Milton Friedman

Celebrating 45 Years Of Phony Money

In the pre-1971 economy, it was Main Street that produced wealth and accumulated real dollars. After 1971, it was Wall Street that controlled access to the new counterfeit money – and made sure it captured much of it. The new system gave the feds the “flexibility” they were looking for. But it completely changed the nature of our money and our economy.

 

End Of An Era: The Rise And Fall Of The Petrodollar System

"The chaos that one day will ensue from our 35-year experiment with worldwide fiat money will require a return to money of real value. We will know that day is approaching when oil-producing countries demand gold, or its equivalent, for their oil rather than dollars or euros. The sooner the better."

The Helicopter Has Already Been Tested - And It Failed Spectacularly

Most of what passes for modern monetary policy is nothing more than one assumption piled upon another (and then another, and so on). Taken for granted for so long, rarely are these unproven precepts ever challenged to justify themselves to the minimal standard of internal consistency, let alone prove discrete validity by parts. The latest is “helicopter money”, another sham in a long line of them proffered by at least one central bank today because it knows, as the others, nothing they have done has worked.

What Is Helicopter Money? Goldman Explains

Here is a useful primer for all those wondering just what is coming, courtesy of Goldman Sachs, which explains the nuances of monetary policy's endgame: Helicopter Money.

The Chart That Barack Obama Does Not Want Young, Black Males To See

Perhaps one of the more interesting data points from last week's Employment Report is displayed in the graph above, which shows that the jobless rate for black male teens (aged 16-19 years) increased to 40.1% in June from 28.1% in May. Except for a slightly higher increase of 12.2 percentage points during the aftermath of the Great Recession, the 12 percentage point increase in June was the highest monthly increase in history going back to 1972.

"Something Big" Indeed Came - Bernanke's Japan Visit Unveils "Helicopter Money", Sparks Monster Rally

When we first heard this past Thursday that private blogger and Citadel employee Ben Bernanke was going to "secretly" meet with both the BOJ's Haruhiko Kuroda and Japan PM Abe, we warned readers that "something big was coming." Two trading days later, with the USDJPY higher by 200 pips and soaring after something big indeed came overnight from Japan: nothing less than the first "lite" instance of helicopter money .

Why The G7 May Be Hastening Helicopter Money

Faced with a sharply appreciating yen, and lacking G7 support, Japan may need to take extreme measures. More than three years into Abenomics, and with policymakers running out of options on how to reverse the economy's trend, the Bank of Japan may be forced to intervene with unorthodox and untested policy, such as “helicopter money.”

Marc Faber's "Worst Fear" Is Hillary Clinton Becoming President

"The worst fear I have is that Mrs. Hillary Clinton will become president. That is my worst fear. I would vote for anyone in the world before I would choose Hillary Clinton. She’s dishonest, she’s a liar and she has deceived people..."

With 'Recovery' Disproved, There Is Every Need To Examine The Worst Case

There is a great deal that is wrong with mainstream economic commentary, starting with its unwavering devotion to orthodox economics and unshakable faith in their “stimulus.” No matter how little is actually stimulated there is never any doubt that the media will simultaneously forget the last one while lavishing praise on the next one. It is, however, the actual economic commentary itself that may be the most damaging. Because nothing works, every news story is printed from the shallowest, narrowest perspective. It is a grave disservice to the public and journalism.

Bill Clinton Confirms "Wants Economic Role" In Hillary's Administration

Is this why stocks are slipping? Following Hillary's hint last night that she would like to put her husband in "charge of revitalising the economy, because you know he knows how to do it," Bill confirmed the farce this morning, admitting he has asked for an "economic role" in his wife's adminstration. As Yves Smith so eloquently noted, after having institutionalized the neoliberal economic policies that have enriched the 1% and particularly the 0.1% at the expense of everyone else, Hillary Clinton wants to give the long-suffereing citizenry an even bigger dose. Good luck America.

The Endgame

There is a growing fear in financial and monetary circles that there is something deeply wrong with the global economy. Publicly, officials and practitioners alike have become confused by policy failures, and privately, occasionally even downright pessimistic, at a loss to see a statist solution. It is hardly exaggerating to say there is a growing feeling of impending doom. In short, growing evidence of price inflation and stagnant production can be expected to materially increase the risk of a global banking and currency meltdown. The best escape-route is ownership of anything other than purely financial assets and fiat currency deposits. No wonder the price of gold, which is the soundest of moneys, appears to have entered a new bull market.

"Bankers Will Choose To Fly Instead Of Die" - Why Bill Gross Thinks Helicopter Money Is Imminent

"Money for free! Well not exactly. The Piper that has to be paid will likely be paid for in the form of higher inflation, but that of course is what the central banks claim they want. What they don’t want is to be messed with and to become a government agency by proxy, but that may just be the price they will pay for a civilized society that is quickly becoming less civilized due to robotization. There is a rude end to flying helicopters, but the alternative is an immediate visit to austerity rehab and an extended recession. I suspect politicians and central bankers will choose to fly, instead of die."