“The Future Ain’t What It Used to Be”

Posted on February 15, 2019 by MN Gordon

Something rather distressing with the political economy’s going on…

The populace, through a long sequence of self-inflicted economic and social depravities, has a bazillion and one fire ants up its pantaloons.  What’s more, they don’t like the uneven mix of pain and panic this provokes.  But they aren’t quite sure how to put a stop to it.

By their estimation, the main problem, on surface, is that general incomes do not cover general expenses and debt obligations.  There’s even data to support this.  For example, just this week it was reported that a record seven million Americans are 90 days behind on car loan payments.

Indeed, incomes aren’t cutting it.  But why aren’t they?  What has reduced the aggregate value of labor so far below the aggregate price of goods and services?  What’s the real source of the working stiff’s grave economic discomfort?

A scratch below the surface reveals something rather fantastical.  Though scarcely a soul cares to look.  Of those who bother, only a small and peculiar subset will dirty their hands and dig for an answer. Continue reading →

Posted in Inflation, MN Gordon | Tagged , , , , | 14 Comments

The Big Government Show Must Go On

Posted on February 8, 2019 by MN Gordon

Another week.  Another week of distractions.  On Tuesday, for instance, was the great State of the Union Address.  To this, many opinions and observations have been offered.  Here, we’ll contribute several of our own…

President Trump is a showman of stout ego.  How he must have relished the run-up to Tuesday’s primetime address with impatient anticipation.  What a disappointment it must have been to look out from the podium of the House of Representatives at the 116th Congress and see the greatest assemblage of political crooks, lowlifes, and losers in living memory staring back at him.

But the show must go on…disappointments and all.  For life’s full of disappointments.  The many botched opportunities.  The countless hours wasted on bids for ridiculous jobs.  Super Bowl Sunday.  Duds, dissatisfactions, and disappointments come a dime a dozen.

Words are also the source of many disappointments.  Words that shouldn’t have been said.  Words that should have been said. Continue reading →

Posted in Government Debt, MN Gordon | Tagged , , , , | 15 Comments

The Categorical Insanity of Central Banking

Posted on February 1, 2019 by MN Gordon

Currency debasement.  Asset price inflation.  Booms, bubbles, and busts.  Yes, folks, central bankers have succeeded at making full hash of the world at large.  This goes for the Federal Reserve too.

Tracing back recent financial disasters we find the mortgage meltdown coincided with the Fed’s interest rate raising cycle.  The Fed had dropped rates following the dot com bust and, in return, puffed up a massive housing bubble.  So they raised rates to let some air out and – pop! – the bubble exploded.

The dot com bust also coincided with Fed rate hikes.  Rates had been dropped to bailout financial markets from the Long Term Capital Management fiasco and to stem contagion from the 1997 Asian financial crisis.  The cheap credit was then channeled into the delusion that the internet would make everyone rich.  So the Fed raised rates to impart some reality back to the stock market and – kaboom! – the Pets.com sock puppet was blown to bits. Continue reading →

Posted in Inflation, MN Gordon | Tagged , , , , | 2 Comments

An Honest and Easy Solution to Wealth Inequality

Posted on January 25, 2019 by MN Gordon

Here we are, less than one month into the New Year, and absurdity levels have broken above 120 decibels.  Society, it seems, has spun itself up to a fever pitch.  The common culture is working towards a common freak-out.

This week, for example, we discovered, courtesy of U.S. Representative Alexandria Ocasio-Cortez, that: “The world is gonna end in 12 years if we don’t address climate change.”  This gifted insight was mixed between meticulous news analysis of a peaceful exchange between a smirking teen wearing a MAGA hat and a drum beating Native American wearing a costume.  But this ain’t the half of it…

The annual hootenanny for the elite, the World Economic Forum in Davos, Switzerland, took place this week.  The gathering successfully delivered many high-volume absurdities.  An impartial program listing includes:

Globalization 4.0, how cities can fight back against climate change, radically reinventing social systems, plastic pollution, safeguarding our planet, the rise of techno nationalism, media freedom in crisis, averting peak Europe, escaping extinction, when global order fails, a new deal for nature, shaping the future of democracy, and much, much more. Continue reading →

Posted in Business, MN Gordon | Tagged , , , , | 14 Comments