A Troubling Sentence

From the Grey Lady:

The United States trade deficit surged in January to the widest imbalance in more than three years after imports grew faster than exports.

This is not a good sign. The US economy is predicated on false demand, by which I mean that the US, and the citizens thereof, buy a . . . → Read More: A Troubling Sentence

A Weakness in the "Small Batch" Manufacturing Paradigm?

I’m a huge fan of the changes described in Kevin Carson’s The Homebrew Industrial Revolution: A Low-Overhead Manifesto.

I love the fact that technology is enabling things like the re-localization of manufacture and a “small batch” ethos that lets people get something a lot closer to what they want instead of just having to . . . → Read More: A Weakness in the Small Batch Manufacturing Paradigm?

No Recession in the Global Economy, but Divergence Aplenty

Yours truly is actually a macroeconomist, indeed with a knack for financial markets, but still; a macroeconomist nonetheless. However, you would not have gotten that impression from the writings here end last week where I worried a lot about the worry of financial markets. I still do, worry that is, mostly because we . . . → Read More: No Recession in the Global Economy, but Divergence Aplenty

This Century and the Last One: A Report Card for the First 10 Years

When we look back at the sweep of history, the 20th century stands out. It stands out as a time of immense progress in our knowledge, a time of great carnage, and the time when the great debate about socialism and the market economy ended. I think it was Arthur C. Clarke who said . . . → Read More: This Century and the Last One: A Report Card for the First 10 Years

The Massive Momentum Of 2009

The great monetary scientist Isaac Newton, who served as England’s Master of the Mint for 24 years, also did some ancillary work in physics.  The laws of Newtonian physics are known by nearly everyone and are often used by analogy to apply logical reasoning in other fields.  In this case, a few of these . . . → Read More: The Massive Momentum Of 2009

Numeraire

The most important decision an investor can make is what to use as the numeraire. But few investors even know what a numeraire is let alone have put deliberate thought into choosing their numeraire.  With advances in technology using a reliable numeraire is easier than ever.

CAPITAL ACCUMULATION

Investing is the process of allocating . . . → Read More: Numeraire

How Silly Were J.S. Mill’s Views About Income Distribution?

J S Mill wrote: “The laws and conditions of the Production of wealth partake of the character of physical truths. There is nothing optional or arbitrary in them. … It is not so with the Distribution of wealth. That is a matter of human institution solely. The things once there, mankind, individually or collectively, . . . → Read More: How Silly Were J.S. Mill’s Views About Income Distribution?

What is Saving?

I have been thinking a lot about the meaning of saving money. Which brings me to what I call the fundamental question of finance: How does forgoing consumption today translate to increased consumption in the future?

In thinking about this question I have identified six distinct answers to this question:

The dog: Place a . . . → Read More: What is Saving?

We need a global economic process of creative destruction to begin now

The governments of the richest nations, as well as those nations who’s populations are poor but their leaders stashed reserves of funds, “invest” in the richest companies of this world that mismanaged their and our wealth in the first place and then ask for a bailout pretending to help us, . . . → Read More: We need a global economic process of creative destruction to begin now