Archive For: October 2014

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Japan's Inflation Is 3.2%----Yet Madman Kuroda Crushes Consumer Purchasing Power With Collapsing Yen

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QE Is Clearly Destroying Japan, So BoJ Panics Into More

The precursor event of every hyperinflationary episode is not as conventional wisdom currently holds. Certainly there are conditions that are present in each and every one, including desperate fiscal imbalances that ultimately become expressed in growing monetarism, but the true cause that turns those troubling circumstances to total and complete wipeout and disaster is tunnel...

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The Washington/Wall Street "Recovery" Narrative Is An Endless Tissue Of Lies

If GDP had been deflated over the years with CPI...... that measly 2.3% growth of per-capita GDP since 2007, as crummy as it may appear, would likely be negative. And that explains why so many people – struggling with soaring rents, medical expenses, college costs, etc. – find that their slice of the economic pie has been shrinking since the financial crisis.

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Keynesian Yen Trashers At Work: Abenomics Triggers Soaring Bankruptcies In Japan

Due to the depreciation of the JPY, leading to soaring raw material costs (crushing SME profitability), TSR reports that Japanese bankruptcies year-to-date in 2014 are up a stunning 140% having unerringly surged since Abenomics was unleashed......

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The WSJ's Pathetic Sunnyside Journalism----Retracts Its Own GDP Narrative

Early this morning my good friend Fred Everett emailed me the Wall Street Journal’s take on GDP. They were, as you might expect, quite optimistic about what 3.5% implied toward future acceleration finally out of this seven-year depression: The U.S. economy expanded steadily again during the third quarter, a sign of sustained growth fueled by...

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Earnings Cheating Season: Is Your Favorite Company Cooking the Books?

We have long believed that the US reporting season should in fact be called the US cheating season as companies game the market to ramp earnings down ahead of company announcements only to beat analysts estimates by 1¢ on the day!

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Beneath The Noise-----GDP Is Still Expanding At A Tepid Rate

Most of what accounts for GDP is nothing but noise, leaving only a few major indications about what the economy is doing (or not doing). Prior to 2008, that wasn’t much of a problem as GDP by and large seemed to correlate well with other estimations of economic progress, and even our own intuitive perceptions....

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Monetary Lunacy At Work: IMF Puts 0.05% "Floor" Under SDRs

Keynes must surely be rotating in his grave. It turns out the IMF is not going to lend SDRs for less than nothing, thus breaking ranks with some well-known central banks out there (no need to name names), and even the central bank-manipulated “market” in which investors accept negative rates on certain government bonds as if that made any sense....

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The Wrath of Draghi: First German Bank Hits Savers with Negative Interest Rate

"Punishment Interest" it’s lovingly called in Germany, as the ECB intends to flog savers until their mood improves.

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Mind $75 WTI------That's When US Shale Begins To Fail

US shale oil is now the marginal swing barrel in the new world oil order, and as Goldman Sachs warns , a decline in WTI to $75/bbl would start to significantly slow US shale growth (and thus employment, capex, and the entire US economy).

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