The Fiscal Cliff Looms Because Mainstream Economists Got the Strength of the Post-Crash Economy Wrong

A problem with “fiscal cliff” economic reporting is the lack of context.  It is widely said that if only the “uncertainty” of the cliff were resolved, then businesses would invest again and all shall be well.

The problem, though, is that said fiscal cliff (or, fiscal slope) is the direct result of the failure of [...]


Fraud: Why The Great Recession

Free markets are not to be blamed for the Great Recession. On the contrary, its origins rest upon the deep government and central bank intervention in the economy. Through fraudulent mechanisms, this causes recurrent boom and bust cycles: bad policies create phases of irrational exuberance, which are then followed by economic recessions, a result [...]


A Response To Bernanke’s ‘Misunderstanding’ About The Gold Standard

4/4/12 — I should have added that I had edited this piece before Keith saw it and thus not all of the comments are his. For example, he was not aware of the works of Austrian School economist Hans Sennholz, so while the article refers to him as “great” it is unfair [...]


Another Post-Depression Echo as U.S. Banks Become the New Japan and China and Buy Lots More Treasurys

Just as happened after WW II and for many years, the U.S. banking system is ramping up its holdings of Treasurys.  Bloomberg reports:

U.S. banks bought more government and related debt in the first two months of 2012 than they did in all of last year, an endorsement of Federal Reserve Chairman Ben S. Bernanke’s [...]


Friday the 13th Felt Like a Market Top; ECRI Updates Its Economic Views; Might Treasurys Continue to ‘Rally-Ho’ Some More?

On the morning of this past Friday the 13th, I was greeted on my home page,, by the lead story– which was of investors cheering and captioned by the statement that good news is at hand, CEOs are now in a hiring mood.  I had an uh-oh moment in my usual contrarian way.  Was [...]


Making Sense Of 2011

This is the time of year when you are supposed to look back and make sense of what happened during the year and make predictions about the new year. A futile task if there ever was one. 

How can anyone make sense of a world where:

California prohibits the production or sale of beer to which caffeine has [...]


What Bothers Me About the U.S. Stock Market

There’s too much optimism compared to actual data and recent trends, at least so far as I can see.  Here are some examples.

The Financial Times has, behind a firewall, an article out today showing evidence of falling demand for petrochemicals in China that, the writer says, raises the question of whether China’s industrial slowdown [...]


Is the US Already in a New Recession?

Aside from the theme propounded on this site that the “Great Recession” never really ended, if we use mainstream terminology, then the recession ended two years ago.  It may just be that another one has already begun.  Here are some exhibits:

1.  “Real PCE decreased 0.1 percent, the same decrease as in April.”  (PCE is [...]


Video: Stockman on Dylan Ratigan

Here is David Stockman at his best. We agree on most things. He agrees with my prediction that Ben Bernanke is a dead man walking. I especially appreciated his comments on Crony Capitalist Jeff Immelt. Also, “Blackberry Panic!” Enjoy.