Gloom, Doom, or Boom? Finance and Economics

[noddy]

Speaking of MMT.

M. Hutchinson | Philip II of Spain - lessons for America

For the 244 years of the United States’ independent existence, few would have thought that the country had anything to learn from the ultimate Old World monarchical autocracy, Philip II’s Spain (he ruled 1556-98). Yet as politicians debate the merits of yet another public spending “stimulus” on top of a $3 trillion 2020 deficit, Philip II’s four debt defaults in 42 years of rule come uncomfortably into view. Philip II’s overspending wrecked the power and wealth of Spain, the greatest superpower of its day. No question, his unhappy rule has lessons for the United States today.

the difference in the old day was their was alternative sovereign currencies and their was also precious metals.

in this current situation the only 2 potential replacements for the merkin dollar, the euro and the yuan are both printed with every bit as much carefree abandon

the only correction is global meltdown.

[Typhoon]

America’s Zombie Companies Have Racked Up $1.4 Trillion of Debt

"Turning Japanese"

[Doc]

America’s Zombie Companies Have Racked Up $1.4 Trillion of Debt

"Turning Japanese"

We are not alone

7_A9dVulOMc

[Typhoon]

Central Banks Keep Shooting Themselves in the Foot

William White, former chief economist of the Bank for International Settlements, is taking central banks to task. Monetary policy over the past three decades has caused ever higher debt and ever greater instability in the financial system, says White. Fiscal policy must take over to deal with the current crisis.

[Typhoon]

NPR | The Spectacular Rise Of SPACs: The Backwards IPO That's Taking Over Wall Street

Among the many companies to go public in 1720 is - famously - one that advertised itself as

"A company for carrying out an undertaking of great advantage, but nobody to know what it is".

Wikipedia |South Sea Company

[Typhoon]

Spenglerman opines on the US debt and speculates about its future.

Law and Liberty - D. P. Goldman | The Democrats’ Paranormal Economics

It is magical thinking to believe that the United States can run large deficits indefinitely.

[Zack Morris]

Not a peep from Goldman while Trump gorged on debt and increased the deficit because it was Goldman's buddies getting the tax breaks. Now, suddenly, we are to believe that Democrats investing in infrastructure is dangerous

Goldman is as predictable as a gumball machine to the insertion of a coin.

[Miss_Faucie_Fishtits]

Not a peep from Goldman while Trump gorged on debt and increased the deficit because it was Goldman's buddies getting the tax breaks. Now, suddenly, we are to believe that Democrats investing in infrastructure is dangerous

Goldman is as predictable as a gumball machine to the insertion of a coin.

He recognises the debt problem under DJT, he doesn't emphasise it because the prospects of real economic growth and maintaining a technological edge over China to counter the debt problem remained a possibility.....'>......

[Parodite]

If US stocks pop big crunchy time in februari, who buys the rubble? (Assuming the pop is not a global tsunami resetting everything). If US capital seeks refuge in slow growing long term opportunities in emerging markets (who are they?) what would happen next? It seems to me that to the extent that China already owns major stock in those emerging markets, they then can buy the US for the price of a big mac. Then the US might decide it need its military to short China in the physical way. "Biden" may display the most dramatic flipflop in history.

[Doc]

If US stocks pop big crunchy time in februari, who buys the rubble? (Assuming the pop is not a global tsunami resetting everything). If US capital seeks refuge in slow growing long term opportunities in emerging markets (who are they?) what would happen next? It seems to me that to the extent that China already owns major stock in those emerging markets, they then can buy the US for the price of a big mac. Then the US might decide it need its military to short China in the physical way. "Biden" may display the most dramatic flipflop in history.

What? Biden is already bought and traded on the Markets of Beijing, and he is going to short them? Yesterday A dozen or two CCP War planes flew into Taiwanese airspace. Biden not only did nothing he said nothing

Gee just like the days of the Obama Administration. Which I suppose isn't so surprising given that most of Biden's administration is made up of Former members of Obama's administration.

https://nationalinterest.org/feature/20 ... icy-167575

2012 Scarborough Shoal Crisis: The Blueprint for Joe Biden's China Policy?

A crisis now simmering in the contested South China Sea, the eventual result of poor decisions in the Obama administration, could tell us a lot about Biden’s China policies.

