The Supply Side

Last Sunday I sat in glorious sunshine watching my son play cricket. The only thing more complex than the rules of cricket is trying to work out the current state of the global economy. Luckily, while watching the game I was also reading a copy of George Gilder's Knowledge and Power. This important book makes a scholarly case for seeing capitalism as the interplay of knowledge and power. The tension between a dispersed entrepreneurial macrocosm and a governmental drive toward centralisation and control. In this episode I offer some opening insights of the key themes and what the current distortion of market signals may mean for the future.

In today's episode I cover John Locke's thoughts on political control, the latest round of lockdowns and why The Fed seems to have ignored everything Japan learned about monetarism in 2002. At what point does it simply no loner work to keep printing money? What happens when unemployment rises at the same time as incomes are skyrocketing? What strange times we inhabit! In this episode we also explore some interesting stats from Wolf Richter on what we can expect in the post-covid 'New Normal.'

In today's episode it's time to explore seven key points from President Biden's Economic Policy. What can we expect from a supply side perspective? Well...not much, apart from a lesson in how to jack up inflation and distort markets even further. I also take a stroll down memory lane as Peter Schiff outlines the entire Global Financial Crisis two years before it happened.

What's the difference between a casino and current global equity markets? Answer....not much! In this episode we explore Lesson 4 in Jude Wanniski's Supply Side University. We talk about gambling, mal-investment, and more. How do taxes condition the choices we make in terms of productive asset allocation instead of wild and destructive speculation?

The GFC Prophecy of Richard Duncan is still as impressive as ever. Six years before the GFC kicked off he wrote that the excesses of the 1990's was going to cause a failure in either the insurance industry or one of the large government sponsored enterprises such as Fannie Mae or Freddie Mac.

In this short episode I share Richard's prophetic insight and ask what we have learned and how likely it is that we will see it happening again soon.

In this episode we welcome back Mike Kendall to discuss a whole range of topics related to the state of the world, global macro, gold, central banking and more.

We also take a deeper look at Jude Wanniski's supply side model particularly in terms of the vision of reality that shapes the very foundation of every person's economic model.

Mike also takes us through a deeper look at the the balance sheet of the US Federal Reserve and its implications for the price of gold and the world economy.

Between 1945 and 1971 when the world financial system was still linked to gold under the Bretton Woods system we saw only one banking crisis on the entire planet. Between 1971 and 2000 there were 19 crises! The we had dotcom bubbles, the global financial crisis and more. With the arrival of COVID and almost 20 trillion in new liquidity swimming through the global sea of financial markets we can only wonder how many more crises we can expect.

In this episode I reference some great data from Richard Duncan's seminal book The Dollar Crisis and a great study from The Bank of England.

In this short episode it's time to discuss the reasonable limits of government. The pandemic has vastly extended most governments prodigious overreach into every area of public and private existence.

What happens when governments increasingly assume more and more power? What happens when governments assume that all human problems can be solved by simply finding the right policy settings?

I explore some recent insights from economist Judith Sloan, social and historical commentator, Henry Ergas and finally thoughts about the reality of what 'the state' really is, from Friedrich Von Hayek.