"Global trade is also declining at an alarming pace. According to the latest data available in June the year on year change is -8.4%. To find periods of equivalent declines we only really find recessionary periods. This is an interesting point. On one metric we are already in a recession."
Credit Suisse is out with the latest edition of its Global Wealth report and although the results are not entirely surprising, they are worth highlighting. Three standouts: i) the rise in the value of financial assets is most certainly contributing to an increase in global inequality, ii) dollar strength led to the first decline in total global wealth (which fell by $12.4 trillion to $250.1 trillion) since 2007-2008, iii) 0.7% of the world's population own nearly half of the world's wealth while the bottom 71% of the population own just 3%.
No professional or successful investor every bought and held for the long-term without regard, or respect, for the risks that are undertaken. If the professionals are looking at "risk" and planning on how to protect their capital from losses when things go wrong - then why aren't you? Exactly how many warnings do you need?
Obama Won't Back Down After Chinese Threat, Sends U.S. Warships To Contested Islands In "Matter Of Days"Submitted by Tyler Durden on 10/12/2015 18:53 -0400
"A U.S. official confirmed Sunday that a decision had been made to conduct such patrols but said it was unclear when that might happen or where exactly. 'It’s just a matter of time when it happens,' the official said. Another U.S. official indicated that the operation could come within days."
"There were too many wounded, tens of dead, body pieces scattered around, and people screaming. The state wasn’t able to prevent a massacre right in the middle of Ankara. Instead, it enabled it."
Since the economic downturn of 2008, the critics of capitalism have redoubled their efforts to persuade the American people and many others around the world that the system of individual freedom and free enterprise has failed. These critics have insisted that it is unbridled capitalism, set loose on the world, which is the source of all of our personal and society misfortunes. The political and economic crises through which the world suffers is not the crisis or failure of the free market. No, it is the crisis and failure of the interventionist-welfare state, and its anti-free market capitalist ideology.
If it wasn't for Ben "the Hero" Bernanke's courage to print like a drunken Keynesian madman, none of this would have been possible, and by "this" we of course mean that the net worth of the top 0.1% of Americans is about to surpass the wealth of the bottom 90% of US households.
"The secular reality of deflation & inequality is intensified by recession & rising unemployment, investors should expect a massive policy shift in 2016. Seven years after the west went “all-in” on QE & ZIRP, the US/Japan/Europe would shift toward fiscal stimulus via government spending on infrastructure or more aggressive income redistribution. …buy TIPs, gold, commodities, Main Street not Wall Street."
Those Who Live In Glass Houses Should Not Throw Stones ...
There are certain ideas and positions all Americans are supposed to believe in and salute. Near the top of the list is equality, an idea for which we are never given a precise definition, but to which everyone is expected to genuflect. A libertarian is perfectly at peace with the universal phenomenon of human difference. He does not wish it away, he does not shake his fist at it, he does not pretend not to notice it. It affords him another opportunity to marvel at a miracle of the market: its ability to incorporate just about anyone into the division of labor... with a place for everyone in the market economy.
Now that Obama is "debating" handing over the mess he created in Syria to Putin who in less than two years will have successfully expanded the Russian sphere of influence in both east Ukraine (and certainly the Crimea) and Syria - two nations where Samantha Power's plans for a CIA-led government overthrow have gone spectacularly bad - it means one thing: ISIS, as a pretext for US "humanitarian intervention" in the region, a CIA-created terrorist organization that must be wiped out, no longer needs to exist. Which is why it was hardly surprising to read moments ago an Iraq military statement alleging that the country's air force has hit a convoy of Islamic State leader Abu Bakr al-Baghdadi.
"We believe that the path of least resistance would be to effectively ban capitalism and by-pass banking and capital markets altogether. We gave this policy change several names (such as “Cuba alternative”, “British Leyland”) but the essence of the new form of QE would be using central banks and public instrumentalities to directly inject “heroin into blood stream” rather than relying on system of incentives to drive investor behaviour."
Israel lacks a national motto. If its leaders are looking for a Latin one, “carpe chaos” would be an apt and honest choice. “Seize the chaos” is half of Israeli foreign policy in a nutshell (the other half being the instigation of that chaos in the first place). But “Seize the chaos” is not a new doctrine: neither is it limited to Israeli halls of power. A veritable “carpe chaos” manifesto was written in 1996 for a Washington think tank by David Wurmser, an Israel-first neocon who would later play a key role in the Bush administration’s drive to the Iraq War. And now that Russia has been drawn into the Syrian war, where its bombers and troops operate at cross purposes with American bombers and proxy fighters, the chaotic sea threatens to become a thermonuclear lake of fire engulfing the whole world.
Claims that new gun laws are commonsensical can't be true if the relationship between gun laws and murder rates require us to adjust for half a dozen different variables... In fact, by looking at the data, we could imagine any number of other factors that might be more likely a determinant of the murder rate than gun ownership.
“Capitalism is not primarily an incentive system but an information system.” Prices are the information. And the price of time itself is the single most valuable piece of information. Time, as we intuitively know, is money; they are two sides of the same coin. Mess with time and money, and you mess with everything else. Yet as with central planning in general, the central planning of either money, or time, cannot possibly work. Hayek warned the economics profession of precisely this in the 1970s. They didn’t listen, ensconced as they still remain within their interventionist Keynesian paradigm. Well that paradigm is about to be blown apart, time and money are about to return to the market, where they belong, and real, sustainable economic progress is about to restart once again.