[Typhoon]

Taki's Mag | Your Money or Your Life: Capitalism as the New Communism (and Vice Versa)

[Nonc Hilaire]

Taki's Mag | Your Money or Your Life: Capitalism as the New Communism (and Vice Versa)

The conversation would become more accurate and productive if we used ‘free enterprise’ instead of ‘capitalism’.

[Typhoon]

Mises Inst - Jens O. Parsson| Dying of Money: Lessons of the Great German and American Inflations [pdf]

[Typhoon]

Quillette | The risks of inflation

[Doc]

Quillette | The risks of inflation

We have already had large inflation here. Food prices have more than doubled. But since 2009 inflation has not shown up in government reports. At least not that I have seen.

[Nonc Hilaire]

Quillette | The risks of inflation

We have already had large inflation here. Food prices have more than doubled. But since 2009 inflation has not shown up in government reports. At least not that I have seen.

The US government has changed the way many statistics are computed over the years. CPI especially.

You need to check http://www.shadowstats.com/ for accurate comparisons. John Williams keeps stats using all past formulas. An expensive professional newsletter, but free consumer level info on the landing page. He also does occasional yt interviews.

[Doc]

Quillette | The risks of inflation

We have already had large inflation here. Food prices have more than doubled. But since 2009 inflation has not shown up in government reports. At least not that I have seen.

The US government has changed the way many statistics are computed over the years. CPI especially.

You need to check http://www.shadowstats.com/ for accurate comparisons. John Williams keeps stats using all past formulas. An expensive professional newsletter, but free consumer level info on the landing page. He also does occasional yt interviews.

Thanks -- bookmarked for future reference.

[Typhoon]

Martin Hutchinson | Gosplan economic approach doing real damage

A new McKinsey’s report, featured in the Financial Times, shows that over the past 25 years, the dominance of large companies has increased, as has the share of capital returns in the economy, while wage levels have risen far less than productivity. The FT’s solution to this is more state meddling, with redistributive policies to move income from large corporations to poor individuals.
I would suggest that the solution is the opposite: give up the state meddling of the last 25 years, most particularly the Gosplan approach to setting the prices of key inputs.

McKinsey Global Institute’s report notes that, if you divide the universe of large companies into eight major sectors, the finance and “expert” sectors have advanced since 1996, at the expense of manufacturing and “building” (construction and infrastructure). Capital’s share of overall output has advanced while the wage share has declined, with wages increasing only 11% in real terms compared with a 25% gain in productivity. In other words, the highly credentialed have gained at the expense of the rest of us and capital has gained at the expense of labor. Furthermore, large corporations have increased their dominance of the economy.

[noddy]

pack her up, the game is moving into the final conclusions.

https://www.news.com.au/technology/envi ... 04c3a45031

The previous climate summit of this magnitude, in Paris in 2015, led to the Paris Agreement which committed nations to holding any temperature increase to “well below 2C” above pre-industrial levels and preferably to 1.5C.

One of the key ways of reaching that goal was for countries to commit to so-called “net zero emissions”, which around 140 have done, most with a 2050 deadline. The G7 have now made further commitments to reach some goals by 2030.

Dr Bradshaw said Australia’s refusal to commit to such a deadline would likely lead to some uncomfortable G7 discussions.

“They’ve all made very clear they expect more of Australia. But Australia, for some reason, seems to be wanting to count itself out of that club and work against the grain,” he said.

[Simple Minded]

pack her up, the game is moving into the final conclusions.

https://www.news.com.au/technology/envi ... 04c3a45031

The previous climate summit of this magnitude, in Paris in 2015, led to the Paris Agreement which committed nations to holding any temperature increase to “well below 2C” above pre-industrial levels and preferably to 1.5C.

