The Fed Is Fueling a Revolt That It Cannot Control

It’s not that hard to forecast a populist revolt against the parasitic class that’s grown obscenely wealthy as a direct result of Fed policies. Under the tender care of the Federal Reserve, America’s wealth inequality has skyrocketed to new heights of obscenity as America’s billionaires feasted off the Fed’s recent […]

The Outlines of a Better World Are Emerging

Once the government’s ability to sustain its enforcement with money created out of thin air vanishes, the entire order vanishes along with it. The era of waste, greed, fraud and living on borrowed money is dying, and those who’ve known no other way of living are mourning its passing. Its passing […]

Surviving 2020 #3: Plans A, B and C

Readers ask for specific recommendations for successfully navigating the post-credit/speculative-bubble era and I try to do so while explaining the impossibility of the task. As the bogus prosperity economy built on exponential growth of debt implodes, we all seek ways to protect ourselves, our families and our worldly assets. There are any number […]

Where the Rubber Meets the Road

Longtime correspondent Paul B. suggested I re-publish three essays that have renewed relevance. This is the second essay, from July 2008. Thank you, Paul, for the suggestion. I received this timely inquiry from astute reader Paul B.: I’m interested in # 1, while you seem to take into account 300 […]

The Art of Survival, Taoism and the Warring States

Longtime correspondent Paul B. suggested I re-publish three essays that have renewed relevance. This is the first essay, from June 2008. Thank you, Paul, for the suggestion. I’m not trying to be difficult, but I can’t help cutting against the grain on topics like surviving the coming bad times when […]

Why Assets Will Crash

This is how it happens that boats that were once worth tens of thousands of dollars are set adrift by owners who can no longer afford to pay slip fees. The increasing concentration of the ownership of wealth/assets in the top 10% has an under-appreciated consequence: when only the top […]

Our Inevitable Collapse: We Can’t Save a Fragile Economy With Bailouts That Increase Fragility

By bailing out the sources of systemic fragility with trillions of dollars, the Fed has shifted the risk to the entire financial system and the nation’s currency. That the global economy is fragile is painfully obvious to all. What is less obvious is the bailouts intended to “save” the fragile economy […]

The Pandemic Is Deepening America’s Many Divides

And so we’ve reached the precarious state of disunion in which the only thing the warring elites can agree upon is that the Federal Reserve should rescue their private wealth, regardless of cost or consequences. America’s divides are proliferating and deepening by the day. The key political and economic divides predate […]

With Superfluous Demand in Free-Fall, What’s the Upside of Re-Opening a Small Business?

Since superfluous demand was the core driver of most consumer spending, and that demand is in free-fall, what’s the upside of re-opening? The mainstream view assumes everyone will be gripped by an absolutely rabid desire to return to their pre-pandemic frenzy of borrowing and spending and consuming, the more the better. While the […]

The Crash Has Only Just Begun

Everything, including a rational, connected-to-reality, effective financial system, is on back-order and unlikely to ship any time soon. While the stock market euphorically front-runs the Fed and a V-shaped recovery, the reality is the crash has only just begun. To understand why, look at income and debt. Income–earned and unearned–is in […]

No, This Is Not Another 1929, 1973, 1987, 2000, or 2008

Basing one’s decisions on analogs from the past is entering a fool’s paradise of folly. Like addicts who cannot control their cravings, financial analysts cannot stop themselves from seeking some analog situation in the past which will clarify the swirling chaos in their crystal balls. So we’ve been swamped with charts […]

Here’s Why the Economy Won’t Recover–and No, It’s Not Covid-19 or the Lockdown

When reality and truth become the sworn enemies of society’s political and economic elites, the society is well and truly doomed. The risks of Covid-19 and the lockdown have been explored across a wide spectrum of opinion. To hit just a few of too many to count: — Permanent loss of […]

What’s Collapsing Can’t Be Saved: Our Fraudulent Economy

Pulling the sleeve down to hide the tracks doesn’t mean the addict is cured. Just for a change of pace, can we be bluntly honest about the U.S. economy? It’s difficult to do because we’ve chosen to ignore all the realities, much like a family that hides all the addictions, drunkenness […]

False Reading: The Fed’s Equities Light Is “Green” But the Economy Is Crashing

Sadly, as markets stall and crash, participants will still be in their seats thinking all is well. The tragic 2009 crash of Air France Flight 447 offers an apt analogy for the global economy and central bank-driven false signals. Flight 447 entered an area of frigid turbulence over the Atlantic which caused the […]

Here We Go Again: When Bubbles Pop, Only the First Sellers Avoid Destruction

Bubbles always burst, and the confidence that “this isn’t a bubble” and “the Fed has our back” are counter-indicators. Here we go again: stocks have once again reached nosebleed valuations completely disconnected from reality–in other words a repeat of the speculative-frenzy bubble that reached its peak on February 19. Once again, […]

Between a Rock and a Hard Place: Pandemic and Growth

There is no way authorities can limit the coronavirus and restore global growth and debt expansion to December 2019 levels. Authorities around the world are between a rock and a hard place: they need policies that both limit the spread of the coronavirus and allow their economies to “open for business.” […]

While the Top 10% and the Fed Cheer Stocks Rebounding, the Bottom 60% Lose their Livelihoods and Lives

If you have any doubt that the Fed and Wall Street will some day be dismantled, please re-read this “real life in America” list again. The pandemic is a stark, brutal spotlight on income/wealth inequality in America: while the top 10% who own the majority of the nation’s wealth cheer the […]

Overcapacity / Oversupply Everywhere: Massive Deflation Ahead

The price of a great many assets will crash, out of proportion to the decline in demand. Oil is the poster child of the forces driving massive deflation: overcapacity / oversupply and a collapse in demand. Overcapacity / oversupply and a collapse in demand are not limited to the crude oil […]

Can “Sickcare” Survive the Pandemic?

Like the rest of the financialization machine, sickcare was never sustainable. What was once known as healthcare in the U.S. has largely been replaced by sickcare: healthcare was focused on restoring and maintaining health and was owned and managed by community-based non-profit hospitals. Sickcare is focused on extracting the maximum revenues and profits from managing the […]

There’s No Going Back, We Can Only Go Forward

What I see is a global collapse of intangible capital that is invisible to most people. It’s only natural that the conventional expectation is a return to the pre-pandemic world is just a matter of time. Whether it’s three months or six months or 18 months, “the good old days” will […]