For over a decade, we have been studying, documenting, and warning about what can only be described as a significant deception in our economic system. In 2015, the core principles of global economic and financial management have been distilled into a singular directive…
That is: Devalue currency and perpetually increase debt.
In the United States, as well as in Europe, Japan, China, and many other regions, this policy is being executed with fervor. Policy makers and politicians face no restraints, and the consequences of their actions seem absent from any serious deliberation.
The Federal Reserve generates new credits, which are then utilized by the Treasury. However, the old debts remain unpaid. Instead, interest payments are merely serviced, and existing debts are continually refinanced by issuing new debts… which are bought by creating new credits.
How is this elaborate scheme able to persist, seemingly without consequence? Are people unaware, or have they become utterly indifferent? Continue reading
Just as it seemed that the price of oil had stabilized at around $50 per barrel, an unexpected turn of events occurred. The price dipped over 2 percent, settling at approximately $48.74 per barrel. It appears that it could decline even further…
The Wall Street Journal pointed out that a recent surge in domestic crude inventories has reached the highest levels in nearly 80 years.
This glut is reminiscent of the conditions seen during the Great Depression in 1935. Furthermore, a weekly analysis from Morgan Stanley suggested that upcoming U.S. reports on oil supply and drilling would likely pose serious concerns. This can only imply that the oversupply situation may escalate.
When excess supply exists, prices naturally decline to balance demand. The extent of the price drop remains uncertain, but indications suggest that oil prices must fall significantly to reconcile this 80-year inventory high.
Clearly, domestic oil producers were hoping for a swift price recovery in the early months of 2015. Continue reading
A subtle fog hangs in the air, effectively concealing the chaos beneath. Vast discrepancies exist between the financial economy and the real economy, yet few are willing to acknowledge them.
Last Friday, the union in Europe received a temporary reprieve, eliciting relief and cheers from investors globally. The DOW and S&P 500 reached record highs in response.
The significant announcement was the extension of the Greek bailout for an additional four months. The reality that Greece may never repay its creditors is conveniently overlooked, and the strategy of “extend and pretend” continues to thrive.
This encapsulates the state of affairs in 2015. The global economy continues to function through the reckless creation of digital monetary credits, borrowed into existence and spent. This cycle cannot persist indefinitely.
The more temporary fixes applied with duct tape and safety pins, and the greater the amount of money printed to superficially address issues, the more catastrophic the eventual financial collapse will be. Continue reading
The world is indeed a bizarre and unpredictable place. Our confidence in conventional wisdom has diminished, akin to how pre-1965 quarter dollars have vanished from circulation. What remains is an abundance of bewildering ideas.
Recently, numerous articles have touted the health benefits of hefty portions of bacon. Even more astonishing is a recent piece suggesting that adding a scoop of butter to morning coffee constitutes a nutritious breakfast choice. Supposedly, this greasy addition prevents the need for a substantial lunch.
Really? For those inclined towards heart complications, these may seem like favorable dietary options. As for us, we’ll stick to black coffee and a granola bar.
Nonetheless, nowhere is the prevalence of nonsense more evident than in the realm of finance. In this space, the absurdity prevails; it is commonly believed that spending—especially if borrowed—leads to wealth. Just as ludicrous are claims from respected figures suggesting that devastating hurricanes can stimulate the economy. Continue reading
### Conclusion
These articles reflect a concerning trend in economic understanding and policy. As we navigate an increasingly complex financial landscape, it is crucial to remain vigilant and informed about the true implications of these practices. Addressing the disconnect between reality and economic theory is essential for a healthier future.
