I have no idea where this Koos Jansen came from. But he has it spot on:
Jansen has an interesting overarching hypothesis he is testing... outside the USA, all of the other powers that be are working out a distribution of gold among themselves to have relative concomitant strength, a truly new economic order, with power in a new world order.
The big concern is the worldwide debt. I listened to Alan Blinder on the radio last night talk about the three trillion in credit created for QE I - VI?, the American portion of what is concerning the UN. Blinder was describing how, inexplicable to him, the credit was created but not lent out. Apparently he cannot see it was used to leverage another housing boom and a stock market boom, while starving pensioners, without lending it out. At any rate, Blinder did note that by ending the QE process, and the unwinding thereof, the world heads into completely uncharted territory, and no one has any idea what will happen. (I searched but could not find the program upon which he was being interviewed.)
Well, Austrian economists understand it perfectly well. The credit deflation is a new wrinkle, but since credit mimics money, and unwinding three trillion in debt is analogous to destroying three trillion in currency, prices denominated in credit are going to fall, and probably regress to the mean.
So the trick is to spot which assets are in the false economy, which assets are asset-less credit backed, and which assets are real economy. Not real hard... grossly speaking...
1. Did it boom in the last 40 years? it is going down...
2. Has it been boring or languishing the last 40 years, but survived?
I went into a used household parts store last week, and noted all of this salvaged items constituted a wider selection than Home Depot. Sure Home Depot has deeper stock, but no Home Depot has a floor model of a bidet, nor circa 1900 door latches.
I asked the owner what is his #1 problem in his business.... he immediately said "space... I am turning so much great stuff away... and what I have is selling great... I just need more space."
I can see big box retailers spreading carrels wider and spreading stock to cover empty shelves... they don't have the customers with credit cards loading up on crap they do not need. I think the salvage house will find plenty of room coming up as places like Home Depot start a new round of closings. Check out the 2014 store closing list, and 2015 appears to be accelerating. There is nothing to move in and take its place.
The next forty years will be a renaissance for small business.
Feel free to forward this by email to three of your friends.
If sustainable monetary solutions can be implemented at all from the top of governing bodies within a society waiving the flag of capitalism remains to be seen. In my opinion our system, which is still presented as capitalism, can only survive from the essential input of the economic agents operating at the bottom of the market, producing goods with labor, setting prices, taking risk and creating real wealth. Denying these fundamentals is what brought us into this crisis.No kidding. The people who have no clue and zero sympathy for the people who matter, are in charge of correcting the error. I am glad I am a free-marketer and not a capitalist. Read on in the article. Up to about 2013, the USA could destroy anyone who displeased it, but then we backed down on Syria. Now people can, and do, turn to China and Russia for protection. The USA is going to have to learn to get along without violence.
Jansen has an interesting overarching hypothesis he is testing... outside the USA, all of the other powers that be are working out a distribution of gold among themselves to have relative concomitant strength, a truly new economic order, with power in a new world order.
The big concern is the worldwide debt. I listened to Alan Blinder on the radio last night talk about the three trillion in credit created for QE I - VI?, the American portion of what is concerning the UN. Blinder was describing how, inexplicable to him, the credit was created but not lent out. Apparently he cannot see it was used to leverage another housing boom and a stock market boom, while starving pensioners, without lending it out. At any rate, Blinder did note that by ending the QE process, and the unwinding thereof, the world heads into completely uncharted territory, and no one has any idea what will happen. (I searched but could not find the program upon which he was being interviewed.)
Well, Austrian economists understand it perfectly well. The credit deflation is a new wrinkle, but since credit mimics money, and unwinding three trillion in debt is analogous to destroying three trillion in currency, prices denominated in credit are going to fall, and probably regress to the mean.
So the trick is to spot which assets are in the false economy, which assets are asset-less credit backed, and which assets are real economy. Not real hard... grossly speaking...
1. Did it boom in the last 40 years? it is going down...
2. Has it been boring or languishing the last 40 years, but survived?
I went into a used household parts store last week, and noted all of this salvaged items constituted a wider selection than Home Depot. Sure Home Depot has deeper stock, but no Home Depot has a floor model of a bidet, nor circa 1900 door latches.
I asked the owner what is his #1 problem in his business.... he immediately said "space... I am turning so much great stuff away... and what I have is selling great... I just need more space."
I can see big box retailers spreading carrels wider and spreading stock to cover empty shelves... they don't have the customers with credit cards loading up on crap they do not need. I think the salvage house will find plenty of room coming up as places like Home Depot start a new round of closings. Check out the 2014 store closing list, and 2015 appears to be accelerating. There is nothing to move in and take its place.
The next forty years will be a renaissance for small business.
Feel free to forward this by email to three of your friends.
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