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Contra Club

Why Citi Bank Chief Economist Willem Buiter’s Attack On The Swiss Gold Vote Is Gibberish

I would conclude that when even the best and brightest economists in the world are at a loss to make a reasonable argument to vote no in the upcoming referendum it becomes abundantly obvious that a “Yes” vote is the right vote. And I expect a Yes vote in the Swiss gold referendum does more to nudge humanity back on track than any other single event since the fall of the Berlin Wall…..

Here Comes The Ultimate Keynesian Scam: Helicopter Money For The People, Not Just Banks

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Apparently the purveyors of these hoary inflationist schemes – which arguably are economically an order of magnitude more crazy than what modern-day central bankers have already perpetrated – have forgotten about John Law and post-revolution France. The assumption that the British pound would have retained anything close to its current purchasing power if 24,000 pounds had been mailed to every family in the UK is absurd…… these supporters of unbridled inflationism are making the cardinal mistake of confusing money with wealth.

Giving Thanks For The Oil Collapse: It Reveals The Phony Recovery And Speculative Rot Beneath

The amount of money lost in the ‘overinvestment cycle’ will be stupendous, and you don’t need to ask who’s going to end up paying. Pointing to past oil bubbles risks missing the point that the kind of leverage and cheap credit heaped upon shale oil and gas, as Dizard also says, is unprecedented. As Wolf Richter wrote earlier this year, the industry has bled over $100 billion in losses for three years running.

The American Imperium In Shambles: A Review Of Washington’s Blinding Incompetence In Afghanistan And Iraq

The American national security machinery seems incapable of dealing with the single thing it was built to destroy in the 9/11 period: Islamic terrorism. Instead its troops, special ops forces, drones, and intelligence operatives have destabilized and inflamed country after country, while turning a minor phenomenon on the planet into, as recent figures indicate, an increasing force for turmoil across the Greater Middle East and Africa.

Irrational Exuberance On Steriods——The Correction Will Be A Real Doozy

In light of the current rare extremes in positioning, sentiment and leverage, the eventual denouement of the current bubble should be a real doozy. Note that in every respect one can possibly think of – with the sole exception of household debt – systemic leverage is at new all time highs (not only in absolute terms, but relative to everything, including the size of the known universe), and is likewise positively dwarfing anything that has occurred before.

Contra News & Views

The Iranian Nuclear Deadlock: Another Chance For Peace Squandered

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U.S. Secretary of State, Condoleezza Rice pressured Britain, France and Germany to eschew genuine negotiations with Iran and use the threat of economic sanctions to force an end to Iranian enrichment. The Bush administration would later accuse Iran of having a covert nuclear weapons program, based on intelligence documents that I have shown in my book Manufactured Crisis to be fabrications,…….

The Oil Cartel Bites The Drilling Mud: Saudi Minister Say “Market” Will Stabilize……..Eventually!

Forget about an OPEC cut: Three delegates told Reuters that OPEC was unlikely to take any action after Russia said it wouldn’t cut in tandem. On Wednesday, Saudi Arabia’s al-Naimi said he expects the market “to stabilize itself eventually,” hinting he wouldn’t push for a cut in OPEC’s production targets…….