Just as was witnessed following “The Great Depression,” the bursting of the next asset bubble will likely once again drive participants away from the market for an entire generation, or longer. The problem for individual investors is the “trap” that is currently being laid between the appearance of strong market dynamics against the backdrop of weak economic and market fundamentals. Ignoring the last two to chase the former has historically not worked out well.
The US government’s debt level has soared to just a hair under $19.7 trillion. To give it some context, that’s up over $170 billion in just eight business days.... the fastest pace in 13 months. It’s almost as if Barack Obama is intentionally and desperately trying to breach the $20 trillion mark before he leaves office in January.
"The time for treating the EUR-peg as a taboo may soon be past us, and an open discussion become the dominant narrative, in pursuit of a long-term durable solution to economic stagnation, in an attempt to save the European Union, so to orderly drive the process as opposed to end up being overwhelmed by the trending course of events."
The problem for individual investors is the “trap” that is currently being laid between the appearance of strong market dynamics against the backdrop of weak economic and market fundamentals. Ignoring the last two to chase the former has historically not worked out well.
"More and more people are aware of what’s going on and that the worst trends of modernity are being extended internationally at a rapid clip... but the internationalists have a solution for that. Give everybody money. Print it and hand it out. That will keep people quiet for as long as necessary."
If no one knows or respects truth, the world is lost. But it only takes a few to change the world. The cultural anthopologist Margaret Mead said: “Never doubt that a small group of thoughtful, committed citizens can change the world; indeed, it’s the only thing that ever has.” Change can be for better or worse...Americans need to decide that they, like the British, do not appreciate being led backward to worse times.
Ludwig von Mises once wrote, "No one can escape the influence of a prevailing ideology.” The images coming from Venezuela should serve as a potent reminder of how dangerous the ideas of men like Joseph Stiglitz are.Statism and economic interventionism must be rejected, in order for humanity to thrive.
The world is threatened with a renewed wave of anti-capitalism and anti-business sentiments and policies. Many who cheered the demise of Soviet communism in the early 1990s, presumed that this meant that, by default, the case for free markets and competitive enterprise had won in the battle of ideas. Over the last twenty-five years it has become clear that the same misguided arguments against free market capitalism constantly reemerge, like an ideological vampire waiting to rise from the intellectual grave and drain market freedom of its lifeblood by more government regulations and controls.
"A funny thing happened at the end of 2013 I wrote a letter to my new clients and I began with the preface "what if I was to tell you that I'd become bullish on equities; is that something you'd be interested in." The resounding message no. A billion dollars walked out the door.... "What, really, you're bullish?" - Hugh Hendry
So far this year, Janet Yellen has not taken a single step in the direction of a “normal” monetary policy; our guess is that she never will. Why not?Is it because she is a witless tool of Deep State cronies? Is it because her economic theory is silly, superficial, and simpleminded? Or is it because she and her predecessor, Ben Bernanke, have done so much damage to the normal world that there is nothing to go back to?