Monthly Archives: January 2016

On some things, Keynes was right

A timely excerpt of Keynes from The Economic Consequences of the Peace, written in 1919. “Lenin is said to have declared that the best way to destroy the capitalist system was to debauch the currency.  By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their …

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Chickens Will Roost

Looks like the chickens are coming home to roost. The policy makers’ global War on their respective nation’s savings by looting it via monetary policy (money printing and credit from thin air), taxes, confiscatory low interest rate policy, etc. is the equivalent of raiding the seed corn and mixing it in with the harvest. Economic …

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Is China at the bottom? Probably Not.

From: A Cheaper Yuan Won’t Help China   “…What’s really driving downward pressure on the yuan are capital outflows as Chinese investors look to get their money out of the country into safer havens such as the U.S.; by some estimates, $1 trillion has left China since the middle of 2014. One can hardly blame …

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Stockman on 1/27/2016

David Stockman has a nice piece that sets in context the recent really from lows in context of the deeper economic structural problems.    The piece is quite good because it mixes current events with layman economic explanations and an excellent summary of how it is we got into this mess: 700 Days In No Man’s …

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Draghi cannot change arrest the laws of economics

I’ve been reading Doug Noland since 2001, and have come to enjoy his commentary for its concise ability to frame what we’re facing. From a critically timed post today titled “Draghi Ready to Fight” The collapse of the Soviet Union coupled with the Greenspan Fed’s push into activist central banking ushered in what was almost …

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Unraveling

2015 steadily confirmed that the global credit bubble was coming unhinged.  Yet mainstream market optimism remained deeply entrenched at precarious heights. As we often noted during the build-up to credit cycle crisis that culminated with the collapse in 2008, there is a Wile E. Coyote phenomenon at work that preys on the psychology of most …

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