Issuing debt and printing money do not create wealth. All they can create is a temporary illusion of wealth.
I could have written “if all the money vanishes,” but that would be misleading, for all unbacked money will most certainly vanish into thi…
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Charles Hugh Smith, Contributors- Economic and Financial, Must Read
About That $20 Trillion in Public Debt….
by Charles Hugh Smith • • 0 Comments
Massive Federal deficits require higher taxes; ever-expanding public debt and higher debt service sets up a death spiral once new investment is crowded out by Federal borrowing.
In only three more years you’re talking $20 trillion in public debt f…
Charles Hugh Smith, Contributors- Economic and Financial, Must Read
The One Chart That Says It All
by Charles Hugh Smith • • 0 Comments
Depending on debt to fuel nominal growth leads to an economic death spiral.
Sometimes one chart says it all. Here is a chart of the S&P 500 (a broadly based measure of the U.S. stock market) in a ratio with total consumer credit, courtesy…
Charles Hugh Smith, Contributors- Economic and Financial, Must Read
Money from Nothing: A Primer on Fake Wealth Creation and its Implications (Part 1)
by Charles Hugh Smith • • 0 Comments
Frequent contributor Zeus Y. explains how the financial system creates fake “wealth” from nothing and why the entire delusional scheme is imploding.
“Only God can create… value out of nothing”—Justice Martin V. Mahoney in First National…
Charles Hugh Smith, Contributors- Economic and Financial, Must Read
If This Is Such a Strong Economy, Why Does This Chart Look Recessionary?
by Charles Hugh Smith • • 0 Comments
Is the U.S. really a post-oil economy?
One way to gauge the real economy is to look at charts of the GDP, wages, household debt and the price of oil; another way is to correlate all of these on one chart. The following chart (courtesy of freq…
Charles Hugh Smith, Charts and Trading, Latest Business Headlines
If The Market Rolls Over Here….
by Charles Hugh Smith • • 0 Comments
If this rally runs out of steam, history suggests the next move down could plumb depths not seen in years.
If the market rolls over here, the next bottom might be a lot lower than most players think possible. After all, the “news” is all posi…
Charles Hugh Smith, Contributors- Economic and Financial, Must Read
What Rising Gasoline Prices Do to the Economy
by Charles Hugh Smith • • 0 Comments
Charting gasoline prices against income and GDP provides some interesting results.
Since rapidly rising gasoline prices are in the news, let’s look at some charts of gasoline and the economy, courtesy of frequent contributor B.C. These depi…
Charles Hugh Smith, Contributors- Economic and Financial, Must Read
The First Dominoes: Greece, Reality, and Cascading Default
by Charles Hugh Smith • • 0 Comments
I asked frequent contributor Zeus Yiamouyiannis to comment on the coming Greek default. Here is his insightful response.
Greece is the epicenter of a drama that threatens to unwind with all the intrigue and subterfuge of ancient Greek myths and …
Charles Hugh Smith
Between Various Rocks and Various Hard Places
by Charles Hugh Smith • • 0 Comments
The U.S. and European economies are firmly between various rocks and various hard places.
Having stipulated that “Forecasting Is Not Humanity’s Strength,” I will not make any foolish forecasts that will assuredly be proven wrong, but it is undoubt…
Lee's Free Thinking, Must Read
Minyanville Interview With Lee Adler: What to Expect From Treasuries, Central Banks, Politics in 2012
by Bears Chat at The Wall Street Examiner • • 0 Comments
What’s the big story for 2012?
I think that finally this’ll be the year that Treasury yields begin to rise. A lot of people, a lot of smart people have been bears on Treasuries and have been wrong about it. The technical work that I do has said …
