This one isn’t an uplifter but it is a sober assessment which deserves attention. Sobriety is a valuable thing, especially when dodging icebergs.
There are multiple, dozens of sides to the Panama Papers scandal. What activity was tax evasion (not legal), and what was tax avoidance? (Legal) How much of this money was gained via crony means? (Likely quite a lot looking at some of the people on the “list.”) Why do people feel compelled to avoid taxes in general? Are people justified in trying to keep money they legally made? (Assuming that they earned it via honest and non-crony means.)
Many nations in Western Europe can no longer afford their big welfare states.
Sure, “European banks.” All banks.
People in America are just plugging along seemingly oblivious to the storm which continues to gather strength overseas and in some cases is already buffeting the United States. It is foolhardy. We have just gotten used to the new post-2008 lower standards of living in this country and we want to think that the global depression which started in 2007-2008 is all over. It’s not.
Will the world go to hell in a hand basket tomorrow?
Joe Salerno, Pace University economist and Mises academic vice president explains why we should be very concerned with the emerging war on cash. This is a concept with which all of our readers should be at least somewhat familiar. It will affect your life and it is becoming an important issue very quickly as the world economy appears to be trending downward.
The war on cash is a war on everyday people.
Kyle Bass is often excellent. He is warning today that much of the developing world is in a dangerous banking position. He argues that these emerging market systems are quite exposed to even a run of the mill downturn. Additionally he argues that China has “only just begun” devaluing its currency.
Think of 2008 as a primer. A very difficult and disruptive primer. Nothing’s “fixed.” Markets never really cleared.
Additionally, as is explained below, the now 0% interest rates are almost locked there as the cost of serving US debt by the US government would explode upward with increased (and very likely closer to real market level) rates. That’s a sticky place to be to say the least.
But people will continue blissfully along, until they can’t.
OK. So you go to the 1st Bank of Bankertown or whatever. You deposit a check. Take a little cash out. But you wake the next day to find – surprise – the 1st Bank of Bankertown isn’t actually a bank at all. Granted some would argue that banks aren’t really “banks” at all anyway in the Fed system. But you get the point.
In the effort to inject interesting economic thought into the discussion at ACC we present the following video by Jeff Deist recorded at the Mises Institute. This lecture will likely challenge many of your assumptions about money.
Kodos and Kang actually run a currency hedge fund now.
As I watch the calamity in Greece and the chaos in China I am struck by how much things have changed in 10 years. “Wealth” looks very different to many people these days.
Wealth is time with one’s family. Wealth is time to think. Wealth is a good roof over one’s head. Wealth is good food and good friends. Wealth is walking through a field first thing in the morning with few bills to worry about.
This bill is probably a step in the right direction, but the focus should be first on auditing the Fed under a bright burning magnesium fueled light. We need to know what’s really going on in the institution before we can chart the best way forward. Open the beast up. Let’s see what happened in 2008/2009 and during the QE binge. Then we can tinker, or hack away, or blow up as needed.
It should be noted that Senator Warren,
Iceland stands like a sentinel at the gates of the Arctic and astride the Mid-Atlantic rift. Part of Scandinavia but also the last stone hop to North America it is a place which breeds peculiarity. With a population of under 330,000, less than the population of Wichita, Kansas, this peculiarity is compounded. Throw in month long winter nights and communal hot spring spas and one can understand why the tiny country produces such weird (and often interesting) furniture, music, and economic ideas.
This is a big deal and reflects the profound lack of confidence the world has with the current global banking regime. That Britain would do this, in spite of our general objection, is very significant.
As we have said in the past, an important thing to watch for is the moment the dollar is no longer the “world reserve currency.” When that happens the game fundamentally changes. We can’t print forever any longer and the reality of the market hits.
But remember Denmark is the happiest place in the world. (sic)
This is some radical stuff.