Charles Hugh Smith | TalkMarkets | Page 2
Book Author, Blogger at Of Two Minds
Contributor's Links: OfTwoMinds.com
Charles Hugh Smith, has been an independent journalist for 22 years. His weblog, www.oftwominds.com, is a daily compendium of observations and analysis on the global economy and financial markets, as well as notable political, social ...more

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Japan's Monetary Pearl Harbor
Trying to "fix" a sclerotic, inefficient state-cartel economy by boosting inflation--the ultimate goal of Japan's Monetary Pearl Harbor-- is a self-liquidating path to destruction.
How Long Can The Top 10% Households Prop Up The "Recovery"?
The question of "recovery" really boils down to this: how much longer can the top 10% prop up the expansion?
Why We're Poorer: Inflation And Deflation Are Now Globalized
We're being hit with a double-whammy: Wages are under deflationary pressure, and almost everything else is exposed to inflationary pressure.
Globalization = Permanent Instability
Globalization continually creates imbalances that fuel a perpetual instability that gradually impoverishes every sector other than global capital.
Forget "Free Trade"--Focus On Capital Flows
In a world dominated by mobile capital, mobile capital is the comparative advantage.
What Happens When Cash Is No Longer Trash?
Those who create value as opposed to chasing yield will have some traction once the excess liquidity drains -- a collapse of excess liquidity will restore equilibrium to the system.
In Uncharted Waters
All the Fed money-printing and bond buying has sent money velocity in the real economy into a tailspin. Money has slipped into a coma.
The Artists' Road To Serfdom: The Commoditization Of Creative Content
This is the net result of commoditization: there's no premium for commoditized capital, labor, goods, services or content.
Why Nations (And Organizations) Fail: Self-Serving Elites
I submit that this dynamic of failure--the concentrated power and wealth of self-serving elites-- is scale-invariant, meaning that it is equally true of communities, towns, cities, states, nations and empires alike: all fail when they're run for the benefit of a narrow elite.
Why The State Has Failed To Reform Our Broken Financial System
Most observers think they know why the government has failed to truly reform the financial system: corrupt politicos on the receiving end of the Too Big to Fail banks and financiers' millions of dollars in lobbying and campaign contributions due the banks' bidding.
What Options Are Left For Central Banks?
The ability to push down interest rates is helpful as a buffer when credit-tightening and fear of defaults push interest rates up enough to choke off normal lending.
Why Is The Put-Call Ratio (Fear Gauge) Higher Than In The Lehman Collapse Of 2008?
The rising fear may reflect a shift in sentiment from faith in the omnipotence of central banks to skepticism.
Will The Fed Let The Stock Market Crash Before An Election?
Would anyone in the Fed's position with the tools at hand have any other option than to buy stocks in whatever quantity is needed to reverse the selling?
Did Oil's Decline Take The Stock Market Down?
If oil being dumped caused the market to breach key technical levels, that would cause managers to trim risk-on portfolios. This selling could gather downward momentum.
The Stronger Dollar = Stealth QE
Whether this trend will hold or reverse is unknown, but it does suggest that there are advantages to being the cleanest shirt in the dirty laundry.
Social Schizophrenia, Social Depression
The difference between what we experience and what we're told we experience creates a social schizophrenia that leads to self-destructive attitudes and behaviors.
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