Stockman’s Corner

Buy The Dip…..Honest Price Discovery Is Dead As A Doornail!

This headline from the WSJ was certainly revealing. It attributes rationality to liquidity-besotted trading in the bond pits that has nothing to do with anything, except whether at any given moment the momo pack has gone student body-left or student body-right.

Home Base Of The Inflation Deniers

As we showed last week, there is an extra $60 trillion of household assets hanging around the US economy and that didn’t happen by the economic equivalent of immaculate conception. It’s the product of the Fed’s unhinged money printing spree over the last three decades and amounts to gross inflation of financial assets.

America’s Twisted Pretzel Economy, Part 1

June retail sales allegedly rose at a booming +15.6% YoY rate, thereby reminding us once again that just because you can look it up on Bloomberg doesn’t make it true. Actually, inflation-adjusted retail sales have fallen at a -13.5% annual rate since the March peak.

Monetary Arsonists At Work

The Fed’s balance sheet crossed the $8.2 trillion mark this week, up a staggering $105 billion from, well, last week!

Not Your Grandfather’s Inflation, Part 4

We have set the 100.0 fulcrum point on the chart below at Q4 1965 because it tells you all you need to know about your grandfather’s inflation. During the previous 14 years, real GDP grew at 3.9% per annum, and that occurred at a time when both the Fed and consumer inflation were well behaved.

Fifteen Cent Dollars, Part 3

There is no way to understand the virulent all sectors inflation that has overcome the American economy apart from the fulcrum financial event of modern times. That is, Richard Nixon’s scrapping of the Bretton Woods monetary arrangement and the dollar’s last link to gold at Camp David in August 1971.