Category Archive: 6b) Austrian Economics

The Japanese Popsicle Affair

  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

  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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Fed Suppression, Long Term Economic Repression

The Federal Reserve really wants to raise rates, but they do not dare as the consequence of interrupting an unprecedented level of capital misallocation is too grave to face head on. So our money masters continue their low interest rate policy; pulli...

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Drowning the Fir

  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

  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

  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

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

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

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

  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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Even Death Won’t Save Us

  Hazards and Benefits Rubbernecking at the economic train wreck of central planners is not without hazard.  A strained collar and dry eyes, for instance, are common perils.  So, too, is the lasting grimace of disbelief that comes with the roll-out o...

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Retirement Torpedoes and Democracy

Bonner compares Total credit market debt, federal government debt and GDP – an economy running on debt, and now running on empty.

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Heretical Thoughts and Doing the Unthinkable

  Heresy! NORMANDY, France – The Dow rose 222 points on Tuesday – or just over 1%. But we agree with hedge-fund manager Stanley Druckenmiller: This is not a good time to be a U.S. stock market bull.   Legendary former hedge fund manager Stanley Druck...

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OPEC Politics: Russian King, Iranian Crown Prince?

Another month, another OPEC meeting beckons for 2nd June. But unlike typical meetings on the Danube (let alone dust filled haze of Doha), the producer group might just have a new King in town.

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Should the Gold Price Keep Up with Inflation?

The popular belief is that gold is a good hedge against inflation. Owning gold will protect you from rising prices. Is that true?

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Staying Home on Election Day

  Pretenses and Conceits The markets are eerily quiet… like an angry man with something on his mind and a shotgun in his hand. We will leave them to brood… and return to the spectacle of the U.S. presidential primaries. On display are all the pretens...

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Spain Sells 3x Oversubscribed 50-Year Bond

Following a scramble by European nations to issue ultra long-dated government paper, which saw France and Belgium sell 50-year bonds last month, while Ireland and Belgium went all the way and issued century bonds, with even Switzerland locking in 42-...

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The World’s 100 Most Influential Hacks, Yahoos and Monkey Shiners

  Hacks and Has-Beens NORMANDY, France – What has happened to TIME magazine? Henry Luce, who started TIME – the first weekly news magazine in the U.S. – would be appalled to see what it has become.   Time cover featuring the sunburned mummy heading t...

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Reality is a Formidable Enemy

  Political Correctness Comedy We have recently come across a video that is simply too funny not be shared. It also happens to dovetail nicely with our friend Claudio’s recent essay on political correctness and cultural Marxism. Since this is general...

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Why is Freddie Mac Reporting a Loss?

  A Sudden Turn for the Worse Freddie Mac posted a loss of $354 million this quarter, versus a $2.16 billion gain the previous quarter.  Fannie Mae did slightly better with net earnings of $1.1 billion, which were still substantially down from $2.5 b...

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