Dollar goes up, oil goes down. Or is it the opposite?
I think that it’s funny that David Stockman, Ronald Reagan’s former budget chief, starts his column with this sentence:
“This morning’s market is more erratic than Claire Danes off her lithium.”
Seems a little gratuitously mean. Accurate (?) perhaps but mean. But that is one of the things we like about the guy. His acid.
Free money is a hell of a drug. It keeps a party going. But when it’s gone and the lights come up all that debt doesn’t look as pretty as it once did. One remembers all of a sudden all the stupid things one did under the influence, and even worse that those actions have consequences.
Zerohedge asks this. We’d like to know too.
In some ways “free banking” is a radical idea. In other ways it is deeply conservative (in the best sense of the word). The attached 3 minute video explains the concept well, and why free banking is better than our current centrally planned system.
By David Stockman
The mainstream economics narrative is so far down the monetary rabbit hole that the blinding clarity of the chart below has no chance whatsoever of seeing the light of day. That’s because it dramatizes the real truth regarding all the Fed gibberish about “accommodation” and “stimulus”. Namely, that what lies beneath its “extraordinary measures”, such as ZIRP, QE, wealth effects and the rest of the litany, is a central banking regime that systematically destroy savers. Period.
Murray N. Rothbard explains in 3 minutes why it is that when economic downturns happen the government should just get out of the way. Let prices correct, the pain will be short and sharp but then life will go on, typically in a more prosperous manner.
Goldman and the Fed are very close. Let’s just say they vacation together. Share a beach house in the Hamptons.