Friedman’s famous claim about inflation? Ever heard anyone else question it? Unless you read obscure stuff written for the academic community, you’re probably not used to Friedman’s quote being challenged. And that’s despite […]

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The Global Run On Physical Cash Has Begun: Why It Pays To Panic First

The Global Run On Physical Cash Has Begun: Why It Pays To Panic First Back in August 2012, when negative interest rates were still merely viewed as sheer monetary lunacy instead of pervasive global monetary reality that has pushed over $6 trillion in global bonds into negative yield territory, the NY Fed mused hypothetically about […]

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US Money Supply Growth Finally Begins to Crack

US Money Supply Growth Finally Begins to Crack  Breaking Below the Shelf In our recent missive on junk bonds, we inter alia discussed the fact that the growth rate of the narrow money supply aggregate M1 had declined rather noticeably from its peak in 2011. Here is a link to the chart. As we wrote: “We also […]

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How money creation threatens hyperinflation

How money creation threatens hyperinflation In order to understand the relationship between money creation and the price level, we first need to get some definitions straight. To Austrians the terms inflation and deflation refer to money and not prices. There is no doubt that money has experienced unprecedented inflation. In February of 2010 base money […]

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Olduvai IV: Courage
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Olduvai II: Exodus
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