The Big Picture: From banking crisis to sovereign debt crisis to currency crisis (diagram)

Last week’s article ‘The Big Picture: From banking crisis to sovereign debt crisis to currency crisis’, provides a brief outline of each of the macro forces and trends that are currently impacting the global economy and financial markets. Today’s article attempts to show these forces in visual form so that investors can begin to understand the interplay between them.

Read more...

The Big Picture: From banking crisis to sovereign debt crisis to currency crisis

This article attempts to outline all the macro forces and trends that are currently impacting the global economy and financial markets. It is only by understanding all of these forces (and the interplay between them) that investors can begin to see the inevitable path from banking crisis to sovereign debt crisis to currency crisis.

Read more...

Examining the global crack-up boom: Part II

Since the 2008 financial crisis central banks around the world have created in excess of $12 trillion. Not only has their policy of ultra-lose money created another unsustainable boom in asset prices, it is looking increasingly likely that it will end in what Austrian economist Ludwig von Mises called a “crack-up boom”, i.e. a complete breakdown of the monetary system.

Read more...

Examining the global crack-up boom: Part I

Since the 2008 financial crisis central banks around the world have created in excess of $12 trillion. Not only has their policy of ultra-lose money created another unsustainable boom in asset prices, it is looking increasingly likely that it will end in what Austrian economist Ludwig von Mises called a “crack-up boom”, i.e. a complete breakdown of the monetary system.

Read more...

Goodbye to austerity

There is a new campaign to end austerity. First, the IMF lets it be known it has second thoughts about it; then we are told the threshold of 90% government debt to GDP which must not be crossed, set by Professors Reinhart & Rogoff, is based on an excel spread-sheet error. Lastly, Bill Gross of PIMCO, the largest bond fund in the world, tells us austerity is not working.

Read more...

Money supply accelerating

The monthly figures for the US dollar components of True Money Supply (TMS), for February are now in. In 2008 the trajectory of TMS went from exponential to hyperbolic, and its incredible rise is the clearest way to illustrate the accelerating debasement of the dollar.

Read more...

The impossibility of economic calculation in a fiat world

Money should be constant if comparisons over time are to mean anything. Only then do prices of capital goods, consumer goods and services truly reflect their changing values, however, with unstable fiat money market signals lose much of their meaning.

Read more...

The flawed logic of Keynesian economics: Part II

The economic policies being pursued in the majority of G8 countries are flawed. That’s because they are based on the flawed thinking of John Maynard Keynes. This article aims to give some insight into the flawed logic that lies that the heart of what is known as Keynesian economics.

Read more...

The flawed logic of Keynesian economics: Part I

The economic policies being pursued in the majority of G8 countries are flawed. That’s because they are based on the flawed thinking of John Maynard Keynes. This article aims to give some insight into the flawed logic that lies that the heart of what is known as Keynesian economics.

Read more...

Short-term bearish, medium term bullish, long-term distinctly-bearish

In the short-term markets are due for a correction. In the medium-term markets are likely to continue to rise on a sea of central bank liquidity, and investors should make the most of the fact that we are in the eye of the storm, because long-term the outlook is distinctly-bearish.

Read more...

Has The Debt Jubilee Already Started?

There are three radical ideas floating around the monetary policy world right now. The first is economist Ellen Brown’s belief that governments should stop borrowing money and simply create the currency they need. The second is Steve Keen’s debt jubilee, and the third is the trillion dollar platinum coin.

Read more...