One of the key ways of reaching that goal was for countries to commit to so-called “net zero emissions”, which around 140 have done, most with a 2050 deadline. The G7 have now made further commitments to reach some goals by 2030.

Dr Bradshaw said Australia’s refusal to commit to such a deadline would likely lead to some uncomfortable G7 discussions.

“They’ve all made very clear they expect more of Australia. But Australia, for some reason, seems to be wanting to count itself out of that club and work against the grain,” he said.

I hope you Aussies don't cave. Now that the Woke-ettes have gone so far as to announce that science and Math are racist tools of white oppression, they have destroyed any foundation for oppressing other cuntries!

G7: "Australia needs to reduce it's carbon emissions!"
Aussie PM: "You cunts aren't oppression us with your science and fancy book learning!"
G7: "But, for the good of the planet..."
Aussie PM: "How dare you! How many of you gut here by sailboat?"

[noddy]

no, unfortunately this stance is not popular with most of the local population, its just that our current political party is lead by a right wing evangelical.

he only got elected because the opposition threw up a union hack that had not only zero charisma, it was negative charisma.

we will be stepping into line for the new global tax regime as soon as the next election happens.

[Simple Minded]

no, unfortunately this stance is not popular with most of the local population, its just that our current political party is lead by a right wing evangelical.

he only got elected because the opposition threw up a union hack that had not only zero charisma, it was negative charisma.

we will be stepping into line for the new global tax regime as soon as the next election happens.

hard to discern left and right in Merka compared to left and right in Straya.

Over here, "woke" seems to be the new tool of oppression of the establishment, regardless of party affiliation.

Who needs White Man's Math, Science, and Numbers when you got the bludgeon of woke in your holester? The ultimate "one-size-fits all" weapon!

[noddy]

no, unfortunately this stance is not popular with most of the local population, its just that our current political party is lead by a right wing evangelical.

he only got elected because the opposition threw up a union hack that had not only zero charisma, it was negative charisma.

we will be stepping into line for the new global tax regime as soon as the next election happens.

hard to discern left and right in Merka compared to left and right in Straya.

Over here, "woke" seems to be the new tool of oppression of the establishment, regardless of party affiliation.

Who needs White Man's Math, Science, and Numbers when you got the bludgeon of woke in your holester? The ultimate "one-size-fits all" weapon!

in australia the american type right is very small and very rural, and rarely relevant, however the modern evangelicals have taken over the liberal party, so this might change, or it might be the death of the liberal party.

the latter is looking more likely at this stage.

the only difference between left and right over here is the tax rate on rich people and corporates - they are both high immigration, pro globalised corporation, fix everything with rules and fees types of people.

the wokelings are the green party - less than 5% in most of australia but a signigicant force in melbourne, 10% or more.

[Simple Minded]

in australia the american type right is very small and very rural, and rarely relevant, however the modern evangelicals have taken over the liberal party, so this might change, or it might be the death of the liberal party.

the latter is looking more likely at this stage.

the only difference between left and right over here is the tax rate on rich people and corporates - they are both high immigration, pro globalised corporation, fix everything with rules and fees types of people.

the wokelings are the green party - less than 5% in most of australia but a signigicant force in melbourne, 10% or more.

thanks for the splaination! Over here it gets weirdly complicated due the MSM's and the both political parties' need to make two sizes fit all. You're either with us or against us on an infinite number of issues with lots of nuances.

Being on the side of "part of the problem" or "part of the solution" gets messy when the peeps are hopping around like crickets on any given day or any given issue.

If you could get each person to pick a side, either "me" (right wing), or "we" (left wing) and stay on that side, it would simplify matters.

"the only difference between left and right over here is the tax rate on rich people and corporates - they are both high immigration, pro globalised corporation, fix everything with rules and fees types of people." - with this statement you pretty much described the establishment repubs and dems.

[noddy]

YOU SHALL BE A WAGE SLAVE TILL YOU DIE AND YOU WILL LOVE IT