The best part of the UK Election result is it is the last linchpin for a new economics of the planet. The post Nixon era of globalists buying congress and the Federal Bureaucracy to keep the money , assets, skills , intellectual property and jobs flowing out of the US is crashing down. With the incentives for relocation of the supply chains out of China (both from tariffs by the USA and Chinese blatant piracy), the rejection of NAFTA and TPP, we are forming a group of the USA, Japan, Mexico, Canada, and now the UK , with potential for Australia and Brazil to join who will implement fair trade and real win win economics. Canada will eventually come along politically out of necessity. The UK -US deal will begin the complete destruction of the EU as an economic cartel.
The implications are staggering for the chance of keeping freedom alive for a few more generations.... [Read More]
Just posted two days ago on indeed.com is this opening for an “Expert Hedge Fund Advisor”, a part-time position paying US$ 125,000 to 225,000 per year, with The Soul Rider, LLC of San Francisco, California. Extracts from the posting (emphasis and capitals are as in the original):
Using Supernormal Cognition our private fund aspires to provide a 75% accuracy rate in the prediction of near-term financial markets. You will be our private fund’s advisor. Your long expertise and great reputation in financial investments are paramount. You must have 20 years as a financial industry expert AND as an advisor to 10-figure funds.... [Read More]
Back on August 3rd, 2019, I posted a piece titled “The Dog that Did Not Bark” on the occasion of the U.S. congress enacting and the president signing a “budget deal” which suspended the statutory limit on the national debt until July 2021. A few days before, the House defeated an amendment which would have renamed the bill “A bill to kick the can down the road and for other purposes”. I remarked that neither any of the Democrat presidential hopefuls nor President Trump had mentioned the deficit or the debt in any of their “debates” or rallies.
The only Presidential candidate who was talking about these issues was South Carolina former governor and congressman Mark Sanford, who was attempting a primary challenge to Trump with the debt and deficit as central issues. On Wednesday, November 12th, Sanford “suspended” his campaign, just 65 days after announcing. Sanford’s statement said, “I am suspending my race for the Presidency because impeachment has made my goal of making the debt, deficit and spending issue a part of this presidential debate impossible right now. From day one, I was fully aware of how hard it would be to elevate these issues with a sitting president of my own party ignoring them. Impeachment noise has moved what was hard to herculean as nearly everything in Republican party politics is currently viewed through the prism of impeachment.”... [Read More]
Trump and his campaign launched a new “Black Voices for Trump” outreach initiative in Atlanta on Friday dedicated to “recruiting and activating Black Americans in support of President Trump,” according to the campaign. Much of that effort will focus on highlighting ways that African Americans have benefited from the Trump economy, according to advisers.
“The support we’re getting from the African American community has been overwhelming,” Trump told the crowd, which included supporters wearing red “BLACK LIVES MAGA” hats.
He predicted victory in 2020, and said, “We’re going to do it with a groundswell of support from hardworking African American patriots.”
Here is Mark Zuckerberg, whose Zucker-butt was summoned for six hours in the witness chair before the U.S. House Financial Services Committee to testify about Facebook’s Libra cryptocurrency. The committee was chaired by that world-renowned authority on finance and economics, “Mad” Maxine Waters. Here is a link to the full hearing.
During the interminable proceedings, questioning passed to intergalactic-scale economics savant, Alexandria Ocasio-Cortez, for her five minutes in the spotlight. It almost makes you have sympathy for Zuckerberg.... [Read More]
“I think there’s a pretty major impact if you just look at the numbers,” says Victor Shih, a political economist at the University of California, San Diego, who studies the Chinese economy. China exports more goods to the U.S. than to any other country in the world, and those exports have dropped by more than 12% this year alone, he says.... [Read More]
Something funny is going on in the very short-term money market. That’s funny as in “uh-oh” rather than “ha ha”. A “repurchase agreement” or Repo is a widely-used instrument for managing cash needs in banks, corporate treasuries, government agencies, financial institutions, and the Federal Reserve. In a Repo, a party with an immediate need for cash sells a security, often a government or agency debt instrument such as a Treasury bill or note, to a counterparty, who pays in cash, providing liquidity to the seller. Under the Repo contract, the seller agrees to buy back (repurchase, hence the name) the security after a short term (often overnight) for slightly more than the funds received from the sale, compensating the buyer for the use of their funds. (This can be looked at as a kind of interest on a very short-term loan.)
