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August 2011

Recs

27

Yet another reason why I don't think this cyclical bull is over

August 28, 2011 – Comments (16)

Corporate Profits.   [more]

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26

The Known Universe

August 27, 2011 – Comments (8)

Wow! This is really awesome!  [more]

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18

Speaking of Math

August 23, 2011 – Comments (4)

Austerity does not promote econonomic growth. Here is another excellent post along the same lines as this one: Regarding the Myth that Austerity promotes Fiscal Expansion. Again, Professor Bill Mitchell's site is something that should be on your daily reading list.  [more]

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22

Incredible Science Discoveries

August 19, 2011 – Comments (11)

Awesome stuff! Some of these are really worth checking out!  [more]

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13

Please Read and Rec

August 17, 2011 – Comments (5) | RELATED TICKERS: RE , A , D

Please read and rec David's newest post: http://caps.fool.com/Blogs/talking-past-each-other-mmt/630475.   [more]

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25

The Daily Show on Hypocrisy

August 14, 2011 – Comments (5)

I was definitely amused by this clip:

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18

Connecting the dots- deficit reduction is now only about inflation, not insolvency

August 11, 2011 – Comments (9)

This concept is starting to become more recognized. The S&P downgrade on the 'ability' of the US Government to service its 'debt' has received so much attention and people are starting to realize that it makes absolutely no sense. The the sovereign issuer of a currency can *always* 'afford' any obligation denominated in that currency, since it issues the currency on demand. This is a big step in the right direction to figuring out what the real constraints are in our monetary system, and which ones are fictional.  [more]

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11

Riots, Austerity and Unemployment

August 10, 2011 – Comments (8)

You really should read this post by Bill Mitchell: I blame the British government for the riots - http://bilbo.economicoutlook.net/blog/?p=15605. I think the commentary at the beginning of the post represents a very valid viewpoint (opinion), but I think the econonmic analysis in the middle of the post looking at the relationships between austerity and civil unrest and linking it back to unemployment is extremely useful.  [more]

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21

LOL! Awesome :)

August 10, 2011 – Comments (2)

Barry Ritholtz's post http://www.ritholtz.com/blog/2011/08/sad-guys-on-trading-floors-2, is hilarious! Click on the link to see all of them, But I wanted to share my favorite one.  [more]

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14

QE2 and the Ensuing Disequilbrium

August 09, 2011 – Comments (3)

Really excellent post. It is a perfect analysis of why monetary policy has no solution to the problems of this balance sheet recession (and the Fed has no tools in its toolbox to deal with this issue), and caused nothing but a lot of dislocations due to speculative betting under the complete and utter misunderstanding that QE was "money printing" (everybody was trying to front run the Fed .... except the Fed had no way to leave the starting line).   [more]

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20

Update on Long Term Projection

August 06, 2011 – Comments (8)

For anybody who is interested. Also for what it's worth, I had opened about 50 shorts on May 2 (via inverse ETFs) in my CAPS portfolio right at the top of this wave. And I closed them all on Friday, consistent with my views below.  [more]

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16

Regarding the Myth that Austerity promotes Fiscal Expansion

August 04, 2011 – Comments (52)

Professor Bill Mitchell's site is something that should be on your daily reading list. His latest post is another in a long theme of posts dispelling the idea that austerity leads to 'fiscal contraction expansion'. If that were the case, then Great Britian's economy would be growing strongly right now based on their austerity implementation last year. If the theory was correct, then their GDP should have been increasing signficantly and Gilt yields should be going up (prices going down as investors want to put safe haven money into postively correlated economic assets). However, the exact opposite has been happening as has been evident for quite some time.  [more]

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5

Easily the best summary post of the effects of QE2 that I have yet read

August 04, 2011 – Comments (3)

Very long post by Cullen Roche, so I won't try to repost it here. But this is an absolute must read.

QUANTITATIVE EASING 3 – ANOTHER MONETARY NON-EVENT? - http://pragcap.com/quantitative-easing-3-another-monetary-non-event

Read it, and if it didn't all make sense, read it again. There is a huge difference between the markets and the economy. And there is a huge difference between vertical money creation (via Government Spending) and horizontal money creation (loans/margin taken out to make speculative bets or to hedge against inflation concerns).

Posts like this one are key to understanding how in a weak demand environment (balance sheet recession), and an environment where everybody seems to mislabel QE as 'money printing' or 'debt monetization' based on basic misunderstandings, how one form of 'inflation' manifests (and to understand the distinctions between forms and the environments where they manifest, read http://caps.fool.com/Blogs/why-deficit-spending-and/621467).  [more]

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10

A Decent Macroeconomic Filter

August 03, 2011 – Comments (3)

You will not find a lack of macroeconomic commentary in the media or on the internet. Numerous 'experts' (the supply of which now seem to be growing exponentially) are constantly offering prognostications and dire warnings. Topics discussed range from Government Debt to Money Supply Growth to the likelihood of QE (3,4,5, etc.) to the Federal Reserve, etc.  [more]

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17

What is the bond market saying?

August 02, 2011 – Comments (10)

Absolutely right on post. Goes in line with these observations:

What would happen if the US Federal Government stopped issuing bonds? - http://caps.fool.com/Blogs/what-would-happen-if-the-us/612372
The Phantom Bond Market Vigilantes - http://caps.fool.com/Blogs/the-phantom-bond-market/611923
More on the Non-Existent US Government Bond Market Vigilantes - http://caps.fool.com/Blogs/more-on-the-non-existent-us/613785  [more]

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21

Why Deficit Spending and Creative Destruction are not Mutually Exclusive Positions

August 01, 2011 – Comments (21)

There is much criticism leveled at MMT that it is a 'Free Lunch' theory or that it's main purpose is to preserve the status quo by not allowing deflation and the liquidation of malinvestment to occur. I agree those are legitimate concerns. Because frankly how recent administrations (both Republican and Democratic) have implemented fiscal policy (and have allowed those in control of monetary policy to run amok) would lead one to believe that governments will implement policies in the worst possible fashion.   [more]

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