In the absence of the gold standard, there is no way to prevent confiscation of savings through inflation.
- Alan Greenspan (1966)
The carnage always comes by surprise, often on an otherwise ordinary Saturday morning... The government declares a surprise bank holiday. It shuts all the banks. It imposes capital controls to stop citizens from taking their money out of the country. At that point, the government is free to help itself to as much of the country’s wealth as it wants. It’s an all-you-can-steal buffet. This story has recently played out in Greece, Cyprus, Argentina, and Iceland. And those are only a few recent examples. It’s happened in scores of other countries throughout history. And we think it’s inevitable in the U.S.
Markets need to retreat from dependency on central bank stimulus which they falsely believe provides the magical elixir that fixes all economic and financial market woes.
- China trade surprise brings relief (Reuters)
- Obama knocks Trump, voices optimism (Reuters)
- Republican Candidates Criticize Obama’s State of the Union Address (WSJ)
- Republicans and Democrats Agree: We Hate Wall Street (WSJ)
- Oil rises for first time in eight sessions on China, U.S. stocks draw (Reuters)
- U.S. Exports First Freely Traded Oil in 40 Years (WSJ)
- China Imports Record Crude as Price Crash Accelerates Buying (BBG)
Iceland refused to be blackmailed. Iceland refused to take on the extra debt (and debt slavery) that came with the blackmail. Iceland refused to touch its social programs. Iceland has the strongest economy in the Western world.
Good Thing Debt Doesn't Matter! </sarc>
- Euro zone growth weak in October, China services rally (Reuters)
- Stocks Rise With European Bonds on Stimulus Outlook; Euro Falls (BBG)
- VW Sinks Deeper Into Crisis as Scandal Spreads to More Cars (BBG)
- Republicans ask IRS to audit Clinton charity's finances (Reuters)
- PBOC Inadvertently Boosts Stocks With Dated Zhou Comments (BBG)
- As China’s Economy Slows, Consumers Pick Up Some of the Slack (WSJ)
- Plane crashes in South Sudan, witnesses say dozens killed (Reuters)
First, Iceland jailed its crooked bankers for their direct involvement in the financial crisis of 2008. Now, every Icelander will receive a payout for the sale of one of its three largest banks, Íslandsbanki.
Perhaps it was the public shaming of Iceland's diametrically opposite approach to 'dealing' with its bankers, or perhaps Janet Yellen needs a distraction from her own 'Fed Leak' problems, or finally perhaps Carmen Segarra's 2013 whistleblowing over the cozy relationship between Goldman and The New York Fed was just too conspicuous to brush under the carpet. Despite Bill Dudley's insistence that The New York Fed is not a subsidiary of Goldman, The NY Times reports, federal prosecutors are preparing to announce a criminal case this week against a former Goldman banker suspected of taking confidential documents from a source inside the government.
Like medical chemotherapy, Iceland's economic chemotherapy was horrible, but the cancer of debt-deflation was eradicated and the system made whole.
Forget Norway. Japan. Iceland. Switzerland. Or any of the other places around the world that are notorious for being painful on the wallet. Venezuela is now the most expensive country in the world, hands down. To give you an idea, the cost of a 15-minute taxi ride to the beach yesterday afternoon totaled an eye-popping $158.
Neoliberal economics is blind to reality and serves to justify the destruction of the economic prospects of the Western World. It remains to be seen if Russia and China can develop a different economics or whether these rising superpowers will fall victim to the “junk economics” that has destroyed the West. With so many Chinese and Russian economists educated in the US tradition, the prospects of Russia and China might not be any better than ours. The entire world could go down the tubes together.
"The Danger Is That It Bursts Just Like In The US": Sweden Goes Full Krugman, Gets Massive Housing BubbleSubmitted by Tyler Durden on 09/14/2015 17:45 -0500
Never go full Krugman...
The Icelandic government is reconsidering its national refugee quota after a social media campaign resulted in over 11,000 Icelanders (the "most peaceful nation in the world") offering up a room in their homes to refugees. As Europe struggles to cope with unprecedented levels of those seeking shelter, residents of the sparsely populated Nordic island country resorted to direct action to pressure their leaders.