Oil Mania Redux

Posted on September 28, 2018 by MN Gordon

By now, late September of 2018, it has become increasingly evident that something big is about to happen.  What exactly that may be is anyone’s guess.  But, whatever it is, we suggest you prepare for it now…before it’s too late.

Several weeks ago, if you hadn’t heard, an undisclosed rich guy enthusiastically bid up and then bought Norman Rockwell’s portrait of John Wayne for a cool $1.49 million at the 12th Annual Jackson Hole Art Auction.  According to auction coordinator Madison Webb, “There was a really positive energy in the room.”

Indeed, it takes a lot of really positive energy – and a healthy bank account – to shell out that sum of money for a painting of “The Duke.”  Still, positive energy, like good weather, can quickly turn negative.  Soon enough, we suppose, the purchaser’s excitement will retreated to a serious case of buyer’s remorse.

Of course, we could be wrong.  The buyer could have a special liking for old John Wayne movies.  Perhaps he’s a collector of Norman Rockwell paintings.  Or maybe he won the lottery and is compelled to burn through his winnings in odd and outlandish ways. Continue reading →

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The Burden of the American Worker

Posted on September 21, 2018 by MN Gordon

There’s great elation flowing from the various economic bureaus down through President Trump.  They bring a message of good news.  If you haven’t heard, here in the USA, we live, work, and play in the dazzle and delight of an economy where GDP growth exceeds the unemployment rate.

The last time we drank of elation this cool and sweet was the pre-iPhone stone ages.  Back when George Dubya was President.  And when Lehman Brothers was still one of the titans of Wall Street.

Indeed, getting back to this agreeable place has been a long, hard trudge along the road to happy destiny.  But step by step, day by day, a paradise lost has been returned to Eden.  Thank you, Ben Bernanke.

By all official accounts, things have never been better.  GDP, according to the Bureau of Economic Analysis, is growing at an annual clip of 4.2 percent.  The unemployment rate, as reported by the Bureau of Labor Statistics, sits at just 3.9 percent.  But that’s not all…

Pot stocks have become the new bitcoin.  The Dow Jones Industrial Average, after a six month hiatus, is marking new all-time record highs. Continue reading →

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Honest Work for Dishonest Pay

Posted on September 14, 2018 by MN Gordon

Over the past decade, in the wake of the 2008-09 debt crisis, the impossible has happened.  The sickness of too much debt has been seemingly cured with massive dosages of even more debt.  This, no doubt, is evidence that there are wonders and miracles above and beyond 24-hour home deliveries of Taco Bell via DoorDash.

But how can dosages of more debt be the cure for too much debt?  Can more Cutty Sark be the cure for a dipsomaniac?  Certainly, in both instances, and after some interim relief, the cure always proves to be much worse than the disease.

Without question, a moment of clarity is approaching that will bisect the world of today from the world of tomorrow, like the Patriot Act bisects the present world from its prior state of bliss.  Thus, what follows is a rudimentary preview of what’s in store.  But first, some context is in order…

The fake money system – a system centered on debt based legal tender and centrally fabricated interest rates – produces booms and busts of greater extremes with each progression of the business cycle. Continue reading →

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Thirteen Reckonings Hanging in the Balance

Posted on September 7, 2018 by MN Gordon

The NASDAQ slipped below 8,000 this week.  But you can table your reservations.  The record bull market in U.S. stocks is still on.

With a little imagination, and the assistance of crude chart projections, DOW 40,000 could be eclipsed by the end of the decade.  Remember, anything and everything’s possible with enough fake money.

Still, we consider DOW 40,000 to be about as probable as having a dinosaur step on our car as we drive to work today.  More than likely, a return to DOW 10,000 will first grace the front page of the Wall Street Journal.

In the interim, while still in the delight of this “permanently high plateau,” we’ll turn our attention to another equally suspect record that’s presently unfolding with imperfect precision.  If you haven’t noticed, the current economic expansion’s approaching its own record duration.  At 111 months and counting, this economic expansion is closing in on the post-World War II record of 120 consecutive months of growth that occurred between March 1991 and March 2001. Continue reading →

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