Jul 312013
 July 31, 2013  Posted by at 1:23 pm Finance Comments Off on Capitalism, A Norwegian Rat And Some Cockroaches
Capitalism, A Norwegian Rat And Some Cockroaches

Often, for some reason, when you want to make a simple point, before you know it it mushrooms into something much bigger. Like in this case, blasphemy. All I started out with was the notion that if we put a dollar value on something like an Arctic melt, or the extinction of species, we are making fundamental mistakes. Which invariably show in the way we reach the conclusions, presented as "scientific", that make us put such values on potential or

Jul 262013
 July 26, 2013  Posted by at 2:43 pm Finance Comments Off on How Central Banks Buy Growth
How Central Banks Buy Growth

Dorothea Lange Good Coffee May 1937 "Post office Finlay, Texas" The best of the lot must be the Daily Telegraph's headline: Economy firing on all cylinders as growth hits 0.6%. I mean, how does one trump that? Looks like they need to install extra cylinders just to grow 1%. I must admit I also really liked the claim that the UK economy will receive a £250 million boost from the Royal Baby™. Yes, in the United Magic Kingdom solid GDP

Jul 222013
 July 22, 2013  Posted by at 10:24 am Finance Comments Off on What Ben Bernanke Is Really Saying
What Ben Bernanke Is Really Saying

Ever wonder what Bernanke is saying? Well, it boils down to this: at the same time that Jimmy Carter says the US doesn't have a functioning democracy, Ben Bernanke says the US doesn't have a functioning economy. Unfortunately, people understand what Carter says, though they may not agree with him, but they do not understand what Bernanke says, and that has nothing to do with agreeing with him or not. Moe likely it has something to do with the illusionary

Jul 152013
 July 15, 2013  Posted by at 1:28 pm Finance Comments Off on Money. Religion. Power.
Money. Religion. Power.

Detroit Publishing Co. Trinity Church and office buildings, New York 1915 French President Hollande declared on TV on his nation's national holiday that the recession in France is over. You can just see the discussions in the Elysee Palace: we can't say that!, well, we have some graphs that show a little recovery, we just need to hide the ones that don't, and the president desperately needs a positive message to look presidential on Quatorze Juillet, so why don't we

Jul 082013
 July 8, 2013  Posted by at 10:27 am Finance Comments Off on QE, The Velocity of Money And Dislocated Gold
QE, The Velocity of Money And Dislocated Gold

From time to time, it's nice to look at a series of graphs, and let them tell their thousand words worth – each – of stories. In this case, I started out looking at US monetary base at the St.Louis Fed website and it sort of went from there. Curious trends and intriguing numbers, beyond what I would have thought. To refresh memory and avoid confusion, first a few definitions: The monetary base – base money, money base – is

Jul 022013
 July 2, 2013  Posted by at 10:28 am Finance Comments Off on Oil And Credit
Oil And Credit

Dorothea Lange Family Trip May 1937 "Migratory family traveling across the desert in search of work in cotton at Roswell, New Mexico. U.S. Route 70, Arizona" Our roving reporter VK may have become a little less roving lately, he still keeps in touch by email from time to time and we have interesting exchanges. Put together, a series of these mails paint a nice picture of what he reads and thinks about oil production, credit supply, and the place in