- Trump's $1 Trillion Infrastructure Bill Would Barely Cover America's Clean Water Needs
- A Rocky Road Ahead...
- New Study: The Economic Benefits of EPA Regulations Massively Outweigh The Costs
- Vault 7: CIA Hacking Tools Revealed
- Yogi was right: "You Can't Win 'em all!" JNUG, JDST And the Golden Mean
- The Empire Should be Placed on Suicide Watch
- The World Wasted Trillions of Dollars on Fossil Fuels Because of Bad Math
- Will Germany’s 100% EV Plan Actually Reduce Emissions?
- ALERT: March 15th Market Crash?
- Google, Microsoft Still Waiting On Wikileaks To Deliver CIA Hacking Tools
- Spicer claims that jobs numbers ‘may have been phony’ before, but now they’re ‘very real’
- Trump’s Mar-a-Lago is heaven — for spies
- Trump Team’s Growth Forecasts Far Rosier Than Those of CBO, Private Economists
- New Anti-Protesting Legislation: A Deeper Look
- Rise Of The Robot Bees: Tiny Drones Turned Into Artificial Pollinators
- Understanding the details of the Ka-POOM! theory
- The end game: hyperinflation
- Transitioning to tangible (vs paper) assets
- The critical importance of timing as things switch from deflation to runaway inflation
Now it’s time to revisit the Ka-POOM theory which posits that bubbles will be blown, then they will deflate (or threaten to, more precisely), and that will then be met with more money printing. Our view is that this cycle will continue until the entire system is utterly ruined, the underlying currencies destroyed.
What the 2008 financial crisis made clear is that when natural market forces work to purge the oversupply of poor-quality debt from the system. The bad mortgages (think subprime), the bad sovereign debts (think Greece), and the loan portfolios of over-extended financial institutions (think Citibank) represented ‘poor quality debt.’ When the market (finally) figured out that those debts would never be repaid at face value, or perhaps at all, turmoil erupted.
During times like these a vicious sequence begins: the market demands higher interest rates for the increased risks it sees. This makes debts harder to service, ultimately triggering defaults, which only compounds the difficulties as interest costs and defaults spiral ever upwards until the system is purged. Think of it as nature’s way of removing bad credit from the world, the way a lion chases the lamest antelope first.
Because in our fiat currency system ‘all money is loaned into existence’ (see chapters 7 and 8 of The Crash Course on-line video series), during periods of high debt default, the money supply shrinks. Money is created when a loan is made and, conversely, money disappears when a debt defaults (or is paid back). This is the textbook definition of deflation—a common symptom of which is falling prices the cause of which is that there’s just less money (and/or credit) available to chase goods and services.
As a reminder, money is a claim on real wealth and debt is a claim on future money. All that happens when we borrow more and more is that we push our problems of paying for what we want out into the future. Which means that...
This report marks the end of a series of three big trains of thought. The first explained how we’re living through the Mother Of All Financial Bubbles. The next detailed the Great Wealth Transfer that is now underway, siphoning our wealth into the pockets of an elite few.
This concluding report predicts how these deleterious and unsustainable trends will inevitably ‘resolve’ (which is a pleasant way of saying ‘blow up’.)
- The Power Of A Penny
- Humanure: The Next Frontier in Composting
- New images of Saturn’s walnut-shaped moon dazzle scientists
- The three wonders of the ancient world solving modern water problems
- Nothing fishy about new solution for aquaculture wastewater treatment
- Arid land to a fertile Eden: permaculture lessons from Portugal
- Top food companies say there are billions to be made by cutting food waste
In this week's Off The Cuff podcast, Chris and Mish Shedlock discuss:
- GDP Sluggish
- At 1.3% and falling
- Suspicious 'Rosy' Jobs Reports
- When no net employment growth for months
- Earnings The Same As 2011
- Yet stocks 30% higher
- Fed Hike Likely?
- Probably. But they don't want to pop the bubble
Click to listen to a sample of this Off the Cuff Podcast or Enroll today to access the full audio and other premium content today.
- Facing a Turning Point, European Central Bank Holds Fire
- What The Hell Is Going On?
- Discount Retail: The Next Shoe to Drop?
- The Golden Mean
- Dow Euphoria
- Shale Billionaire Hamm Says Industry Binge Can ‘Kill’ Oil Market
- Electricity Consumption Continues To Fall
- This Mysterious Oil Company Just Got A License To Drill In Crimea
In this episode of Next Economy Now, Shawn Berry, partner and worker-owner at LIFT Economy, interviews Omar Freilla.
Freilla is the founder and coordinator for Green Worker Cooperatives in the South Bronx, which runs the Coop Academy to empower a new generation of small local businesses that are cooperatively owned and operated.
