The 30 year bull market in bonds is coming to an end. Attempts to keep the financial system from collapsing over the last five years have merely set the stage for a larger collapse. Government debts have exploded. Central banks have desperately lowered interest rates to near-zero and resorted to outright monetization of the debt. Recent events show us that the mere suggestion of possible future tapering is enough to cause an immediate and violent reaction in bond yields.

There’s no way out. The bondpocalypse come’th. Continue reading

Interest Rate Setting: Welcome to the Managed Economy

Were governments to raise all funding through taxes the people would revolt. Inflation provides a mechanism whereby people can be taxed without their knowledge or understanding. This currency debasement is only made possible due to the control of interest rates and the extent to which this is able to distort, obfuscate and manipulate the economy. We have allowed the State to eliminate the free market for the most important price that exists in a capitalist system: The price of money – interest rates. In so doing we consigned ourselves to a permanently sub-optimal economy.

No, we don’t have free market capitalism. Not even close. Welcome to the managed economy. Continue reading

Government Interference in Free Market Capitalism

The free market system always leads to optimal prices. The price discovery mechanism will dynamically adjust to shortages, oversupplies or any other disruptions or changes in the market. There is nothing government needs to do other than trust in the natural profit seeking behaviour of the individual and stay out of the way. Unfortunately, government can’t resist the temptation to fix a system which isn’t broken. Continue reading

Meet the Syrian Rebels: Who Are They And What Do They Fight For?

Bashar al-Assad is a brutal dictator whose forces are responsible for both long term oppression of the Syrian people and many egregious atrocities during the present civil war.

But the FSA is clearly the greater of two evils. What began as a legitimate uprising by the people has been thoroughly co-opted and dominated by foreign Islamic extremists bent on imposing Sharia law and genocide for all infidels. Continue reading