Traders are pricing stocks to levels that make sense only if sailing an open sea of glassy calm as far as the eye can see. Priced beyond perfection as though we are gliding through the economy of a gilded age, the market’s rosy optimism is causing both Bloomberg and Bill Maher (and others) to ask […]
![By Vmenkov (Own work) [CC BY-SA 3.0 (http://creativecommons.org/licenses/by-sa/3.0) or GFDL (http://www.gnu.org/copyleft/fdl.html)], via Wikimedia Commons](https://i0.wp.com/thegreatrecession.info/blog/wp-content/uploads/Burning-money-and-yuanbao-at-the-cemetery-3249.jpg?fit=150%2C113&ssl=1)
As I noted in an earlier Patron Post we are entering the first period since I began writing this blog years ago when I am actually concerned about inflation blowing up. In my last article about all the variables creating insanity in the housing market, I noted that inflation (or expectation of it) has started […]
![By Germán Torreblanca (Own work) [CC BY-SA 4.0 (https://creativecommons.org/licenses/by-sa/4.0)], via Wikimedia Commons](https://i0.wp.com/thegreatrecession.info/blog/wp-content/uploads/FatWomanSculpture1.jpg?fit=100%2C150&ssl=1)
Couldn’t resist the pun after last week’s article “More on Market Mania” as it just keeps getting more ridiculous. Here for Patrons only is more on the market’s maniacal climb. Speculative Mania Goes “Up In Smoke†This past week was quite interesting as the “Reddit WallStreetBets†bunch turned their sites away from Gamestop to “Cannabis.†[…]
Now that Trump did not root out the deep state — now that many formerly faithful QAnon believers think Trump got swamped by the swamp he claimed he would drain — some adherents are emerging from the cloaking air of Foggy Bottom to see a little light. The hole was deep and fully absorbed many […]
![By A. Burnham Shute (Moby-Dick edition - C. H. Simonds Co) [Public domain], via Wikimedia Commons](https://i0.wp.com/thegreatrecession.info/blog/wp-content/uploads/382px-Moby_Dick_p510_illustration.jpg?fit=118%2C150&ssl=1)
The youthful gamers have taken control, and that raises the question, “Who is the game now? Who is stalking whom?” Last week, a large number of small-time investors drove up the price of GameStop’s (GME) stock a historic 1,784 percent. But this was no mere spike in some obscure stock. The stock’s price spiked in […]
It’s time to close out the topic I’ve run with for this year on central banks and their creation of digital currencies (CBDCs). I believed 2020 was clearly going to be the year of the advent of CBDCs, which is a monumental change in money, and it did turn out to be as China launched […]
The following article comes with a surprising revelation — possibly an alarming revelation — at the end. Something big is happening at the Fed — the largest movement of “cash” in history. I don’t know what to make of it, because the Fed has been completely silent about it, and the mainstream financial press has […]
In my September Patron Post, I promised to compose an article that would bring us up to date on what the central bankers of the world have been saying about their plans, particularly with respect to digital currencies. This is that article. (I felt it more important to get out my other Patron Post this […]
In what remains the most undercovered financial topic of the year, if not century, we remind readers that starting about a year ago, central banks around the world launched an unprecedented if stealthy attempt to overhaul the entire monetary architecture of fiat money by implementing digital dollars, a transformation to a cashless society which in […]
Right now Magic Monetary Theory, as I last called it, or helicopter money is made possible by the Fed financing the government so the government can give out stimulus checks and augmented unemployment benefits to the masses, giving the unemployed more money than they had when employed. That keeps the accelerated money printing of MMT, […]
Once upon a time, US money supply was increased in keeping with gross domestic product … and then something went wrong: Terribly wrong. Money started growing exponentially, but GDP didn’t see the slightest bump in growth. Nevertheless, the central bank became unable to stop itself from making more and more of the stuff, though it […]
The Fed admits its policies are losing potency, and its efforts now require continual government support as massive as the support provided by the Fed. I maintain that Fed success at propping up stocks now also requires continued belief in a fantasy narrative about a V-shaped economic recovery from the Coronacrisisi. We saw all of […]
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