In this interview Berry and Freilla discuss:
We're now a little less than a month away from the Peak Prosperity annual seminar at Rowe, which runs from April 6-9th.
If you're still making up your mind whether or not to attend this year, perhaps you're wondering what to expect to get out of the weekend.
Well, here's a write-up from someone who has attended in the past. Full disclosure: he's probably a pretty biased source -- as he's my brother.
At last year's Brooklyn Gay Pride celebration, members of GRIOT Circle, a Brooklyn-based community organization that serves LGBTQ seniors of color, were grand marshals of the parade. They wore rainbow sashes as they marched and waved to the crowd. What happened after the parade, however, left a lasting imprint on Aundaray Guess, the group's director of programs. Guess said that one of the organization's members took off her rainbow sash and put it away in her purse when she entered the subway station with him.
More than 10 years ago, Casey Fenton had an idea that brought the world together: Couchsurfing. The San Francisco-based platform, founded by Fenton in 2003, links travellers around the world with local people who are willing to host them in their homes for free, no strings attached.
- Wisconsin school districts' debt soars after $1.35 billion in new borrowing
- State, Local Officials Push $6 Billion Infrastructure Bill
- Trouble Brewing in High-Yield Debt, Commodity Investor Warns
- Interest on Illinois’ pension debt is $9.1B per year
- China’s finance minister sees ‘relatively large’ room to increase govt debt
- National debt nears $20 trillion; Kasich has long warned of troubles
- Italy's Target 2 liabilities hit new record high in February
- IMF raises jitters over NZ's high debt levels, recommends cenbank toolkit upgrade
- Reserve Bank of Australia holds rates at record low, signals steady view
- Brazil's worst-ever recession unexpectedly deepens in late 2016
- Rising European Bank Deposits Wind Up at ECB as Lending Sputters
- Global negative-yielding sovereign debt fell to $8.6 trln
- ECB buying of Portuguese debt hit new low as limit looms
"How do you rip the algorithmic heart of our Uber and then embed your own values instead?" This is the question that lies at the heart of scholar and activist Trebor Scholz's work on Platform Cooperativism, a concept that describes "a way of joining the peer-to-peer and co-op movements with online labor markets while insisting on communal ownership and democratic governance."
- Republicans Unveil Health Care Bill to Bridge Gaps in Party
- 'Obamacare Lite'? Not Quite.
- Rumblings of a ‘Deep State’ Undermining Trump? It Was Once a Foreign Concept
- Oklahoma state bill would let property owners shoot down drones
- Donald Trump's Worst Deal
- EPA relationship with Monsanto under scrutiny in Roundup trial
- Trump To Undo Fuel Efficiency Standards
- The Amazon forest is the result of an 8,000-year experiment
Mark Morey returns to the podcast this week, for a deep dive into Cultural Capital, one of the more intangible and less understood of the 8 Forms Of Capital. PeakProsperity.com readers may remember Mark from his front-line reporting for us of the situation in Standing Rock as the confrontation there with the government first escalated.
Cultural capital is rooted in society's values and traditions. Sadly, over the past few generations in the West, we have departed from the time-honored (and honed) customs and rituals of our ancestors, and adopted a much more "it's all about me" approach to life.
The result, argues Morey, is a populace that feels isolated an unfulfilled. Those age-old traditions and rites of passage developed for a reason. They gave our lives meaning, as well as instructed us on how to live.
Is there a way to recover some of that lost wisdom and sense of "fit" in life? Yes, Morey believes. And there's much the world's indigenous cultures can teach us.
In 2012, the Sustainable Economies Law Center along with numerous active partners successfully advocated for the passage of the California Homemade Food Act (AB 1616, Gatto), also commonly known as California's "cottage food law." Thousands of small food businesses formed under the law during just its first year of implementation. However, the Homemade Food Act only allows certain "non-potentially hazardous" foods such as breads, pies, fruit jams, and other dried foods to be made in a home kitchen and offered for sale.
In 2015, Uber, the ride-hailing giant based in San Francisco, California that's been threatening the existence of taxi companies and trampling over regulations in numerous cities, entered Tokyo. What happened next was extraordinary. Uber's tactics backfired — both the taxi industry and the residents of Tokyo rejected the ride-hailing app.
- Americans have lost faith in institutions. That’s not because of Trump or ‘fake news.’
- The Deep State vs. President Trump
- Republican insider: Trump is creating Deep State 2.0, but it might crash the economy
- The Fed. Has Now Set The Stage For An Ides of March Moment
- Trumponomics: Making America Broke Again, Part 1
- 5 Graphics To Help You Understand President Trump's Conflicts Of Interest
- Regulation May Stall The Future Of Energy Storage
- Backlash greets Trump proposal to gut Great Lakes cleanup funding