As is clear to all with half a brain the production of un-backed fiat money distorts the economic system. Simply told, when an entity in society is given monopoly to manufacture medium of exchange at its own discretion they will harness this power. Slowly at first, unsure about its effects, but always testing the limits…

1)   There are two processes ongoing at the same time a)    Budget resolution – cause of current shutdown b)    Debt ceiling – potential leading to US default 2)   The two sides have reached an impasse a)    Republicans believe they can get concessions from Obama and the Democrats; defund/delay Obamacare and further cut to projected spending…

When the Europeans published their upbeat retail sale report last week we asked a rather rhetorical question; where do you think all those ECB-money ends up? Given Draghi`s broken monetary transmission mechanism is should come as no surprise that most of it ends up in the north. As simple chart depicting a rebased retail sale…

Much has been said about the Basel Committees ambition to create a regulatory framework that will be resilient enough to withstand and contain another Lehman Brothers scenario. Remember, before extending and deepening the regulations put on banks in order to make them more resilient to short term funding problems, the regulation known as Basel II…

The Basel-accord are frequently paraphrased in the debate around banking stability and its third step, Basel III, is seen as a set of rules and regulations that once and for all will avoid future financial panic.  But as always, this can be interpreted as mere smoke screens to avoid financial system collapse now – but…