Clinton's Pay-to-Play Is The Natural Consequence Of Big Government

Government interference impedes the entrepreneur’s use of economic calculation and the attempt to use prices to impose managerial discipline. Taxes and price regulations that interfere with corporate pro?ts (distorting an important signal of employee performance); laws that interfere with hiring and promotion (including the need to hire people to deal with government); and the omnipresent threat of arbitrary antitrust or regulatory activity, in response to which entrepreneurs must become adept at "diplomacy and bribery."

Harvard Professor Demands Ban On $20, $50, $100 Bills

Six months since Larry Summers first suggested "it;'s time to kill the $100 bill," and three months after The ECB actually killed the €500 Note, another Harvard 'scholar' is reinvigorating the war on cash. Amid claims that paper money fuels corruption, terrorism, tax evasion, and illegal immigration, Ken Rogoff (ironically of "It's Different This Time" infamy) says the US should get rid of the $100 bill (and $50s and $20s) proposing, in his words, "a 'less-cash' society, not a cashless one, at least for the foreseeable future."

How Obamacare Destroyed The Middle Class In One Chart

For those wondering why the "recovery" from the "great recession" has been so muted perhaps you need to look no further than the massive healthcare tax imposed on the middle class by Obamacare...

Europe: The Substitution Of A Population

In one generation, Europe will be unrecognizable. Eastern Europe now has "the largest population loss in modern history", while Germany overtook Japan by having the world's lowest birth rate. Europe, as it is aging, no longer renews its generations, and instead welcomes massive numbers of migrants from the Middle East, Africa and Asia, who are going to replace the native Europeans, and who are bringing cultures with radically different values.

In "Victory For Eurosceptics" British PM Will Begin Brexit Negotiations Without Parliamentary Vote

In what the Telegraph dubs a victory for Eurosceptics, the conservative newspaper reported overnight that Britain's new Prime Minister, Theresa May, will not hold a parliamentary vote on Brexit before formally triggering Britain's withdrawal from the European Union. "Her decision will come as a blow to Remain campaigners, who had been hoping to use Parliament to delay or halt Brexit entirely."

The Number One Factor Influencing Fed Monetary Policy

In short, the economic model of the second half of the 20th century is over.  Increased issuances of debt no longer translate into increased economic growth.  Instead, they produce wild asset price swings, casino style speculation, and epic bubbles and busts.  Nonetheless, the technocrats continue offering up yesterday’s solutions with unabashed certainty.

Recession Odds Spike To 37%, JPM Calculates, Highest Yet For This Cycle

While not as dire as the recent analysis by Deutsche Bank, overnight JPM released its latest recession probability analysis, and - somewhat unexpectedly following the last two stellar job reports and a full court political press that the recovery has rarely been stronger going into the election - now sees a 37% chance of a recession in the next 12 months. This is the highest recession probability calculated by Jamie Dimon's bank during the current economic cycle, and matches the odds first laid out in early July.

What Went Wrong Yesterday

The answer to ‘How do you stimulate the economy when there are no more conventional rate or unconventional QE/forward guidance tools?’ is ‘Broaden the set of assets that you can buy”. And while Congress may be unwilling when the unemployment rate is under 5%, they may be more willing at 7% if a recession is underway….and this means they can continue to do slow and unsteady hikes, based on the current framework.