The morning after: What happens when a government destroys its currency

Dallas, Texas
Imagine this scene:
‘Everyone in the country was in shock. People’s net worth had devalued more than 53% overnight.’
‘The value in savings accounts dropped in half and neither merchants nor consumers knew how to react because they had never been through something like it before…’
This is how an American business executive described living through Mexico’s devaluation of the peso exactly 38 years ago on September 1, 1976.
Looking back, it was so obvious.
Mexico had a mounting debt, destructive policies, and a woefully unsustainable fixed exchange rate with the US dollar. All the writing was on the wall.
But most people ignored the warning signs and kept their money in pesos.
Mexican President Luis Echevarria even went out on the radio to reassure people that the currency was safe.
Finally, under intense fiscal pressure, the government reached its breaking point. And on August 31, 1976, they made the decision to devalue the peso.
People woke up the next morning on September 1st to a 50% decline. Subscribe to Sovereign Man

This post was published at Sovereign Man on September 1, 2014.

BIG, FAT TOLD-YA-SO: CENTRAL BANKS TRADING & MANIPULATING ALL MARKETS

The S&P, the Dow, US Treasury Bonds, CURRENCIES (WHAT THE $%^&!), Petroleum, Metals, Agricultural Products, everything. The Chicago Mercantile Exchange and CFTC have openly confirmed that CENTRAL BANKS are in the markets by posting the REDUCED FEE STRUCTURE for CENTRAL BANKS that trade the futures and options markets. That link goes to the CFTC. The Commodity. Futures. Trading. Commission. As in the Federal Government of the Iniquitous Gutter Kleptarchy, your tax dollars at work, ‘Merica. The CME has a special incentive program for Central Banks to trade. Isn’t that nice of Terry Duffy and the boys to give the Central Banks a break on fees? Aw.
Here is the write up at ZeroHedge, sourced from, yet again, Nanex.
There is no acid-trip rabbit hole deep enough to match the depths of insanity that have now been plumbed.
Are we fuzzy on what a ‘Central Bank’ is? Well, let’s go the definition just so everyone is crystal, crystal clear on this:
Central Bank: an institution that manages a state’s currency, money supply, and interest rates. Central banks also usually oversee the commercial banking system of their respective countries. In contrast to a commercial bank, a central bank possesses a monopoly on increasing the amount of money in the nation, and usually also prints the national currency, which usually serves as the nation’s legal tender.
Um, yeah.
Sooooo do you think that it is a tiny bit problematic for entities that PRINT MONEY to trade equity, currency and commodity markets?

This post was published at Barnhardt on August 30, 2014.

Europe Fantastic Bond Bubble: How The Central Banks Have Unleashed Monumental Speculation

Capitalism gets into deep trouble when the price of financial assets becomes completely disconnected from economic reality and common sense. What ensues is rampant speculation in which financial gamblers careen from one hot money play to the next, leaving the financial system distorted and unstable – a proverbial train wreck waiting to happen.
That’s where we are now. And nowhere is this more evident than in the absurd run-up in the price of European sovereign debt since the Euro-crisis peaked in mid-2012. In that regard, perhaps Portugal is the poster-boy. It’s fiscal, financial and economic indicators are still deep in the soup, yet its government bond prices have soared in a triumphal arc skyward.
Unfortunately, the recent crash landing of its largest conglomerate and financial group (Espirito Santo Group) is a stark remainder that its cartel-ridden, import-addicted, debt-besotted economy is not even close to being fixed. Notwithstanding the false claims of Brussels and Lisbon that it has successfully ‘graduated’ from its EC bailout, the truth is that the risk of default embedded in its sovereign debt has not been reduced by an iota.

This post was published at David Stockmans Contra Corner on September 1, 2014.

