Monday was the day the world’s capital markets turned into a giant fiat money casino. Consider yourself forewarned. You might be able to trade your way to profits in this market on the tide of easy money being printed now by the Federal Reserve and the European Central Bank (ECB). But the financial markets are setting up for the mother of all collapses.
[Read more...]Government Debt: The Not-So-Silent Economy Killer
Europe has lost its head!
First, the weather is completely out-of-sync with the calendar. Perhaps it’s because of the volcano in Iceland… The dust is blotting out the sun. There’s no sun here today. Instead, the sky is pale grey. And it’s raining. The calendar say’s May 11th, but it could easily pass for February.
[Read more...]Tax Refunds: The Gifts that Keep the US Spending
Strange creatures…strange events…strange thoughts… Zombieland is getting weird.
We are expected to believe six impossible things before breakfast, and another half dozen before lunch.
“…the current rebound in the economy is a statistical mirage,” writes David Rosenberg. It is “orchestrated by record amounts of monetary and fiscal stimulus that are simply unsustainable and actually risk precipitating a very unstable financial and economic backdrop in coming years.”
[Read more...]The Zombie Economy
The zombies are taking over!
Stocks went up 4 points on the Dow on Friday… Gold went up $10.
Noise. Distraction. Headlines. Opinions.
The important trend is the big one – the shift of resources from the private sector to the public sector.
During the bubble years, the private sector made a big, big mistake – taking on far too much debt.
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There’s Always More Money to Print
In my darker moments, usually just before I go freaking berserk and start yelling and screaming about how “We’re freaking doomed!” from the idiotic Obama administration deficit-spending So Freaking Much (SFM) money and the idiocy of the Federal Reserve creating So Freaking Much (SFM) money, all of which is guaranteed – guaranteed! – to make consumer prices rise in a terrifying, catastrophic, ruinous inflationary spiral that will destroy us all, I sometimes get myself in the mood for a nice, long, loud Mogambo Banshee Wail Of Outrage (MBWOO) by merely mulling over the term “dynamic stochastic general equilibrium.”
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