Category Archives: Economy

Theorists vs. Practitioners, by Jeffrey A. Tucker

Posted on March 9, 2023 | Leave a comment

There are those that do and those that think. It’s not generally the former who screw up a society. From Jeffrey A. Tucker at brownstone.org:

Theorists vs. Practitioners

Just this weekend, I spoke at one of my favorite venues, the Liberty Forum in New Hampshire, which is an annual conference center on the Free State Project. It’s designed to encourage people to pick up and move to the freest state in the country for community and to help protect the state from the fate that befell Massachusetts, Connecticut, and Rhode Island. 

My first time speaking there was 2012, I believe, and I came away with an interesting revelation, which I can summarize as “Liberty is a hands-on task.” In my career until that time, the problem of economic and political matters were mostly matters of theory and I had spent most of my time reading and distributing high theory, a task I loved and still do. 

But coming to this event in New Hampshire I found something else entirely; a group of people who were busy doing things in practice to live freer lives. They were small business people, real-estate agents, people with alternative currency systems, people raising and selling food on and from their own farms, organizers of houses of worship and community centers, homeschoolers and school entrepreneurs, and much more besides, including office holders focusing on laws and legislation. 

It was here, for example, that I acquired my first Bitcoin, which in the early days showed great promise finally to recreate money in a way that government could not ruin. It struck me at the time as among the greatest inventions of the human mind. Tellingly, it did not come from academia (so far as we know) but from tinkerers who wanted to solve the problem of double spending on digital monetary units. It was genius. The economics journals ignored it for many years, of course. 

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Posted in Economics, Economy, Education, Governments, History, Politics, Society

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California Dreaming—State Metaphor for a Failing Nation, by Matthew Piepenburg

Posted on March 9, 2023 | Leave a comment

As California goes, so goes the nation? From Matthew Piepenburg at goldswitzerland.com:

Below we consider the State of California as the metaphor of a failed state as well as the failing state of the American Union, which is anything but a dream.

Metaphors

For those already familiar with my articles, interviews or even daily banter, I have an admitted affinity for metaphors and analogies, as they help draw the simple from the complex.

Toward that end, I’ve 1) compared policy makers to failed generals, 2) debt and currency bubbles to Titanics, 3) macro investing to polo matches, 4) monetary policy to drug addiction and 5) the love of bloated bond markets to toxic romances.

As for politicians and political issues, there is always the risk of partisan bias and offending those who cling to only one perspective.

Fortunately, my take on the left or the right of current politics is fairly agnostic, as I view nearly all politicos as crooked as a dog’s hind leg.

Thus, as I turn my lens toward the state of California and its failed governor, I hope readers of the left or right can dispense with politics and just stick to math so that we can all get past the swamp of red vs. blue opinions and respect the objective facts of red vs. black balance sheets.

And when it comes to the State of California, she’s deeply in the red, and serves, ironically, as yet another broader yet applicable metaphor of the world economy in general and the United States in particular.

So, let’s dig in.

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Posted in Business, Collapse, Debt, Economy, Government, Taxes

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Doug Casey on the Rise of “Climate Brats” and Other Useful Idiots

Posted on March 8, 2023 | 2 comments

The useful idiots are destroying their own futures. From Doug Casey at internationalman.com:

Climate activists

International Man: Webster’s Dictionary defines a useful idiot as a “naive or credulous person who can be manipulated or exploited to advance a cause or political agenda.”

Lenin is thought to have originated the phrase when referring to communist sympathizers in the West.

What is your take on this term? Is it still applicable today?

Doug Casey: Today’s make-believe democracies are overflowing with useful idiots. They latch on to one lame-brained notion after another, perhaps to give meaning to their confused and pointless lives. They’re a bit like cats chasing the red dot from their master’s laser pointer. The Ukraine, Covid, sex perversions, Trump, racism, climate change—it’s one thing after another.

Climate change is one of the central scams being promoted by the World Economic Forum as part of their Great Reset. It seems everything that comes out of the WEF—I can’t think of any exceptions — is antithetical to the traditional values of Western Civilization, prominently including free markets and personal liberty.

