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Monday, February 8, 2021

2021-02-08

Regular Fare: 

 




Long-term unemployment is close to a Great Recession record


 

"The Fed's Monetary Punchbowl Is Fueling Rampant Home Price Appreciation": AEI


 

Food inflation concerns deepen as prices reach highest level since 2014



 

The Bank of Canada’s Big Nothingburger

As a small economy with open capital flows, then, the CIBC report suggests that the Bank of Canada doesn’t really control long term yields through QE in as significant a way as many market participants tend to assume. The BoC can certainly impact 10-year yields through its control of very short-term rates as they affect the Risk-Neutral component, but large-scale asset purchases seem to be relatively low-impact. In effect, Canada essentially surrenders much of the control of its long rates to global demand. A corollary of this, if true, is that QE tapering won’t have a serious impact on the 10-year yield and won’t cause rates to spike in its absence – any increase should be small and gradual.

The BoC, of course, has stated on multiple occasions that 25bps is their effective lower bound, but if push comes to shove and they need another 25bp cut, local Canadian QE probably won’t cut it as the BoC is fast approaching their 50% ownership threshold. As such, the BoC will probably be forced to drop their overnight rate closer to zero, despite their current unwillingness to go there. What all of this essentially means is that the sharpest tool in the BoC’s shed of easy money conditions is still its overnight rate.

 

Older Workers Accounted for All Net Employment Growth in Past 20 Years

This age-skewed labor-market outcome was the result of two differences between the groups:

1.        The older population (60 and older) grew much faster than the younger population (16-59).

2.        The employment-to-population (E-P) ratio among those 60 and older increased significantly while the E-P ratio among the younger population declined, on balance.

 

The Future of Macroeconomics

Developments in the real economy have persistently challenged central tenets of older economic thinking, such as the supposed close connection between the money supply and inflation.

 

The mainstream: meeting the historic challenges?


LAURENTIAN BLUES (1)

I don’t quite know where to start here because it seems to me that there is still a lot to come out on this story.  That Laurentian was having persistent difficulty balancing its budgets was well-known.  Figure 1 shows that in seven of the past eight years, Laurentian reported a loss.  I am fairly sure no other university in Canada can say that. …

There is something else going on here. Part of that something else becomes apparent as you read through the court filing and see things like this:

… Got that?  No separation between operating funds and restricted funds.  Like, say, professors’ research grants, scholarships, and Retiree Health Benefit.  It’s all been co-mingled. ..

 

from: Misunderstood Dynamics Of Negative Yields


 


Back-Dated Fare:

 

Crouching Beliefs, Hidden Biases: The Rise and Fall of Growth Narratives. (PDF) IMF Working Papers.

“We observe the rise and fall of the ‘Washington Consensus’—privatization and liberalization— and the rise to dominance of the ‘Washington Constellation,’ a collection of many disparate terms such as productivity, tourism, and inequality.”

 

 

Bubble Fare:

 

Hussman: Detached Parabolas and Open Trap Doors

 

Felder: The ‘Index Of The Volume Of Speculation’ Blows Off







  


COVID-19 notes:

 

Tomas Pueyo: Variants v. Vaccines.

The Race between the Tortoise and the Hare

 

What If Herd Immunity Is Out of Reach?

What if it never really ends, just recedes?

 

When will life return to normal? In 7 years at today's vaccine rates

In Canada it's going to take more than 10 years at this rate

 

Children and COVID-19 spread

In the most comprehensive study of COVID-19 pediatric patients to date, a research team led by HMS scientists at Massachusetts General Hospital has found that children may play a larger role in the community spread of COVID-19 than previously thought.

The researchers found that infected children, even those with mild or no symptoms, carried high levels of the virus in their respiratory secretions, especially in the first two days of symptoms, and that age did not affect the ability to carry high amounts of virus. The higher the level of virus a person carries, known as the viral load, the greater the risk of transmitting the virus to others.

 

Study shows young COVID survivors can get reinfected



(not just) for the ESG crowd:

 

The Terrifying Warning Lurking in the Earth’s Ancient Rock Record

Our climate models could be missing something big.

