Charles Hugh Smith

The Erosion of the U.S. Economy In Two Words: Jobs and Wages – Charles Hugh Smith

This is a syndicated repost courtesy of oftwominds-Charles Hugh Smith. To view original, click here. Reposted with permission. The current de facto policy of inflating asset bubbles to spark a “wealth effect” is no substitute for policies that make it less burdensome to start new enterprises and hire employees. The Status Quo is shameless when…

Unpopped Housing Bubbles Abound – Charles Hugh Smith

This is a syndicated repost courtesy of oftwominds-Charles Hugh Smith. To view original, click here. Reposted with permission. History suggests that we can anticipate the eventual popping of all remaining housing bubbles. Though much has been written about the popping of the housing bubble in the U.S. and Ireland, remarkably little has been written about…

A Look at U.S. Taxes and Hauser’s Law – Charles Hugh Smith

This is a syndicated repost courtesy of oftwominds-Charles Hugh Smith. To view original, click here. Reposted with permission. The implicit dynamic here is that when taxes exceed 20% of GDP, participants modify their behavior to lower their taxes Frequent contributor Jim S. recently submitted a collection of charts on U.S. corporate taxes and Hauser’s law, which contends…

The Hollowing Out of Private-Sector Employment – Charles Hugh Smith

This is a syndicated repost courtesy of oftwominds-Charles Hugh Smith. To view original, click here. Reposted with permission. The financial and political Aristocracy will continue to do more of what’s failed because they have no alternative model that leaves their power and wealth intact. Frequent contributor B.C. has provided five charts that reflect the hollowing…

Understanding Failed Policies: Wealth Effect, Wage Effect, Poverty Effect – Charles Hugh Smith

This is a syndicated repost courtesy of oftwominds-Charles Hugh Smith. To view original, click here. Reposted with permission. Central banks’ attempts to boost borrowing, consumption and wages by inflating asset bubbles leads to the poverty effect, not the wealth effect. Central bankers have been counting on “the wealth effect” to lift their economies out of…

Capital Controls, $5,000/oz Gold and Self-Directed Retirement Accounts- Charles Hugh Smith

This is a syndicated repost courtesy of oftwominds-Charles Hugh Smith. To view original, click here. Reposted with permission. A wide-ranging conversation on capital controls, gold and self-directed retirement accounts. Recent news stories about Federal plans to “help” manage private retirement accounts renewed my interest in the topic of capital controls. One example of capital control is to limit…

Why Central States/Banks Inflate Asset Bubbles, and Why They Implode – Charles Hugh Smith

This is a syndicated repost courtesy of oftwominds-Charles Hugh Smith. To view original, click here. Reposted with permission. Inflating phantom assets to collateralize expanding debt is failing due to diminishing returns on stimulus, zero-interest rates, money-printing and monetization of Federal debt. That the policies of central states and banks have led to one disastrous asset…

What Could Go Wrong with the Housing Recovery in 2013? Plenty. Charles Hugh Smith

This is a syndicated repost courtesy of oftwominds-Charles Hugh Smith. To view original, click here. Reposted with permission. Federal subsidies and Federal Reserve policies enabled a vast expansion of debt that masked the stagnation of income. Now that the housing bubble has burst, this substitution of housing-equity debt for income has ground to a halt.…

What If ObamaCare, Too Big To Fail Banks and the State Are All the Wrong Sized Unit? Charles Hugh Smith

This is a syndicated repost courtesy of oftwominds-Charles Hugh Smith. To view original, click here. Reposted with permission. The State has monopolized all authority, giving it essentially unlimited power to make things worse. I recently came across this excerpt from Preparing for the Twenty-First Century by Paul Kennedy (1993):   The key autonomous actor in political and…

ObamaCare: The Neutron Bomb That Will Decimate Employment- Charles Hugh Smith

This is a syndicated repost courtesy of oftwominds-Charles Hugh Smith. To view original, click here. Reposted with permission. ObamaCare will act as a neutron bomb on employment in the U.S. for two basic reasons. Longtime readers know I have repeatedly explained why healthcare, i.e. sickcare, will bankrupt the nation. Here are two of the dozens of…