The Smell of Napalm In the Morning

As the days of Extend and Pretend lurch toward their inevitable catastrophic End, the Smell of Fear grows thicker by the moment...

Deflation v.s. Hyperinflation Revisited (yes, again)

The Deflation v.s. Hyperinflation debate continues to rage across the blogosphere, but for my part, for all the wrong reasons.  In my opinion, those in the clear majority who predict hyperinflation as the next likely outcome have a severe conflict of interest.  The next time you visit a blog predicting hyperinflation, take a look around for the gold and silver advertisements adorning the blog and/or question the current investment position of the blog.  As expected, the Idiocracy sees this current Deflation/Hyperinflation divergence as another opportunity to make a lot of money.  They see 'LTRO's' and 'QE n' programs around every corner.

That Minsky Moment

As my depiction of the Idiocracy would predict, today's thought dealers (politicians, economists, media infotainers) have an infantile obsession with avoiding the truth and reality.  So we ask, what would it take to get our policy-makers to face reality and begin to craft some realistic long-term solutions to these economic problems?

Waiting for the Minsky Moment
We have what I would call a Wile E. Coyote economy that has run off the cliff and is suspended (temporarily) only by Central Bank liquidity programs.  All we are waiting for now is the Minsky Moment.