Jackson A**hole Party Ends With A Whimper

ΩΩThe Great Depression of the 21st Century continues to follow nearly exactly the same path all previous Great Depressions.  The seemingly inescapable dynamics of all depressions means there are iron clad rules for credit bubbles since all Great Depressions, without any exceptions, follow directly in the wake of credit bubbles.  The Federal Reserve and Keynes followers believe that controlling the money supply can prevent credit bubbles but this theory has been shown to be irresponsible.  Nor does the gold standard stop credit bubbles.  This is because banks cause credit bubbles and even more importantly, credit bubbles are extremely popular and thus, very much encouraged.

Free Trade Continues To Destroy US Finances

ΩΩThe debate about how to fix the global economy continues.  Alas, I am not at the top of the economic pundit ladder due to being an annoying old woman, but statistics back up my contentions that free trade is killing the US and UK and our industrial base matters a great deal and our military business is not good for the bottom line at all.  Anyway, off to see the wretched and obvious news to see how things continue to evolve:

Afghan Riots And Kittens Tortured By Bank Lady

ΩΩThe war in Afghanistan continues its downward spiral so of course, Petraeus thinks we are winning.  A banking lady pets a kitty and then maliciously dumps it into a wheelie bin and then says, ‘What’s the big deal’ when caught.  These things are connected just like all sorts of strange things are connected: humans are strange creatures.  We have a strong self-destructive streak which can get totally out of hand.  

UK Cuts Social Spending While Rich Get Richer

ΩΩPeriodically, I like to focus on the UK.  This is because the US/UK empire that runs the world are both in the exact same hole: trade and government deficits getting worse and worse over time. China, Japan and Germany all run trade profits and this is quite significant a difference.  The illusion of wealth caused by running up vast seas of debts has deluded the US and UK into thinking, debt accumulation doesn’t matter.  Of course, a significant part of this debt accumulation is in the form of a national trade deficit and thus, a grave factor indicating a decline in international power of this formidable imperial construct.

Housing Crisis Continues Unabated

ΩΩI left a comment at the NYT about their most recent housing article and got selected by the editors as a highlight.  Whoopee.  There is a rising tide to push for more inflation via government printing more money and buying its own debt as it runs up trillions in debt.  Way back in the Ice Ages, I was alarmed when our national debt was around $10 trillion, actually, when it was ONE trillion, I was worried!  Now, we add a trillion+ a year and seem to want more, more and more of this.  And magically, interest rates are near zero!  But Japan shows us that ZIRP rates are not a blessing but a curse but Weimar Germany shows even more clearly that printing money to escape debt is a catastrophe.

Bond Markets Grow Faster Than Equities

ΩΩThe bond market is in the news again due to it being an indicator of fear over hope in world markets.  That is, the new stability system that is being slowly developed since the collapse of the easy as pie Japanese carry trade business which fed the credit bubble.  Now, people whose business is to move money around the planet are seeking to preserve their profits somehow instead of expecting great growth with no effort.  This is evidently very disturbing to many economic watchers but this is entirely consistent with the ethics of depressions: protectionism filters into all systems and this means the bond market dominates money markets.

1896: After McKinley Won Election, Populist Paper Money In Retreat

ΩΩHistory has hitched humanity like an ox or mule to this round grindstone.  We go over and over the same ground, endlessly.  We strain at the yoke, thinking we will free ourselves of History’s harsh restraints only to discover, we have gone over the same ground and ground the same fine wheat as previous generations have done for many, many years.  The Greater Cycles are obvious to any historian with a brain: the rise and fall of empires, the booms and crashes of banks, the various manias and wars of the masses, they all follow on the same track, over and over again.