 

‘Incredibly destructive’: Canada’s Prairies to see devastating impact of climate change

 

Richard Murphy – Bank of England on Climate Crisis: The world is being put at “extreme risk” by the failure of economics

The truth is coming out. Most economists are not capable of modelling the real world economy. Their analyses are ideological and not scientific as they would like us to believe.

 

Which references:

The Economics of Biodiversity: The Dasgupta Review

Documents relating to an independent global review on the economics of biodiversity led by Professor Sir Partha Dasgupta. Updated 2 February 2021.

 

Kerry gifts Wall St the Green New Deal

The Biden Climate Plan: apparently powerless, stuttering

 

The Only Carbon Capture Coal Plant in the U.S. Just Closed

… ironically, the carbon dioxide pulled from the plant’s emissions was actually used to make more fossil fuels. Part of NRG’s deal with the federal government for running Petra Nova was gaining permission to transport the carbon dioxide scrubbed from burning coal to a separate oil field, where it was injected underground to help release more oil.

 

Salt-Based Battery Could Unleash Cleaner Energy for Electric Cars

 


 

Table of the Week:

 

All the mines Tesla needs to build 20 million cars a year



 

COVID Tweet of the Week:

Just received an email from our school board, re: provincial COVID safety measures and protocols.

It's a longish email, but I'll try to break it down as best as I can.

*Ahem*

There are no new provincial COVID safety measures and protocols for Ontario schools.

The end.



EXTRA [controversial or non-market-related] FARE:

 

COVID Fare:

 

The One Year Emergency

The COVID19 vaccine has an emergency licence (not final approval), which means that research and clinical studies are still under way (they are to be completed in 2023)! It is INVESTIGATIONAL, as declared by the companies themselves, and any forced vaccination with it by any means (legal obligation, extortion, fraud) falls in the category of coercion in research, which is BANNED under numerous laws and international agreements and has penal and civil consequences.

3.        As indicated by doctors and companies, the vaccines HAVE NOT BEEN STUDIED to determine whether they reduce viral infection or to ascertain the duration of immunity and/or the effects of their interaction with other drugs or vaccines. Therefore, neither are other people protected from infection by the virus, nor will restrictions be lifted – as is now announced.

 

Evaluating the impact of COVID-19 on male reproduction

 

 

Political Fare:

 

The Gaslighting of the American Mind

Democrats are the party of make believe. Through their domination of the media, academia, Hollywood, and growing swaths of corporate America, they successfully peddle propaganda as reality. … Tell a lie long and loud enough and many accept it as truth.

… History reveals two main reasons why factions seek to limit speech: first, because it is an effective means to quash dissent and second because they won’t or can’t defend their own ideas. Today’s Democrats and their allies are driven by both rationales.

 

Everything About The Biden Administration Is Fake

And that’s all the US empire ever is, really: a murderous, tyrannical planetary oppressor covered up by varying degrees of dishonesty. During the Trump administration the depravity was a little more honest about itself, now during the Biden administration it’s a little more dishonest. The only major change is the thickness with which the makeup is slathered over the skull.

Everything about life in our current world order is dominated by phoniness. Our culture is manufactured by Hollywood. Our dominating political structure is manufactured by think tanks. Our perceptions of what’s going on in the world are manufactured in Langley and Arlington. The whole thing is so fake and stupid. We’ve got to figure out a way to snap out of these artificial boxes they are placing over our minds and these perceptual filters they are placing over our eyes

 

Biden's Rescue: Mean, Meandering, Moronic

Joe Biden's idea of bigness and boldness is inexorably and neoliberally shrinking.

If there is one thing that the Democratic Party strives for, meanwhile, it is to be seen to be doing the right thing.

 

Chris Hedges: Papering Over the Rot

All of these measures are window dressing, masking the root cause of the demise of America — unchecked oligarchic power and greed. The longer wealth is funneled upwards into the hands of a tiny, oligarchic cabal, who put Biden into office and whose interests he assiduously serves, we are doomed. Once an oligarchy seizes power, deforming governing institutions to exclusively serve their narrow interests and turning the citizenry into serfs, there are only two options, as Aristotle pointed out — tyranny or revolution.

