Charles Hugh Smith

Why Competition Between Global Players Is Heating Up – Charles Hugh Smith

This is a syndicated repost courtesy of oftwominds-Charles Hugh Smith. To view original, click here. Reposted with permission. The game of depending on ever-expanding debt and exports for growth is over. When the global financial pie is expanding, there’s plenty of swag for everyone, so competition is limited and cooperation is rewarded. If we step back,…

The Pareto Economy- Charles Hugh Smith

This is a syndicated repost courtesy of oftwominds-Charles Hugh Smith. To view original, click here. Reposted with permission. The Pareto distribution suggests that costs could be cut by 80% across the entire economy. Economist Vilfredo Pareto’s (1848 – 1923) data-driven discovery that 80% of the land in Italy was owned by 20% of the population…

The Global Endgame in Fourteen Points – Charles Hugh Smith

This is a syndicated repost courtesy of oftwominds-Charles Hugh Smith. To view original, click here. Reposted with permission. An over-indebted, overcapacity economy cannot generate real expansion. It can only generate speculative asset bubbles that will implode, destroying the latest round of phantom collateral. I have endeavored to lay out the global endgame in four recent…

Europe Is Not "Fixed": Two Charts – Charles Hugh Smith

This is a syndicated repost courtesy of oftwominds-Charles Hugh Smith. To view original, click here. Reposted with permission. The Eurozone is not a debt crisis that is “fixed,” it is a debt crisis waiting to implode. The happy-talk that the Eurozone debt crisis has been resolved is ubiquitous. But when did ubiquitous happy-talk make it…

Cheap, Abundant Credit Creates a Low-Return, Bubble-Prone World – Charles Hugh Smith

This is a syndicated repost courtesy of oftwominds-Charles Hugh Smith. To view original, click here. Reposted with permission. By bailing out banks and targeting equity prices, the central banks are exacerbating the misallocation of savings/financial capital to historically overvalued corporate equity. What happens when central banks make credit cheap and abundant? All that cheap money…

Note to Fed: Giving the Banks Free Money Won’t Make Us Hire More Workers- Charles Hugh Smith

This is a syndicated repost courtesy of oftwominds-Charles Hugh Smith. To view original, click here. Reposted with permission. Lowering interest rate and making credit abundant doesn’t make employers hire more workers. The Federal Reserve’s policy of targeting unemployment is based on a curious faith that low interest rates and lots of liquidity sloshing around the…

Is This the Terminal Phase of Global Capitalism 1.0? – Charles Hugh Smith

This is a syndicated repost courtesy of oftwominds-Charles Hugh Smith. To view original, click here. Reposted with permission. The road for both global capital and the State is narrowing to a rocky trail that leads to a cliff. We turn to cycles–business, solar, Kondratieff, etc.–to understand current events. But what if this era is not…

Why Reform Won’t Work- Charles Hugh Smith

This is a syndicated repost courtesy of oftwominds-Charles Hugh Smith. To view original, click here. Reposted with permission. Regardless of the need for reform, it isn’t going to happen for these structural reasons. The list of public/private institutions that desperately need structural reform is long: the Pentagon, healthcare (a.k.a. sickcare), Social Security, the complex mish-mash of…

The Hidden Death of the Ownership Society- Charles Hugh Smith

This is a syndicated repost courtesy of oftwominds-Charles Hugh Smith. To view original, click here. Reposted with permission. The foundation of the neofeudal economy is this: the right of ownership still exists in name, but the actual ownership of political and financial power is concentrated in the hands of a few. The core of American…

Is the Global Recovery Self-Sustaining? Charles Hugh Smith

This is a syndicated repost courtesy of oftwominds-Charles Hugh Smith. To view original, click here. Reposted with permission. To claim a “recovery” based on unlimited Central State borrowing and spending and central bank manipulation of asset valuations is self-sustaining is beyond absurd. The mainstream media (MSM) is overflowing with stories proclaiming the global economy is…