Financial Markets — Rated “R”

Financial markets are complex in normal times. When government is actively supporting them, they only become more so and more dangerous. If today’s financial markets were rated like movies, they would be rated “R” (perhaps, “X”). Whether the “R” stands for risky or restricted is immaterial. These markets are not for the naive or unseasoned investor. Traditional metrics no longer [...]

Got Gold?

Got Gold? If not, don’t feel bad. Neither does Germany even though they requested their gold back and it didn’t come. According to Reuters: Germany’s plan to bring back the nation’s gold reserves to Frankfurt by 2020 has fizzled, and instead has for now decided to leave $635 billion of gold in US vaults. What is going on here? When [...]

Why You Feel Poorer

You feel poorer because you are poorer. In the last fourteen years, has your income increased over 50%? If you think it has, has it done so after taxes? Even if it has, you likely have not kept up in terms of inflation. If you are a retiree, living on fixed income, a pension or bonds, you certainly have become poorer. If [...]

“JobsFraud” Report — Half Million Full-Time Jobs Gone

The market seems desperate for good news as it responded the the jobs report. It actually was a lousy jobs report! Why markets reacted to the upside on this information is beyond me. Let’s call the headline number “jobsfraud.” If businesses reported information this carelessly they would be taken to court. This graph courtesy of Zerohedge is all that is [...]

America’s Future

It is easy to describe why a nation dies from an economic standpoint, although that requires following a complex chain of reasoning. Most people learn and understand from experience and dismiss such argument as “theory.” That is why a video like the this one is invaluable. Most people, no matter how dull, can understand something they can see or touch. [...]

Price Inflation Begins

The notion that inflation is not something to worry about is beginning to be questioned. Actually, anyone that understands monetary economics or the true definition of inflation knows that it has already occurred. Now it is beginning to show up in prices of food, energy and other commodities. Here are two headlines from Zerohedge: Gold Spikes To 3-Month Highs Copper Surges To [...]

Killing The Golden Goose

First quarter GDP results, announced yesterday, declined 2.9%. Is that a sign that we are killing the golden goose? Whether it signals death or not, it certainly indicates something is very wrong. This number comes on top of the pretense of an economic recovery, one which allegedly has taken five years as opposed to a more typical  five months to develop. Killing The [...]

The New Crash Course

Long-time readers of this site know my respect for Chris Martenson and his Crash Course. Several years ago I recommended readers view his Crash Course, an interesting, simple presentation explaining why our current path is unsustainable.  I used this video as an integral part of a course I was then teaching on the 2007 collapse. Matters have not improved since then and Mr. Martenson [...]

How A Country Dies

A country dies slowly. Those living during the decline of Rome were likely unaware that anything was happening. The decline took over a couple of hundred years. Anyone living during the decline only saw a small part of what was happening and likely never noticed it as anything other than ordinary. Countries don’t have genetically determined life spans. Nor do they die quickly, [...]

Looks Like A Market Trap

The divergence between the level of stock prices and economic activity looks like a market trap waiting to be sprung. Zerohedge summarized the current madness: One supremely smart CNBC talking head summed it all up, “today’s negative GDP number was excellent news,” and sure enough, thanks to someone’s multi-billion-dollar bid at the all-time-highs mid-afternoon, we went to the moon, Alice. Trannies [...]

Inflation Coming?

The issue of inflation versus deflation should not be a discussion of debate. The proper definition of inflation is an increase in the money supply. By that definition, there has been massive inflation since 2008. The bastardized definition of inflation, the one that is most commonly used by layman (and increasingly by economists) deals with the rate of price changes, typically as [...]

Death Rattle of a Country

What Is A Death Rattle? Wikipedia defines a death rattle as the sound often heard before death: A death rattle, known clinically as terminal respiratory secretions or simply terminal secretions,[1] is a sound often produced by someone who is near death when fluids such as saliva and bronchial secretions accumulate in the throat and upper chest.[2] Economies do not utter sounds in any stage of existence. But the health [...]