Blumenkrieg Capital

Current economic discourse proceeds on the almost unquestioned assumption that China is on track to become the World’s next superpower. What is in dispute is not if- but when- China will depose the United States, which in recent years has been beset by grave economic dislocation. China’s rapid economic expansion over the last three decades has left many people confident that the once impoverished nation will soon rise to challenge the West’s centuries-long dominance. Although I have never believed this to be a terribly likely prospect, I have to admit to being ignorant of China’s economic fundamentals for a long time: assuming that popular opinion on China’s economic future- though unrealistic- did have grounding in fact. It was not until the emerging markets rout in late 2013 that I began to have serious misgivings about the integrity of China’s economy. Before I lay down the reasons for said misgivings, let me take you back to the 1980’s: to a case I believe very closely par...

THE COMING FINANCIAL ARMAGEDDON " The American Republic will endure until the day Congress discovers that it can bribe the public with the public's money."                                                                    -de Tocqueville   For the better part of a year I have held that the global financial system is on the brink of a calamity that will make the financial crisis of 2008 look like a Sunday School picnic; one that may very probably eclipse the Great Depression of the 1930’s. My reasons for believing this are grounded in my analysis of the world’s current economic fundamentals- particularly in the Western Hemisphere. I be...