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Today’s Contemplation: Collapse Cometh XCVIII–‘Inevitable’ Growth: Helping To Keep the Profiteer Gravy Train Pumping
Today’s Contemplation: Collapse Cometh XCVIII February 7, 2023 (original posting date) Monte Alban, Mexico. (1988) Photo by author. ‘Inevitable’ Growth: Helping To Keep the Profiteer Gravy Train Pumping The following are two brief comments (followed by a couple of shorter responses to others) I put out on one of my town’s FB pages regarding the ongoing conversation/debate […]
Plunge of Retail Inventories, Collapse of New & Used Vehicle Inventories: The Shortages Depicted in Charts
Plunge of Retail Inventories, Collapse of New & Used Vehicle Inventories: The Shortages Depicted in Charts Inventories at retailers document this mess. Turns out, when the US government spends $5 trillion in borrowed fiscal stimulus over 16 months, and the Fed hands out $4 trillion in monetary stimulus over the same period, causing asset prices […]
New bull chart for $30,000 copper price: porphyries nearly mined out
New bull chart for $30,000 copper price: porphyries nearly mined out Bad moon rising over porphyry deposits. Radomiro Tomic, Chile. Image from Codelco. Predictions for copper at double or triple today’s level is a fairly recent phenomenon – and bears still outnumber bulls as to what’s next for the bellwether metal. Wall Street natural resource […]
Inflation Galore at Manufactures, amid Massive Shifts in Demand, Supply-Chain Snags, Shortages, Lack of Shipping Capacity. And They’re Passing it On
Inflation Galore at Manufactures, amid Massive Shifts in Demand, Supply-Chain Snags, Shortages, Lack of Shipping Capacity. And They’re Passing it On For now, the story is that it’s just temporary. For now, the story is that the sudden and massive shifts in the economy in 2020 have caused shortages and distortions in the goods-producing sectors […]
Dollar’s Purchasing Power Drops to Lowest Ever. Inflation Heats Up, as Fed Wants, After Simultaneous Supply & Demand Shocks
Dollar’s Purchasing Power Drops to Lowest Ever. Inflation Heats Up, as Fed Wants, After Simultaneous Supply & Demand Shocks “We’re not even thinking about thinking about” slowing the decline of the dollar’s purchasing power — and thereby labor’s purchasing power. A supply shock and a demand shock came together during the Pandemic, and it produced […]
Supply and Demand Deconstructed
Supply and Demand Deconstructed Prices are caused by supply and demand, right? So say neoclassical economists. If you’ve bought their fairy tale, I recommend you watch the video below. In it, Jonathan Nitzan demolishes the neoclassical theory of prices. It’s a master lesson in how to deconstruct a theory. Here’s the 100-word summary. Nitzan shows […]
The Global Supply & Demand Shock Of The Coronavirus
The Global Supply & Demand Shock Of The Coronavirus Our analysis of the impact of the Coronavirus is a work in progress and nobody knows the endgame. It is still the early days of the epidemic, and its dynamics will take time to understand. The scale of the impact will depend on how contagious and lethal […]
Oil Sends A “Crude Warning”
Oil Sends A “Crude Warning” As with many Americans, I am on the road with the family making the traditional holiday rounds. Of course, my family is more “The Griswolds” than “The Waltons. but even with all of the antics, comedy, and occasional drama, it is always an enjoyable time of the year. However, I did […]
The World’s Fragile Economic Condition – Part 1
The World’s Fragile Economic Condition – Part 1 Where is the world economy heading? In my opinion, a large portion of the story that we usually hear about how the world economy operates and the role energy plays is not really correct. In this post (to be continued in Part 2 in the near future), I […]
Interest Rates Need to Tell the Truth
INTEREST RATES NEED TO TELL THE TRUTH In the middle of July 2018, President Donald Trump said in an interview that he was “not happy” with the Federal Reserve nudging up interest rates and threatening economic growth in the United States. At the recent Jackson Hole, Wyoming, meeting of global central bank leaders, the Federal […]
The Misconception of Central Banks
The Misconception of Central Banks QUESTION: Mr. Armstrong; I was at the Treasury Management Association of Canada (TMAC) conference in Vancouver when you appeared as a speaker as well as Peter Detallis of the Bank of Canada if I remember his name correctly. I was there at the cocktail party when the Finance Minister of Nova […]
Beyond Supply and Demand: The Dynamic Equilibrium Between Global Thresholds and Allocations
Beyond Supply and Demand: The Dynamic Equilibrium Between Global Thresholds and Allocations As a monetary adviser, I spent many years questioning bankers on the authenticity of their balances sheets. What stood out most for me in these discussions was this: the social demand for commodities is often claimed by banks as having a direct link with the ecological […]
Minimum Wage Fallout Is Caused by Government, Not Businesses
Minimum Wage Fallout Is Caused by Government, Not Businesses Employees don’t magically become more productive because businesses have to pay them more, so they need to make up the losses elsewhere. Both in Canada and in the U.S., many jurisdictions have “listened” to the people and enacted feel-good legislation like increasing the minimum wage, sometimes […]
Why Oil Prices Can’t Bounce Very High; Expect Deflation Instead
Why Oil Prices Can’t Bounce Very High; Expect Deflation Instead Economists have given us a model of how prices and quantities of goods are supposed to interact. Figure 1. From Wikipedia: The price P of a product is determined by a balance between production at each price (supply S) and the desires of those with purchasing […]
Arthur Berman: Why The Price Of Oil Must Rise
Arthur Berman: Why The Price Of Oil Must Rise Why a supply shock is inevitable Geologist Arthur Berman explains why today’s low oil prices are not here to stay, something investors and consumers alike should be very aware of. The crazy-low prices we’re currently experiencing are due to an oversupply created by geopolitics and (historic) […]
