The Latest

The Fuss About Wages Is The Fuss

ABOOK-August-2015-ECI-Total

The latest FOMC policy statement was dominated by a single, added word; “some.” As far as actual policy maneuvers I doubt it will make much of a difference, but it certainly adds more flavor to the growing evidence the US economy isn’t anywhere near close to what it should have been by now. In other…

In Washington, War Is Peace

The Intercept has an article on the “U.S. Institute of Peace,” a government agency founded in 1984 supposedly dedicated to promoting “nonviolent resolution of conflicts”: author Lee Fang is shocked – shocked! – that USIP chairman Stephen J. Hadley, a former national security advisor to George W. Bush, wants to arm Ukraine so as to […]

The Politicians’ War on Uber

The taxi cartels, which provide inferior service and are micromanaged by government, don’t like getting competition from efficient companies like Uber……Hillary Clinton gave a speech warning that the new “sharing economy” of businesses such as the ride-hailing company Uber is “raising hard questions about workplace protections.”

The Tide has Turned and These Charts Predict the Next Stop

Screen-Shot-2015-07-27-at-2.03.09-PM

What we saw with the latest GDP reports is something truly remarkable.  A market that was explicitly told the past 4 years of economic growth had been overstated simply shrugged off the news.  That is, absolutely no price recalibration took place.  This really evidences beyond any doubt that there is no relationship between the economy … Continue reading The Tide has Turned and These Charts Predict the Next Stop

China, Bubble Finance And The New World Disorder

Our consistent theme here at the Automatic Earth since its inception has been that we are facing a very powerful deflationary depression, following on from the bursting of an epic financial bubble. What we have witnessed in our three decades of expansion and inflation is nothing short of a monetary supernova, and that period has been the just culmination of a much larger upward trend going back many decades at least. We have lived through a credit hyper-expansion for the record books, with an unprecedented generation of excess claims to underlying real wealth. In doing so we have created the largest financial departure from reality in human history.

How Corporate Welfare Harms Efficiency, Growth And Fairness

That was the argument when Virginia lured Stone Brewing to Richmond with a $5 million grant for its own brewery-and-beer-garden combo. And when the commonwealth arranged an $11 million incentive package to bring the Redskins training camp to Richmond. The city is paying one of the world’s richest sports teams $500,000 a year — taken from the pockets of barbers, waitresses and other working stiffs. And when — OK, you get the drift.

Gold and the Grave Dancers

  The Asset They Love to Hate … Back in the 1960s, Alan Greenspan wrote a well-known essay that to this day is an essential read for anyone who wants to understand the present-day monetary and economic system (which is a kind of “fascism lite” type of statism, masquerading as capitalism) and especially the almost […]

Contra Club

The Fuss About Wages Is The Fuss

ABOOK-August-2015-ECI-Total

The latest FOMC policy statement was dominated by a single, added word; “some.” As far as actual policy maneuvers I doubt it will make much of a difference, but it certainly adds more flavor to the growing evidence the US economy isn’t anywhere near close to what it should have been by now. In other…

In Washington, War Is Peace

The Intercept has an article on the “U.S. Institute of Peace,” a government agency founded in 1984 supposedly dedicated to promoting “nonviolent resolution of conflicts”: author Lee Fang is shocked – shocked! – that USIP chairman Stephen J. Hadley, a former national security advisor to George W. Bush, wants to arm Ukraine so as to […]

The Tide has Turned and These Charts Predict the Next Stop

Screen-Shot-2015-07-27-at-2.03.09-PM

What we saw with the latest GDP reports is something truly remarkable.  A market that was explicitly told the past 4 years of economic growth had been overstated simply shrugged off the news.  That is, absolutely no price recalibration took place.  This really evidences beyond any doubt that there is no relationship between the economy … Continue reading The Tide has Turned and These Charts Predict the Next Stop

China, Bubble Finance And The New World Disorder

Our consistent theme here at the Automatic Earth since its inception has been that we are facing a very powerful deflationary depression, following on from the bursting of an epic financial bubble. What we have witnessed in our three decades of expansion and inflation is nothing short of a monetary supernova, and that period has been the just culmination of a much larger upward trend going back many decades at least. We have lived through a credit hyper-expansion for the record books, with an unprecedented generation of excess claims to underlying real wealth. In doing so we have created the largest financial departure from reality in human history.

Gold and the Grave Dancers

  The Asset They Love to Hate … Back in the 1960s, Alan Greenspan wrote a well-known essay that to this day is an essential read for anyone who wants to understand the present-day monetary and economic system (which is a kind of “fascism lite” type of statism, masquerading as capitalism) and especially the almost […]

Contra News & Views

The Politicians’ War on Uber

The taxi cartels, which provide inferior service and are micromanaged by government, don’t like getting competition from efficient companies like Uber……Hillary Clinton gave a speech warning that the new “sharing economy” of businesses such as the ride-hailing company Uber is “raising hard questions about workplace protections.”

How Corporate Welfare Harms Efficiency, Growth And Fairness

That was the argument when Virginia lured Stone Brewing to Richmond with a $5 million grant for its own brewery-and-beer-garden combo. And when the commonwealth arranged an $11 million incentive package to bring the Redskins training camp to Richmond. The city is paying one of the world’s richest sports teams $500,000 a year — taken from the pockets of barbers, waitresses and other working stiffs. And when — OK, you get the drift.