If Promoting Wealth Inequality and Social Breakdown Is Evil, The Fed Is Evil

The Fed will destroy the nation by widening the wealth/income inequality that is breaking down the nation’s social order. President Reagan was widely mocked in America when he declared the Soviet Union an evil empire, but this calling things by their real name had a profound impact in the Eastern Bloc. The mockery stemmed […]

No Matter How Much Money the Fed Prints, We Still Can’t Afford Nice Things

When will the American wage-earner finally tire of the skims, scams, fraud and lies that are now the foundations of everyday life? You’d think that with the Federal Reserve printing trillions of dollars since 2008, we’d all be able to afford nice things. But you’d be wrong: after 11 years of […]

Instability Rising: Why 2020 Will Be Different

In 2020, increasing monetary and fiscal stimulus will be the equivalent of spraying gasoline on a fire to extinguish it. Economically, the 11 years since the Global Financial Crisis of 2008-09 have been one relatively coherent era of modest growth, rising wealth/income inequality and coordinated central bank stimulus every time a […]

409Ks, 90% Gains, The Fed and Darth Vader’s Warning

The worship of mortals as demi-gods and faith in Golden Idols triggers a turn in the karmic wheel as near-infinite hubris invites divine retribution. In case you missed it, here’s a snapshot of the most recent Federal Reserve board meeting: It’s certainly a peculiar moment in history when the President […]

Just a Friendly Heads-Up, Bulls: The Fed Just Slashed its Balance Sheet

Perhaps even PhD economists notice that manic-mania bubbles always burst–always. Just a friendly heads-up to all the Bulls bowing and murmuring prayers to the Golden Idol of the Federal Reserve: the Fed just slashed its balance sheet–yes, reduced its assets. After panic-printing $410 billion in a few months, a $24 billion decline […]

The Fed Can’t Reverse the Decline of Financialization and Globalization

The global economy and financial system are both running on the last toxic fumes of financialization and globalization. For two generations, globalization and financialization have been the two engines of global growth and soaring assets. Globalization can mean many things, but its beating heart is the arbitraging of the labor of the […]

Was Marx Right about Capitalism Destroying Itself from Within?

What are the internal contradictions that could unravel capitalism from within? One of the core tenets of Marx’s work is that capitalism will be undone by internal contradictions that would manifest as ever-greater crises that would eventually destroy the system from within. As the global economy continues to unravel beneath the surface, […]

Is This “The Top”?

Parabolic moves end when the confidence that the parabolic move can’t end becomes the consensus. The consensus seems to be that the stock market is on its way to much higher levels, and soon. The near-term targets for the S&P 500 (SPX, currently around 3,235) range from 3,500 to 4,000, with […]

The Two Charts You Need to Ignore or Rationalize Away in 2020 (Unless You’re a Bear)

If you believe you’ve front-run the herd, you’re now in mid-air along with the rest of the herd that has thundered off the cliff. We’re awash in financial charts, but only a few crystallize an entire year. Here are the two charts that sum up everything you need to know about […]

The Fed’s “Not-QE” and the $33 Trillion Stock Market in Three Charts

One day the stock market ‘falcon’ will no longer hear the Fed ‘falconer’, and the Pavlovian magical thinking will break down as the market goes bidless. The past decade has shown that when the Federal Reserve creates trillions of dollars out of thin air (QE), U.S. stocks rise accordingly. The correlation […]

Grab-Bag Resolutions 2020

A grab-bag of resolutions from the occasionally-controlled chaos of life. Since “We are what we repeatedly do” (attributed to Aristotle), i.e. we are what we do every day, resolutions have little consequence until they become daily habits. With that in mind, here’s a grab-bag of resolutions I want to manifest in […]

The Hour Is Getting Late

After 11 years of “the Fed is the market” expansion, the Fed has now reduced its bloated balance sheet by 6.7%. This is normal, right? So here we are in Year 11 of the longest economic expansion/ stock market bubble in recent history, and by any measure, the hour is getting […]

Is Social Media the New Tobacco?

If we set out to design a highly addictive platform that optimized the most toxic, destructive aspects of human nature, we’d eventually come up with social media. Social problems arise when initially harmless addictions explode in popularity, and economic problems arise when the long-term costs of the addictions start adding […]

A “Market” Crash Is Baked In–Here’s Why

Anyone looking at the hollowed-out, fragile shell of a Fed-managed “market” as a system realizes a crash that runs away from central planning control is already baked in. The last thing punters and pundits expect is a stock “market” crash, yet a “market” crash is already baked in and here’s why: […]

All I Want for Christmas Is an Unmanipulated Market

The irony, of course, is that only those punters who sold on the way up will escape the devastation of the collapse into a bidless “market.” All I want for Christmas is an unmanipulated market, because manipulated markets always crash big and crash hard. Virtually every market in America is heavily […]

Welcome to the Era of Intensifying Chaos and New Weapons of Conflict

Geopolitics has moved from a slow-moving, relatively predictable chess match to rapidly evolving 3-D chess in which the rules keep changing in unpredictable ways. A declining standard of living in the developed world, declining growth for the developed world and geopolitical jockeying for control of resources make for a highly […]

Our Fragmentation Accelerates

As our fragmentation accelerates, shared economic interests are ignored in favor of divisive warring camps that share no common interests. That our society and economy are fragmenting is self-evident. This fragmentation is accelerating rapidly, as middle ground vanishes and competing camps harden their positions to solidify the loyalty of the “tribe.” All or nothing, […]

Skyrocketing Costs Will Pop All the Bubbles

The reckoning is coming, and everyone who counted on “eternal growth of borrowing” to stave off the reckoning is in for a big surprise. We’ve used a simple trick to keep the status quo from imploding for the past 11 years: borrow whatever it takes to keep paying the skyrocketing […]

OK Boomer, OK Fed

Eventually the younger generations will connect all the economic injustices implicit in ‘OK Boomer’ with the Fed. Much of the cluelessness and economic inequality behind the OK Boomer meme is the result of Federal Reserve policies that have favored those who already own the assets (Boomers) that the Fed has relentlessly pumped higher, […]

A “Market” That Needs $1 Trillion in Panic-Money-Printing by the Fed to Stave Off Implosion Is Not a Market

It was all fun and games enriching the super-wealthy but now the karmic cost of the Fed’s manipulation and propaganda is about to come due. A “market” that needs $1 trillion in panic-money-printing by the Fed to stave off a karmic-overdue implosion is not a market: a legitimate market enables price […]