Goldman’s Special Purpose Tentacle Revealed In Europe’s Latest Bank Failure

The day that Banco Espirito Santo finally crashed and was liquidated nationalized under the weight of its countless criminal “inside the family” fund transfers, money losing loans, and off balance sheet activities, we pointed out to something amusing: the Goldman trail. Because not only was it revealed that in mid-July, two weeks before the Portuguese bank conglomerate failed, Goldman had invested several hundred million into the broken business, but that all through 2014, Goldman had done its best to drag the muppets down with it.
Recall from January 14, 2014 where Goldman said:
Buy BES: Winner at home, recovering abroad
In our view, BES is (1) optimally positioned to gain from Portugal’s banking market evolution and (2) likely to benefit from improving margins in Angola. With the stock trading at a 29% discount to peers’ 2015E P/TBV and with 28% upside to our 12m target price of 1.55, we upgrade BES to Buy.
* * *
Positioning: Looking beyond the crisis – BES best placed
Resilience to asset quality deterioration determined banks’ ability to withstand the effects of the economic and financial crisis. Those effects, however, have their cause in macroeconomic imbalances that led Portugal to ask for financial assistance from the EU/IMF. Addressing those causes will determine the future shape of the Portuguese banking market and the relative positioning of the banks. In this context, we develop a theoretical (and severe) scenario to assess relative positioning in a deleveraging economy: under this scenario, we estimate that Portuguese banks would need to delever by a further 35 bn domestic loans (or 15%) by 2020 to partially reverse the imbalances that contributed to the crisis. This is a top-end assumption and depends heavily on the country’s future macroeconomic performance. In this negative scenario, we show that BES would be best positioned to gain from a ‘race to the bottom’. Our estimate is harsh, but we still believe that it is a good proxy for the underlying trends in the lending market. In this context, even under more benign scenarios, BES is best placed.

This post was published at Zero Hedge on 09/01/2014.

Franklin Roosevelt: On Labor, Wages, and Confidence

“After many requests on my part the Congress passed a Fair Labor Standards Act, what we call the Wages and Hours Bill. That Act –applying to products in interstate commerce — ends child labor, sets a floor below wages, and a ceiling over hours of labor.
Except perhaps for the Social Security Act, it is the most far-reaching, the most far-sighted program for the benefit of workers ever adopted here or in any other country. Without question it starts us toward a better standard of living and increases purchasing power to buy the products of farm and factory.
Do not let any calamity-howling executive with an income of $1,000.00 a day, who has been turning his employees over to the Government relief rolls in order to preserve his company’s undistributed reserves, tell you — using his stockholders’ money to pay the postage for his personal opinions — tell you that a wage of $11.00 a week is going to have a disastrous effect on all American industry.
Fortunately for business as a whole, and therefore for the Nation, that type of executive is a rarity with whom most business executives most heartily disagree…
Some of my opponents and some of my associates have considered that I have a mistakenly sentimental judgment as to the tenacity of purpose and the general level of intelligence of the American people.

This post was published at Jesses Crossroads Cafe on 01 SEPTEMBER 2014.

When Complexity Becomes Chaos

Modern achievements, especially in medicine and technology (fueled by cheap energy), have made the human experience longer and easier.
Yet, at the base of it all lays the irrational man, still flinging immorality from the cages of his ongoing existential dilemma.
Despite the existence of natural governors, humans are still prone to abuse of power for the sake of power alone.
Unsound money and finance are not immune. They are fuel for the fire. They play an evermore powerful role in the rationalization of this age-old abuse.
Whatever you want to call the system that makes the modern civilization go around, there are four basic sub-systems at work here:
Finance Politics The Media/Academia Energy/Economy
These four areas are in a constant state of fluctuating overlap. We can separate them just enough to observe the interactions. I’m lumping energy in with what I see as the ‘raw economy” experienced by most people.
Finance is enormous. Way beyond anything the world has ever seen.
Finance is sector of the economy. But it is so big that it wields influence as if it were a separate entity.
Politics will always be around. It could be worse. In a real crisis, a political vacuum can lead to much worse than we see. More extremes.
For now, the political system and finance are about as enmeshed as they could be. Finance is more influential. That system runs the show.

This post was published at Silver-Coin-Investor on Aug 31, 2014.

The Critical Mind, Inner Scripting, & The “Game” of Trading

As the prices of gold and silver flick up and down, moving towards the end of their first trading rangeI thought to myself “What should I write about today?” This is always a difficult question to answer, and I expect I begin four or five essays for each one that actually gets finished, and that’s not counting the several versions of the final blog contribution!
The range of possible subjects is indeed very wide, but I have special skills in some areas and I prefer to return to these in order to know I am presenting something which is of value and maybe not all that commonplace already. I like to pick topics which are somehow related to trading, timing the markets, and the pitfalls and obstructions which pop up either expected or unexpected to bar the route of progress and encourage diversion away from the best direction.
Cycles, politics, geopolitics, TA, the behaviour of markets through recorded history, weakness within the individual which must be overcome, interpretation of recent events, or clues so as to gain insight into the plans of larger movers and shakers, and the next expected stages of the western/global fiat money system all can pass within the orbit of these weekly articles.
Hmmm …. the passage of time and fiat (paper) vouchers for actual things? Did you ever see Peter Sellars and Spike Milligan’s best work on that?
Classic! And also the seeds of many great things which followed. Other great comedians stood upon the achievements of these giants to add their own achievements to the world of laughter.
So for today let’s look at another original giant in his field, an often overlooked giant – what he did for us that we can use. I will in the process reintroduce that subject of Zen and the art of trading, which good traders appreciate, but newcomers just have not yet got. That’s because balance always is a tough thing to describe and explain.

