A subscriber sent me the following note recently: You know I was driving home tonight and was observing all the cars building etc. I thought maybe I am nuts this can't all stop. Then I also said to myself this is an illusion that massive un-payable debt has created.
How to Use Basis in Hedging:
Cash Price - Futures Price = Basis (at a specific point in time). A producer's decision as to when and how to market their crops or livestock can have as big an impact on their net bottom line profit as any production decision they may make throughout the year. Farmers today have more marketing alternatives than in the past and face a complex and fast paced marketing system. They need to compare the traditional marketing methods of making cash sales at harvest (or before harvest, on guaranteed insured bushels), or when livestock are ready for market, to...
Hyperdeflationary Death Race 2000:
The middle class has been squeezed. The engine behind real growth is gone. Generations to come have been bled dry already. Without the engine, there is no growth. Sadly, no growth means no debt service. No debt service is a direct threat to the systems of power. Without that, nature becomes a threat. If you aren't, you are dying. There is no way they can let that happen.
Cerulean Dollars - Go Deep or Go Home:
"We have deep depth." - Yoga Berra. The dollar institution is much larger than the Fed, the Treasury or the entire basket of FOREX that derives relative values of backless currencies. Market action makes market commentary.
Interest Rates, Price Controls and Silver:
They've made billions controlling the price of money - both real and fiat. They are not going to let go of it anytime soon.
Silver Tales of Thales:
Physical silver held in personal possession is a cheap option; an option being simply a choice. The best choices have a very low downside - and infinite upside. Options and optionality are not exclusive to financial markets.
When the Contract Has No Clothes:
Naked short selling is just one more link in a daisy-chain that extends all the way from a currency backed by debt... Stevie Wonder wrote the song I quoted in a simpler time - a time when a contract was still a serious formal course of business. Those days are long gone. My friend and fellow subscriber sent me the following question worth developing here.
The London Housing Crisis: Boris Johnson's Proposals and Others' Suggestions:
The shortage of housing in the UK is concentrated in London. There are many solutions and all may be needed - private investors are already at work.