Democrats have a winning game. But economics are trump in politics. Past spending sins might crash their parade.
Summary: This cycle's combination of slow growth and widespread overcapacity have taken another victim - global shipping giant Hanjin. Those who like exciting news turn to Zero Hedge and read "Global Supply Chains Paralyzed" and "Supply-Chain Contagion Arrives - 'Global Trade' Roiled, Cargo-Owners Panic". Those who like accurate news turn to this report from Stratfor. … Continue reading Stratfor: Hanjin’s bankruptcy reveals much about the world economy
It's become trendy to forecast bankruptcy of governments. While the problem is real, talking about bankruptcy is nonsensical -- misunderstanding the nature of the problem. From Wikipedia: Bankruptcy is a legally declared inability or impairment of ability of an individual or organization to pay its creditors. Creditors may file a bankruptcy petition against a debtor ("involuntary bankruptcy") … Continue reading Governments cannot go bankrupt
Summary: Hard times might lie ahead, forcing difficult choices. We must clearly understand our alternatives, and their history. IMO only clarity of thought and resolute wills will see us through the next decade. How to manage public finances might be our greatest challenge. Why do we continue down a path which almost certainly ends badly? … Continue reading We might default on our governments’ debt in the future. Do you know how often we’ve done so in the past?
Summary: The global economy continues to fall towards debt deflation (see here), rare and never cured (WWII was not a "cure".) This is a brief look at current dynamics, and the short and medium term futures. At over 2000 words, it is already too long; supporting logic and evidence must await later posts. This is … Continue reading A situation report about the global economy, as the flames break thru the firewalls