Category Archive: 6b.) Debt and the Fallacies of Paper Money

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How Elon Musk Helps Fools to Part Ways with Their Money

2016-05-28

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2016-05-28

  Tesla Goes Fishing Tesla Motors is up to something remarkable.  But what it is, exactly, is unclear.  According to the Tesla Motors website, the company’s mission is: to accelerate the world’s transition to sustainable transport.   Tesla Model 3: t...

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The Power Elite: Bumbling Incompetents

2016-05-28

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2016-05-28

Is there any smarter group of homo sapiens on the planet? Or in all of history? We’re talking about Fed economists, of course. Not only did they avoid another Great Depression by bold absurdity…giving the economy more of the one thing of which it clearly had too much – debt. They also carefully monitored the economy’s progress so as to avoid any backsliding into normalcy.

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Democratic Fun in Tajikistan

2016-05-27

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2016-05-27

  Capo for Life! The people of Tajikistan love their president Emomali Rahmon deeply. And as we now know, nearly all of them do. The last time a leader of similarly exalted stature enjoyed such unconditional and unshakable support from the entire cit...

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Sloppy Decisions at Greenlight Capital and Pershing Square

2016-05-26

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2016-05-26

  Not Just Wrong, but Monumentally Wrong Massive flaws at SUNE (Sun Edison) + VRX (Valeant) were somehow missed by both of these high profile/ well resourced hedge funds.   David Einhorn (Greenlight Capital) and Bill Ackman (Pershing Square) – both f...

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Time to Raise the White Flag at Gualfin?

2016-05-26

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2016-05-26

  Who Cares What Voters Want? BALTIMORE, Maryland –  There were two newsworthy developments last week, neither of them really important – the first because it won’t happen, the second because it won’t matter. First, the Fed let it be known that it ha...

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Nigeria Currency Devaluation Looms As FX Forwards Crash To Record Lows

2016-05-25

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2016-05-25

Despite US equity investors' exuberance over bouncing crude oil prices, the world's crude producers continue to suffer and while Venezuela is in the headlines every day (having already collapsed into chaos), Nigeria appears the nearest to that abyss ...

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Are Investors Idiots?

2016-05-24

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2016-05-24

  Black-and-Blue Crash Alert Flag Let us  begin the week “on message.” The Diary is about money. Today, we’ll stick to the subject.  Old friend Mark Hulbert has done some research on the likelihood of a crash in the stock market.   Ye olde tattered C...

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Austria’s Presidential Elections – Europe’s Social Mood Keeps Worsening

2016-05-23

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2016-05-23

Austria is a small European nation that has made the grievous mistake of needlessly joining the EU in 1995, together with Finland and Sweden. Austria’s neighbor Switzerland, which is of roughly similar size and likewise militarily neutral, proved to have far better instincts. The Swedes subsequently at least had the good sense to stay out of the euro zone. It seems if there is a mistake to be made, Austrian governments will eagerly make it.

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Revolution at the Ranch

2016-05-23

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2016-05-23

  Alarming News BALTIMORE, Maryland – An alarming email came on Tuesday from our ranch in Argentina: “Bad things going on… We thought we had the originarios problem settled. Not at all. They just invaded the ranch.”   Originarios on the march… Photo ...

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How to Maximize Economic Potential

2016-05-20

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2016-05-20

The fundamental problem facing today’s economy is the barefaced contempt governments the world over have for the free exchange of goods and services and private stewardship of property. What it is government’s think they are doing with their destructive fiscal and monetary policies is unclear. But what is crystal clear is the scrambled disorder modern day economic policies have wrought.

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How the Deep State’s Cronies Steal From You

2016-05-20

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2016-05-20

The relentless growth of Leviathan: Total Pages of Code of Federal Regulations from 10000 in 1950 to 170000 in 2014. Federal tax rules – from 400 in 1913 to 74,000 in 2012. Aggregate word count of Dodd-Frank regulations doubled.

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The Japanese Popsicle Affair

2016-05-20

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2016-05-20

  Policy-Induced Contrition in Japan As we keep saying, there really is no point in trying to make people richer by making them poorer – which is what Shinzo Abe and Haruhiko Kuroda have been trying to do for the past several years. Not surprisingly,...

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Pareto’s Wily Foxes

2016-05-20

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2016-05-20

  Smart Money Fleeing Stocks DUBLIN – The Dow dropped 180 points on Tuesday – or about 1%. And another clever billionaire says he is looking elsewhere for profits. Reuters:   “Activist investor Carl Icahn on Monday said there was a chance the stock m...

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Drowning the Fir

2016-05-18

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2016-05-18

  Presidential Duties Our editor recently stumbled upon an image in one of the more obscure corners of the intertubes which we felt we had to share with our readers. It provides us with a nice metaphor for the meaningfulness of government activity. F...

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The Long-Buried Secret of Napoleon Bonaparte

2016-05-18

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2016-05-18

  Family Secrets DUBLIN – The smart money is getting out while the gettin’ is still good. That’s the message we get from reading the recent headlines.   Here’s the Financial Times:   Redemptions from stock funds have hit nearly $90 billion this year ...

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A Tale of Two Parliaments

2016-05-18

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2016-05-18

  Boisterous Debate vs. Non-Existence Readers may recall that we have previously reported on brawls breaking out in various parliaments, such as e.g. in Ukraine’s Rada, where we suspect representatives are actually engaging in a form of performance a...

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Trump’s Biggest Deal

2016-05-17

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2016-05-17

A reader asks Bill Bonner "Trump is the only candidate that might have a chance to get us out of the financial and economic mess the United States is in." Is he really?

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China’s Rolling Boom-Bust Cycle

2016-05-17

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2016-05-17

Pater Tenebrarum looks on the most important China charts that indicate a boom-bust cycle: annual rate of growth of M1 and M2, China fixed asset investment, China Money Supply M1, Shanghai Stock Exchange, China commodity futures, Steel Rebar futures, China residential real estate prices

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The Fatal Conceit

2016-05-17

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2016-05-17

Bonner shows that Hayek's Fatal Conceit is valid today: central economic planning is literally impossible – there can be no centrally planned rational economy. Individual planning is distinct from central planning, in that the many individual plans pursued by self-interested individuals mesh and create a spontaneous order.

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Kuroda-San in the Mouth of Madness

2016-05-14

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2016-05-14

  Deluded Central Planners Zerohedge recently reported on an interview given by Lithuanian ECB council member Vitas Vasiliauskas, which demonstrates how utterly deluded the central planners in the so-called “capitalist” economies of the West have bec...

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