This post was published at TF Metals Report on August 31, 2014.

Europe’s Fantastic Bond Bubble: How Central Banks Have Unleashed Mindless Speculation

Capitalism gets into deep trouble when the price of financial assets becomes completely disconnected from economic reality and common sense. What ensues is rampant speculation in which financial gamblers careen from one hot money play to the next, leaving the financial system distorted and unstable – a proverbial train wreck waiting to happen.
That’s where we are now. And nowhere is this more evident than in the absurd run-up in the price of European sovereign debt since the Euro-crisis peaked in mid-2012. In that regard, perhaps Portugal is the poster-boy. It’s fiscal, financial and economic indicators are still deep in the soup, yet its government bond prices have soared in a triumphal arc skyward.
Unfortunately, the recent crashing landing of its largest conglomerate and financial group (Espirito Santo Group) is a stark remainder that its cartel-ridden, import-addicted, debt-besotted economy is not even close to being fixed. Notwithstanding the false claims of Brussels and Lisbon that it has successfully ‘graduated’ from its EC bailout, the truth is that the risk of default embedded in its sovereign debt has not been reduced by an iota.
At the time of the 2011-2012 crisis, its central government was already sliding rapidly into a debt trap with a ratio of just under 100%. Self-evidently, the nation’s so-called EC bailout has only made its public debt burden dramatically worse. Today Portugal’s debt to GDP ratio is 129% and there is no sign of a turnaround.
But that has not deterred the rambunctious speculators in peripheral sovereign debt. Since mid-2012 and Draghi’s ‘whatever it takes’ ukase, the price of Portugal’s public debt has soared. This means that leveraged speculators – -and they are all leveraged on repo or similar forms of hypothecated borrowings – -have made a killing, harvesting triple-digit gains on the thin slice of non-borrowed capital they actually have at risk in these carry trades.

This post was published at David Stockmans Contra Corner on September 1, 2014.

Inflation – Crash Course Chapter 11

Chapter 11 of the Crash Course is now publicly available and ready for watching below.
For close to 300 years, inflation in the US remained very subdued. Small spurts occurred around major wars (Revolutionary, Civil, WW1, etc), but after each, inflation quickly trended back down to its long-term baseline. If you lived during this stretch of time, your money had roughly the same purchasing power your great-grandfather’s did.
But something changed after inflation spiked yet again during World War 2. With the permanent mobilization of the military industrial complex and the start of the decades-long Cold War, combined with a related acceleration in government deficit spending, inflation did not come back down. It remained elevated, and in fact, rose further.
That is, until the “Nixon shock” in 1971, when the dollar’s remaining ties to gold were severed. Then inflation EXPLODED. And the inflationary moon-shot has continued since, up to present day.
So, we’ve become used to a system in which our money loses purchasing power over the years. For anyone aged 50 or younger, it’s pretty much all we’ve ever known.
CLICK HERE TO WATCH

This post was published at PeakProsperity on August 29, 2014,.

Bloomberg Primes the Pump of the Deflationary Dialectic

Germany to Europe: Help Isn’t on the Way … German Finance Minister Wolfgang Schaeuble has bad news for anyone hoping the European Central Bank will ride to the rescue of the ailing euro region: Monetary policy has come to the end of its instruments. I don’t think ECB monetary policy has the instruments to fight deflation, to be quite frank. What we urgently need is investments, regaining confidence by investors, by markets, by consumers. His comments, in an interview with Bloomberg Television today, coincide with figures showing annual inflation slowed to 0.3 percent in the euro zone this month. That was the weakest rate of growth since October 2009 and marks 11 consecutive months of prices growing by less than 1 percent. The deflationary danger policy makers have been denying for months may be upon them. – Bloomberg View
Dominant Social Theme: Everything is going to be okay, really …
Free-Market Analysis: Bloomberg offers two editorials on Europe that tell us economic growth is not going well. The one above speaks to the issue of Mario Draghi’s lack of courage in terms of implementing a program of aggressive money printing.
The other one, which we excerpt below, is a kind of call to arms by Bloomberg itself – via its editorial staff – demanding that Europe’s leaders scrap the fiscal pact negotiated in 2012 that mandates certain austerity measures.
Taken together, they seem to be indicating a certain level of distress, and yet there are other ways to regard this double-barreled explosion of concern over the EU’s still-eroding economic condition.

