Saturday The disconnect between the real market, including amongst other things, the design, manufacture, marketing and exchange of goods and services, and the stock exchange, has never been greater. Were the ramifications not so disastrous, the divergent trajectories of the two would be amusing. The stock market continues to soar, because the Fed creates billions … [Read more...]
Predictions and Assumptions
Sunday In January of 2000, it began to dawn on me that the world had some serious problems. A great deal of subsequent reading informed me that the world’s monetary system was not only seriously flawed (it had been since 1933) but that it was at the point of breakdown. It was like a drunk at the bar who was being kept upright only by the swell of people around … [Read more...]
Bitcoin or Goats
Tuesday I listened to a speaker a few days ago explain that Gold was money because it was ‘the most marketable good’ (the preferred trading good in the marketplace). He then explained that silver was what was actually used as most people didn’t own Gold and it was too valuable for marketplace trades. If Menger’s theory that money is so by virtue of the fact that it is … [Read more...]
All is Well – Until it Isn’t
Saturday The national debt is too large to sustain any meaningful increase in interest rates. It’s all talk. Thus, it makes sense for corporations to continue borrowing to fund share buy backs and dividends. Borrowing funds at low interest rates in order to declare a dividend is a peculiar phenomenon that definitely falls into the category of ‘perverse incentives create … [Read more...]