March Towards Midnight
The march towards (Read More....)
. . . → Read More: Meet Your New Stimulus Allocation Czar
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
“What has been will be again, what has been done will be done again; there is nothing new under the sun,” explained Solomon in Ecclesiastes, nearly 3,000 years ago.
Perhaps the advent of negative yielding debt would have been cause for Solomon to reconsider his axiom. We can only speculate on what his motive would be. As far as our studies have shown, negative interest rates are a brave new (Read More....)
. . . → Read More: More Signs the End is Nigh
The annual company holiday party was held over the weekend at Clearman’s Steak ‘n Stein Inn. As President and Founder, we were compelled to offer some anecdotes. What follows is an extract of our irregular ramblings, including a major announcement…
Take a look around. The Christmas season is here. Some have been naughty. Some have been nice. Many have been both.
We gather here this evening in celebration and commiseration. We’ve experienced both success and failure this year. Unfortunately, for the ninth year running, our humble publishing business ended up on the failure side of the balance ledger. Still, we persist.
In a purely business sense, success is defined by profits and losses. Yet the value of an endeavor cannot always be measured by dollars (Read More....)
. . . → Read More: When Preparation Meets Opportunity
Logic, common sense, and rational deduction are useful means for comprehending the world. But they are merely tools. The user will always be limited by the quality and quantity of the information available and their ability to properly interpret it.
Data and knowledge gaps can lead to false conclusions. A wrong turn in the thought process can lead down a dead end street. Where the economy’s concerned, people must make decisions with incomplete information. That’s why things are often not what they seem.
For example, as night follows day and day follows night, should not price inflation follow the massive $3 trillion Fed balance sheet expansion that’s happened over the last 7-years? Simply connecting the dots quickly leads one to a ‘yes’ conclusion. More money chasing a static number of goods and services should result in price inflation. For prices must rise to balance out all the new money.
This, of course, makes good practical sense. In fact, it might even lead (Read More....)
. . . → Read More: Money Velocity Lethargy
The debt based money system plods along according to plan. The Fed offers unlimited credit. Public and private entities borrow and spend it.
One of the more popular delusions of contemporary culture is disbelieving the money will ever have to be repaid. There’s no logical thesis that we are aware of to support this misconception. But it prevails across the general populace all the same.
Day by day, however, the bills come due. They pile up like wrecked autos on the 405 freeway. Over the last 30 years or so they’ve stacked up beyond what the economy can possibly support.
The breaking point was reached in 2008. We are currently living through the interim period of suspended disbelief. Many aren’t quite ready to accept their new fate. This wasn’t what they’d bargained for.
Scientific management of the economy, as executed by the Federal Reserve System, was supposed to perpetually inflate away each generation’s debts. Not too (Read More....)
. . . → Read More: Black Swan Fledgling – The Debt Crisis Takes Flight