October 9, 2022

The Fed Is Fuct (Part 4)…


Part 1    Part 2    Part 3 The Fed is trapped in a box of their own creation. As a result, they may want to talk tough, but their ability to maneuver is severely restricted. The Fed claims that they’re targeting a terminal rate of 4.6% for Fed Funds, but if they did that for any period of time, they’d only succeed in Read More
Categories: Comments On Events
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October 5, 2022

OPEC’s Counterattack…


The Federal Reserve has been attacking inflation. The problem is that after printing trillions of dollars, they’re ill-equipped to succeed at their task. Partly, this is because all that cash has to go somewhere and partly this is because their mandate does not extend into ensuring that global energy production expands. While Owners’ Equivalent Rent and wages have remained elevated, those are often seen Read More
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September 18, 2022

The Fed Is Fuct Part 3


Part 1        Part 2 Investors like to focus on QE and QT, because the quantity of money has an immediate effect on risk assets. In the same way, we like to focus on the Fed Funds Rate as the price of money also has a dramatic effect on risk assets. Oddly, we rarely focus on the actual banking function of the Read More
Categories: Comments On Events
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August 22, 2022

The Pause…


I have frequently described “Project Zimbabwe” as a highly inflationary cycle where both fiscal and monetary stimulus go into insanity mode. While I sincerely hope we don’t go hyperinflationary like Zimbabwe, I certainly think we see an elongated period of substantial and debilitating inflation. When this cycle finally ends, society and our financial system will have been irreparably changed. For those who are aware Read More
Categories: Comments On Events
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July 11, 2022

Cashing Out Of Ponzis…


At quarter end, I loaded up on some of the more hilarious Ponzi Schemes that modern finance has created. They were the sort of Ponzis that would make a PM blush on a due diligence call. At the time, I suspected that quarter-end would lead to a short-term respite from the selling. Like clockwork, the selling ended and my basket of Ponzis spent the Read More
Categories: Investments
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