Monday From: https://monetary-metals.com/ Constantly falling interest rates are destructive. Those businesses that borrowed at the earlier rate are at a disadvantage to those businesses that borrowed later at a lower rate. As each new business is encouraged into existence by the incentive of lower interest loans, so the viability of the previous businesses 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...]
GDP
Wednesday I have been trading in the same style of business since 1967. In my own experience, and coupled with conversations with other business owners around Australia, this is the worst recession for fifty years. More severe than 1982, the previous worst of my experience. This is a real doozy. There is no sense of any sort of a recovery. Quite the reverse, a number … [Read more...]
The Sage of Szombathely
Sunday For almost seventeen years the world has lived with the threat of the imminent collapse of the paper debt notes system. It has been a fascinating period in humanity’s history. I spent part of the time in the US and part in Europe, just observing the process in the primary spheres of western civilisation. Sure, there have been debt collapses before, with the … [Read more...]