Category Archive: 6b) Austrian Economics

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How to Invest in the New World Order

2016-12-26

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2016-12-26

In our latest Toward a New World Order, Part III we ended by promising to look closer at investment implications from the political and economic shift we currently find ourselves in; and that story must begin with the dollar.

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Moody’s & Reserve Bank of Australia Warn of Increasing Mortgage Arrears and Looming Apartment Defaults

2016-12-25

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2016-12-25

chart-1-moodys-delinqueny-rate
Moody’s & Reserve Bank of Australia Warn of Increasing Mortgage Arrears and Looming Apartment Defaults. Last Wednesday Moody’s reported that mortgage arrears continue to rise across Australia, particularly in the mining states of WA & NT:

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As Central Bankers Spin

2016-12-25

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2016-12-25

I know that I resemble the old guy in this cartoon, standing by helplessly as I watch central bankers experiment with the global economy. Bubbles are blown, again, in several asset classes. Negative interest rates have become an acceptable concept, as if they are just words and have no real economic meaning.

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The Reign of Bubble Finance

2016-12-21

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2016-12-21

Ross Wilbur
Financialization Genius BALTIMORE – When we left you last time, we were in the middle of describing the crooked hind leg of crony capitalism. We used billionaire businessman Wilbur Ross – Donald Trump’s pick for the Department of Commerce – for illustration purposes. Not that there is anything wrong with Mr. Ross. He plays the game, just as everyone else does. He’s particularly good at it.

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Toward A New World Order, part III

2016-12-19

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2016-12-19

A new world order is coming of age and the transition is painful to accept for a Western middle class with a deep-seated sense of entitlement. We showed how the West feels threatened globally in Toward a New World Order and followed up explaining how this translate into domestic politics in Toward a New World Order Part II. We will now continue this series by showing how gross economic mismanagement have created the new political class that we...

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Has the Fed Turned “Hawkish?”

2016-12-18

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2016-12-18

Fed birdhouse
Juiced, Stimulus, in a general sense, is something that causes an action or response. A ringing alarm clock may prompt someone to exit their slumber. Or a fist to the gut may force someone to gasp for breath.

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“This Is Total Chaos” – Venezuela Shuts Colombia Border To Stop “Mafia” Currency Smuggling

2016-12-18

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2016-12-18

Banknotes
As if things were not already chaotic enough in the socialist utopia of Venezuela, following President Nicolas Maduro's decision to follow Indian PM Modi's playbook and announce that the nation's largest denomination bill (100-Bolivars - worth around 3c) will be pulled from circulation in 72 hours, he has tonight closed the border to Colombia to crackdown on currency smuggling by so-called "mafias".

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The Exiling of Risk

2016-12-17

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2016-12-17

NAAIM Exposure Index, SPX
A Quick Chart Overview Below is an overview of charts we picked to illustrate the current market situation. The selection is a bit random, but not entirely so. The first set of charts concerns positioning and sentiment. As one would expect, these look fairly stretched at the moment, but there are always ways in which they could become even more stretched. First a look at the NAAIM exposure index.

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The Seasonal Trends of Precious Metals

2016-12-15

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2016-12-15

Platinum Crystal
Long Term Seasonal Price Trends Prices in financial and commodity markets are exhibiting seasonal trends. This applies to the precious metals gold, silver, platinum and palladium as well. The chart below depicts the seasonal trends of the gold price over a time period of 45 years.

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Migros Bank could pass on negative interest rates

2016-12-13

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2016-12-13

Because of negative interest, even a savings account earning 0% interest is earning too much reckons the bank’s boss. Soon many banks will be passing on some of the cost of negative interest to their clients, reports 20 Minutes. Migros Bank will need to seriously consider doing the same in 2017.

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The Climate Changes Back – What Comes Next?