We’ve discussed the COVID hysteria and what looks like World War III starting in the Ukraine. But the biggest thing, with the longest legs, is climate change. Full disclosure: I believe in climate change. The climate has been changing constantly since the world came together about four and a half billion years ago. And it’ll continue to change.

The problem, however, isn’t climate change itself but the process of indoctrinating the public, especially young people, with the belief that humanity is destroying Mother Earth.

They’re given snippets of science, like the fact that the world has been generally warming since the mid-19th century. Well, sure, it has because the planet went through what’s known as the Little Ice Age from the 16th through the 19th centuries. It has cyclically been warming for the last 150 years. As a matter of fact, the world has been warming since the end of the last Great Ice Age, about 12,000 years ago.

The “global warming” people have found a great excuse for changing not just the economy but the way literally everything works. My view is that they’re basically anti-human—they actually hate and fear people. It’s why Yuval Noah Harari, the mincing court intellectual of the WEF, often refers to them as “useless eaters.” He may be right. But what’s insane is that someone like him could gain the power to make serious decisions.

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Posted in Collapse, Economics, Economy, Education, Energy, Environment, Government, Horseshit, Politics, Propaganda, Science

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How a Country Goes Bankrupt, In 10 Steps, by John Rubino

Posted on March 7, 2023 | Leave a comment

The Japanese are giving a pretty good demonstration, to be followed by Europe and the U.S. From John Rubino at rubino.substack.com:

Gradually then suddenly (2024?)

The past few decades of unnaturally easy money have created a world of “moral hazard” in which a ridiculous number of people borrowed far more than they should have. Now, with money getting tighter, not just businesses and individuals but some governments are staring at the “suddenly” part of that old saying about bankruptcy.

Japan is the poster child for this slow walk towards – then quick rush over – a financial cliff. Here’s how it works for a government, in 10 steps.

Step 1: Build up massive debt. A bursting real estate bubble in the 1990s confronted the Japanese government with a choice between accepting a brutal recession in which most of that debt was eliminated through default, or simply bailing out all the zombie banks and construction companies and hoping for the best. They chose bailouts, and federal debt rose from 40% of GDP in 1991 to 100% of GDP by 2000.  

Step 2: Lower interest rates to minimize interest expense. Paying 6% on debt equaling 100% of GDP would be ruinously expensive, so the Bank of Japanpushed interest rates down as debt rose, thus keeping the government’s interest cost at tolerable levels.

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Posted in Banking, Collapse, Debt, Economics, Economy, Government, Politics, Propaganda, Taxes, Tyranny

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Allegorical Intermezzo, by James Howard Kunstler

Posted on March 7, 2023 | Leave a comment

We’ve reached some sort of climactic upheaval and life for most people is about to radically change. From James Howard Kunstler at kunstler.com:

” If, however, as Pareto suggested… a governing elite is inevitable, then we are certainly under the wrong elites. Whether a circulation of elites can be completed in time to save the world economic system from ruin and the majority from destitution and veritable slavery is a question of no little urgency.” — Michael Rectenwald

     Imagine that on an April evening in 1912, the captain of the RMS Titanic had announced a grand ball at which the male passengers were asked to wear their wives’ clothing and vice-versa…. That was approximately the condition of Western Civ verging on springtime in 2023: preoccupied with silliness while the iceberg awaits.

      But who would have thought the sinking of civilization would occur with such fantastic comic ornamentation? Men, in more ways than mere costuming, pretending to be women… incompetence honored, feted, even worshipped… intellect reduced to anti-thinking… anything of value thrown overboard in some weird post-modern potlatch ceremony of twisted moral righteousness…? But the hour is late, the party is near its end, and the iceberg is struck. The rest of the story will be you holding onto a few valuables, including your life, while the lifeboats get lowered.

     From here forward, things get pretty interesting. And from here on, nobody is really in charge. The vacuum of leadership we’ve been living in becomes impossible to ignore, and nature (it’s rumored) hates a vacuum. For the moment, circumstances are in charge, not personalities.