 

 

Historical Fare:

 

Ed Curtin: A Review: Greg Poulgrain’s JFK vs. Allen Dulles

… This makes Greg Poulgrain’s remarkable book – JFK vs. Allen Dulles: Battleground Indonesia – even more important since it is a powerful antidote to such ignorance, and a reminder for those who have fallen, purposefully or not, into a state of historical amnesia that has erased the fact that the U.S. has committed systematic crimes that have resulted in the deaths of more than a million Indonesians and many more millions throughout the world over innumerable decades.

Such crimes against humanity have been hidden behind what the English playwright Harold Pinter in his 2005 Nobel Prize address called “a tapestry of lies.”  Of such massive crimes, he said:

But you wouldn’t know it. It never happened. Nothing ever happened. Even while it was happening it wasn’t happening. It didn’t matter. It was of no interest. The crimes of the United States have been systematic, constant, vicious, remorseless, but very few people have actually talked about them.

And when one examines the true history of such atrocities, again and again one comes up against familiar names of the guilty who have never been prosecuted.  Criminals in high places whose crimes around the world from Vietnam to Chile to Cuba to Nicaragua to Argentina to Iraq to Libya to Syria, etc. have been – and continue to be – integral to American foreign policy as it serves the interests of its wealthy owners and their media mouthpieces.

In his brilliant new book on U.S./Indonesian history, Dr. Greg Poulgrain unweaves this tapestry of lies and sheds new light on the liars’ sordid deeds. He is an Australian expert on Indonesia whose work stretches back forty years, is a professor at University of the Sunshine Coast in Brisbane and has written four highly-researched book about Indonesia.

In JFK vs. Dulles, he exposes the intrigue behind the ruthless regime-change strategy in Indonesia of the longest-serving CIA director, Allen Dulles, and how it clashed with the policy of President John F. Kennedy, leading to JFK’s assassination, Indonesian regime change, and massive slaughter.



Other Fare:

 

The Ugly Secrets Behind the Costco Chicken

An investigator went under cover and brought back disturbing video from a farm growing those famous birds.

"Torture a single chicken in your backyard, and you risk arrest. Abuse tens of millions of them? Why, that’s agribusiness."

 

Something to keep an eye out for:

Francqui Lectures Plan.

The inaugural lecture will take place in March, followed by 4 lectures over the next couple of months:

Inaugural Lecture: Economic Growth and the Environment

Lecture 2: Energy and Economic Growth and Development

Lecture 3: The Rebound Effect

Lecture 4: Energy and the Industrial Revolution

 

 

Big Thoughts:

 

The Last Years of Progress

Behind this awkwardness is the most unmentionable fact of our time, the failure of progress to live up to its promises.  It’s worth going back a few decades to consult the solemn predictions of qualified experts and the mass media, and compare where we were supposed to be by 2021 with where we actually are.  The differences are stunning. It’s not merely that we don’t have fusion power, space colonies, or a hundred other gizmocentric fantasies that were supposed to be sure things, right on down to the hoverboards in the imaginary 2014 of Back To The Future. It’s also worth noting that here in the United States we have rates of infant mortality comparable to those in Indonesia, a level of infrastructure decay reminiscent of the last years of the Soviet Union, and a political system in the kind of advanced rigor mortis that usually precedes cataclysmic change.

The same point can be made equally well, of course, by the most misunderstood prediction of the future made in those same years, 1973’s The Limits to Growth. So much nonsense is still being flung about concerning that much-maligned book that it’s worth looking yet again at the standard run, the authors’ best estimate of how industrial society would fare as its attempts at infinite growth try to plow through the hard limits of a finite planet.



