Up and Down
MUMBAI, India – The Dow dropped 208 points on Monday – or about 1.3%. After last week’s pause, it will be interesting to see if the sell-off resumes.
“Global equities in turmoil,” reads a CNBC headline.
“A month after raising rates, Fed faces darker global economy,” suggests an AP newswire report. Neither of these is true. The world has not changed significantly in the last month.
What has changed? The squiggly lines are going down instead of up….
Photo credit: Richard Drew / AP Photo
As we reported, world economic growth was fading then, too. Junk bonds were in trouble then… just as now. There was no real recovery in America, then or now. And Sarah Palin is just as entertaining. We’ll get to her in a moment… but first more on the current market situation.
Equities aren’t in “turmoil,” despite the press claims. They are simply going down.
We explained it to a reporter from the Economic Times of India yesterday:
“No reason to overthink it. Markets go up, and then they go down. And when you diddle interest rates to make money cheaper than it ought to be, you’re going to get some action.
The first thing you’ll get is higher prices, as the cheap money chases returns in the stock and bond markets. The second thing you see is lower prices as the booms and bubbles eventually correct. No mystery to it. Night follows day. Busts follow boom. Credit contractions – with lower prices – follow credit expansions.”
The reporter was unsatisfied.
“What can policy makers do to prevent a sell-off?” he asked.
We smiled. That’s as far as he wanted to go – about a quarter of an inch into a subject that is 10 miles deep. In the mind of the popular financial press, and most of the investing public, the markets are no different from computers.
When something isn’t working properly, there must be a technician with the answer. There must be some buttons you can push. There must be some trick to getting it working again.
“Nope. You can’t always escape the consequences of your mistakes,” we began. But we let it go there. No point in trying to go ab ovo… back to the egg… to explain this fowl market. Keep it simple.
An unexpected, and generally unwelcome guest comes for dinner… self-invited, evidently.
Image credit: Hemera Technologies—Getty Images
In Praise of Palin
Back in the US of A, we are delighted that Sarah Palin has the public’s ear again. We’re often not sure what she is trying to say. But it doesn’t matter. With Palin, it’s not the thought that counts. It’s the lack of it.
She aims for simplicity, too – a smart move, since there are easily enough simpletons in the U.S. to elect a president, vice president, and an entire Congress.
Sarah Palin: for some reason, she seems to be permanently in a good mood. Perhaps she fell into a vat of chemicals, like the Joker?
Phot credit: AP
We always come to the defense of the poor, the despised, and the hopeless halfwits. We’re pretty sure Palin fits in there somewhere. So, today, we come not to laugh at Ms. Palin but to praise her.
We weren’t able to hear Ms. Palin’s endorsement of Donald Trump last week. But we thank Sam Leith, a scholar of rhetoric, for helping us deconstruct it. The speech was such a wonder of “oratorical eccentricity,” he wrote, “that it seems very likely she wrote it herself.”
Listening to a moron give a political speech is like watching a blind person do home electrical repairs: You know there are going to be some shocking and amusing incidents.
“Trump’s candidacy,” announced Ms. Palin, “it has exposed not just that tragic ramifications of that betrayal of the transformation of our country, but too, he has exposed the complicity on both sides of the aisle that has enabled it, okay?”
What does that mean? We don’t know. But Mr. Leith tells us it was an “anacoluthon,” which he describes as a sentence that “sets off boldly in one direction and, with a wrench of grammar, jumps the tracks and ends up pointing in another.”
We still don’t know what Ms. Palin meant to say. But at least we now know that there is a word for the disease that caused it.
It doesn’t have to mean anything anyway. There are apparently no complex ideas in Ms. Palin’s pensée worthy of careful explication. Instead, her brain simply stews the patriotic patois of the rural right wing and dishes out the words and phrases primary voters want to hear: “commander-in-chief,” “you betcha,” “families,” “make America great.”
There is one group of Americans supporting Ms. Palin wholeheartedly…
This cafeteria also produces some juicy linguistic innovations.
“Are you ready to stump for Trump?” she asked. We don’t know what that means either. “Give money to” – as in “plump” – is one possible interpretation. “Stand up for” – as in “mount a stump” – is another possibility. We don’t know.
She also invents a new word: “squirmish.” Huh? Don’t overthink it. It works for us as is. We are adding it to our own lexicon, along with her previous neologism “refudiate” and G. W. Bush’s classic “misunderestimate.”
Shakespeare invented dozens of words. Why not Sarah Palin?
Ms. Palin herself evidently recognized her strong affinity with Shakespeare – yes, she actually tweeted that….
Sarah Palin caught in a quiet moment, engrossed in a hitherto unknown Shakespeare play….
The above article originally appeared at the Diary of a Rogue Economist, written for Bonner & Partners. Bill Bonner founded Agora, Inc in 1978. It has since grown into one of the largest independent newsletter publishing companies in the world. He has also written three New York Times bestselling books, Financial Reckoning Day, Empire of Debt and Mobs, Messiahs and Markets.
You may have noticed that our so-called “semiannual” funding drive, which started sometime in the summer if memory serves, has seamlessly segued into the winter. In fact, the year is almost over! We assure you this is not merely evidence of our chutzpa; rather, it is indicative of the fact that ad income still needs to be supplemented in order to support upkeep of the site. Naturally, the traditional benefits that can be spontaneously triggered by donations to this site remain operative regardless of the season - ranging from a boost to general well-being/happiness (inter alia featuring improved sleep & appetite), children including you in their songs, up to the likely allotment of privileges in the afterlife, etc., etc., but the Christmas season is probably an especially propitious time to cross our palms with silver. A special thank you to all readers who have already chipped in, your generosity is greatly appreciated. Regardless of that, we are honored by everybody's readership and hope we have managed to add a little value to your life.
