Tag Archives: central banks

The Fantasy of “Balanced Returns” Funding Retirement

The fantasy that a “balanced portfolio” yielding “balanced returns” will fund a stable retirement for decades to come is widely accepted as a sure thing:inflation will stay near-zero essentially forever, assets such as stocks and bonds will continue yielding hefty … Continue reading

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Gresham’s Law and Bitcoin

Gresham’s law holds that “bad money drives out good money,” meaning that given a choice of currencies (broadly speaking, “money” that serves as a store of value and a means of exchange), people use depreciating “bad” money to buy goods and … Continue reading

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Central Banks: From Coordination to Competition

The mere mention of “central banks” will likely turn off many readers who understandably have little interest in convoluted policies and arcane mumbo-jumbo, but bear with me for a few paragraphs while I make the case for something to happen in … Continue reading

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The Fascinating Psychology of Blowoff Tops

The psychology of blowoff tops in asset bubbles is fascinating: let’s start with the first requirement of a move qualifying as a blowoff top, which is the vast majority of participants deny the move is a blowoff top. Exhibit 1: a chart … Continue reading

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“Trickle Down” Has Failed; Wealth and Income Have “Trickled Up” to the Top .5%

Over the past 20 years, central banks have run a gigantic real-world experiment called “trickle-down.” The basic idea is Keynesian (i.e. the mystical and comically wrong-headed cargo-cult that has entranced the economics profession for decades): monetary stimulus (lowering interest rates … Continue reading

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