David Stockman Alienates Both Ends of The Political Spectrum
David Stockman wrote an intriguing article which appeared in the NY Times. That it appeared in the Times is noteworthy itself, for it contradicts so…
Great Depression
The Keynesian Legacy Unravels
“Those who cannot remember the past, are condemned to repeat it.” George Santayana Ideology is powerful, capable of masking unpleasant facts. Whether we recognize it…
Polite Pessimism Is Not Warranted
The condition of the US (and world) economy is precarious. Alasdair Sinclair says that money printing is the only thing holding the economy up: We are…
Why Are Interest Rates So Low?
For those who think bonds are a safe place to be, you might want to reconsider. In addition to rising sovereign risk (yes, for the…
Why High Inflation Is Inevitable
How this economic disaster ends is something about which many of us speculate. Two extreme endings are likely — a sudden deflationary collapse or a period of very high inflation/hyperinflation which ultimately cripples commerce and resolves itself in a deflationary collapse. In either case, the deflationary collapse is another Great Depression.
It is important to know which route will occur because of what will happen to asset values along the way. A move directly into a Great Depression will depress severely most asset values, especially common stocks, housing and other hard assets. Bonds, cash and fixed incomes may be beneficiaries in the sense that their purchasing power increases.
If the Great Depression is preceded by hyperinflation, just the opposite will happen, at least through the transition stage. Cash, fixed incomes and bonds will be devalued, perhaps even wiped out, if the hyperinflation is severe. Stocks, housing and other assets are likely
The Future Is Determined By the Past
Even if the economy improves (it won’t in any real sense), the changes coming to this country border on the unimaginable for both the enlightened…