A populair view why commodities are cheap does focus on deflation in general. Deflationists tell a story about the commodities bubble that popped in 2008, around the same time the banking crisis hit the financial markets. Maybe accurate during that time, but this is a narrative of the past. It is no longer helpful when … Continue reading Why commodities are cheap.
Corporate bonds are bought by investors for the purpose to supplement their income. Bonds are an important category of the fixed income market. This is a good time to take a look at why companies are borrowing money by selling bonds. The graph below shows in the first quarter of 2020 there’s an execrated phase … Continue reading The inevitable fate of corporate bonds; the day comes to show it are emptied bags
I came across an interview of Art Berman, an oil expert by George Gammon worth listening. Some important insights are discussed about oil that you won’t hear via highly politicalized mainstream media touting solar, wind and electric cars as ultimate longer term solutions. First I share some of my own thoughts. Energy supply and … Continue reading Insights on renewable energy and oil that you won’t hear on mainstream media.
Ongoing government and central bank interventions has transitioned the economy and financial markets into zero sum games. It means that profits are private but losses and risks are transferred to the public. Profits are made at a high cost, by putting society in a position of disadvantage. These are no longer markets based on exchange … Continue reading The madness of ‘zero sum game’ world
If there was still any doubt that western socialist governments are not in a bubble yet, well I can say that there’s no reason left over to keep that doubt alive. They are into a big bubble! In socialist paradise they usually sell you that education, health care, and other welfare programs are free. Even … Continue reading The ultimate Socialist Paradise of Free money
“NY Fed President Williams says U.S. is not ‘anywhere near’ its limits to run up debt”. Was it really a surprise that NY Fed President Williams said that the U.S. isn’t not anywhere its limit to run up debt? According my Twitter feed not. Reactions on this differenced somewhere between laughing hard, sarcasm and ‘it … Continue reading The Great Debt Excess
When I was a child I remember listing often to a song by Louis Amstrong “It’s a wonderful world”, one of my mom’s a favorite songs. Is the world wonderful and rosy as in this song or should we adjust that optimistic, rosy world view? Let me start by staying that the world is wonderful … Continue reading Thoughts on growing into an effective trader
For years I’ve been listening to deflationists, a narrative that is especially popular under dollar bulls. The deflation narrative makes little to no sense to me. In this blog I’ll explain why deflationist Dollar bulls could be wrong. Deflationists do think that there will be a 1929 - 1933 type of deflationary crisis again some … Continue reading The Dollar deflation myth unraveled; a big picture view
My real education started were it starts probably for everyone who leaves college or university; at the job. At he job I learned that it was hard, if not impossible to act as an independent scientific researcher doing a job in a political context. In the real world, science is not the centre of the … Continue reading How government really works
In the former post we focussed on negative bond yields as a kind of hidden price driver for Gold. In this post we dig a little deeper. We focus on the fundamentals of US government debt. When these fundamentals finally get into play, it will trigger the real driver for Gold: namely dollar depreciation, aka … Continue reading Gold’s next move