``An essential component of the American ethos is: don't be a chump. Don't fall for the con. And if you do, it's your own fault... We now inhabit a world where virtually everything is a con....''
Submitted by Charles Hugh Smith from Of Two Minds Rich Middle Class, Poor Middle Class This great generational injustice is the direct consequence of central banks lowering interest rates to zero and inflating asset bubbles. How canShow More Summary
Submitted by Charles Hugh Smith from Of Two Minds The U.S. Economy Slows To Stall Speed This long-term weakening of the economy is the direct result of financialization and the Federal Reserve's policy of propping up impaired debt with more debt and constantly bringing demand forward with zero interest rates. Show More Summary
Submitted by Charles Hugh Smith from Of Two Minds Complacency Reigns Supreme--Nothing Can Possibly Go Wrong, Right? One of the more remarkable features of the Bull market in stocks is the ascendancy of complacency and the banishing of fear. Show More Summary
Submitted by Charles Hugh Smith from Of Two Minds Who Benefits When Bubbles Burst? Blowing speculative bubbles cannot possibly lead to organic growth because speculative bubbles fatally undermine the real economy. An astute reader recently...Show More Summary
``Why will Christmas 2014 be the last Christmas in America? It's simple: declining wages cannot support an ever-expanding mountain of debt.''
``The game has been lost, but central bankers are still on the field, wandering around in disbelief that their unspeakable powers to issue money and credit have failed. You can print all the money you want, but it will never boost wages to keep up with prices. ''
``The price drop is a head-fake: it doesn't usher in a new era of permanently cheap oil. Rather, it unleashes dynamics that impair supply on multiple levels: geophysical, geopolitical, demographic and financial.''
Charles Hugh Smith from OfTwoMinds.com says Fed policy and its direct influence on wealth inequality in the US has now become a mainstream issue; Russell Napier says to expect another deflationary shock in the next couple years followed by a massive reflation by China...
Submitted by Charles Hugh Smith via Peak Prosperity blog, What can popular television programs tell us about the zeitgeist (spirit of the age) of our culture and economy? It’s an interesting question, as all mass media both responds to and shapes our interpretations and explanations of changing times. Show More Summary
Submitted by Charles Hugh Smith from Of Two Minds The Critical Difference Between Rentier Wealth and Wealth Creation If you want to understand why our economy is stagnating and wealth inequality is rising, look at the rise of rentier skims and the resulting decline in wealth creation. Show More Summary
Submitted by Charles Hugh Smith from Of Two Minds Stocks Have Reached a Permanently High Plateau A permanently high plateau of stock prices is a marvelous innovation. Somebody said this before, of course, but one glance at a chart of the S&P 500 tells us that stock prices have reached what looks like a permanently high plateau. Show More Summary
From Charles Hugh Smith’s Of Two Minds blog: It’s starting to feel like a $5 bill is the new $1 bill: everything that could be purchased with one or two dollars not that long ago is now $5 or even $10. A few days ago I was enjoying the Butte County Fair in California’s farm […]
``... much of the supposedly godlike power of central banks is participants' faith in their powers to control not just finance but the real world that can be leveraged by finance. Once this belief fades, so will the powers of central banks... "Don't think it won't happen just because it hasn't happened yet."''
Submitted by Charles Hugh Smith from Of Two Minds Have We Forgotten What An Authentic Market Is? Everyone who feels forced to play along plans to exit before the whole rotten structure implodes, but that's not how collapses work. Identifying the erosion of authenticity is intrinsically difficult for two reasons: 1. Show More Summary
``... we have a diminishing number of jobs that can be outsourced and a diminishing number of qualified people who can do the work.'' -- We think CHS highlights a number of important issues here, but he does over-emphasize sociological reasons for structural unemployment at the expense of economic ones. Show More Summary
Submitted by Chris Martenson of PeakProsperity, authored by Charles Hugh Smith Escaping the Rat-Race The changing nature of work doesn’t just matter to new graduates seeking their first career-track job—it’s equally important to experienced workers seeking to escape the corporate rat-race or build a new career after a layoff. Show More Summary
Submitted by Charles Hugh Smith from Of Two Minds Are We Addicted to Failure? Like all addicts, Central Planners are confident they can manage the monkey on their back. But this is a self-serving illusion. Addiction is many things, but beneath its complexities it is a self-destructive expression of the desire to avoid or suppress pain. Show More Summary
Submitted by Charles Hugh Smith from Of Two Minds A Reader Asks: How to Find Shelter from the Coming Storms? Some basic suggestions for those who are seeking shelter from the coming storms of global financial crisis and recession. Reader...Show More Summary
Submitted by Charles Hugh Smith from Of Two Minds The Generational Short: Banks, Wall Street, Housing And Luxury Retail Are Doomed If Gen-Y cannot afford to buy Boomers' houses at bubble-level prices, then what will keep housing prices...Show More Summary