Financial Markets

As economic uncertainty grows, the authorities turn to their only “solution”: increase sovereign debt and ratchet up inflation.

The financial analyst Richard Daughty, whose pen name was Mogambo Guru, passed away four years ago, but while he was alive, he produced spot-on criticisms of the US government and its inflation rocket fuel booster, the Federal Reserve System.

The financial analyst Richard Daughty, whose pen name was Mogambo Guru, passed away four years ago, but while he was alive, he produced spot-on criticisms of the US government and its inflation rocket fuel booster, the Federal Reserve System.

Record-low consumer confidence and record-strong corporate earnings aren’t a paradox: they’re the Cantillon effect in real time. Mark Thornton explains who inflation rewards, who it crushes, and what comes next.

The Shiller CAPE ratio has only been higher once in 150 years. The Buffett indicator is 2.5 standard deviations above trend. 40% of the S&P 500 is in just ten stocks. Wall Street sees nothing wrong.

Corporate finance can help introduce classifications such as the distinction between the assets of a natural person and a legal person, but also by incorporating profitability, liquidity, and solvency variables into economic policy analysis.

Even if peace breaks out tomorrow, the economic damage is done.

This is not a cycle of greed. It is spontaneous order doing what it always does: finding the path around the obstruction.

The system does not break all at once; it wears down slowly, through a steady loss of purchasing power that households are already beginning to feel.

The aggregate net worth of all Americans is $170 trillion. Total government liabilities (on and off the books) are $160 trillion. Rick Rule: "I just don't understand how that great big large number goes away." Neither does the Fed.