Why interest rate management fails
This article explains why attempting to achieve economic outcomes by managing interest rates fails. The basis of monetary interventionist theories ignores the discoveries of…
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The global debt problem
It has been recently estimated that global debts stand at $284 trillion equivalent, representing 355% of global GDP. Estimates such as these must be…
Read MoreSay’s law and the destruction of savings
This article explains the fundamental mistake behind Keynes’s General Theory, the vade mecum for all macro and mathematical economists today. It is no exaggeration…
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Global trade in 2021
So long as the fiat-based monetary system continues with accelerated money-printing, the US trade deficit will continue to widen. This is due to the…
Read MoreEconomic and monetary outlook for 2021
The most important event in the new year is likely to be the Fed losing control of its iron grip on markets. The dollar’s…
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The consequences of budget deficits for international trade
In all the economic mayhem ahead, no one is yet thinking of the consequences for trade imbalances. The twin deficit hypothesis informs us that…
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An unexpected systemic crisis is for sure
Downturns in bank credit expansion always lead to systemic problems. We are on the edge of such a downturn, which thanks to everyone’s focus…
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Explaining the credit cycle
This article summarises why the credit cycle leads to alternate booms and slumps. It is only with this in mind that they can be…
Read MoreUnintended consequences of monetary inflation
“In short, the Fed is committed to rescue businesses from the greatest economic catastrophe since the great depression and probably even greater than that,…
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The looming derivative crisis
The powerful forces of bank credit contraction are at the heart of a rapidly evolving financial crisis in global derivatives, whose gross value is…
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