We discuss life in the breakdown lane in America where the infrastructure has been planned through a succession of bad choices. We also discuss currency wars and the failure of techno-industrialism. In the second half, Max continues his interview with big banking fraud whistleblower and bitcoin entrepreneur, Jose Rodriguez, about cryptocurrency and corruption in Mexico.
My advice is to focus not on retiring comfortably, but on working comfortably.
You’ve probably seen articles and adverts discussing how much money you’ll need to “retire comfortably.” The trick of course is the definition of comfortable. The general idea of comfortable (as I understand it) appears to be an income which enables the retiree to enjoy leisurely vacations on cruise ships, own a well-appointed RV for tooling around the countryside, and spend as much time on the golf links as he/she might want.
Needless to say, Social Security isn’t going to fund a comfortable retirement, unless the definition is watching TV with an box of kibble to snack on.
The morphing of “terrorism” and “domestic dissent” into an all encompassing and convenient category known as “domestic terrorists” or “domestic extremists” has been a long time coming. It has always been my contention, and continues to be, that the oligarchs who have funneled all of the wealth to themselves since the 2008 banker bailouts know exactly what they are doing. They also know that it will eventually result in severe domestic unrest during the next cyclical downturn. As such, the agenda has been to utilize the entirety of the intelligence-industrial-military complex created by the “war on terror” against the domestic population once it recognizes how badly it has been looted…
As the dollar soars, so does the real yield on bonds denominated in dollars.
As central banks rush to depreciate their currencies and push yields into negative territory, what’s becoming scarce globally is real yield in an appreciating currency. Real yield is yield adjusted for inflation/deflation: if inflation is 3% and bonds yield 2%, the real yield is negative 1%. If inflation is negative 1% (i.e. deflation), and the yield on bonds is .1%, the real yield is 1.1%.
What’s the real yield on a bond that earns 1% annually in a currency that loses 10% against the U.S. dollar in a year? Once the foreign-exchange (FX) loss/gain is factored in, the investor lost 9% of his investment.
Needless to say, the real yield must include the foreign-exchange loss/gain. An investor earning 10% in a currency that’s losing 20% annually against other currencies is losing 10% annually, despite the apparent healthy nominal yield.
It depresses me how quickly the Fed’s ZIRP and QE policies have re-blown price bubbles in many US housing markets. Is our collective national memory that short? How could we unlearn the lessons of the 2007 housing bust so quickly?
The Greek stock market is down 36% year to date; the risk of global contagion in the event of a Greek exit is very real. Ordinarily such a crisis would require a massive coordinated effort from global stakeholders, perhaps directed by the IMF or some other pan-national financial body. But not in this case; the rhetoric is nationally-based and biased without unity of purpose across finance ministries. Recent official soundings from the UK and German governments saying that exposure to Greece is limited only underscores the depth of denial, ignorance and lack of consensus that exists within the euro area. A Greek exit from the euro would profoundly weaken the euro experiment and create a dangerous precedent for all future crises in the region.Read more ›
Crazy John McCain is at it again. Nothing gets this guy more riled up than American plebs questioning status quo war criminals. I suspect much of this anger is rooted in his own legitimate fear about how history will remember his own legacy of remarkable stupidity.
We discuss the claims that the Fed is like the blockchain. We also look at the proof that central bank intervention causes market distortion like mispricing of risk and misallocation of capital as currency traders go bust on 50 times leverage. In the second half, Max interviews big banking fraud whistleblower and bitcoin entrepreneur, Jose Rodriguez, about cryptocurrency and corruption in Mexico.