Greece Enters Its Crack-Up Boom
July 9, 2015
28 Comments
The Austrian School of economics has a concept called a “crack-up boom” in which a critical mass of people conclude that their government is actively
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What If You Had An Italian Bank Account? Or A Portuguese Bond?
July 2, 2015
12 Comments
Though it might yet drag on for weeks, months or even years, Greece’s drama can end in one of only two ways: Continued austerity which
US Nearing Recession, Dollar Falling Hard
May 13, 2015
25 Comments
The dollar soars by a record amount versus the euro and the yen in 2014. And economists predict strong growth in 2015. Really? If a
Currency War Collateral Damage: China Stops Growing, Starts Easing
May 10, 2015
8 Comments
When a country pegs its currency to a bigger one like the US dollar, it in effect outsources its monetary policy to the operator of
Welcome To The Currency War, Part 20: Good Times For The Winners
May 8, 2015
1 Comment
Most talk of currency war focuses on the problems caused by countries devaluing their money. This does indeed cause a lot of problems, especially long-term
The End Is Near, Part 3: Corporations Are The Ultimate Dumb Money
May 4, 2015
23 Comments
David Stockman just published a chart so compelling that he didn’t feel the need to add any commentary. But there are a few things to
The End Is Near, Part 1: The “War On Cash”
April 26, 2015
33 Comments
As the saying goes, you can know a person by the quality of his or her enemies. This is also true of societies, where moral
US Factories Crushed By Strong Dollar
April 24, 2015
6 Comments
Government statistics are always suspect, for at least one obvious reason: Modern economies are way too big and complex to measure in real-time. So virtually
When All News Is Bad News
April 21, 2015
3 Comments
One of the defining traits of financial bubbles is the willingness of traders and investors to interpret pretty much everything as a buy signal. Rising
Is The Credibility Bubble Bursting?
April 19, 2015
15 Comments
In a fiat currency system, perception is, by definition, everything. Paper money has no intrinsic value. So the people saving it and accepting it in
Welcome To The Currency War, China Edition
April 13, 2015
11 Comments
Here’s one for the “seriously, you’re surprised?” file: China pegs its currency, the yuan, to the dollar, the dollar soars, taking the yuan with it…and
What Gold’s Bull Market (That’s Right, Bull Market) Means For Miners
April 11, 2015
5 Comments
One of the oddities of floating exchange rates is that they cause people to view the world in terms of their own national currency. For
Welcome to the Currency War, Part 18: Dollar Soars, Economy Disappoints
March 13, 2015
10 Comments
The point of competitive devaluation, aka currency war, is that a cheaper currency gives a country several advantages over its trading partners, leading to better
The Day The Dollar Crushed Everything
March 6, 2015
3 Comments
The way markets usually work is that on any given day (or in any given year) some asset classes are up while others are down.
What Do These Two Charts Have In Common?
March 5, 2015
10 Comments
The premise of a currency war is that by devaluing its currency a country is able to sell things overseas more cheaply, which gooses its