A Crucial Priority
This month the bright fellows at Harvard Business School came out with a (Read More....)
. . . → Read More: Harvard Report Whiffs on Fed Price Fixing Scheme
Larded Up and Larded Over
We’ve been waiting for the U.S. economy to reach escape velocity for the last six years. What we mean is we’ve been waiting for the economy to finally becomes self-stimulating and no longer require monetary or fiscal stimulus to keep it from stalling out. Unfortunately, this may not be possible the way things are going.
In short, the U.S. economy may never reach escape velocity unless it is first allowed to crash. It has been too larded up and larded over with debt for any real sustainable growth to take root. More evidence, to this effect, was revealed this week.
For example, the International Monetary Fund (IMF) anticipates the U.S. economy will expand by just (Read More....)
. . . → Read More: Doomed for Failure
The present day offers the opportunity for many incredible experiences. Perhaps one of the most rewarding of all is bearing witness to the final days before the greatest economic crackup the world’s ever known. Not since Nero clipped coins in 64 A.D. and fiddled as Rome burned has there been such an intolerable collection of dingleberries in imperial office.
John Maynard Keynes, the godfather of modern day economic planning, in his 1919 work, The Economic Consequences of the Peace, wrote: “There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency.”
Incidentally, Keynes attributed this acute insight to another innovative central planner, one Vladimir Lenin. Regrettably, these two visionaries predicted today’s present state of affairs with remarkable (Read More....)
. . . → Read More: Mass Money Debauchery
by MN Gordon
What Have You Done for Me Lately?
Swing voters are a fickle bunch. One election they vote Democrat. The next they vote Republican.
For they have no particular ideology or political philosophy to base their judgement upon. They don’t give a rip about questions of small government or big government. Nor do they have any druthers about the welfare or warfare state.
In effect, they really don’t care. What’s important to the swing voter is much simpler. In fact, it can be boiled down to the following essential question. What have you done for me lately?
The answer to this question, of course, comes back to money. As far as the swing voter’s concerned, if their brokerage account’s growing they vote the incumbent (Read More....)
. . . → Read More: Why the Fed Destroyed the Market Economy
by MN Gordon
Global Trade Reversal
Expansions and contractions in global trade have played out over long secular trends for thousands of years. The Silk Road, for example, was established by the Han Dynasty of China in 130 BC, and allowed for continuous trade between east and west for nearly 1,600 years. In addition to economic trade, the Silk Road was also a conduit for culture and knowledge among its network of civilizations.
However, this trade route eventually came to an end. When the Byzantine (Read More....)
. . . → Read More: Hanjin Marooning in San Pedro Bay
by MN Gordon
How to Decipher the News
“Markets make opinions,” says the old Wall Street adage. Perhaps what this means is that when stocks are going up, many consider the economy to be going great. Conversely, when stocks tank it must be because the economic sky is falling.
For both scenarios the opinions range far and wide. A rising NASDAQ may compel a tech aficionado to proclaim we’re on the cusp of a new digital revolution. Falling manufacturing stocks may compel a protectionist to proclaim it (Read More....)
. . . → Read More: Shrewd Financial Analysis in the Year 2016
by MN Gordon
No CPI Change