201508.31
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The Age of Voodoo

The Jackson Hole gathering may end up providing at least some clarification, but not even close to the manner in which everyone seems intent on inferring. With Janet Yellen’s notable absence, there isn’t the same sort of celebrity about what would have been the media hanging upon every word; that is, after all, what the…

201508.10
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How Can It Be Anything Else?

The oft-leveled charge against politicians in DC is that they are “out of touch.” Such desultory description is often deserved, however, so it isn’t really cliché so much as connecting republican (small “r”) values through time. In the case of the 2015 economy, however, the idea that the economists sitting on the FOMC board (and…

201507.23 0

Agitating For A More Informed Inflation

There are numerous problems created by asset bubbles and many more as a result of a series of them. The financial system becomes highly destabilized, especially as authorities and policymaking bodies misunderstand them to the point of determined stasis rather than courting necessary evolution and reform, which in turn has the same effect on the…

201506.25
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Santa Claus in Sweden

Just a few weeks ago the Swedish central bank, Riksbank, was being lauded for its courage and action in finally embracing QE as the ECB had done. The deflation problem in Sweden had been, so it is asserted, seemingly intractable and thus forcing the monetary hand once more. Riksbank has never been shy about fine-tuning…

201506.12 0

What Comes Next; Part 2, The Looming Transformation

Part 1 is here, the history of defining systemic operation since 1907. The quest over equality or the “right” to impose optimal outcomes is one that cannot go backward. The inevitable failures lead no duty to re-assess overall, but only the means by which the results are to be commanded. That was the essence of…

201506.12
9
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What Comes Next; Part 1, Useful History of the 20th Century

Value as a foundation seems almost too literal to be an economic or financial concept, but it is perhaps the bedrock association that makes the economic system. We are used to aspects like profits and money, even inflation, but those are all symptoms of the ever-changing world surrounding value. Karl Marx understood very well how…

201506.03
3
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Whose Recovery Is It Anyway?

You may have heard recently about the Transportation Safety Administration’s record for safety measures in airline transportation. The task with which the government agency is charged has become a bit of a joke, with public perception almost of a gang of thieves running a sanctioned-criminal enterprise. The groping and stealing are held back, with apathy…

201505.27
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Rather Than All Efforts Aimed At Making Central Banks More Efficient

Leave it to a self-described socialist to undermine his own argument. Decrying the apparent overabundance of personal hygiene and fashion, presidential candidate Bernie Sanders took to confounding as to how many ways evil capitalism could produce odor-altering products but leave so many so hungry. You don’t necessarily need a choice of 23 underarm spray deodorants…

201505.12
2
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Chinese Clarify China Recalculation

It still seems to be a matter of contention, but even the Chinese government may be seeking to clarify its “reform” stance in light of the orthodox baseline trying to reconcile the downward trajectory of the Chinese economy. That itself was somehow a great task, as all last year the narrative was, as the US,…

201406.30
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The Source and Scourge of Inequality

If there had been an actual recovery delivered as it was intended, promised and offered, the idea of inequality would be an afterthought in an otherwise prosperous age. Inequality, however defined, is a necessary feature of a dynamic economic system. We want inequality because that defines opportunity. A healthy economic system produces disparities due to…