Tag Archives: Capital

  • Insider
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    Off the Cuff: Capital Is Sloshing Recklessly Around the World

    Moving prices out of whack more than anything else
    by Adam Taggart

    Thursday, February 27, 2014, 7:38 PM

    9

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

    • The Sloshing Tsunami of Global Capital
      • It's pushing prices around more than any other factor
    • Concerning Correlations
      • Markets are too correlated for their own safety righ tnow
    • The Wisdom of Playing it Safe
      • At its most valuable when it's hardest to practices
    • How The Next Market Break May Differ From 2008
      • Not enough suckers left?
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  • Blog
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    What If Nations Were Less Dependent on One Another?

    The Case for Autarky
    by charleshughsmith

    Wednesday, January 15, 2014, 8:13 PM

    12

    Autarky is more than a ten-dollar word for self-sufficiency, as it implies a number of questions that “self-sufficiency” alone might not.

    The ability to survive without trade or aid from other nations, for example, is not the same as the ability to reap enormous profits or grow one’s economy without trade with other nations. In other words, 'self-sufficiency' in terms of survival does not necessarily imply prosperity, but it does imply freedom of action without dependency on foreign approval, capital, resources, and expertise.

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  • Podcast

    Brian Pretti: The World’s Capital Is Now Dangerously Boxed In

    Creating asset bubbles ready to burst
    by Adam Taggart

    Saturday, January 4, 2014, 5:22 PM

    12

    This week Chris speaks with Brian Pretti, managing editor of ContraryInvestor.com, a financial commentary site published by institutional buy-side portfolio managers. In their discussion, they focus on the global movement of capital since quantitative easing (QE) became the policy of the world's major central banks.

    The ensuing excellent discussion is wide ranging, but the key takeaway is that capital is being herded into fewer and fewer asset classes. With such huge volumes of money at play, very crowded trades in assets like stocks and housing have resulted — bringing us back to familiar bubble territory in record time.

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  • Blog
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    What Happened to the Future?

    Hopes dim as global net energy per capita declines
    by Gregor Macdonald

    Tuesday, November 19, 2013, 6:15 PM

    22

    Improbably, the global economy has returned to growth over the past four years despite the ravages of a deflationary debt collapse, a punishing oil shock, ongoing constraint from debt and deleveraging, and stagnant global wages. The proof of this growth comes from the best indicator of all: the growth of global energy consumption.

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  • Insider
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    Off the Cuff: The Anxiety Gap

    If things are so great, why are we so unhappy?
    by Adam Taggart

    Thursday, November 7, 2013, 5:42 PM

    30

    In this week’s Off the Cuff podcast, Chris and Charles discuss: The anxiety gap Stress is building even though we’re being told “everything is getting better” The difference between money & capital We have too much of one and not enough of the other Rudderless leadership Poor decisions abound everywhere Freshly back from Europe, Charles Hugh Smith…

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  • Blog
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    Our Era’s Definitive Dynamic: Diminishing Returns

    Doing more of what doesn't work
    by charleshughsmith

    Monday, November 4, 2013, 7:37 PM

    3

    We all intuitively grasp the meaning of diminishing returns: Either it takes more effort to maintain a project’s payoff, or the payoff declines even though the effort invested remains constant.

    This dynamic leads to the final phase of doing more of what has failed spectacularly.

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  • Podcast

    Francis Koster: Deploying Our Investment Capital Locally Yields Better Returns for All

    Strengthen your community; not Wall Street
    by Adam Taggart

    Saturday, May 11, 2013, 4:21 PM

    11

    We are conditioned to think that financial "investing" means sending your capital to Wall Street. There it will be put into paper securities (stocks, bonds, etc.), and hopefully when your next statement arrives, the dollar total is higher than you put in.

    There's no connection between the investor and the investment. And in today's market, where safer investments offer nearly no return, investment capital is increasingly paying to chase risk it has little understanding of. And all the while, the middlemen — with their 100% perfect trading quarters and record bonus payouts — demonstrate that the system really exists to siphon off money from this 'dumb capital'.

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  • Podcast

    Bill Fleckenstein: Hold Tight To Your Gold

    Why it's going to go "one hell of a lot" higher
    by Adam Taggart

    Sunday, April 21, 2013, 4:35 PM

    6

     

    The bond market is an accident waiting to happen.
     

    When the bond market finally does crack, it is going to be one epic nightmare that is going to make 2008 and 2009 seem like a picnic. It will be a different kind of a crisis; but it will be an enormous crisis. These people that are bullish about stocks and bonds and the bond market, they do not understand anything.

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  • Blog
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    We’re Living Through a Rare Economic Transformation

    Those who understand its post-capitalist rules will prosper
    by charleshughsmith

    Thursday, April 4, 2013, 12:47 PM

    64

    In 1993, management guru Peter Drucker published a short book entitled Post-Capitalist Society.  Despite the fact that the Internet was still in its pre-browser infancy, Drucker identified the developed-world economies as knowledge-based as opposed to from industrial economies, which were were from the agrarian societies they superseded.

    Drucker used the term post-capitalist not to suggest the emergence of a new “ism” beyond the free market, but to describe a new economic order that was no longer defined by the adversarial classes of labor and the owners of capital.  Now that knowledge has trumped financial capital and labor alike, the new classes are knowledge workers and service workers.

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  • Podcast

    David Stockman: We’ve Been Lied To, Robbed, and Misled

    And we're still at risk of it happening all over again
    by Adam Taggart

    Saturday, March 30, 2013, 4:42 PM

    19

    David Stockman, former director of the OMB under President Reagan, former US Representative, and veteran financier is an insider's insider. Few people understand the ways in which both Washington DC and Wall Street work and intersect better than he does.

    In his upcoming book, The Great Deformation, Stockman lays out how we have devolved from a free market economy into a managed one that operates for the benefit of a privileged few. And when trouble arises, these few are bailed out at the expense of the public good.

    By manipulating the price of money through sustained and historically low interest rates, Greenspan and Bernanke created an era of asset mis-pricing that inevitably would need to correct.  And when market forces attempted to do so in 2008, Paulsen et al hoodwinked the world into believing the repercussions would be so calamitous for all that the institutions responsible for the bad actions that instigated the problem needed to be rescued — in full — at all costs. 

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