This post was published at The Daily Bell on September 01, 2014.

The Fall Is Golden For Bullion Bulls

September is the hottest month of the year for gold prices, rising on average 3% over the past 20 years. As the yellow metal tests hovers off 2-month-lows, Bloomberg notes that “Indian jewelers and dealers will be stocking up in the coming weeks,” ahead of the festival period, which runs from late August to October (andis followed by the wedding season) when bullion is bought for part of the bridal trousseau or in jewelry form as gifts from relatives. As GoldCore’s Mark O’Byrne notes, “a lot of traders are aware of this trend towards seasonal strength… They tend to buy and that creates momentum.”
Some color on the week’s Precious Metals Trading from Alasdair Macleod of GoldMoney,
The pattern of trading in precious metals changed for the better this week. After London’s bank holiday on Monday, for the first time in a long time the market opened in London’s pre-market with higher prices. This indicated Asian or Middle-Eastern physical demand was returning to the market. Predictably, prices drifted lower during London hours as paper trading took over, and all the gains were more or less lost by close of play on Comex in New York.
It was a similar story on Wednesday. Yesterday, (Thursday) started the same way, but this time the move gained more traction; but volumes remain pitifully low, in common with open interest. Today this pattern was not repeated with gold kicking off unchanged on overnight levels. However, gold is up $15 on the week and feels more firmly based.

This post was published at Zero Hedge on 08/31/2014.

The Ultimate Demise Of The Euro Union

The European Union (EU) was created by the Maastricht Treaty on November 1st 1993. It is a political and economic union between European countries which makes its own policies concerning the members’ economies, societies, laws and to some extent security. To some, the EU is an overblown bureaucracy which drains money…and compromises the power of sovereign states. For others, the EU is the best way to meet challenges smaller nations might struggle with – such as economic growth or negotiations with larger nations – and worth surrendering some sovereignty to achieve. Despite many years of integration, opposition remains strong.
ACCORDINGLY, there are signs the EU is teetering on implosion.
Indeed the Euro zone break up is inevitable for numerous reasons.
Unpayable government debts and the massive bailouts in Greece, Portugal, Spain and Ireland logically pave the road to an eventual EU break up.
While it’s convenient to have the one currency for 17 different nations, the nature of those national economies and their strength is quite different and problematic. Indeed and fact it favors wealthy countries like Germany and France at the expense of the PIIGS (i.e. Portugal, Italy, Ireland, Greece and Spain).
Another issue is that while the 17 nations share the same Central Bank, they do not have a central control on government budgets, nor central political control.
Paul Griffiths, Colonial First State chief investment officer does not want to put a time frame on the euro zone being shrunk, but says it will eventually be very different from what it is today.

This post was published at Gold-Eagle on September 1, 2014.

Dow, Gold and Silver…A Last Stand, A Fake Out And A Surge

The Dow hit a marginal new all time high during the last week. So let’s see where things stand there first.
DOW DAILY CHART

Before we get to the present, let’s take a quick look at the past. We can see the previous top in July was accompanied by triple bearish divergences in several indicators, being the Relative Strength Indicator (RSI), Stochastic indicator and Moving Average Convergence Divergence (MACD) indicator. That led to a significant decline.
Then we had a rally that clipped the previous high by a mere two points. I thought this would be a bear rally but have been proven wrong. However, a profit was taken by identifying the previous top and the start of the rally. Some profit was given back re-shorting but the mistake was quick to be picked up so no major damage was done. It’s nice when you can be wrong and still make money! But that’s chump change as far as I’m concerned. I’m after the big plays.
So that brings us to the present.

This post was published at Gold-Eagle on August 31, 2014.

