Guru corner

Warren, Sanders, Zimbabwe, Keynes, Hitler, Japan mm.

That so many voters, pundits, academics, and media figures are taken in by the Warren-Sanders wealth confiscation and redistribution schemes does not bode well for our economic and political future. 

Zimbabwe's government has embraced a potent mixture of monetary inflation and price controls. The result has been economic disaster.

Sweden's central bank looks poised to hike rates this week, but with the domestic outlook looking challenging this is likely to be a one-off move to escape negative rates. That means SEK is unlikely to benefit much from this week's move and we expect the currency to be a laggard in the G10 space next year’s.

Central bankers want to find a means of resetting everything, exploring solutions such as digitising currency through blockchains, doing away with cash, and finding other avenues to try to control the so-called vagaries of free markets.

John Maynard Keynes's stance on German reparations in the wake of the First World War may have precipitated the rise of Hitler.

The US Economy Is Being Japanified — Thanks to the Fed

Japan has not recovered fully from the lost decade of the 1990s. The Asian financial crisis was exacerbated by the dot-com crash and then a few years later the global economic collapse.

He whom the ancients called an expert in battle gained victory where victory was easily gained. Thus the battle of the expert is never an exceptional victory, nor does it win him reputation for wisdom or credit for courage. His victories in battle are unerring. Unerring means that he acts where victory is certain, and conquers an enemy that has already lost. ~ Sun-Tzu, The Art of War 

You’ll recall that we predicted that the Federal Reserve would never “normalize” interest rates. Well, the Fed never even came close. And now it’s once again doing all it can to inflate the nation’s money system.

Last week, we learned that it would add about half a trillion new dollars over the next four weeks. Funding the short-term lending markets with that kind of cash suggests to us that other lenders – big banks – don’t want to put their own money at risk. Clearly, the Fed is desperately trying to stop something from happening. What it is, exactly, we don’t know.

When the money goes, everything goes. Last week brought more evidence. 

America’s late, crony capitalist empire is sinking into corruption, incompetence, and debt. (BILL BONNER)

The U.S. dollar long was recently the world's largest speculative net position.

U.S. assets have almost never been more overpriced in their entire history. 

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