Purchasing Power

Carlson Capital: Border Adjustment Tax Would Lead To "Global Depression"

"If the border adjustment mechanism is implemented as proposed we think it will cause a global depression and a major equity market decline. It is still unclear whether it will happen but at the very least we expect that US trade policy will put downward pressure on global growth. When this becomes apparent commodities will correct meaningfully and we will reinvest in inflation beneficiaries."

The Central Banks Pull Back: Now It's Up To Fiscal Policy To "Save The World"

The reason central bankers are pulling back from their previous "we can do no wrong, we're saving the world" expansion is those policies have failed to bolster the real economy. Even conventional economists who never met a central bank expansion they didn't love are grudgingly conceding that quantitative easing and all the other monetary expansions did little but make the rich richer and everyone else poorer.

A Self-Described "Permabull" Explains Why He Is Worried

In recent years, I’ve been chided for being eternally optimistic, or a perma-bull, when it comes to markets. I’ve seen the ever-present fear that has pervaded markets as a positive. But now complacency abounds and it seems to hinge on not much more than hope and a prayer - I’m worried.

Paul Craig Roberts On "The Demise Of The Left"

The European and American left, which traditionally stood for the working class and peace (bread and peace) no longer exists. The cause championed by those who pretend to be the “left” of today is identity politics.  The “left” no longer champions the working class, which the “left” dismisses as “Trump deplorables,” consisting of “racist, misogynist, homophobic, gun nuts.” Instead, the “left” champions alleged victimized and marginalized groups - blacks, homosexuals, women and the transgendered.

What Is This "Crisis" Of Modernity?

We have an economic crisis - centered on the persistent elusiveness of real growth, rather than just monetized debt masquerading as 'growth'; and a political crisis - in which even ‘Davos man’, it seems, according to their own World Economic Forum polls, is anxiously losing his faith in 'the system' itself.

Policy Makers - Like Generals - Are Busy Fighting The Last War

It's long overdue to acknowledge we face a future absent net growth and likely a future with fewer consumers, fewer homebuyers, fewer taxpayers, fewer employees.  We face a battle where higher productivity leads to ever more being done by ever fewer people... and if we aren't thoughtful, honest, and creative in how we adapt to this new reality... terrible consequences could await us.

Trump And A New Gold-Backed Dollar

Trump recently said, “We will no longer surrender this country, or its people, to the false song of globalism.” In our view, there’s only one way Trump could fight the global elites and their SDR plan: return the dollar to some sort of gold backing.

Donald And The Dollar

John Connally, President Nixon’s Secretary of the Treasury, once remarked to the consternation of Europe’s financial elites over America’s inflationary monetary policy, that the dollar “is our currency, but your problem.”  Times have certainly changed and it now appears that the dollar has become an American problem.

Janet Yellen Explains "The Goals Of Monetary Policy"... Seriously - Live Feed

Less than two days before Donald Trump is inaugurated as the 45th president of the United States, Fed chair Janet Yellen takes to the stage at the Commonwealth Club of San Francisco to explain (after all these years), what "the goals of monetary policy are... and how we pursue them." We can't wait to hear how increasing asset prices to untenable levels, depriving savers of income, and driving the largest wedge between rich and poor since the great depression have been part of the solution...

The Real Value Of Cash

If an individual is “literally” burying cash in their backyard, then the discussion of the loss of purchasing power is appropriate. However, if cash is a “tactical” holding to avoid short-term destruction of capital, then the protection afforded outweighs the loss of purchasing power in the distant future.

The Path To $10,000 Bitcoin

We're accustomed to "rotation," the nice little game where bonds can be sold and the capital invested in real estate or stocks, or vice versa. We're less accustomed to all the conventional asset classes toppling like dominoes. Where do the fleeing trillions go when stocks, bonds and real estate are all going down in a chaotic sell-off?

2017: The Year When The World Economy Starts Coming Apart

The history of previous civilizations rising and eventually collapsing is well documented. Our current economy seems to be following a similar pattern... Our fundamental problem is the fact that neither high nor low energy prices are now able to keep the world economy operating as we would like it to operate.