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The Business Cycle is Ending and the Looming Liquidity Crisis

Global-synchronized growth, fueled by easy-monetary policies, is quickly turning into a globally-synchronized downturn. The broad equity market has not set a new high in five months, which is rather unusual during Bull markets, and the economic data is indicating that consumers are tapped out. The hallmark to the end of every business cycle is when … Read more

The Fed’s Solution is Now the Problem

For governments, the only two solutions to a debt problem are economic growth or currency-printing which inflation, because the third option—a sovereign debt default—is typically frowned upon. Give the choice between economic growth and currency-printing inflation, growth is often the preferable path. However, governments and central banks lack the knowledge and ability to create growth, … Read more