Our obsession with monetary stimulus will end in disaster

money symbols getting sucked into a vortex

The following is a commentary I wrote for The Forum section of London business-paper City A.M. It was published yesterday. The link is here. It is now six years since the collapse of Lehman Brothers, and considering that the US economy has officially been in recovery for the past five years, that equity indexes have put in new all-time highs, and that credit markets are once again ebullient to the point of carelessness, it is worth contemplating that monetary policy remains stuck in pedal-to-the-floor stimulus mode. … [Read more...]

Debt addiction, USA: How much debt reduction has the crisis caused?

Government bonds

The purpose of this essay is to put the latest crisis in the context of longer-term debt trends in the US and to attempt some predictions in respect to the US economy and financial markets. Statistics are records of past events. Analyzing statistics means interpreting history, and this can only be done on the basis of theory. We must first have some theoretical notions to be able to render past events intelligible. Of course, historic data cannot be in conflict with the theory used, as that would put the validity of the … [Read more...]

Some personal thoughts on surviving the monetary meltdown

1 kilo gold bar

Let us start by looking at the economy from 10,000 feet above: After 40 years of boozing on easy money and feasting on fantastical asset price inflations, the global monetary system is approaching catharsis, its arteries clogged and instant cardiac arrest a persistent threat. Most financial assets are expensive, and many appear to be little more than securitized promises with low probability of ever delivering payment in full. Around the globe, from Japan to the US, a policy of never-ending monetary stimulus consisting of … [Read more...]

Video: Detlev’s interview with The Real Asset Company

Screenshot of video, interview

The recent three-part interview of Detlev by Jan Skoyles of the Real Asset Company. Their review of Detlev's book can be found at http://therealasset.co.uk/paper-money-collapse/ Part One: Paper Money Collapse Part Two: Austrian Economics Part Three: The current economic situation. … [Read more...]