Countdown To Chaos

Posted on October 30, 2020 by MN Gordon

On Wednesday, while the broad stock market was getting shellacked, and companies like Everbridge, Bed Bath & Beyond, and Dynatrace were suffering double digit freefalls, something else was going on.  Gold and silver were also getting shellacked.

But it wasn’t all crash and burn.  First Solar, Rolls-Royce Holdings, and CoreLogic all notched double digit gains.  The dollar, as measured by the dollar index, gold, silver, and most stocks, was also up.  And something else was up too…

Most investors likely didn’t notice that American firearm manufacturer Sturm, Ruger & Company managed to eke out a small return.  Why would they?  A return of 0.43 percent is nothing to write home about.

Nonetheless, we contend that Ruger’s modest gain in the face of a massive selloff is something that should get the attention of investors.  It’s something that should also get the attention of non-investors.  Guns are in high demand.  So is ammo.

Naturally, guns and ammo should be in high demand.  They are useful.  Sometimes they are especially useful.  And right now happens to be one of those times. Continue reading →

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Inflationism Has Overturned Society

Posted on October 23, 2020 by MN Gordon

Every now and again, when a sense of doom falls suddenly upon them, the bulls turn to bears.  That is to say, they turn from buying stocks to selling.  What is it that prompts them to panic?  What turns emotions so quickly from greed to fear?

The answers to these questions come a dime a dozen.  You can certainly dream up answers that are at least as good as anything professional analysts put forward.  The most convincing answers, whether true or not, are often those tied to current events.

For example, on Monday stocks sold off.  The Dow Jones Industrial Average (DJIA) dropped 410 points.  The popular rationale was that stocks sold off because of gridlock in Congress over passing a new stimulus bill.  On Tuesday the DJIA was up 113 points.  Apparently, this was because stimulus talks were back on.

But that was before Wednesday, when the DJIA dropped 97 points because the imminent stimulus agreement was still imminent.  Then, on Thursday, the DJIA jumped 152 points because stimulus talks were getting warmer. Continue reading →

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Science for Madmen

Posted on October 16, 2020 by MN Gordon

One of the absurdities of the coronavirus era is the purported faith in science by the political class; in particular, the left.  Joe Biden, for instance, said he would shut the country down if recommended by scientists.  Nancy Pelosi, this week, with respect to coronavirus stimulus, told Wolf Blitzer, that “…the science should call the shot and when they do, we should all trust it.”

“Trust, but verify,” counseled Ronald Reagan.  No doubt, the Gipper, didn’t envision the ridiculous science behind coronavirus containment policy.

President Trump, taking the advice of Reagan, recently verified the effects of coronavirus himself.  His findings, following a three day bout with the illness, revealed the science based policies that have been applied are not to be trusted.  Trump tweeted these conclusions:

“One thing that’s for certain: Don’t let it dominate you.  Don’t be afraid of it.  You’re going to beat it.”

According to Science magazine, “[Trump’s] repeated public dismissals of scientific expertise, and his disdain for evidence have prompted many researchers to label him the most antiscience president in living memory.” Continue reading →

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America Has an Epic Choice

Posted on October 9, 2020 by MN Gordon

“There is no means of avoiding the final collapse of a boom brought about by credit expansion.  The alternative is only whether the crisis should come sooner as the result of voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.” – Ludwig von Mises, Human Action [1949]

Crisis Now or Total Catastrophe Later?

On Tuesday, while still hopped up on anti-coronavirus goofballs, President Trump had a moment of clarity.  After 40 years of near uninterrupted credit expansion, it was finally time to cut it off.  And he was just the guy to do the cutting.

Trump took to Twitter to make his first snips.  He announced that stimulus bill negotiations were severed.  Minutes after, the Dow Jones Industrial Average hit a 400 point air pocket.  Several hours later, and perhaps following a little tutelage from Mnuchin and Kudlow, Trump reversed course.

We don’t know what Mnuchin and Kudlow said to Trump.  But we suppose they informed him that, at this point, the immediate health of the American economy is contingent on delivering printing press money to citizens and non-citizens alike…who cares if the long-term consequences are catastrophic? Continue reading →

Posted in Inflation, MN Gordon | Tagged , , , , | 23 Comments