This is a huge market: between US$ 2 and 3 trillion in Repos are outstanding most of the time and much of this turns over on a daily basis. Normally, the equivalent rate of interest on Repos closely tracks that of short-term money market interest rates such as the federal funds rate. If the Repo rate rises substantially, it is an indication of a “cash crunch”, where borrowers who have an immediate need for cash have to pay more to lay their hands on it. Usually the Repo market is stable and predictable, but in the last few days it’s been behaving distinctly oddly. It started in the overnight market between September 16 and 17, when a vertical spike in rates went from 2.25% to 4.75%, something rarely seen except in unusual circumstances such as the end of a quarter when corporations need to raise cash to pay taxes, dividends, and coupons on bonds.... [Read More]
According to this guy, the US has been in a depression since 2007, using an idiosyncratic definition of depression. Putting aside the semantics, I was skeptical of, yet intrigued by, the claim that there was a significant, persistent change in economic growth since the 2008-9 recession. Using data from FRED, I plotted real GDP per capita. The plot is on a semi-log scale, where a constant percentage growth appears as a straight line. The quarterly FRED GDP data are plotted in red. Exponential fits to the 1947-2007 and 2009-2019 are plotted in green and blue, respectively. The fits have been extended to highlight the difference between the two annual growth rates (2.15% & 1.56%). The difference between the green and blue fits in the current year is more than $10k per capita: nothing to sneeze at.
According to recent Census data, 277 people move away from the New York metropolitan area every day. That is over 100,000 people a year. After seeing this data my first thought was, “Why isn’t it more?”
Don’t get me wrong, New York City has a lot to offer. It also has high real estate costs, high city taxes, high state taxes, and all sorts of costly regulations.... [Read More]
Almost every time I review a book about or discuss the U.S. Federal Reserve System in a conversation or Internet post, somebody recommends this book. I’d never gotten around to reading it until recently, when a couple more mentions of it pushed me over the edge. And what an edge that turned out to be. I cannot recommend this book to anybody; there are far more coherent, focussed, and persuasive analyses of the Federal Reserve in print, for example Ron Paul’s excellent book End the Fed. The present book goes well beyond a discussion of the Federal Reserve and rambles over millennia of history in a chaotic manner prone to induce temporal vertigo in the reader, discussing the history of money, banking, political manipulation of currency, inflation, fractional reserve banking, fiat money, central banking, cartels, war profiteering, bailouts, monetary panics and bailouts, nonperforming loans to “developing” nations, the Rothschilds and Rockefellers, booms and busts, and more.
The author is inordinately fond of conspiracy theories. As we pursue our random walk through history and around the world, we encounter:... [Read More]
In one of Heinlein’s stories (I forget which one, and the search engines haven’t helped on this odd query) a character awakes after having been in suspended animation for many years and catches up on what he’s missed by spending a few hours reading a history book, then remarks on how much time he would have wasted had he read a newspaper every day for all that time, reading about matters too ephemeral to make the history books.
If you do follow the news (I try to spend as little time as possible doing so), keep in mind that the most important thing may be what’s not in the daily news. Many of the things that end up in the history books were complete surprises to those embedded in the “news cycle” and to the “experts” who feed it. For example, check the newspapers for early October 1929, November 1941, October 1989, the latter half of 1990, or August 2001: you’ll find little or nothing about the imminent stock market crash, Pearl Harbor, fall of the Berlin Wall, collapse of the Soviet Union, or terrorist attacks in the U.S. And yet, in retrospect, the circumstances which led to these “surprises” were in plain sight. Thus, I’m always interested in the big story that none of the chattering classes are chattering about. Which brings me to…... [Read More]
This slim book (just 119 pages of main text in this edition) was originally published in 1963 when the almighty gold-backed United States dollar was beginning to crack up under the pressure of relentless deficit spending and money printing by the Federal Reserve. Two years later, as the crumbling of the edifice accelerated, amidst a miasma of bafflegab about fantasies such as a “silver shortage” by Keynesian economists and other charlatans, the Coinage Act of 1965 would eliminate sliver from most U.S. coins, replacing them with counterfeit slugs craftily designed to fool vending machines into accepting them. (The little-used half dollar had its silver content reduced from 90% to 40%, and would be silverless after 1970.) In 1968, the U.S. Treasury would default upon its obligation to redeem paper silver certificates in silver coin or bullion, breaking the link between the U.S. currency and precious metal entirely.
All of this was precisely foreseen in this clear-as-light exposition of monetary theory and forty centuries of government folly by libertarian thinker and Austrian School economist Murray Rothbard. He explains the origin of money as societies progress from barter to indirect exchange, why most (but not all) cultures have settled on precious metals such as gold and silver as a medium of intermediate exchange (they do not deteriorate over time, can be subdivided into arbitrarily small units, and are relatively easy to check for authenticity). He then describes the sorry progression by which those in authority seize control over this free money and use it to fleece their subjects. First, they establish a monopoly over the ability to coin money, banning private mints and the use of any money other than their own coins (usually adorned with a graven image of some tyrant or another). They give this coin and its subdivisions a name, such as “dollar”, “franc”, “mark” or some such, which is originally defined as a unit of mass of some precious metal (for example, the U.S. dollar, prior to its debasement, was defined as 23.2 grains [1.5033 grams, or about 1/20 troy ounce] of pure gold). (Rothbard, as an economist rather than a physicist, and one working in English customary units, confuses mass with weight throughout the book. They aren’t the same thing, and the quantity of gold in a coin doesn’t vary depending on whether you weigh it at the North Pole or the summit of Chimborazo.)... [Read More]