Like a powerful drug, the phony money corrodes and disfigures your economy. Your teeth rot; your brain shrivels.
Why is the average US man poorer today than he was 45 years ago? His income is lower. And a typical lifestyle costs him twice as many work hours as it did then.
So far, the big, fat, ugly Dow has sat on the wall and stubbornly refused to tumble. But last week, Donald J Trump gave Humpty a shove.
It was in the early 1970s that the idea of ‘stimulating’ an economy began to take hold, first among progressives, later among conservatives.
‘It’s all part of a plan,’ explained a colleague. ‘Trump is not book smart; he’s smart like a fox.’ ‘He knows that Americans need to see some economic improvement in … Read More
What kind of capitalism is it when the capitalists drive up their share prices rather than producing goods and services that they can sell at a profit?
The guardians of the world’s most important measures of value said they would lend more fake money at even fakier interest rates.
Politics got a boost with the election of Donald J Trump. Before his administration took over, trade was very low on the feds’ agenda.
Short-term finance is great for short-term speculators. But it is bad for business. You can’t build a real, prosperous economy with overnight money.
Setting artificially low interest rates made the downtrend worse. Growth slowed further. The Swamp deepened. The empire grew bigger and more corrupt.
The Democrats were early adopters of the ‘deficits don’t matter’ flapdoodle. Once in power, Republicans found it useful, too.
Politics is the enemy of civilisation. It is the enemy, too, of economic progress. Most important, it is the enemy of dignity and clear thinking.
Hot money is only useful for speculators. They can use it to take leveraged positions in stocks and bonds — where they know they can unload them and get out at a moment’s notice.
The risk of a crash is impossible to calculate precisely or reliably. But for what it is worth, our indicators are flashing red.