This piece was originally published on October 9th, 2023. Introduction: Over the weekend Hamas attacked Israel killing and kidnapping hundreds, or possibly, thousands. Israel has declared war and has begun a counter-attack. As usual, DKI will focus on policy and the market/economic implications of events, and as much as possible, will leave the politics to … Read more
This is an excerpt from Counter-Intuitive Inflation. We’ll be posting sections over the first two weeks of October. The Question I Can’t Answer is Timing: I think we can all agree that as we close in on $250 trillion of obligations that this can’t possibly be paid. There is no level of taxation or asset … Read more
This is an excerpt from Counter-Intuitive Inflation. We’ll be posting sections over the first two weeks of October. How Rate Hikes Can Be Inflationary and Why It’s Different This Time: What we’ve shown above is how overspending leads to inflation, and that the US government has no plans to curtail spending. For now, that includes … Read more
This is an excerpt from Counter-Intuitive Inflation. We’ll be posting sections over the first two weeks of October. Uncontrollable Spending Leads to an Unsolvable Problem: There are three huge parts to the US Government’s budget. Right now, there is no appetite to cut military spending, but that’s going to happen in the future. The remaining … Read more
The Shutdown Isn’t an Issue Issue Lots of interesting news this week where we address these important questions: Is the coming government shutdown a real problem or just theater? Counter-intuitive inflation: Is there anything the Federal Reserve can do? New home sales plummeting – from already low levels! Smart Bitcoiner takes aim at sovereign debt. … Read more
This is an excerpt from Counter-Intuitive Inflation. We’ll be posting sections over the first two weeks of October. How Overspending Creates Inflation: Right now, the US Congress is running a $2 trillion annual deficit. That’s the on-balance sheet number, and the one we see associated with the $33 trillion national debt. When you include off-balance … Read more
This is an excerpt from Counter-Intuitive Inflation. We’ll be posting sections over the first two weeks of October. Introduction: During inflationary times, and especially when we have high employment and growing GDP, the Federal Reserve raises interest rates to reduce inflation. Raising interest rates is a crude tool, but historically, an effective one. Now, some … Read more
Hi All, I’ve been getting some excellent questions from subscribers. Besides being smart questions, they help me understand what has your focus and where you want and need more help. I’ve also heard from some that they don’t understand everything I write here. I have two jobs. The first one is to come up with … Read more