Prepare For Longterm Instability and Hardship

Unlike the normal business cycle that allows for a recession every few years to clear out the mal-investments and keep the system functioning properly, the current cycle has been artificially induced with money that has unseated the foundation of good financial practices and caused a series of bubbles that must pop at some point. When this happens the business cycle will be heavily damaged and will take many years to reestablish some type of normalcy.
If you think of a cycle as a pendulum swinging back and forth, you must realize that the further it swings to one side, the further it will swing to the other to balance itself. That is what we must realize with the current bubble boom in the financial sectors. The further out of balance they get, the further they will need to swing back to preserve equilibrium. When these bubbles finally pop, the offsetting swing will be monumental. A normal recession of a few years will be exaggerated to a multi-year disaster.
These are the type of conditions that usher in depressions of long duration. This bubble induced mania is far beyond anything experienced in human history and will result in an equally disastrous financial contraction destroying paper assets and making hard assets desirable and difficult to acquire in the aftermath.
In this type of situation, hard assets and a wide knowledge base are as good as it gets. The ownership of capital equipment that produces necessary consumer goods and the ability to finance yourself internally combined with sufficient knowledge to use these resources will provide a safe harbor to get through the difficulties that arise. Becoming your own bank requires the ability to store financial assets such as precious metals and diamonds that have universal value. This is one of the few ways to store wealth that can survive such market destruction.

This post was published at Silver Bear Cafe on August 30, 2014.

PENANCE. THE WEEKEND VIGILANTE AUGUST 30, 2014

It’s my fault.
Those who have been reading some of my internet scribblings over the past months or years know I’ve been going down a very interesting path. Having graduated with a Masters degree from the school of hard knocks in Austrian Economics and political “science” over the last decade I’ve begun to dig even deeper into an understanding of the very question of life. Heck, we’ll see if I am still alive by the end of this blog entry. Yes, I am serious about that (I think I will be… but I’ll explain below why I haven’t killed myself yet).
I also want to state that I am not drunk and am just a few sips in to a glass of red wine right now and won’t be drunk by the end of this article. This is all coming straight from my heart after a year of looking in the mirror daily and asking myself who is this person and does he deserve to be here and after spending most of the day today meditating in my underwear and a lot of eye water .
This may get wacky or weird by the time I’m done writing. But before I drizzle digital ink upon you I do want to clarify a few things about the Galt’s Gulch Chile (GGC) clusterfuck.
It appears that many people have taken Wendy McElroy’s and my writings as being that GGC was and is an outright scam, all the money has been stolen and fuck you very much. That is not the case at all if everything I currently know about it is true. I have a fairly high degree of certainty that GGC owns the property where it has been selling lots and that that property has water rights. This is information I have been told by GGC’s past lawyer about a year ago… which was also the last time I had any access to information to anything related to GGC. It has more or less been verified by others investors over the course of the last year as well.

This post was published at Dollar Vigilante on August 30, 2014.

Sprott’s Thoughts: Rick Rule—A Briefing on Private Placements

Some investors are able to participate in private placements, where a company raises money by offering new shares. For U.S. investors to participate in a private placement, they must be suitably qualified for the offering. Suitability depends on the exemptions under the Securities Act of 1933 through which the company is able to offer new shares. This loosely means that the investor must meet a certain threshold of net worth, income, or investable assets in order to participate.
Private placements may be done by private or publicly trading companies. When a public company issues shares in a private placement, the new shares are not freely tradable, but must be held for a specified period of time, and must have their trading restriction lifted by the issuer’s legal counsel before they can be sold.
Rick Rule believes that if you’re able to take part in these transactions, they could be attractive ways to take advantage of a recovery in natural resources

This post was published at Sprott Global

Labor Day 2014: Economic solutions already here for full employment, zero public deficits and debts

Labor Day is an Orwellian holiday: US ‘leaders’ psychopathically pretend to care about American labor while lying about a real unemployment rate of close to 25% (the so-called ‘official’ rate excludes under-employed and discouraged workers).
Along with unemployment, Americans receive policy enabling oligarchs to ‘legally’ hide $20 to $30 trillion in offshore tax havens in a rigged-casino economy designed for ‘peak inequality.’ For comparison, $1 to $3 trillion ends global poverty forever, saving a million children’s lives every month from slow and gruesome death (here, here). And, as always, US ‘leaders’ lie-begat Americans intounlawful Wars of Aggression (in comparison, 11 days of US war cost would pay for all tuition of US college students).
Americans could have full-employment and zero public deficits and debt with monetary and credit reform.
These solutions are obvious upon a few moments of your attention. See for yourself:
What is monetary and credit reform?
Since the 1913 legislation of the Federal Reserve, the US has had a national ‘debt system;’ the Orwellian opposite of a monetary system. What we use for money is created as a debt, with the consequence of unpayable and increasing aggregate debt. This is a description of the simple mechanics of adding negative numbers. Although it’s taught in every macroeconomics course in structure, the consequences of increasing and unpayable debt are omitted (unpayable because it destroys what is used for money, and eventually the debt becomes tragic-comic in amount).