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Prepare For 10 Years of Global Destruction, by Egon von Greyerz

Posted on March 6, 2023 | Leave a comment

Popping a bubble that’s been going for as long as the present one has inevitably entails tragic consequences. From Egon von Greyerz at goldswitzerland.com:

<a href="mailto:?subject=PREPARE FOR 10 YEARS OF GLOBAL DESTRUCTION  &body=https://goldswitzerland.com/prepare-for-10-years-of-global-destruction/”>

The final stages of major economic cycles are always accompanied by the maximum amount of bad news as well as heinous events. This time is no different as the West is in the process of committing Harakiri (Seppuku). 

As Elon Musk said: 

“My mentality is that of a Samurai. I would rather commit Seppuku than fail.”

Sadly, the problem for the West is that it is both committing Harakiri and failing.

For at least half a century, the world has been in a process of self-destruction. 

As the decline accelerates, the next phase of 5-10 years will include major political, social, economic as well as wealth – destruction.

What can be more heinous than a total economic and financial collapse accompanied by a potential World War III that at worst could destroy the world totally. 

A recent article of mine discussed global fragility due to War, Debt and Energy Depletion.

In this article I outline the major risks today, financial and geopolitical and also discuss the best way to protect against these risks. Physical Gold is of course the ultimate wealth preservation investment. The next major move up in gold is not far away. See further on.

Biden’s recent visit to Ukraine and whistle stop tour of Europe confirmed that there is no desire to make peace but only war. More support of weapons and money from the US is forthcoming. And whatever the US dictates, Europe follows without considering the consequences. 

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Posted in Banking, Business, Economy, Geopolitics, Governments, Investing, Money

One Year Later in Ukraine: Washington and NATO Got It Very Wrong, by Ryan McMaken

Posted on March 6, 2023 | Leave a comment

The writing was on the wall. Too bad so many people passed by without reading it. From Ryan McMaken at mises.org:

It’s been a year since the Russian invasion of Ukraine. In spite of claims from the regime and its media allies that Russia was the next Third Reich and would soon roll through half of Europe, it turns out that was never even remotely true.

In fact, things have unfolded more or less just like we predicted here at mises.org: the Russians aren’t even close to occupying any place in Europe beyond eastern Ukraine. It’s not Munich 1938. Economic sanctions have not crippled the Russian regime. Most of the world remains ambivalent on the conflict. The conflict will likely end with a negotiated settlement—contrary to what the Washington wants.

The fact is that in spite of the United States’ and North Atlantic Treaty Organization’s (NATO) efforts to turn Ukraine into World War III, the war in Ukraine remains a regional conflict. It seems most of the world is uninterested in making sacrifices to carry out US policy in Ukraine and that many see the inherent hypocrisy behind US talk about respecting national sovereignty. 

There’s also an important lesson here about listening to the war maximalists who incessantly promote full-scale war as the “solution” to every international crisis. The US clearly wants to fight the war to the last Ukrainian, in what the US is packaging as a global crusade in the style of World War II. But, it seems now that more pragmatic thinkers—i.e., the French and the Germans—recognize that negotiations are the more humane solution. 

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Posted in Collapse, Crime, Debt, Economics, Economy, Foreign Policy, Geopolitics, Government, Military, Politics, Propaganda, War

The Federal Reserve’s Magic Trick: Big Tech, by Ron Paul

Posted on March 6, 2023 | Leave a comment

Virtually free money distorts companies and markets in all sorts of ways. From Ron Paul at ronpaulinstitute.org:

Now you see it … maybe soon you won’t.

Over the last year, the seeming ability of stock values of many technology companies to keep rising forever met resistance. This was true even for the major technology companies known collectively as “big tech.” During the last 12 months, Meta (parent company of Facebook, WhatsApp, and Instagram), Amazon, and Alphabet (parent company of Google and YouTube) suffered layoffs and big declines in stock prices.

These were the result of both bad decisions and changing market conditions. For example, the end of covid lockdowns obviously reduced demand for Amazon’s delivery services. Also, an increasing number of people are leaving Facebook and other Meta sites for newer social media sites. Many of those who use social media for political organization, education, or discussion are abandoning Facebook and YouTube for sites such as Rumble — sites that don’t deplatform individuals for sharing opinions and news that displeases “woke” bureaucrats and politicians.

