Underestimating debt traps
The sharp decline in US Treasury bond yields anticipates a pivot in Fed policy, which appeared to be justified this week by Chairman Powell’s…
Managing a crisis
This article concludes that the current downturn in bond yields is part of a continuing market manipulation by central banks in order to restore…
Constructive and Destructive Roles of Credit
This article defines credit, a subject upon which there is a lack of public knowledge. What people call money is in fact credit, and…
Unwinding the Financial System
This article looks at the collateral side of financial transactions and some significant problems that are already emerging. At a time when there is…
There’s a Herd of Elephants in the Room
Among the many problems currencies the markets face, there is one that is undocumented: the eurodollar market. This is yet another very large elephant…
Say’s Law Says It All
As the world descends into a much-heralded recession, the surprise will be that interest rates will continue to rise as economic activity contracts. This…
Beware the great unwind
This chart strongly suggests that US Treasury bond yields, widely regarded as the risk-free yardstick against which all other credit is measured are going…
The global bank credit crisis
Globally, further falls in consumer price inflation are now unlikely and there are yet further interest rate increases to come. Bond yields are already…
The real determinants of currency value
There are two components to the inflation story: the cycle of bank credit, which left to itself is self-cancelling, and the longer-term erosion of…
Updating Say’s law for modern times
It was Keynes’ offhand dismissal of Say’s law, or the law of the markets, in 1936 which is leading us into an economic and…