What Comes Next; Part 1, Useful History of the 20th Century
Value as a foundation seems almost too literal to be an economic or financial concept, but it is perhaps the bedrock association that makes the economic system. We are used to aspects like profits and...
View ArticleFed’s New Slogan: We Have Met The Enemy And He Is Us
If the consequences for the economy were less important one couldn’t help but be amused by the predicament in which Janet Yellen finds herself today. She and her fellow Fed travelers have been...
View Article‘Lower For Longer’ Is A Fool’s Mantra
Asset markets on Friday reversed course after fully digesting a payroll report that has been universally assailed. The thinking is, apparently, that the Fed will have no choice but to stay on the...
View ArticleSwap Spreads Implicate Huge ‘Dollar’ Divergence
You wouldn’t know it from stock trading or commodities, but when China reopened after its latest Golden Week holiday there was an obvious effect. Stocks have continued to surge while commodities...
View ArticleThe Calm Before The Storm?
Stocks rallied again last week, up a bit less than 1% as weak economic data pushed out – again – expectations for the first Fed rate hike to March of next year. I suspect this won’t be the last week...
View ArticleBefore the Devil Knows You’re Dead
Something rather strange is going on. Ten year Treasury yields and gold are simultaneously envisaging inflation and deflation. Yields on the ten year Treasury note have jumped from 1.98 percent to...
View ArticleWe Know How This Ends, Part 1
The finance ministers and representatives of central banks from the world’s ten largest “capitalist” economies gathered in Bonn, West Germany on November 20, 1968. The global financial system was then...
View ArticleThe Financial Fractioning of Gold——A Deep Dive Into What Ails It
The simple fact of the matter is that gold is no longer money and hasn’t been treated that way in decades. It is a frustrating and often woeful outcome, but deference isn’t a reason to color judgement....
View ArticleAlan Greenspan’s Pickled Economy
Former Federal Reserve Chairman Alan Greenspan resurfaced this week. We couldn’t recall the last time we’d heard from him. But, alas, the old fellow’s in desolate despair. On Tuesday, for instance,...
View ArticleGold Stampede Ahead
The mass impulse of a cattle stampede can be triggered by something as innocuous as a blowing tumbleweed. A sudden startle, or a perceived threat, is all it takes to setoff this mass uncontrolled...
View ArticleWhat Comes Next; Part 2, The Looming Transformation
Part 1 is here, the history of defining systemic operation since 1907. The quest over equality or the “right” to impose optimal outcomes is one that cannot go backward. The inevitable failures lead no...
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Factory Orders Down 6.5% Y/Y, Below April 2013
If there is some small gain to be had from current economic circumstances, it might be a lesson in what the dollar is and what it is not. Just a few months ago the idea of the “strong dollar” was...
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