Free Money

How To Actually Make America Great Again

"Sorry, folks, but we got our freedom and we squandered it fewer than a handful of centuries. We stopped reading books. We gave up on the nuclear family. We skewed the meaning of words and let other people and institutions do for us what we could have done ourselves. We lost any semblance of identity other than that reliant on the hedonistic narcissistic whims of the individual. Identity politics have emerged alongside a complete loss of cultural identity - what a supreme irony! In this sense, there are obvious ways to 'make America great again'..."

"Helicopter Money" Won't Fix What's Broken

The mere mention of helicopter money has intoxicated global stock markets, which have soared on the rumor of Japanese helicopter money. But, central banks funding fiscal spending (i.e. helicopter money) will only have a weak and entirely indirect effect on profits or stock market valuations. The problem with helicopter money is that it cannot fix what's broken in the economy - and even worse, it perpetuates every inefficient, corrupt, bloated and unsustainable system in the status quo.

"All-Time-Highs"

"...central bankers seem to view elevated security valuations as “wealth.” The longer this fallacy persists, the worse the subsequent fallout will be. I have little doubt that future generations will look at the reckless arrogance of today’s central bankers no differently than we view speculators in the South Sea Bubble and the Dutch Tulip-mania. Unfortunately, there is no mechanism by which historically-informed pleas of “no, stop, don’t!” will penetrate their dogmatic conceit. Nor can we change the psychology of investors."

Germany Sells First Ever Negative-Yielding 10Y Treasury, Corporate Bonds

Just hours prior to Germany selling its first ever negative-yield 10Y bund, German railway operator Deutsche Bahn became the first non-financial company to sell a corporate bond with a negative yield in euros on Tuesday. . Joint leads BayernLB and Raiffeisen Bank set the final spread at plus 15bp as orders reached 840m. The deal priced with a negative 0.006% yield and a 0% coupon.

Why Helicopter Money Won't Push Stocks Higher

In effect, helicopter money turns the entire economy into a Ghost City. Things look busy and productive until the day the helicopter money runs out. From that day on, everything crashes back to reality and tumbleweeds are soon blowing down empty streets.

Who's Most Afraid Of Contagion From Italy's Bank Meltdown?

Contagion is the reason Italy’s banking crisis is all of a sudden Europe’s biggest existential threat. Greece’s intractable problems are out of sight, out of mind; Brexit momentarily spooked investors and bankers; but Italy’s banking woes have the potential to wipe out investors and undo over 60 years of supranational state-building in Europe.

Stockman Warns Of "Awful Price To Be Paid For One-Way Markets"

The boys and girls on Wall Street are now riding their bikes with no hands and eyes wide shut. That’s the only way to explain Friday’s lunatic buying spree in response to another jobs report that proves exactly nothing about an allegedly resurgent economy.

The Great Market Tide Has Now Shifted

Risk-on assets (stocks) rising at the same time as safe-haven assets is akin to dogs marrying cats and living happily ever after. What the heck is going on? Why is the market acting so schizophrenic? What’s changed?

The Fed Has Brought Back "Taxation Without Representation"

So, Wall Street banks control the boards of directors at the Fed banks. The Fed bank boards of directors appoint the committee members who set monetary policy. And the monetary policy they set ends up being a gigantic tax... a transfer of wealth from the middle class to a tiny group of beneficiaries, including the US government and the banks themselves. This is an unbelievable scam... and it truly is taxation without representation. Unelected bureaucrats impose their will over the entire financial system in a way that benefits a handful of people at the expense of everyone else.