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Tag Archives: Headlines

The Covid-19 Dominoes Fall: The World Is Insolvent

To understand why the financial dominoes toppled by the Covid-19 pandemic lead to global insolvency, let’s start with a household example. The point of this exercise is to distinguish between the market value of assets and net worth, which is what’s left after debts are subtracted from the market value of assets. Let’s say the household has done very well for itself and owns assets worth $1 million: a home, a family business, 401K retirement accounts and a portfolio of...

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Goodbye to All That: The Demise of Globalization and Imperial Pretensions

Globalization and Imperial Pretensions have been decaying for years; now the tide has turned definitively against them. The Covid-19 pandemic didn’t cause the demise of globalization and Imperial Pretensions; it merely pushed the rickety structures over the edge. It’s human nature to reckon the current trend will continue running more or less forever, and that temporal, contingent structures are permanent. Globalization flourished because a unique set of conditions...

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[KR1513] Keiser Report | Thinking Exponentially

In this final episode of Keiser Report from Los Angeles, Max and Stacy discuss the exponential growth in debt and dollars that preceded the pandemic sweeping through some of the world’s major economies. They discuss the oil and stock market collapses that started off the week and where this volatility might take us. In the second half, Max interviews Professor Steve Keen, author of ‘Debunking Economics’, about how the...

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And Then Came the Lawsuits: Pandemic in a Litigious Society

Never mind prevention or vaccines; the big question is “who can we sue after this blows over to rake in millions of dollars?” Yes, this is pathetic, tragic, perverse and evil, but that’s reality in a hyper-litigious society like the U.S. Many people are struck by the apparent over-reaction of Corporate America to the Covid-19 threat, but this is the only rational response in a hyper-litigious society: the number one priority in a hyper-litigious society is to limit...

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What the Fed Can Do: Print and Buy, Buy, Buy

Much has been written about what the Federal Reserve cannot do: it can’t stop the Covid-19 pandemic or reverse the economic damage unleashed by the pandemic. But let’s not overlook what the Fed can do: create U.S. dollars out of thin air and use these dollars to buy assets either directly or through proxies. Let’s also not overlook how much the Fed can print/buy. The Fed’s balance sheet currently stands at $4.24 trillion. Doubling this to $8.5 trillion would bring the...

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The Gathering Storm: Could Covid-19 Overwhelm Us in the Months Ahead?

The present disconnect between the science of Covid-19 and the status quo’s complacency is truly crazy-making, as we face a binary situation: either the science is correct and all the complacent are wrong, or the science is false and all the complacent are correct that the virus is no big deal and nothing to fret about. Complacency is ubiquitous: readers on Facebook leave comments on my posts “this is silly.” Correspondents report that people don’t even cover their mouths...

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[KR1511] Keiser Report | Painting Pandemic with Alex Schaefer

In this episode of Keiser Report from Los Angeles, Max and Stacy discuss deglobalization as supply shocks hit the world in the midst of a pandemic… even if the WHO won’t call it that. They talk about an opinion piece suggesting the Covid-19 pandemic will end the age of ‘affluence politics’ as supply shortages will reveal our inability to make and distribute the things people need. In the second half, Max paints with...

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Did Covid-19 Just Pop All the Global Financial Bubbles?

Even though the first-order effects of the Covid-19 pandemic are still impossible to predict, it’s already possible to ask: did the pandemic pop all the global financial bubbles? The reason we can ask this question is the entire bull mania of the 21st century has been based on a permanently high rate of expansion of leverage and debt. The lesson of the 2008-09 Global Financial meltdown was clear: any decline in the rate of debt/leverage expansion is enough to threaten...

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The Limits of Force: A Bayonet in the Back Will Not Restore China’s Economy

The Chinese authorities threatening to punish workers who refuse to return to work are getting a lesson in the limits of force in an unprecedented national trauma: a bayonet in the back will not restore the legitimacy and confidence that have been lost. There are two enormous blind spots in conventional media coverage of the pandemic: 1. The limits of force in restoring China’s economy to pre-pandemic levels. 2. The longer term (i.e. second-order) consequences of the...

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Could the Covid-19 Pandemic Collapse the U.S. Healthcare System?

A great many systems that are assumed to be robust are actually fragile. Exhibit #1 is the global financial system, of course, but Exhibit #2 may well be the healthcare system globally and in the U.S. Observers have noted that the number of available beds in U.S. hospitals is modest compared to the potential demands of a pandemic, and others have wondered who will pay the astronomical bills that will be presented to those who are treated for severe cases of Covid-19, as...

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