growth

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The War On Cash Intensifies

Negative interest rates. A ban on cash. Pick your poison.
Monday, September 21, 2015, 8:45 PM

The central planners are setting the stage for the next round of officially sanctioned theft and this time they mean to assure that you have no way(s) of escaping.

They’re coming for your cash. This is a risk that Charles Hughes Smith explored for us back in June in a very well-received analysis.

Once a fringe idea, this concept is now being openly discussed and debated at the highest levels publicly. Which means it is being hotly discussed behind closed doors, and likely has been for a long time. » Read more

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In Denial: We Pursue Endless Growth At Our Peril

A requiem for planet Earth
Friday, May 29, 2015, 9:09 AM

As we've been discussing of late here at PeakProsperity.com, humans desperately need a new story to live by. The old one is increasingly dysfunctional and rather obviously headed for either a quite dismal or possibly disastrous future. One of the chief impediments to recognizing the dysfunction of the old story and adopting a new one is the most powerful of all human emotional states: Denial. » Read more

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Off the Cuff: Economic Growth Is Dead

But no one is willing to admit it
Thursday, April 30, 2015, 4:15 PM

In this week's Off the Cuff podcast, Chris and John Rubino discuss:

  • Economic Growth Is Dead
    • Though world governments fear admitting that
  • The War On Cash
    • Rumors abound cash may eventually be outlawed
  • Crisis Inevitability
    • A crash is coming, whether we're too exhausted for it or not
  • Civil Rights Are Casualty #1 Of Our Failing System
    • Baltimore is just the latest flashpoint in many more to come
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Bloomberg

Has The Fed Already Lost?

Growth is dying & the Fed has few options left
Friday, April 17, 2015, 2:36 PM

Increasingly we live in a world of Now. Instantaneous access to digital real time data and news has simply become a given in our lives of the moment.

You may be surprised to know that the Federal Reserve has taken notice. » Read more

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If We're Going To Borrow Against The Future, Let's Borrow To Invest

The are much better ways to spend the next $1 Trillion
Thursday, April 2, 2015, 11:21 AM

We are at an important juncture as a global society: either we immediately prioritize a new trajectory focused on creating a positive, functional future or -- by continuing the consumptive, extractive, exploitative status quo -- we will default into a nasty nightmare. » Read more

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Wikimedia

When This Ends, Everybody Gets Hurt

And the end is uncomfortably close
Wednesday, January 21, 2015, 10:45 PM

Central bank credibility (as fictitious as that may be) is essential to maintaining the current narrative, BUT central banks are rapidly losing their credibility (which should have happened simply via deductive reasoning a long time ago) and the strains are showing.

Their actions are increasingly wild and extreme, and it's our view that 2015- 2016 will mark the end of this long run of overly-ambitious central bankers and over-complacent markets. » Read more

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The Consequences Playbook

What will happen as central banks lose control
Wednesday, January 21, 2015, 10:45 PM

Executive Summary

  • Desperate central banks are dangerous central banks
  • Why wealth disparity will get worse
  • The list of what comes next as central banks lose control
  • What you should do in advance

If you have not yet read When This Ends, Everybody Gets Hurt available free to all readers, please click here to read it first.

What’s really happened since 2008 is that central banks decided that a little more printing with the possibility of future pain was preferable to immediate pain.  Behavioral economics tells us that this is exactly the decision we should always expect from humans. History says as much, too.

It’s just how people are wired. We’ll almost always take immediate gratification over deferred, and similarly choose to defer consequences into the future, especially if there’s even a ridiculously slight chance they won’t materialize.

So instead of noting back in 2008 that it was unwise to have been borrowing at twice the rate of our income growth for the past several decades -- which would have required a lot of very painful belt-tightening -- the decision was made to ‘repair the credit markets’ which is code speak for: ‘keep doing the same thing that got us in trouble in the first place.’

Also known as the ‘kick the can down the road’ strategy, the hoped-for saving grace was always a rapid resumption of organic economic growth. That’s how the central bankers rationalized their actions. They said that saving the banks and markets today was imperative, and that eventually growth would return, justifying all of the new debt layered on to paper-over the current problems.

Of course, they never explained what would happen if that growth did not return. And that’s because the whole plan falls apart without really robust growth to pay for it all.

And by ‘fall apart’ I mean utter wreckage of the bond and equity markets, along with massive institutional and sovereign defaults. That was always the risk, and now we’re at the point where... » Read more

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A Quick Sanity Check

A cautionary reminder of where we are in this story
Monday, January 19, 2015, 12:06 AM

Sometimes it pays to step way back and look at things from a high level.

In response to the 2008 crisis, the world's major central banks pumped an unprecedented amount of monetary stimulus into the system -- all in the name of kick starting enough economic growth to pull the planet out of its fundamental sinkhole of Too Much Debt.

More than six years and over $4 trillion later, what exactly can we say it did for us?

Not enough, as the following short video summarizes. » Read more

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Keep Your Eyes On The Prize

It’s always and ever about energy
Wednesday, December 31, 2014, 2:21 PM

At the essential center of the framework of the Crash Course is the almost insultingly simple idea that endless growth on a finite planet is an impossibility.

It is so simple it could be worked out by a clever 4 year-old and yet it must not be so simple because the main narrative of every economy in every corner of the globe rests on the idea of endless, infinite growth. » Read more

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Anton Balazh/Shutterstock

Keep Your Eyes On The Prize

It’s always and ever about energy
Wednesday, November 19, 2014, 10:53 PM

At the essential center of the framework of the Crash Course is the almost insultingly simple idea that endless growth on a finite planet is an impossibility.

It is so simple it could be worked out by a clever 4 year-old and yet it must not be so simple because the main narrative of every economy in every corner of the globe rests on the idea of endless, infinite growth. » Read more