Purchasing Power

Global Trade, Demand Continues To Dry Up As China's Exports Miss For Fourth Straight Month

China's exports fell for the fourth consecutive month in October as evidence of collapsing global demand and trade continues to pile up. “A lot of Westerners think this helped us out a lot. But the 2% depreciation actually hurt us. It was in every newspaper and customers called us within hours pushing for 6% discount, so we had to give them 4%."

The Next Level of John Law Type Central Planning Madness

The cries for going totally crazy are growing louder... the lunatics are running the asylum. One shouldn’t underestimate what they are capable of. The only consolation is that the day will come when the monetary cranks will be discredited again (for the umpteenth time). Thereafter it will presumably take a few decades before these ideas will rear their head again (like an especially sturdy weed, the idea that inflationism can promote prosperity seems nigh ineradicable in the long term – it always rises from the ashes again). The bad news is that many of us will probably still be around when the bill for these idiocies will be presented.

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While most of us would realize that something sinister is afoot right now in the global banking system if we merely diverted our attention away from the Sunday football game or the Game of Thrones episode on our TV for just 10 minutes to think about these issues, unfortunately, the vast majority of us still do not ever stop to do so.

What's Next: Deflation, Inflation, Or Hyperinflation?

Almost all serious analysts see a Terminal problem developing - "We will go from deflation to hyperinflation without seeing inflation." But hyperinflation is a political phenomenon. It is caused by those same authorities the masses think they can trust. When they are threatened, they will protect themselves by printing money on a scale we haven’t seen since the War Between the States (consumer prices in Richmond, Virginia, had risen 6,700% by the end of the war).

Dear Janet, Seriously!!

The Fed's confidence trick this week was, once again, the Keyser Soze gambit (via Beaudelaire)-  "convincing the world of Yellen's hawkishness, when no such character trait exists." However, unlike the movies, stocks and FX markets have already seen through the con, leaving Fed Funds futures alone to believe the hype. As we noted previously, "The Fed Can't Raise Rates, But Must Pretend It Will," repeating its pre-meeting hawkishness to dovishness swing time and again in a "Groundhog Day" meets "Waiting For Godot"-like manner. Time is running out Janet, tick tock...

Tying The Valeant Roll-Up Together: Presenting The Goldman "Missing Link"

While the Valeant soap opera has had constant, heart-pounding drama for weeks and following yesterday's report that it allegedly fabricated prescriptions, even an element of career-ending (and prison-time launching) criminality, so far one thing had been missing: an antagonist tied to Goldman Sachs. We are delighted to reveal the "missing link", one which ties everything together. Its name is Howard Schiller.

China Abandons 37-Year-Old "One-Child Policy" - Here Are The Implications

While China had previously hinted that it's one-child policy is being phased out, most notably in 2013 when sources close to the National Population and Family Planning Commission said China may relax its one-child policy at end-2013 or early-2014 (read end) by allowing families to have two children, moments ago, during the Fifth Chinese Plenum, this 37 year old policy was formally scrapped and China will henceforth allow two kids for all couples in what is a clear bid to boost growth.