Bitcoin address: 1DRkVzUmkGaz9xAP81us86zzxh5VMEhNke
2 Responses to “In Praise of Sarah Palin…”
Most read in the last 20 days:
- Modi’s Great Leap Forward
India’s Currency Ban – Part VIII India’s Prime Minister, Narendra Modi, announced on 8th November 2016 that Rs 500 (~$7.50) and Rs 1,000 (~$15) banknotes would no longer be legal tender. Linked are Part-I, Part-II, Part-III, Part-IV, Part-V, Part-VI and Part-VII, which provide updates on the demonetization saga and how Modi is acting as a catalyst to hasten the rapid degradation of India and what remains of its institutions. India’s Pride and Joy Indians are...
- Global Recession and Other Visions for 2017
Conjuring Up Visions Today’s a day for considering new hopes, new dreams, and new hallucinations. The New Year is here, after all. Now is the time to turn over a new leaf and start afresh. Naturally, 2017 will be the year you get exactly what’s coming to you. Both good and bad. But what else will happen? Image of a recently discarded vision... Image by Michael Del Mundo Here we begin by closing our eyes and slowing our breath. We let our mind...
- US Financial Markets – Alarm Bells are Ringing
A Shift in Expectations When discussing the outlook for so-called “risk assets”, i.e., mainly stocks and corporate bonds (particularly low-grade bonds) and their counterparts on the “safe haven” end of the spectrum (such as gold and government bonds with strong ratings), one has to consider different time frames and the indicators applicable to these time frames. Since Donald Trump's election victory, there have been sizable moves in stocks, gold and treasury bonds, as the election...
- The Great El Monte Public Pension Swindle
Nowhere City California There are places in Southern California where, although the sun always shines, they haven’t seen a ray of light for over 50-years. There’s a no man’s land of urban blight along Interstate 10, from East Los Angeles through the San Gabriel Valley, where cities you’ve never heard of and would never go to, are jumbled together like shipping containers on Terminal Island. El Monte, California, is one of those places. Advice dispensed on Interstate...
- A Trade Deal Trump Cannot Improve
Worst in Class BALTIMORE – People can believe whatever they want. But sooner or later, real life intervenes. We just like to see the looks on their faces when it does. By that measure, 2017 may be our best year ever. Rarely have so many people believed so many impossible things. Alice laughed. "There's no use trying," she said: "one can't believe impossible things." "I daresay you haven't had much practice," said the Queen. "When I was your age, I always did it for...
- Pope Francis Now International Monetary Guru
Neo-Marxist Pope Francis Argues for Global Central Bank As the new year dawns, it seems the current occupant of St. Peter’s Chair will take on a new function which is outside the purview of the office that the Divine Founder of his institution had clearly mandated. Neo-Papist transmogrification. We highly recommend the economic thought of one of Francis' storied predecessors, John Paul II, which we have written about on previous occasions. In “A Tale of Two Popes” and...
- Where’s the Outrage?
Blind to Crony Socialism Whenever a failed CEO is fired with a cushy payoff, the outrage is swift and voluminous. The liberal press usually misrepresents this as a hypocritical “jobs for the boys” program within the capitalist class. In reality, the payoffs are almost always contractual obligations, often for deferred compensation, that the companies vigorously try to avoid. Believe me. I’ve been on both sides of this kind of dispute (except, of course, for the “failed”...
- Trump’s Trade Catastrophe?
“Trade Cheaters” It is worse than “voodoo economics,” says former Treasury Secretary Larry Summers. It is the “economic equivalent of creationism.” Wait a minute - Larry Summers is wrong about almost everything. Could he be right about this? Larry Summers, the man who is usually wrong about almost everything. As we have always argued, the economy is much safer when he sleeps, so his tendency to fall asleep on all sorts of occasions should definitely be welcomed....
- Money Creation and the Boom-Bust Cycle
A Difference of Opinions In his various writings, Murray Rothbard argued that in a free market economy that operates on a gold standard, the creation of credit that is not fully backed up by gold (fractional-reserve banking) sets in motion the menace of the boom-bust cycle. In his The Case for 100 Percent Gold Dollar Rothbard wrote: I therefore advocate as the soundest monetary system and the only one fully compatible with the free market and with the absence of force or fraud...
- Trump’s Plan to Close the Trade Deficit with China
Rags to Riches Jack Ma is an amiable fellow. Back in 1994, while visiting the United States he decided to give that newfangled internet thing a whirl. At a moment of peak inspiration, he executed his first search engine request by typing in the word beer. Jack Ma, founder and CEO of Alibaba, China's largest e-commerce firm. Once he was a school teacher, but it turned out that he had enormous entrepreneurial talent and that the world of wheelers, dealers, movers and...
- Side Notes, January 14 - Red Flags Over Goldman Sachs
Red Flags Over Goldman Sachs Just to prove that I am an even-handed insulter, here is a rant about my former employer, Goldman Sachs. The scandal at 1MDB, the Malaysian sovereign wealth fund from which it appears that billions were stolen by politicians all the way up to the Prime Minister, continues to unfold. The main players in the 1MDB scandal. Irony alert: apparently money siphoned off from 1MDB was used to inter alia finance Martin Scorcese's movie “The Wolf of...
- Silver’s Got Fundamentals - Precious Metals Supply-Demand Report
Supply-Demand Fundamentals Improve Noticeably Last week was another short week, due to the New Year holiday. We look forward to getting back to our regularly scheduled market action. Photo via thedailycoin.org The prices of both metals moved up again this week. Something very noticeable is occurring in the supply and demand fundamentals. We will give an update on that, but first, here’s the graph of the metals’ prices. Prices of gold and silver...