Maynard Keynes

Tyler Durden's picture

Visualizing The World's Most Famous Case Of Deflation, Part 1





The Great Depression was the most severe economic depression ever experienced by the Western world. It was during this troubled time that the world’s most famous case of deflation also happened. The resulting aftermath was so bad that economic policy since has been chiefly designed to prevent deflation at all costs.

 
Tyler Durden's picture

Something's Gone Horribly Awry





Clearly, something’s gone horribly awry. Hard work, perseverance, and ingenuity likely have something to do with the shiny streets. Conversely, sloth, drug abuse, and mental defectives likely have something to do with the blighted streets. But we also have an inkling that 20 years of activist Fed policy has left its marks all over both.

 
Tyler Durden's picture

The World’s Most Famous Case Of Hyperinflation (Part 1)





The Great War ended on the 11th hour of November 11th, 1918, when the signed armistice came into effect. Though this peace would signal the end of the war, it would also help lead to a series of further destruction: this time the destruction of wealth and savings. The world’s most famous hyperinflation event, which took place in Germany from 1921 and 1924, was a financial calamity that led millions of people to have their savings erased.

 
Sprott Money's picture

Hiltzik echoes MSM confusion on gold





 by a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens

 
Tyler Durden's picture

2015 Year In Review - Scenic Vistas From Mount Stupid





“To the intelligent man or woman, life appears infinitely mysterious, but the stupid have an answer for everything.” ~Edward Abbey

 
Tyler Durden's picture

Paper Money Versus The Gold Standard





We are living in a time that can only be considered monetary chaos. The media and the policy pundits may focus on the day-to-day zigs and zags of central bank monetary and interest rate policy, but what really needs to be asked is whether or not we should continue to leave monetary and banking policy in the discretionary hands of central banks and the monetary central planners who manage them.

 
Tyler Durden's picture

The Problem With "Rules-Based" Monetary Policy





Monetary policy 'rules' are no more accurate at determining interest rates than meteorologists are at forecasting the weather. The only difference between the two is that weathermen are precise on occasion, whereas the federal funds rate under the Taylor Rule is, at best, less wrong. Setting the price of money and credit in the name of unleashing the economy’s supposed potential output is the equivalent of enacting price controls on milk to unlock its full buying power. It’s a fallacy that cannot be achieved. The sooner the Fed pawns off its printing press, the sooner its market distortions will be lifted; and the sooner that each individual will be able to make rational decisions that make sense for not only himself or herself, but for the economy at large as well.

 
Tyler Durden's picture

Why This Sucker Is Going Down... Again





So how do you grow household wealth by $18 trillion in the face of these dismal real world trends? In a word, with a printing press. But what happened today is that Draghi showed he is out of tricks and Yellen confessed she is out of excuses. Yes, this sucker is going down. And this time all the misguided economics professors turned central bankers in the world will be powerless to reverse the plunge.

 
Tyler Durden's picture

3 Things: Expected Returns, Returns, & Net Returns





There is no doubt that another major market reversion is coming. The only question is the timing of such an event which will wipe out the majority of the gains accrued during the first half of the current full market cycle. Assuming that you agree with that statement, here is the question: "If you were offered cash for your portfolio today, would you sell it?" This is the "dilemma" that all investors face today.

 
Tyler Durden's picture

Weekend Reading: Will They, Or Won't They?





Will they, won't they, should they or shouldn't they? Those are the questions being hotly contested by the mainstream media on a daily basis. Of course, the reality is the Federal Reserve faces the huge obstacle of weak global growth and deflationary pressures which could very well keep them on hold well into 2016. The potential loss of credibility in the Fed by the markets could be the bigger issue to be concerned with. For now, we wait.

 
Gold Standard Institute's picture

What’s Different about Monetary Policy?





Many think of government interference like friction in a car: the more you add, the slower the car. One source of friction is the same as any other.

Monetary policy doesn’t quite work the way tax or regulation does.

 
GoldCore's picture

Apocalypse Now: Has Next Giant Financial Crash Already Begun?





“A predicted global meltdown passed without event. But there are enough warning signs to suggest we are sleepwalking into another disaster”.

 
Tyler Durden's picture

Bring On 'Operation Switch' - Bill Gross Calls For A Reverse 'Operation Twist' To "Benefit Savers And The Economy"





"But they won’t, you know. Yellen and Draghi believe in the Taylor model and the Phillips curve. Gresham’s law will be found in the history books, but his corollary has little chance of making it into future economic textbooks. The result will likely be a continued imbalance between savings and investment, a yield curve too flat to support historic business models, and an anemic 1-2% rate of real economic growth in even the most robust developed countries."

 
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