Governments Love Inflation, And They Won’t Do Anything to Stop It
No government looking to massively expand its size in the economy and monetize a soaring deficit is going to act against rising prices, despite claiming…
Continue readingDaniel LaCalle
Evergrande Isn’t China’s “Lehman Moment”: It Could Be Worse than That
The problem with Evergrande is that it is not an anecdote, but a symptom of…
Continue readingCentral Banks Can’t Taper In This Slowdown
Recent data from the United States should worry us. Amid the reopening and the biggest fiscal and monetary stimulus in recent history…
Continue readingThe End of the Gold Standard: Fifty Years of Monetary Insanity
SThus, since the breakdown of the gold standard, financial crises are more frequent but also shorter than before….
Continue readingGovernment “Stimulus” Keeps Having a Diminishing Effect
The diminishing effect of the stimulus is not just staggering, but the increasingly short impact of these programs is alarming…
Continue readingWe Can Have Low Interest Rates Or Robust Growth, But Not Both
Central banks have chosen low bond yields at any cost, despite all the evidence of stagnation ahead. This creates enormous…
Continue readingThis Is A Weak Jobs Recovery
The jobs recovery is extremely poor, especially if we consider the size of the monetary and fiscal stimulus and the…
Continue readingThe Stimulus Boom Is Already Over: Now Comes Stagnation
Cheap money, increased public intervention, and massive stimulus plans have not worked as…
Continue readingThe G7’s Reckless Commitment To Mounting Debt
The G7 meeting agreements were light on detailed economic decisions, except on the most damaging of them all…
Continue reading“Supply Bottlenecks” as an Excuse for Inflation
One of the arguments most used by central banks regarding the increase in inflation is that it is because of bottlenecks and that the recovery in demand has…
Continue readingInvestors Won’t Buy the “Transitory” Inflation Line
The real cost of living is rising faster than what the official calculations suggest. It was a problem in 2018 and it is…
Continue readingThree Reasons Why the Biden Tax Increase Makes No Sense
Anyone who believes the “rich” and large corporations will pay for $28 trillion in debt or the $2 trillion in new deficit has a real problem with math…
Continue readingThe US Recovery Is Weak, Especially Given the Size of the “Stimulus”
There is an overly optimistic consensus view about the speed and strength of the United States’ recovery that is contradicted by facts. It is…
Continue readingLockdowns and Easy Money Bring a Weak Recovery for Europe
Most politicians blame the eurozone weakness on the pandemic and the slow vaccine roll out. It is partially true…
Continue readingThe Everything Bubble: How A Debt-Driven Economy Creates More Frequent Crises
Governments and central banks create a crisis from a moderate and completely healthy slowdown by denying economic cycles and, even worse…
Continue readingHow a Small Rise in Bond Yields May Create a Financial Crisis
How can a small rise in bond yields scare policymakers so much?
Continue readingSubzero Rates Are Coming to the US and the UK
When this happens, it becomes necessary to protect one’s savings with gold, silver, inflation-linked instruments, and…
Continue readingCompared to Europe and China, America Is Still a Safe Bet
Betting against America is a bad idea, even if the Biden Administration tries to…
Continue readingThis Time Is Not Different: More Debt, Less Growth
All the central bank quantitative easing programs do not prevent the bankruptcy domino from accelerating in 2021, just as we saw in…
Continue readingWhy Mainstream Economic Forecasts Are So Often Wrong
We must also remember that mainstream bodies are almost entirely populated by Keynesian economists, and there is a tendency to…
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