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.
It is that time of the year again – our semi-annual funding drive begins today. Give us a little hand in offsetting the costs of running this blog, as advertising revenue alone is insufficient. You can help us reach our modest funding goal by donating either via paypal or bitcoin. Those of you who have made a ton of money based on some of the things we have said in these pages (we actually made a few good calls lately!), please feel free to up your donations accordingly (we are sorry if you have followed one of our bad calls. This is of course your own fault). Other than that, we can only repeat that donations to this site are apt to secure many benefits. These range from sound sleep, to children including you in their songs, to the potential of obtaining privileges in the afterlife (the latter cannot be guaranteed, but it seems highly likely). As always, we are greatly honored by your readership and hope that our special mixture of entertainment and education is adding a little value to your life!
Bitcoin address: 1DRkVzUmkGaz9xAP81us86zzxh5VMEhNke
2 Responses to “In Praise of Sarah Palin…”
Most read in the last 20 days:
- A Striking Chart
The Economy and the Stock Market As long time readers know, we are always paying close attention to the manufacturing sector, which is far more important to the US economy than is generally believed. In terms of gross output it is the largest sector of the economy, and it should of course be obvious that saving, investment and production are the only ways to create wealth. What's left of the Brooklyn Domino Sugar Refinery. Photo credit: Paul Raphaelson Contrary...
- Trump and Putin Narrowly Escape Assassination Attempt
The Gloves are Coming Off First a little bit of recent history. Readers are probably aware that some questions about the occasionally malfunctioning Deep State android... no, wait, we'll start again. Questions have recently been raised about the health of presidential candidate Hillary Clinton by various “alt-right” tinfoil hat-wearing conspiracy theorists, such as this one. The monsters are normally hiding under Hillary's bed, but lately they have come out into the open...
- US Economy - Curious Pattern in ISM Readings
Head Fake Theory Confirmed? This is a brief update on our last overview of economic data. Although we briefly discussed employment as well, the overview was as usual mainly focused on manufacturing, which is the largest sector of the economy by gross output. Pepsi factory in Baltimore, 1956 Photo via pinterest.com Readers may recall that we have pointed out for some time that there was quite a large gap between the data reported in regional Fed manufacturing...
- A Convocation of Interventionists, Part 2
Pleas for More Deficit Spending We continue with our Jackson Hole post mortem – including remarks that were made by economists and monetary bureaucrats shortly before and after the pow-wow and seem to be connected to the discussions there. Assembled central planners (we're not sure if this picture was taken at the conference, but most of the people in it were there). Photo credit: Getty Images We should preface the following with a Mises quote, as the...
- Why the Fed Destroyed the Market Economy
What Have You Done for Me Lately? Swing voters are a fickle bunch. One election they vote Democrat. The next they vote Republican. For they have no particular ideology or political philosophy to base their judgment upon. The primacy of the wallet. They don’t give a rip about questions of small government or big government. Nor do they have any druthers about the welfare or warfare state. In effect, they really don’t care. What’s important to the...
- How is Real Wealth Created?
An Abrupt Drop Let’s turn back to our regular beat: the U.S. economy and its capital markets. We’ve been warning that the Fed would never make any substantial increase to interest rates. Not willingly, at least. Groping in the dark, Yellen-style Each time Fed chief Janet Yellen opens her mouth, out comes a hint that more rate hikes might be coming. But each time, it turns out that the economy is not as robust as she had believed... and that a rate hike isn’t...
- Janet Yellen’s Shame
Playing Politics In honest capitalism, you do what you can to get other people to voluntarily give you money. This usually involves providing goods or services they think are worth the price. You may get a little wild and crazy from time to time, but you are always called to order by your customers. In the market economy, consumers reign supreme. There is no such thing as a “lost” vote in the marketplace; every penny spent affects production. Mises noted: “Consumers...
- Get Ready for a New Crisis – in Corporate Debt
Imposter Dollar OUZILLY, France – We’re going back to basics here at the Diary. We’re getting everyone on the same page... learning together... connecting the dots... trying to figure out what is going on. The new three dollar bill issued by the Apprehensive States of America. We made a breakthrough when we identified the source of so many of today’s bizarre and grotesque trends. It’s the money – the new post-1971 dollar. This new dollar is green. You...
- A Convocation of Interventionists – Part 1
Modern Economics - It's All About Central Planning We are hereby delivering a somewhat belated comment on the meeting of monetary central planners and their courtier economists at Jackson Hole. Luckily timing is not really an issue in this context. Central bank headquarters: the Fed's Eccles building, the ECB's hideously expensive new tower in Frankfurt, and the BOJ's Tokyo HQ (judging from the people in the foreground, it may be a source of noxious fumes). When...
- Hanjin Marooning in San Pedro Bay
Global Trade Reversal Expansions and contractions in global trade have played out over long secular trends for thousands of years. The Silk Road, for example, was established by the Han Dynasty of China in 130 BC, and allowed for continuous trade between East and West for nearly 1,600 years. In addition to economic trade, the Silk Road was also a conduit for culture and knowledge among its network of civilizations. A map of the main ancient Silk Road - click to...
- John Maynard Keynes’ General Theory Eighty Years Later
The “Scientific” Fig Leaf for Statism and Interventionism To the economic and political detriment of the Western world and those economies beyond which have adopted its precepts, 2016 marks the eightieth anniversary of the publication of one of, if not, the most influential economics books ever penned, John Maynard Keynes’ The General Theory of Employment, Interest and Money. The mere fact that the book is lauded by TIME magazine on the cover should give everyone...
- The Economy, the Stock Market and the Fed
John Hussman on Recent Developments We always look forward to John Hussman's weekly missive on the markets. Some people say that he is a “permabear”, but we don't think that is a fair characterization. He is rightly wary of the stock market's historically extremely high valuation and the loose monetary policy driving the surge in asset prices. The S&P 500 Index and the NYSE advance-decline line. Most market internals weakened steadily until early February 2016, but...