On today’s episode of Double Down, hosts Max Keiser and Stacy Herbert are joined by author Charles Hugh Smith to discuss terrorized investors buying long bonds in a deflationary - or is that inflationary? - world.
Submitted by Charles Hugh Smith from Of Two Minds Bernanke blew it big-time, letting the "recovery" run seven years without any significant increase in rates. It is now painfully obvious that Ben Bernanke blew it big-time by not raising rates three years ago when the economy and markets enjoyed tailwinds. Show More Summary
From Charles Hugh Smith’s Of Two Minds blog: We’re constantly told ours is an ownership society in which owning a home is the foundation of household wealth. However, if we understand property taxes as a “lease from the local government for the right to gamble on another housing bubble arising,” then we see “ownership” in […]
Submitted by Charles Hugh Smith from Of Two Minds Japan Desperately Needs A Stronger Dollar, China Desperately Wants A Weaker Dollar: The Fed Can't Please Both The FX market is about to blow up in the Fed's face, and there's nothing they can do about it. Show More Summary
Submitted by Charles Hugh Smith from Of Two Minds Technologies such as the blockchain are enabling alternative ways of creating and distributing money outside central banks and states. If we don't change the way money is created and distributed, we will never change anything. Show More Summary
Submitted by Charles Hugh Smith from Of Two Minds The cartels and state organs are frantically trying to co-op, outlaw, corral or control this disruptive technology. To say that the future of money is blockchain-based crypto-currencies and payment platforms is to state the obvious nowadays. Show More Summary
Submitted by Charles Hugh Smith from Of Two Minds One True Measure of Stagnation: Not in the Labor Force This is a stark depiction of underlying stagnation: paid work is not being created as population expands. Heroic efforts are being made to cloak the stagnation of the U.S. Show More Summary
Submitted by Charles Hugh Smith from Of Two Minds Is It Time to Get into Crash Positions? Maybe this flight won't go into a tailspin; perhaps it simply runs out of fuel.With stock markets diving around the globe, a pressing questionShow More Summary
``The Washington Post published a study that found U.S. businesses are being destroyed faster than they're being created. While not exactly a surprise, this is sobering evidence that small enterprise is in structural decline... The 22.4...Show More Summary
``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