Monthly Archives: March 2016

No New Money

There is no new money being drawn into equities because (like I was telling you) we’ve already busted the sell signal. Now it’s just the same money, churned to draw new money in, and nobody is taking the bate. Hedge … Continue reading

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Zero at the Risk-Free Rate

Remember that “zero” is an identity element. Mathematical terms are not typically thought of in philosophical terms, but (oops!) despite efforts by Positivists to eliminate metaphysics from determining what objective reality is, there needs to be a comparison. An identity … Continue reading

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Stressing the Test (at the risk-free rate)

The Fed exists to resist the declining rate of profit. It regulates the money supply to resist deflation and inflation, having then the interpretation of transacting full employment with price stability, utilizing its regulatory authority. Using its regulatory authority has … Continue reading

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Accommodation of Debt

The Fed will continue the accommodation of debt, which is an income measure. Not for the average income, however, but to support the naturally declining rate of profit due to falling income (deflation) with higher productivity (adding to the supply … Continue reading

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Resisting the Deflationary Trend

Without admitting it, the Fed is resisting deflation. At The Economic Club of New York today, Yellen said the Fed has a reasonable expectation of rising inflation. Why this made equities move up is because higher prices (core inflation) will … Continue reading

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Price to Income

We hear a lot about price to earnings, or price to book, or debt to equity… and a host of other measures associated with price that yields to income, but not much, really, about price to income. The reason why … Continue reading

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Patterns of Resistance

(Yielding to Patterns of Existence) Nature has final authority. Science, for example, endeavors to divine what the natural law is. We know what the law is by the method utilized to realize it. There is an interpretation that transacts the … Continue reading

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