‘Taper Tantrum’ About Life With Less Quantitative Easing

China, Debt, Economy, Federal Reserve Bank, Inflation

Essentially, the monetary upheaval being experienced has come about because of a mere threat of the withdrawal of quantitative easing. The sell-off that “took the Dow Jones down more than 10 percent from its peak valuations” must be seen in the context of “seven years of zero percent interest rates,” avers fancier and Austrian Economist Peter Schiff. At work are gains that have come about likely not “from bona fide improvements in the economy,” but due to “the twin props of Quantitative Easing and zero percent interest rates.”

“The Fed has already removed one of the props, and it’s no accident that the markets have gained no ground whatsoever in the eight months since the QE program was officially wound down. As the market considers a world without the second prop, a free fall could ensue. …”

… Stock valuations [have been] extremely high and earnings are falling and the economy is clearly decelerating. The steady march upward in stock prices has been enabled by a wave of cheap financing and share buybacks. There are very few reasons to currently suspect that earnings, profits, and share prices will suddenly improve organically. This market is just about the Fed.

And Donald, “The Fed Is Spooking the Markets, Not China.”

‘Monetary Rigor Mortis’

Debt, Economy, Federal Reserve Bank, Inflation

Intrinsically, libertarians of the Austrian School of Economics know all too well what’s afoot across global financial markets. As of Friday, the Dow was at 16,450, down 1,018 points for the week. Yet, search libertarian websites high-and-low and you’ll be hard pressed to find decent commentary on the state of financial markets. Doug Casey and Jeff Berwick agree that financial collapse is imminent, writing that “we are now exiting the eye of the hurricane and rapidly heading towards what he terms the Greater Depression, and Jeff Berwick believes a collapse is being planned for September, moving the world closer to a one world government.”

Monetary rigor mortis is David Stockman’s term for what’s underway. Doug Noland fleshes things out at Stockman’s Contra Corner:

… Global financial tumult has now attained sufficient momentum so that even U.S. markets can no longer remain comfortably oblivious. Yet, for most in the U.S. there remains little worry: the economy is sound, housing is booming, Silicon Valley is heroic, the banking system is rock solid, and the corporate sector is awash in cash. The U.S. economy is viewed as insignificantly exposed to China’s economic slowdown – and to global issues for the most part. Analysts speak of a “normal” stock market pullback – yet another buying opportunity. There is, however, little normal about current global financial, economic and geopolitical backdrops.

The last seven years have witnessed unprecedented EM debt expansion, led by what should be a frightening ballooning of Chinese Credit. In particular, Chinese and EM banks have coalesced into historic lending growth and balance sheet (assets and liabilities) expansion. This week saw indications of what has the potential to erupt into an Asian and EM banking system crisis of confidence. Faith that Chinese and EM government officials have the situation under control is surely being shaken. This is a game-changer for global finance and for the world economy. Financial conditions are tightening around the world – and this has zero to do with a possible September Fed (“baby step”) rate increase. …

… there’s a recurring theme that is especially pertinent these days. Financial and economic Bubbles invariably prove much more resilient than Bubble analysts presume. And, at the end of the day, the excesses and consequences go beyond what even the hardcore “bears” could anticipate. The adage around our office became: “It’s Always Worse Than You Think.”

Trump Mentions The G Factor

Human Accomplishment, Intelligence, Political Correctness

“Do we believe in the gene thing?” Donald Trump asked the crowd that assembled to hear him speak in Mobile, Alabama, Friday. He was touting his genetic lineage; says he comes from a family of high-achievers.

Wow. Hasn’t the guy received any briefings on the prevailing Cultural Marxism (also known as political correctness), in the country he seeks to lead? The nature-nurture debate has been settled politically. Many co-opted scientists have even seconded the politicians. Trump ought to know that according to this orthodoxy, were it not for largely exogenous circumstances, all human beings would be capable of the same accomplishments. (NOT) No such thing as general intelligence.

One things is clear. Low-energy Trump is not. (The way Trump keeps referring to poor Jeb Bush as a low-energy candidate is hilarious.)

Motormouth Megyn Kelly & The Mad Matriarchy

Celebrity, Feminism, Journalism, Media

“Motormouth Megyn Kelly & The Mad Matriarchy” is the current column, now on “The Unz Review,” America’s smartest webzine. An excerpt:

… Megyn Kelly … has fast succumbed to the female instinct to show-off, bare skin, flirt and wink. She now also regularly motormouths it over the occasional smart guest she entertains (correction: the one smart guest, Ann Coulter). At the same time, Kelly has dignified the tinnitus named Dana Perino with a daily slot as Delphic-oracle.

Donald Trump, on the other hand, has proven he can be trusted to beat up on the right women.

Exhibit A is Elizabeth Beck, a multitasking “attorney,” who once deposed Donald Trump while also waving her breast pump in his face, demanding to break for a breast-pumping session.

“You’re disgusting. You’re disgusting,” the busy billionaire blurted in disbelief. And she was. Still is. Accoutered for battle, Beck recently did the rounds on the networks. In addition to a mad glint in the eye, Beck brought to each broadcast a big bag packed with milking paraphernalia.

Had she cared about boundaries and propriety, Kelly would have asked Trump how he kept his cool during a legal deposition, with an (ostensible) professional, who insisted on bringing attention to her lactating breasts.

Writes Fred Reed, who regularly tracks our malevolent matriarchy’s “poor sense of social boundaries”:

The United States has embarked, or been embarked, on a headlong rush into matriarchy, something never before attempted in a major country. Men remain numerically dominant in positions of power, yes, but their behavior and freedom are ever more constrained by the wishes of hostile women. The effects have been disastrous. They are likely to be more so. The control, or near control, extends all through society. Politicians are terrified of women. … The pathological egalitarianism of the age makes it career-ending to mention that women in fact are neither equal nor identical to men. …

Not quite in the league of Elizabeth Beck yet, Megyn Kelly was, nevertheless, in need of a dressing-down and a time-out. …

Read the rest. “Motormouth Megyn Kelly & The Mad Matriarchy” is the current column, now on “The Unz Review,” America’s smartest webzine.