Faster, Pussycat! Print! Print!

Money printing press

It is a beautiful autumn day in London, unseasonably warm and sunny, the city looking its very best, and I am trying to find a hook for this blog. I should write about the European debt crisis, the sharp drop in equity markets last week after "Operation Twist" was announced, and the washout in commodity markets, not least in gold. I will cover all these topics but what should my hook be? A good place to start is always the mainstream media, first and foremost the Financial Times, that most mainstream of mainstream organs, … [Read more...]

Beyond Repair – This will not have a happy ending.

red and blue pills

The main problem with having discussions about economics and financial markets is this: People look at these complex phenomena through entirely different prisms; they use vastly dissimilar - even contrasting - narratives as to what has happened, what is going on now, and what is therefore likely to happen in the future. Citing any so-called "facts" - statistical data, or the actions and statements of policymakers - in support of a specific interpretation and forecast is often a futile exercise: The same data point will be … [Read more...]

Market Thoughts: Commodities, U.S. Treasuries, Greece

Government bonds

According to the mainstream press, the reason behind the present sell-off in commodities - and in many so-called 'risk-assets' (stupid really, all assets are risky) - is weak growth, not tighter monetary policy. At least this is how I interpret the market commentary in the Financial Times and the Wall Street Journal. The mainstream media often gets it wrong - but let's assume for a minute that they are right. What does it mean? Super-easy money was supposed to 'stimulate' us into recovery. In fact, it is causing input … [Read more...]

The Paper Bureaucracy

Picture of Gordon Brown

Gordon Brown as the next head of the IMF? What a splendid idea - at least as long as Charlie Sheen is not available. No seriously, the despicable, interventionist IMF and the unpopular etatist Brown - a perfect match --perfect, I hope for further discrediting the global paper money bureaucracy, the new political elite lording it over us at our expense, the guys who brought you the crisis and now promise to fix everything - with more paper money and more debt and more policy interventions. Here is a man who was never … [Read more...]

Unrest in the Middle East and the Ethics of Money Printing

Printed money

It has been noted that the unrest in the Middle East is to a large degree stimulated by the rising costs of living, in particular rising food prices, and these have further been linked to the extremely expansionary stance of monetary policy by central banks around the world. These links have been identified correctly. In the following Schlichter file, I put this debate into a broader context and make some predictions. I sometimes think that modern mainstream macroeconomics has been designed specifically to appeal to … [Read more...]