Tag Archives: malinvestment

2016 Theme #4: The End-Game of Debt-Fueled “Growth”

A number of systemic, structural forces are intersecting in 2016. One is the end-game of debt-fueled “growth.” We can summarize the official “solution” to the Global Financial Meltdown of 2008 in one line: borrow and blow trillions–of yen, yuan, dollars, … Continue reading

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2016 Theme #3: The Rise of Independent (non-state) Crypto-Currencies

A number of systemic, structural forces are intersecting in 2016. One is the rise of non-state, non-central-bank-issued crypto-currencies. We all know money is created and distributed by governments and central banks. The reason is simple: control the money and you … Continue reading

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China and the Dragon Tail of Marx

The dragon tail of Marx’s end-game of overcapacity and finance capital is about to shred China’s fantasy that the state can micro-manage both capitalism and financialization with no contradictions or consequences. Longtime readers know my one expertise is annoying the … Continue reading

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Central Banks Create Deflation, Not Inflation

Financial and risk bubbles don’t pop in a vacuum–all the phantom collateral constructed with mal-invested free money for financiers will also implode. If there’s one absolute truism we hear again and again, it’s that central banks are desperately trying to create inflation. … Continue reading

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How Malinvestment Poisons the Entire Economy

Our Fed-fueled lottery-ticket economy will unravel with a vengeance in the years ahead. Malinvestment–the systemic consequence of the Federal Reserve’s policies of near-zero interest rates and abundant credit–doesn’t just inflate destruction asset bubbles: it poisons productive assets and the entire … Continue reading

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What Happens After the Low-Hanging Fruit Has Been Picked?

Right now China is at the top of the S-Curve, and the problems of stagnation are still ahead. What happens after all the low-hanging fruit has been picked? We can phrase the same question using a different analogy: what happens when … Continue reading

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