Tag Archive: On Economy

India: The World’s Fastest Growing Large Economy?

2017-02-05

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2017-02-05

India GDP Annual Growth Rate 2008 - 2016
India has been the world’s favorite country for the last three years. It is believed to have superseded China as the world’s fastest growing large economy. India is expected to grow at 7.5%. Compare that to the mere 6.3% growth that China has “fallen” to.

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Don’t Blame Trump When the World Ends

2017-02-04

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2017-02-04

The General Theory of Employment, Interest, and Money.
There was, indeed, a time when clear thinking and lucid communication via the written word were held in high regard. As far as we can tell, this wonderful epoch concluded in 1936. Everything since has been tortured with varying degrees of gobbledygook.

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Adventures in Currency Debasement

2017-01-30

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2017-01-30

Weekly Dollar Index
The U.S. dollar, as measured by the dollar index, has generally gone up since mid-2014. The dollar index goes up when the U.S. dollar gains strength (value) against a basket of currencies, including the euro, yen, pound, and several others. Conversely, the dollar index goes down when the U.S. dollar loses value.

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With Trump Optimism of Small Business Soars

2017-01-28

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2017-01-28

Small Business Optimism
“You boys know what makes this bird go up? Funding makes this bird go up. That’s right. No bucks, no Buck Rogers.” - Gordon Cooper and Gus Grissom, The Right Stuff (film). Things are looking up for the United States economy in 2017. You can just feel it. Something great is about to happen.

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Donald and the Dollar

2017-01-20

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2017-01-20

Nixon and Connally
John Connally, President Nixon’s Secretary of the Treasury, once remarked to the consternation of Europe’s financial elites over America’s inflationary monetary policy, that the dollar “is our currency, but your problem.” Times have certainly changed and it now appears that the dollar has become an American problem.

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US Financial Markets – Alarm Bells are Ringing

2017-01-18

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2017-01-18

When discussing the outlook for so-called “risk assets”, i.e., mainly stocks and corporate bonds (particularly low-grade bonds) and their counterparts on the “safe haven” end of the spectrum (such as gold and government bonds with strong ratings), one has to consider different time frames and the indicators applicable to these time frames.

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Crony Socialism and Failed CEOs

2017-01-15

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2017-01-15

Golden Parachute
Whenever a failed CEO is fired with a cushy payoff, the outrage is swift and voluminous. The liberal press usually misrepresents this as a hypocritical “jobs for the boys” program within the capitalist class. In reality, the payoffs are almost always contractual obligations, often for deferred compensation, that the companies vigorously try to avoid.

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Trump’s Trade Catastrophe?

2017-01-15

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2017-01-15

Larry Summers
It is worse than “voodoo economics,” says former Treasury Secretary Larry Summers. It is the “economic equivalent of creationism.” Wait a minute – Larry Summers is wrong about almost everything. Could he be right about this?

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Trump’s Plan to Close the Trade Deficit with China

2017-01-14

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2017-01-14

Jack Ma
Jack Ma is an amiable fellow. Back in 1994, while visiting the United States he decided to give that newfangled internet thing a whirl. At a moment of peak inspiration, he executed his first search engine request by typing in the word beer.

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Money Creation and the Boom-Bust Cycle

2017-01-12

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2017-01-12

Murray Rothbard
A Difference of Opinions, In his various writings, Murray Rothbard argued that in a free market economy that operates on a gold standard, the creation of credit that is not fully backed up by gold (fractional-reserve banking) sets in motion the menace of the boom-bust cycle.

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A Trade Deal Trump Cannot Improve

2017-01-08

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2017-01-08

Alice Meets Red Queen
BALTIMORE – People can believe whatever they want. But sooner or later, real life intervenes. We just like to see the looks on their faces when it does. By that measure, 2017 may be our best year ever. Rarely have so many people believed so many impossible things.

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Modi’s Great Leap Forward

2017-01-02

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2017-01-02

India's Economy
India’s Prime Minister, Narendra Modi, announced on 8th November 2016 that Rs 500 (~$7.50) and Rs 1,000 (~$15) banknotes would no longer be legal tender. Linked are Part-I, Part-II, Part-III, Part-IV, Part-V, Part-VI and Part-VII, which provide updates on the demonetization saga and how Modi is acting as a catalyst to hasten the rapid degradation of India and what remains of its institutions.

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Global Recession and Other Visions for 2017

2017-01-02

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2017-01-02

Here-lies-a-vision
Today’s a day for considering new hopes, new dreams, and new hallucinations. The New Year is here, after all. Now is the time to turn over a new leaf and start afresh. Naturally, 2017 will be the year you get exactly what’s coming to you. Both good and bad. But what else will happen?

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How You Become a Crony

2016-12-31

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2016-12-31

Goldman Sachs Group
BALTIMORE – Who’s the biggest winner so far? “Government Sachs!” Fortune magazine reports that the winningest person since Trump’s election is Goldman Sachs CEO Lloyd Blankfein.

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India’s Rapid Progression Toward a Police State

2016-12-30

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2016-12-30

Mahad-Poladpur bridge collapse
India’s Prime Minister, Narendra Modi, announced on 8th November 2016 that Rs 500 (~$7.50) and Rs 1,000 (~$15) banknotes would no longer be legal tender. Linked are Part-I, Part-II, Part-III, Part-IV, and Part-V, which provide updates on the demonetization saga and how Modi is acting as a catalyst to hasten the rapid degradation of India and what remains of its institutions.

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Wreck the Halls

2016-12-30

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2016-12-30

Dow Jones Industrial Average Index, Daily
Despite the best efforts of the bulls to make history happen, they’ve been unable to ‘git-r-done.’ At the time of this writing, the Dow is facing another bout of arrested development; it has yet to notch 20,000 for the very first time.

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Modi’s Fantastic Promises

2016-12-24

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2016-12-24

New Notes disintegrating
This article continues right where Part VI left off (for earlier updates on the demonetization saga see Part-I, Part-II, Part-III, Part-IV, and Part-V). There is still huge support for Modi even among the poor. A big carrot is dangled before them, which makes many stay numb to their current suffering. During his election campaign in 2014, Modi promised to deposit more than Rs 1.5 million (~$22,000) in each poor person’s account once the...

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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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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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Gold Price Skyrockets in India after Currency Ban – Part IV

2016-12-03

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2016-12-03

Indian Jewelry Merchant
The Indian Prime Minister announced on 8th November 2016 that Rs 500 and Rs 1,000 banknotes would no longer be legal tender. Linked are Part-I, Part-II and Part-III updates on the rapidly encroaching police state. The economic and social mess that Modi has created is unprecedented. It will go down in history as an epitome of naivety and arrogance due to Modi’s self-centered desire to increase tax-collection at any cost.

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