This post was published at Washingtons Blog on August 30, 2014.

Bank of Japan Refrains From Deepening Stimulus

Every year, top global financial policymakers gather in Jackson Hole, Wyoming for a summit. Bank of Japan (BOJ) Governor Haruhiko Kuroda was there, and delivered a disappointing message to those who were waiting for a ramp-up of the bank’s money printing. Although he allowed for future re-evaluation, he said he believed that Japan was on target to reach its 2 percent inflation goal by 2015, and finally break out of its long ‘deflation trap.’
Kuroda Disappoints At Jackson Hole

Some outside analysts don’t agree. By its own admission, the BOJ sees inflation tracking down to 1 percent by December of this year. Morgan Stanley researchers point out that to reach the inflation target, Japan’s core CPI would have to hit 2 percent by April 2015 and stay there through year-end.
[See Related: Detlev Schlichter – Euthanasia of the Japanese Rentier] Reporters at Jackson Hole peppered Mr. Kuroda with questions about possible additional efforts beyond the BOJ’s bond purchases – such as price-level targeting (which would involve a deliberate inflation overshoot to compensate for previous inflation that was below target) or nominal GDP targeting (which would push easing until a nominal GDP target was reached). He demurred, saying that the current program was enough and would stay in place, although he wouldn’t rule anything out for the future.
Abenomics Hits a Wall Japan has never recovered from its early 1990s economic and financial market bust, languishing in sub-par growth for over two decades. In 2012, Japanese Prime Minister Shinzo Abe took office promising ‘three arrows’ to hit the target of economic revival.

This post was published at FinancialSense on 08/28/2014.

It’s Settled: Central Banks Trade S&P500 Futures

Based on the unprecedented collapse in trading volumes of cash products over the past 6 years, one thing has become clear: retail, and increasingly, institutional investors and traders are gone, probably for ever and certainly until the Fed’s market-distorting central planning ends. However, one entity appears to have taken the place of conventional equity traders: central banks.
Courtesy of an observation by Nanex’s Eric Hunsader, we now know, with certainty and beyond merely speculation by tinfoil fringe blogs, that central banks around the world trade (and by “trade” we meanbuy) S&P 500 futures such as the E-mini, in both futures and option form, as well as full size, and micro versions, in addition to the well-known central bank trading in Interest Rates, TSY and FX products.
In fact, central banks are such active traders, that the CME Globex has its own “Central Bank Incentive Program”, designed to “incentivize” central banks to provide market liquidity, i.e., limit orders, by paying them (!) tiny rebates on every trade. Because central banks can’t just print whatever money they need, apparently they need the CME to pay them to trade.

This post was published at Zero Hedge on 08/30/2014.

Is There Capitalism After Cronyism?

The more the Status Quo pursues the same old Keynesian Cargo Cult script of central planning and free money for financiers, the more self-liquidating the system becomes.
Judging by the mainstream media, the most pressing problems facing capitalism are:
2) the failure of laissez-faire markets to regulate their excesses, a common critique encapsulated by Paul Craig Roberts’ recent book The Failure of Laissez Faire Capitalism.
These critiques (and many similar diagnoses) reach a widely shared conclusion: capitalism must be reformed to save it from itself.
The proposed reforms align with each analyst’s basic ideological bent. Piketty’s solution to rising wealth inequality is the ultimate in statist centralization: a global wealth tax.
Roberts and others recommend reforming capitalism to embody social purpose and recognize environmental limits. Exactly how this economic reformation should be implemented is a question that sparks debates across the ideological spectrum, but the idea that capitalism can be reformed is generally accepted by left, right and libertarian alike.
Socio-economist Immanuel Wallerstein asks a larger question: can the current iteration of global capitalism be reformed, or is it poised to be replaced by some other arrangement?

This post was published at Charles Hugh Smith on SATURDAY, AUGUST 30, 2014.