Archives
No Serious Financial Repercussions from the Paris Attacks? Don’t Be Too Sure
November 16th, 2015
Global sentiment might switch decisively from “risk-on” to “risk-off” with far-reaching consequences. Goldman Sachs has helpfully announced that any financial repercussions from the attacks in Paris will be short-lived, and the political repercussions will be medium-term: Increased uncertainty likely ...
All Hail Our New Lord and Master, the Stock Market
October 29th, 2015
We’re all minions now of the stock market. The all-powerful Federal Reserve is a mere minion of the stock market, a kitten absurdly claiming in public to be a tiger. If the market threatens to drop, the Fed quickly ...
The Paradox of Risk: Central Planning Is Linear, Reality Is Non-Linear
October 15th, 2015
You thought it was safe to drive 90 miles an hour on a rain-slicked narrow road while you were tipsy because the airbag would save you, but it still hurts when you crash. I first discussed the Paradox of Risk in ...
Where Is the First Helicopter Drop of Money Likely to Land? (Video)
October 13th, 2015
So what’s left in the toolbag of central banks and states to stimulate recessionary economies if QE has been discredited? The answer: Helicopter Money. We all know helicopter money of some kind is coming as the global economy spirals into recession. Quantitative ...
Financial Independence via Self-Employment: How Do We Do It?
September 23rd, 2015
Financial independence via self-employemnt is still possible, and there are a number of pathways to that goal. The conventional financial industry touts gaining financial independence by playing Wall Street’s game: working a conventional job for decades to accumulate a ...
The Next Financial Crisis Won’t be Like the Last One
September 16th, 2015
It seems increasingly likely the next Global Financial Meltdown will arise in the FX/currency markets. Central banks are like generals: they tend to fight the last war. The Great Financial meltdown of 2008 was centered in too big to fail, too ...
Why the Market Could Soar From Here
September 8th, 2015
Does the Fed really have a choice, given that the game is now for all the marbles? We all know the global economy is slowing, so why would stocks soar from here? The basic answer was articulated by Chris ...
Global Markets to Fed: No Rate Hike, the Strong Dollar Is Killing Us
August 25th, 2015
Global markets are puking at the prospect of higher yields in the U.S. There are many reasons for global markets to melt down, but one that doesn’t get enough attention is the strong dollar. In effect, global markets are ...
China, the Hollow Dragon
August 17th, 2015
In terms of profitability and trade-generated wealth, China is a hollow dragon. It is widely assumed that manufacturing (a.k.a. the world’s workshop) is the source of China’s wealth. But how can this be true, given that manufacturing profit margins ...
Currency Devaluation: The Crushing Vice of Price
July 30th, 2015
Devaluation has a negative consequence few mention: the cost of imports skyrockets. When stagnation grabs exporting nations by the throat, the universal solution offered is devalue your currency to boost exports. As a currency loses purchasing power relative to the currencies ...