The magician in this scenario — the Federal Reserve — played a major role in big (and medium and small) tech’s rise and fall. Technology writer David Streitfeld, writing in the New York Times, recently examined how the Fed’s 2008 market meltdown related policy of near zero interest rates led many investors to throw money at tech companies. In many cases, these investors would not have bought tech companies stock had the Fed not distorted the signals sent by interest rates, which are the price of money. The historic expansion of the Fed balance sheet thanks to “quantitative easing” also helped create a tech bubble. Now that the Fed is raising interest rates (although still keeping them well below what they would likely be in a free market), the tech bubble is being popped as investors are able to get a more realistic view of tech companies’ value. This is causing a painful but necessary correction.

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Posted in Banking, Business, Collapse, Debt, Economy, Financial markets, Government

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What If the Whole Point Is to End “The Fed Put”? By Charles Hugh Smith

Posted on March 6, 2023 | 1 comment

Alan Greenspan initiated the “Fed Put” back in 1987 when the stock market crashed. Now, Jerome Powell may be the buy who ends it. From Charles Hugh Smith at oftwominds.com:

Choose one, and only one: a stock market that inflates and pops in an endless series of ever-more destructive bubbles, or a real economy that is no longer in thrall to the engines of wealth inequality and speculative frenzy.

“The Fed Put”–the implicit Federal Reserve policy of bailing out the stock market as soon as it swoons by unleashing a flood of monetary stimulus–is now accepted as a guarantee not unlike financial gravity. Regardless of the bleatings of Fed officials, “everyone knows” the Fed will quickly “pivot” should the market swoon, slashing interest rates and ramping up liquidity via Quantitative Easing (QE).

Recall the definition of excess liquidity: the difference between real money growth and economic growth. The Fed juices excess liquidity not to further expansion in the real economy but to force-feed new money into the stock market and other risk assets.

The only possible result of “The Fed Put” is a credit/asset bubble, which is why we’re currently experiencing the third such monumental speculative bubble in 23 years.

“The Fed Put” is the logical endpoint of neoliberalism, which places “markets” (and thus finance) at the core of the real economy. The neoliberal fantasy is that “markets” solve all problems via the magic of “the invisible hand” and so everything becomes subservient to the gyrations of “markets.”

The second part of the fantasy is that “markets” are self-regulating, meaning there’s no need for a moral order or government regulations; the magic of markets includes a godlike ability to restrict its own motivations, i.e. greed and exploitation to maximize gains by any means available.

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Posted in Banking, Business, Currencies, Debt, Economics, Economy, Financial markets, Investing

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Whitney Webb on the Globalist Overlords Meeting in Davos, by Dr. Joseph Mercola

Posted on March 6, 2023 | Leave a comment

The World Economic Forum is pushing fascism. From Dr. Joseph Mercola at lewrockwell.com:

Curious about the inner workings of the World Economic Forum (WEF), the driving force behind The Great Reset? Set aside 30 minutes to watch investigative journalist Whitney Webb speak with MintPress News in the video above.1 Every year in January, WEF holds its annual meeting in Davos, Switzerland.

The 2023 theme was “cooperation in a fragmented world,” with WEF noting, “The world today is at a critical inflection point. The sheer number of ongoing crises calls for bold collective action.”2

Their actions, however, while carefully packaged to appear altruistic — and steeped in warm-and-fuzzy buzzwords like “green” and “sustainable” — will ultimately propel its small circle further into power while all but guaranteeing a downtrodden populace. If you so much as dip your finger beneath WEF’s surface, it becomes clear that corporatism and, more aptly, fascism, are its modus operandi.

WEF Promotes Fascist Ideology

WEF often speaks about the “transformative potential of public-private partnerships.” According to WEF:3

“The private sector needs to speak the language of social change, and the public sector needs to create economic incentives to harness the private sector’s innovation and expertise to address society’s challenges. With shared goals, targeted action and monitored impact, we can move beyond dialogue and aspiration to the co-creation of a more inclusive, prosperous and sustainable future.”

It sounds good in theory. But what, exactly, is a public-private partnership? It’s when private entities like multinational corporations join with the public sector, putting the two on equal ground. The problem is that most politicians receive money and other favors from these same multinational corporations, so many facets of the government are essentially owned by these corporations.

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Posted in Civil Liberties, Collapse, Economy, Energy, Geopolitics, Governments, Morality, Politics, Propaganda, Tyranny

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