Long-term trends grow from short term trends. We attampt to determine the short term trends and where they are pointing.
Just a few short years ago MicroStrategy (MSTR) was a run-of-the-mill software company. At that point, founder and CEO Michael Saylor realized that unless something changed, the company would remain a slowly dying cash cow. They had lots of companies paying them licensing fees for their software but eventually through attrition that would come to […]
What Makes MicroStrategy Special Read More »
The Chinese Monetary Bazooka– China has unleashed a monetary liquidity bazooka in an attempt to re-inflate not only Chinese Real Estate but also the Chinese Stock Market.
China’s Monetary Bazooka Read More »
The “M2 money supply” includes liquid assets such as Cash, Checking Accounts, Savings Accounts, CDs, etc.
Looking at the chart below we can see that the M2 money supply increased gradually for many years until the pandemic when it shot up drastically, and then in 2022 the FED significantly decreased the money supply for the first time. But over the last year or so it appears to be resuming its previous uptrend.
How Much is the Money Supply Growing? Read More »
Transferring goods from the private sphere to the public sphere is not the harmless conversion that MMT proponents and other lovers of big government imply. When they say that they only want to make a few more goods public, what they’re not saying is that those goods will likely, if not certainly, be used to serve far fewer consumers and to satisfy far less urgent and valuable wants.
Modern Monetary Theory (MMT) Read More »
Canada’s standard of living is on track for its worst decline in 40 years, according to a new study by Canada’s Fraser Institute.
The study compared the three worst periods of decline in Canada in the last 40 years — the 1989 recession, the 2008 global financial crisis, and this post-pandemic era.
They found that unlike the previous recessions, Canada is not recovering this time. Something broke.
One in three Canadians work for the government, making 30% more salary than the average taxpayer. Roughly 10% of Canadians are on welfare.
Canada’s Economic Crisis Read More »
Everyone knows that the Crypto market is volatile. And we got another dose of that on the 4th of July. But rather than fireworks, Crypto markets crashed. The year 2024, started out very bullish for Crypto, with Bitcoin (BTC) up sharply… partly due to BTC getting approval for ETFs and partly due to the expected halving which would cut supply. But so far this year, the truism “Buy the rumor, Sell the news” has held for the Bitcoin halving.
Crypto: Crash or Opportunity? Read More »
The credibility of free market capitalism is constantly threatened by critics who doubt its propensity for engendering prosperity. Its reputation is battered daily by the venomous pens of left-leaning writers advocating statist alternatives and their conservative allies touting economic nationalism. However, such narratives are frequently punctured by the piercing evidence of empirical data. Anticapitalism offers nothing beyond the appeal of emotional rhetoric.
The Results Are In: Free Market Capitalism Improves Lives Read More »
A lot is happening in the cryptoscape both from a regulatory and an innovation standpoint. Crypto has the potential to revolutionize the world as much as the Industrial Revolution, transistors, computers, or the internet did. And it is still in its infancy. But it is still possible for regulations to try to strangle the infant in its crib. But if that happens in one country, the innovation will simply move somewhere where it is appreciated. This could be devastating for the economy of any country that gets this wrong and tries to stifle innovation.
Crypto Goes Mainstream Read More »
Our ROC system is very good at spotting major turning points in the market. So this month we adapted it to look at Bitcoin and Ethereum. While doing this we changed the look of how we do ROC, so we will be adapting the regular ROC charts to the new style as well. The advantage of this new look is that you can see the underlying index at the same time, so you can see exactly where the various signals kicked in and how it evolved from there. Also, I think the new look is much cleaner and less cluttered.
Applying the ROC to Crypto Read More »
Economics education fails to communicate the obvious fact that markets solve problems, not that they require that all problems have already been solved. That students struggle with understanding the use and value of models, and may draw the wrong conclusions when studying market forces in the abstract, is unfortunate but understandable. It is the duty of the economics instructor to make sure students do not get the wrong ideas—that they go home with a greater understanding of how economies and markets work. Education, after all, should be enlightening and provide the student with new knowledge.
Economic Education Has Become Economic Disinformation Read More »
