In chemistry you quickly discover that oil and water don’t mix. The same is true in the energy industry.
"One of the hallmarks of the 21st century is that we are all having more and more interactions with machines and fewer with human beings. If you've lost your white collar job to downsizing, or to a worker in India or China you're most likely a victim of what economists have called technological unemployment. There is a lot of it going around with more to come."
While there is great uncertainty for the market in gauging how long the Fed will maintain QE, with some fearing it may end later in the year, I can give you $3 trillion reasons why the Fed won’t end QE this year, and $4.5 trillion reasons why we will likely be talking about QE through 2017.
In a report published today, the Official Monetary and Financial Institutions Forum (OMFIF), a global organization of central banks and sovereign wealth funds, recommends that gold be remonetized for use as international money, alongside major currencies.
If it weren't for the crucial role central banking has played in pushing investor psychology further out on the risk curve, relying less on long-term interest and savings, but on a growing dependency of complex trading strategies that offer no real economic benefit, the market would not be evolving into the ugly and potentially destructive cybernetic organism it is today.
Mad scientists from MIT have taken over the markets to conduct the world's greatest experiment. What are the unintended consequences? Financial disaster is only part of it.
In the spirit of the holidays and hope for a more prosperous 2013, I thought my readers might appreciate a little humor to partially offset the relentless doom and gloom associated with the Amphora Report.
Many of our readers have probably seen this widely circulated article at the WSJ: “Secret Talks Behind Central Banks' Bets”, in which the Fed's favorite press mouthpiece Jon Hilsenrath talks about the 'secret meetings' the world's central bankers regularly hold in Basel at the BIS (the Bank for International Settlements, the nexus of global central banking).
If we analyze present-day economics and its sister, politics, we find that the basis of Keynesianism – which rules the world, today – is fundamentally an attempt to apply the principles of physics to a realm which is not governed by physics, but by the capacity of humans to choose.