I spoke with zombie firm researcher Max Goebel to breakdown his findings on the nature and consequences of zombie lending. Max is a PhD student in Economics at the University of Lisbon and his been studying what many researchers missed. Max helped answer some questions on zombie lending which have been haunting me. What is […]
I have been writing about consumption of capital, using the example of a farmer who sells off his farm to buy groceries. It’s a striking story, because people don’t normally act like this. Of course, there are self-destructive people in every society, but, not many. Most people know not to spend themselves into poverty. To […]
If you’re an American over a certain age, you remember roller skating rinks (I have no idea if it caught on in other countries). This industry boomed in the 1970’s disco era. However, by the mid 1980’s, the fad was fading. Imagine running a rink company at the end of the craze. You know it […]
I have worked to keep this piece readable, and as brief as possible. My grave diagnosis demands the evidence and reasoning to support it. One cannot explain the collapse of this currency with the conventional view. “They will print money to infinity,” may be popular but it’s not accurate. The coming destruction has nothing to […]
I have written other pieces on the topic of fractional reserve banking and duration mismatch, which is when someone borrows short-term money to lend long-term and how falling interest rates actually encourage duration mismatch. Falling interest rates are a feature of our current monetary regime, so central that any look at a graph of 10-year […]