2016-12-13

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2016-12-13

Daily Kos Penguin North Pole
Last year’s El Nino phenomenon temporarily provided succor to climate alarmists, who were increasingly bothered by the “Great Pause” – the fact that the tiny amount of warming experienced since the last cooling cycle ended in the late 1970s had apparently stopped. Despite trace amounts of CO2 in the atmosphere continuing to climb, mother nature decided to disobey alarmist models and temperatures went sideways for about 20 years (or even longer,...

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Smart Programs of Capital Destruction

2016-12-12

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2016-12-12

Smart Panths
These days everything must be smart. There are smart cities, smart grids, smart policies, smart TVs, smart cars, smart phones, smart watches, smart shoes, and smart glasses. There’s even something called smart underwear. Before long everything around us will be so smart we’ll no longer have to do one critically important thing. We’ll no longer have to think; smart algorithms will think for us. What’s more, the possibilities for not thinking are...

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Wie die SNB durch Kapitalsteuern die Schweizer Wirtschaft belastet

2016-12-07

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2016-12-07

Vor dem Hintergrund eines angeblich „schwachen Wirtschaftswachstums“ rechtfertigte SNB-Chef Thomas Jordan neulich in einem Interview in der Tagespresse die SNB-Negativzinsen und bezeichnete diese als „expansiv“. Nur: Sind Negativzinsen wirklich „expansiv“? Sind diese nicht viel eher „restriktiv“ und bremsen unsere Wirtschaft – bewirken also genau das Gegenteil von dem, was die SNB behauptet?

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US True Money Supply Growth Jumps, Part 1: A Shift in Liabilities

2016-12-06

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2016-12-06

TMS-2 and Total Loans and Leases YoY change
The growth rates of various “Austrian” measures of the US money supply (such as TMS-2 and money AMS) have accelerated significantly in recent months. That is quite surprising, as the Fed hasn’t been engaged in QE for quite some time and year-on-year growth in commercial bank credit has actually slowed down rather than accelerating of late. The only exception to this is mortgage lending growth – at least until recently. Growth in mortgage loans is...

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Attaining Self-Destruct Velocity

2016-12-03

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2016-12-03

Jump
Some Monday mornings are better than others. Others are worse than some. For one Amazon employee, this past Monday morning was particularly bad. No doubt, the poor fellow would have been better off he’d called in sick to work. Such a simple decision would have saved him from extreme agony. But, unfortunately, he showed up at Amazon’s Seattle headquarters and put on a public and painful display of madness.

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Fidel Castro and the American Empire

2016-11-30

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2016-11-30

Fidel Castro
The death of the brutal Cuban Communist dictator Fidel Castro closes the door, in some respect, on another disastrous page in US foreign policy history. For all the denunciations and criticism of Castro from conservative elements and exiled Cubans, his despotic rule was the outcome of decades of American imperialism which began with President William McKinley’s infamous decision to wage war on hapless Spain in 1898.

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Celebrating this Land of Absurdity

2016-11-27

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2016-11-27

“Myths and legends die hard in America,” remarked Hunter S. Thompson in The Great Shark Hunt, nearly 40-years ago. These great myths and legends of America died long ago. Freedom. Liberty. Independence. Limited representative government. Sound money. Private property rights. All getting more and more replaced by regulation.

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The Problem with Corporate Debt

2016-11-26

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2016-11-26

There are actually two problems with corporate debt. One is that there is too much of it… the other is that a lot of it appears to be going sour. As a brief report at Marketwatch last week (widely ignored as far as we are aware) informs us.

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Good Money and Bad Money

2016-11-26

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2016-11-26

Stock Market Cartoons
OUZILLY, France – Last week’s U.S. jobs report came in better than expected. Stocks rose to new records. As we laid out recently, a better jobs picture should lead the Fed to raise rates. This should cause canny investors to dump stocks.

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Love him or Hate him: Trump is the Revolution Against the Establishment

2016-11-24

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2016-11-24

The 2016 U.S. presidential elections are unprecedented: I don’t believe we have ever witnessed before a campaign year so toxic, so dangerously divisive and full of ad hominem attacks. Both camps have vilified the opposition and their followers, creating a schism in society. There has been no rational dialogue on the issues that truly concern the American public.

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