Central-planning manipulation “works” by closing all the safety valves of market feedback, creating a dangerous but politically appealing illusion of stability and “growth.”
If we see the economy as a system, we understand why removing or suppressing feedback inevitably leads to financial crashes. The essential feature of stable, robust systems (for example, healthy ecosystems) is their [...]
We may be entering an era of creeping de-globalization. It is one thing to be generous with the perceived foibles of your trading partners when your economy is growing and jobs are plentiful. It is quite another to decide to be tolerant when your economy is struggling, and domestic political pressure to create jobs and [...]
The U.S. middle class is still incredibly wealthy by international standards.
After 30 years of greed being good and rising tides lifting all boats, inequality — or “class warfare,” if you prefer — is back on the political agenda.
The Occupiers who camped out in central squares from Melbourne to Oakland, denouncing the “1 percent” [...]
The reason Presidents Barack Obama and Hu Jintao went to such great lengths during Wednesday’s White House lovefest to declare that the U.S. and China can get along in peace and prosperity for years to come is that neither man is convinced they will. In fact, the U.S. and China are entering a dangerous two-year [...]
China’s currency manipulation represents the largest protectionist measure maintained by any major economy since the Second World War. China has intervened in the foreign exchange markets by an average of $1 billion a day for the last five years, buying dollars to keep them expensive and selling renminbi to keep them cheap, building a gigantic [...]
China’s primary goal is social stability. The focus on social stability above all else means that China is limited in its ability to strengthen the yuan. Paradoxically, this focus on social stability will ensure that China experiences a major crash at some point. That crash might be sooner than we think if China enters into [...]
This economic Ponzi scheme is what I have labeled the asset-based economy. As with all things Ponzi, it must come to a spectacularly bad end. One can only Inflate asset prices to perpetuate a debt-fuelled consumption binge so far. At some point, the Ponzi scheme collapses. And we are nearing that point. We still have [...]
The vote for the Moscow City Duma, or parliament, is the most high-profile test of United Russia — the party that overwhelmingly rules Russia — since the financial crisis hit last year. That has not been lost on the authorities: Parties challenging United Russia’s dominance have complained of an unprecedented degree of pressure and manipulation [...]
A key distinction between Russian and American attitudes towards Islamic terrorism is that while for America terrorism is largely seen as an exterior menace, Russia uses terrorism as an object as a tool of the state for manipulation in and outside the home country. Islamic terrorism is only part of the world of terrorism. Long [...]
Russia’s increasing belligerency is of great concern to U.S. and NATO leaders. The invasion of Georgia comes on the heels of such actions as the resumption of nuclear-armed bomber patrols off the U.S. coast, the planting of the Russian flag under the Arctic ice, the manipulation of natural gas supplies to the Ukraine and a [...]