June 16, 2022

Ouch

Insolvency isn't heading up yet, but it likely will as the recession south of the boarder starts affecting the economy here.

• Central bankers do not think that you should have a job.

Our objective really is to bring inflation down to 2 per cent while the labour market remains strong. What’s becoming more clear is that many factors we don’t control are going to play a very significant role in deciding whether that’s possible . . . 

We don’t seek to put people out of work [but] we also think you really cannot have the kind of labour market we want without price stability . . .

The role that we can play is around demand.

• Capital likes happy stories—even when it is being explicitly told that there is no good news.
• It thinks this way because it knows that all policy is geared to their interests. Reasonable people might think that a recession is bad for capital. Capital doesn't think so:

If you think the Fed is going to push us into a recession, you should also think that the stock market is expensive and has more room to fall. (Wu & Armstrong)

• You always have to ask, what's the deal with the markets thinking that the recession will not affect their profits? All recent memory of slowdowns show that policy makers can figure out how to make sure any costs of their excess are passed to workers.

• Bitcoin has shed 70 per cent of its value since last autumn.
• But, the real story is that you would have had to own Bitcoin between 2014 and 2016 to have broken even:

More up-to-date graph in with log transformation:

• This is also assuming you could have taken your money out. Which is not as easy as you might think.
• It was and is a scam.

The cryptocurrency industry’s “bloodbath” worsened on Wednesday as bitcoin touched fresh lows for the year that put the average buyer of the world’s most popular digital asset deeper in the red.

Bitcoin dropped below $20,000 for the first time since July last year while ether, the token linked to the Ethereum blockchain, fell to nearly $1,000.

I think it says it all when Macron (who is ostensibly from the same party as Mélenchon originally) would rather side with the fully corrupt Les Républicains to pass policy.

Capital was all about the "Centre" and de-political nonsense when pushing for Macron in the first place. Now they are begging for a return to historical divisions in France. It is not surprising, but something we should all point to.