Submitted by David Stockman via Contra Corner blog,
If you have forgotten your Gulliver’s Travels, recall that Jonathan Swift described the people of Brobdingnag as being as tall as church steeples and having a ten foot stride. Everything else was in proportion - with rats the size of mastiffs and the latter the size of four elephants, while flies were “as big as a Dunstable lark” and wasps were the size of partridges.
One of the classical refrains for buying stocks is that they preserve purchasing power and add value, even under such extreme monetary conditions as hyperinflation, or in other words, on a relative basis, local equities when denominated in a stable currency, will increase in value even as the local currency disintegrates.
As one example of this phenomenon, historians and equity bulls provide the widely referenced example showing that during the Weimar period, even as the mark lost all of its value, the stock market in USD terms actually rose during the parabolic phase.
Vermont Sen. Bernie Sanders may be a strong voice on income inequality but his positions on military spending and foreign policy are muddled and his criticism of ex-Secretary of State Hillary Clinton’s neocon-oriented world view is muted, as anti-war activist David Swanson notes in this book review. By David Swanson Every time I write about a…
Submitted by David Stockman via Contra Corner blog,
By EconMatters
Corn Market 2015