Across the landscape, you can find charming villages basking in the warm glow of sunshine, gifts of nature that bring daily blessings and abundance. Yet, there also exist places where the sun has dimmed. These sites, once thriving, are now barely echoes of their prosperous past, overshadowed by decay and neglect. The economic lifeblood that once nourished them has rusted away, much like an old tin can left to the elements.
Scranton, Pennsylvania’s journey serves as a cautionary tale; it aligned with the wrong fortunes nearly a century ago, a miscalculation that would go unnoticed for about 50 years. The very boon that brought prosperity ultimately sowed the seeds of its decline.
Scranton flourished under the wealth of anthracite coal, which propelled it to remarkable growth from the dawn of the 20th century until the end of World War II. By the mid-1930s, the population had soared to over 140,000—nearly double what it is today.
However, the world is ever-evolving. Dependence on a single resource can lead to a perilous reliance. As Hyman Minsky noted, periods of stability often pave the way for instability. Continue reading
Putin Signs Secret Pact to Crush NATO
By Marin Katusa, Chief Energy Investment Strategist
On September 11 and 12, an obscure summit took place in a city that many Americans may struggle to find on a map. Mainstream media barely covered the event.
This gathering occurred in Dushanbe, the capital of Tajikistan, a nation few in the West could pinpoint accurately.
Yet, you can be certain that Vladimir Putin is well aware of its location. The summit involved the Shanghai Cooperation Organization (SCO), a forum of six member states: Russia, China, Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan—a group Putin is deeply invested in.
Founded in 2001, the SCO ostensibly aims to combat extremism and bolster border security. However, its true purpose is more expansive. Putin envisions the organization as a counterbalance to NATO, a role that the SCO does not shy away from acknowledging. Continue reading
Living in this postmodern era offers a unique perspective on the disjointed monetary policies of central bankers. Observing their chaotic maneuvers feels akin to watching a child futilely chase seagulls; there’s frenetic activity, yet little of any solid result.
Nonetheless, these antics reveal an unsettling truth: they seem to be improvising. Operating without coherent principles, their primary response is to inflate the money supply in a bid to battle the ever-present specters of unemployment, deflation, and declining asset values.
Imagine the excitement of witnessing such absurdity, especially if you were born in any other period! Zero interest rate policies, Operation Twist, and quantitative easing resemble an effort akin to using adhesive tape to control a leaky faucet.
Even as maddening as these actions are, they provide valuable lessons. They illustrate that our leaders often engage in deception, acting as charlatans rather than genuine stewards of economic stability. Continue reading
Recently, an intriguing event unfolded: the Federal Reserve announced the conclusion of its quantitative easing program, and contrary to expectations, stock prices surged. This phenomenon could be described as cognitive dissonance in action.
Before diving deeper into this anomaly, let’s take note of other significant occurrences from last week. Importantly, the dollar strengthened, while commodity prices took a hit. This is typical due to the inverse relationship between the dollar and commodities.
This dynamic was particularly evident in the falling prices of oil and gold. Oil plummeted below $80 per barrel, while gold dipped to $1,172 per ounce. Naturally, halting the rapid expansion of money should favor the dollar.
With fewer newly minted dollar bills circulating, the value of existing dollar holdings should either increase or at least stabilize. Thus, commodities priced in dollars, such as gold and oil, should decline in value. However, this scenario is merely one chapter in a more complex story. Continue reading
