How the Fed Retarded the Residential Real Estate Market

Posted on August 4, 2023 by MN Gordon

The US economy and financial markets often behave in confounding ways.  Something that appears to be obvious never materializes.  And something of little apparent prospect becomes a major theme.

With little indication, for example, gross domestic product (GDP) may expand in the face of menacing economic fundamentals.  Similarly, an extended bear market rally may appear to be a new bull market.

What’s more, when central planners have a heavy hand in extreme market intervention the distortions and false signals are especially puzzling.  Prices may avoid logic for extended periods of time.

Will Fed Chair Jay Powell successfully pilot a soft economic landing?

That’s what Marriott CFO Leeny Oberg believes.  On the company’s earnings call this week she said, “it now seems more likely that the US economy could have a soft landing.”

“What you’ve seen lately is still really strong employment numbers, increased expectations for GDP growth.  You’re also seeing that inflation is calming down, which I think … helps everybody think, ‘Okay, you know what?  We could actually have kind of a soft landing without a huge downfall.’” Continue reading →

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Lies, Witch Hunts, and America’s Next Rendezvous with Madness

Posted on July 28, 2023 by MN Gordon

“Thou shalt not suffer a witch to live.”

– Exodus 22:18

Something Wicked

No one seems to know for certain Tituba’s actual origin.  Was she of the old world?  Was she of the new world?

Over the centuries, history, like an eroding creek bed, becomes muddy.  Things that were once known as facts become lost or obscured by the silt of time.  Sometimes they’re rewritten to better accord with prevailing prejudices.

What is known about Tituba is that she had an abstract mind.  And that, when called upon, she was willing to use it to appease the expectations of her masters.

This powerful combination, like thunder and lightening, sparked one of the more disturbing episodes of mass hysteria to ever occur on American soil.

Tituba likely sailed from Barbados to the Massachusetts Bay Colony in 1680 with Samuel Parris, where she remained his servant.  Nine years later, Samuel Parris became Reverend Samuel Parris, Salem Village’s first ordained minister.

For reasons unknown, in January 1692, Parris’ nine-year-old daughter Elizabeth, and eleven-year-old niece Abigail Williams, started having violent and uncontrollable fits.  They screamed, threw things, barked peculiar sounds, and twisted themselves into strange positions.  Another girl, 12-year-old Ann Putnam Jr., experienced similar episodes. Continue reading →

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How Washington Ruined America’s Future

Posted on July 21, 2023 by MN Gordon

United States Secretary of Treasury Janet Yellen has an incredible job.  She writes rubber checks to pay America’s bills.  Yet, somehow, the rubber checks don’t bounce.  Instead, like magic, they clear.

How this all works, considering the nation’s technically insolvent, is quite miraculous.  But it works, nonetheless.  Again and again, the Treasury borrows money.  And Washington spends it.

Yellen likely knows that full faith and credit is too good to be true.  The U.S. government’s gross fiscal mismanagement should call the veracity of its notes into question.  But why focus on it when there’s an abundance to be acquired from weekly Treasury bill auctions?

On a recent trip to China, Yellen was spotted by a local food blogger consuming a plate of magic mushrooms.  An aide to Yellen later confirmed that she did, indeed, order them.  The restaurant’s “staff said she loved [the] mushrooms very much.  It was an extremely magical day.”

We don’t know what their acute effects on Yellen were, while she was in Beijing.  But the mushrooms appear to be contributing to her chronic hallucinations about the U.S. economy’s current health. Continue reading →

Posted in Government Debt, MN Gordon | Tagged , , , , | 21 Comments

Are You Willing to Starve for the Greater Good?

Posted on July 14, 2023 by MN Gordon

Central planners are pulling double shifts.  Contriving plans and proposals to control what you consume, how you travel and cook, where your money is spent, and much, much more.

You know who we’re talking about.  The Davos WEF crowd.  The UN, IMF, World Bank, and central bankers.  Washington lobbyists, NGOs, public/private partnerships, technical advisory committees, nonprofits, and everything in between.  We’re also talking about your meddling neighbor, and many others.

What’s their deal?  Do they think they’re making the world a better place?  And, if so, a better place for who – them or you?

Could something more devious be guiding their advancements?

In Das Kapital, for example, Karl Marx bemoans capitalism for exploiting labor to produce surplus value.  His main gripe was that 19th century laborers worked for mere wages while some factory owners got incredibly rich.

To eradicate this class struggle, as he perceived it, Marx proposed a socialist mode of production coordinated through conscious economic planning.  He believed that distributing products “from each according to his ability, to each according to his needs” would bring about his vision of a workers’ paradise. Continue reading →

Posted in MN Gordon, Politics | Tagged , , , , , | 30 Comments