For most people, the biggest spend they will ever make is on a house. It’s not surprising, then, that the biggest asset class on the planet is residential housing. Housing is the market, the one that all other markets are connected to. When house prices …continue
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Ben Hunt has a compelling message. It’s that unconventional monetary theory, practice in Japan, the US, and basically throughout the developed world, is destabilizing because it systematically increases inequality. He says it in a rather verbose style, which reduces his impact, in my …continue
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The BoJ is not expected to react to core inflation in Japan exceeding 2% for the third month in a row. Biden has Covid, but nobody seems to be worried. Reports suggest that Russia and Ukraine will do some sort of deal to allow export …continue
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The small countries in the EU which have yet to join the Euro are being hammered with inflation. Their central banks are, in some case, hiking rates hugely, but so far it isn’t working. Slovakia is the exception: it has …continue
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Crescat produces a first class monthly newsletter this month it identifies the following macro trends:
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In this article, Patrick McKenzie explains how bank liabilities come to function as money. The old idea about money as liabilities of a central bank, or a government treasury, is outdated. Many commentators point out that banks create enormously more money …continue
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When I was at school, polytechnics were increasing their intake. Our headmaster, who had been an undergraduate at Oxford, encouraged us to think about applying to polytechnics. When a friend of mine, who was on track for getting a good set of results at …continue
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A post called Monetary and fiscal policy in interwar Britain is a post which suggests that the root cause of the 20’s/30’s depression in the UK (known at the time …continue
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China is imploding, because President Xi has made terrible decisions about how to handle Covid-19, and cannot lose face by following the example of the rest of the world. This will crater demand from China, which had driven down more or less every last commodity …continue
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