Putin’s decision to go with a full-scale invasion of Ukraine has many dramatic consequences that go far beyond inflation and interest… — Putin’s decision to go with a full-scale invasion of Ukraine has many dramatic consequences that go far beyond inflation and interest rates. …

As a Canadian-born citizen living in Montreal, Quebec, I am incredibly privileged. I was born in a small rural town in Northern Quebec in… — As a Canadian-born citizen living in Montreal, Quebec, I am incredibly privileged. I was born in a small rural town in Northern Quebec in the 1970s. The benefits of living in Canada are so vast that we seem to fail to see them, much less fully appreciate them for their…

For an entire society or indeed for any corporation, a “productive debt” can be loosely defined as a debt that brings in more future… — For an entire society or indeed for any corporation, a “productive debt” can be loosely defined as a debt that brings in more future purchasing power than what you borrow. Lets suppose you lend me 1000$. For arguments sake, lets suppose the “basket of goods and services” that I consume…

It’s a hell of a balancing act. At roughly 10% of GDP, Biden’s almost 2000 billion (2 trillion) stimulus package is massive. Obama’s… — It’s a hell of a balancing act and I admire the boldness of this initiative, as well as the general boldness of the Biden Team. I admit I am a fan. But there are things to know and risks to grasp, especially for people with funds in financial markets. At…

Bond yields are rising swiftly after hitting rock bottom about 6 months ago. Although yields are still now very low compared to the past… — Bond yields are rising swiftly after hitting rock bottom about 6 months ago. Although yields are still now very low compared to the past 10 years, the rapid change in yields is disruptive to all markets and could disrupt housing as well. …

Is there a “limit to growth” as exposed in the Meadows Report? Our global system works on “growth” of production to generate employment… — Is there a “limit to growth” as exposed in the Meadows Report? Our global system works on “growth” of production to generate employment and income, which takes several forms: wages, incomes for enterpreneurs and stock holders, capital gains, rent and interest income, which themselves finance State income (taxes!) and other…

Interest rates are at long term historical lows and stock pricing is historically high, based on various metrics. Why and what is likely… — Interest rates are at long term historical lows and stock pricing is historically high, based on various metrics. Why and what is likely to happen? Asset prices and “yields” go in opposite directions It is important to start with the basics: asset prices and “interest rates” go in opposite directions…

The “virus recession” and the policy response to it is going to bring record deficits in dollar terms AND near-record levels in % of GDP… — The “virus recession” and the policy response to it is going to bring record deficits in dollar terms AND near-record levels in % of GDP as well. For many countries, this comes on top of an already-high government debt. Many people seem to wonder if there is some magic and…

As I wrote in my last few posts, the impact of “the virus recession” is likely to be brutal and huge, BUT short-lived. This is because the… — As I wrote in my last few posts, the impact of “the virus recession” is likely to be brutal and huge, BUT short-lived. This is because the “fundamentals” were generally fine before the recession started and are likely to be generally fine once it is over. …