FIRE Economy |


It’s nice to see that, while leaders come and go, some things remain the same, namely, the growing number of spinning plates the Chinese government attempts to keep from crashing to the floor (a.k.a. the credit and infrastructure binge that future historians will marvel at).

Bloomberg provides the details in this story that includes the graphic below.

SOE: State Owned Enterprise, FAI: Fixed Asset Investment

Of course, to the enlightened modern-day Western (and, apparently, Chinese) economist, there is no such thing as “malinvestment”, so, there’s that…

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Debt, Without the Degree

There should be a great deal of sympathy (and, yes, someone in the gubment should actually do something) for those who failed at their attempt at higher education and are now saddled with the debt sans the degree (that would help then pay back said debt).

In this story at Bloomberg, the default data is tallied and – Surprise! – dropouts are defaulting at alarming rates.

Yeah,  college is nice, but it’s not for everybody, and this is very much a case of giving someone too much rope with which to hang themselves.

Many years ago, when dropouts would walk away with a few thousand dollars in student load debt, it wasn’t such a big deal, but the numbers are much, much bigger today. Most 20-year old dropouts (surely there are quite a few exceptions) shouldn’t have to wear the debt of their failed college experiment like a ball and chain in perpetuity.

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Debt: The Descent into Madness

I think Grant Williams is right when he says that more books will be written about the last ten years and the next ten years than any other period in modern history and, importantly, writers are not likely to look kindly upon the current crop of central bankers.

With the gold price now closing in on $1,400 an ounce (and perhaps set to go much higher), look for more from Mr. Williams and others who have endured a difficult few years due to a struggling market for precious metals and related investments.

Ron Paul: The End (of the EU) is Near

The CNBC click-bait headline for their Ron Paul interview surely had some readers thinking they needed to check to see if they were stocked up on bullion and bullets, but, the former Congressman from Texas was just talking about the European Union.

Familiar themes here – rampant central bank money creation, serial financial bubbles, widespread malinvestment, goverment overreach, too much debt – that will someday gain wider acceptance as the cause, not the cure, for many of the world’s ills.

Jim Rogers on Brexit

As might be expected, 73-year old billionaire investor Jim Rogers isn’t hopeful about what the Brexit vote portends for the global economy and financial markets.

It’s hard to believe that this will be “worse than any bear market you’ve seen in your lifetime”, particularly after the little episode of eight or nine years ago, but you never know.

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