Familiar as this graph will doubtless be to my readers, two points about it are worth repeating here. The first is that it isn’t a prediction of fast collapse—or of any other kind of collapse, for that matter.  Rather, it’s a prediction of decline.  Resources dwindle gradually, food supply and population rise and fall in long slow curves, and though industrial production worldwide drops more sharply than it rose, in 2050 it’s still significantly higher than it was in 1950. To borrow a turn of phrase from T.S. Eliot, this is the way that progress ends, not with a bang but a whimper.

the concept that needs to find a place in the imagination of our time is that instead of living on the brink of Tomorrowland or the brink of apocalypse, we are living in the last years of progress, well into the opening phases of the era I’ve called the Long Descent. The future that crouches in front of us, preparing to spring, has nothing to do with the paired fantasies of progress and apocalypse and everything to do with the long, slow, uneven decline that has filled the twilight of every other civilization.  Venues such as Wired are still hawking the same old technofetishistic dreams as always, with the anxious enthusiasm you’d expect to see from true believers in any other failed prophetic religion, but it’s taking an increasingly strenuous effort to ignore the markers of decline and keep pretending that all those shopworn clichés out of 20th century sci-fi really will come true someday.

Meanwhile the pace of industrial civilization’s decline picks up a bit with each passing year, and those small but cumulative increases are adding up.  Will there be new technologies hitting the market, a breakthrough here and there, maybe another set of human bootprints on the Moon?  Of course, but those will take place against a backdrop of accelerating deterioration and contraction, in which the latest heavily ballyhooed technologies never quite manage to outweigh the slow but inexorable downside movements of an increasingly troubled age, notional economic booms coexist comfortably with spreading poverty and slowly failing infrastructure, and pundits and politicians insist gamely that progress is still chugging ahead while more and more of the population struggles for bare subsistence and the temporary triumphs of the recent past fade gradually into memory, and then into legend.

 

Point: Forecast 2025

After COVID we can draw two major conclusions:

1.        The Western world success model has been built over societies with no resilience that can barely withstand any hardship, even a low intensity one. It was assumed but we got the full confirmation beyond any doubt.

2.        The COVID crisis will be used to extend the life of this dying economic system through the so called Great Reset.

The Great Reset; like the climate change, extinction rebellion, planetary crisis, green revolution, shale oil (…) hoaxes promoted by the system; is another attempt to slow down dramatically the consumption of natural resources and therefore extend the lifetime of the current system. It can be effective for awhile but finally won’t address the bottom-line problem and will only delay the inevitable. The core ruling elites hope to stay in power which is in effect the only thing that really worries them.

….

Another particularity of the Western system is that its individuals have been brainwashed to the point that the majority accept their moral high ground and technological edge as a given. This has given the rise of the supremacy of the emotional arguments over the rational ones which are ignored or deprecated. That mindset can play a key role in the upcoming catastrophic events.

 

Counterpoint: Forecast What?

While I don’t personally feel this is our future, I do believe the situation as described is entirely true. There are such opinions and such plans and such weapons. Therefore it should be dealt with in our own lives, and in the actions of our country, in the firm, defensive preparations that Americans are known for. Regardless of such a war, which should naturally be avoided, a number of other responses are indicated:

1) Remove as much reliance on China as possible without crippling them either. We already learned we do not have medicines, masks, rare earths, or semiconductors here, as well as learning their steel and raw materials may be intentionally substandard and undermining. This especially includes communications infrastructure.

2) Our own nation needs much attention and support with the re-opening of our own parallel manufacturing that must also be dispersed so as not to be a single target for destruction or capture. ….

 

 

Quotes of the Week:

John Michael Greer: “Yes, I read Wired from time to time. It’s one of those dull faux-alternative rags that pretends to be edgy and iconoclastic while groveling at the feet of the conventional wisdom and giving enthusiastic tongue baths to whatever vapid notions happen to be in vogue among today’s corporate aristocracy, but if you want to keep up with the latest fashionable technobabble, there’s no better place to look.”

(if you replaced “technobabble” with “econobabble”, what would you replace “Wired” with?)

 

 

Video of the Week:

Chris Hedges: American Psychosis.

 

 

Now for the Really Fun COVID-Conspiracy Great Reset Fare:

Domestic Terror is a Government Without Constraints

Ruh Roh: That Unhinged Canadian Conspiracy Theory is 5-for-5 so far…

It was purportedly from an anonymous Liberal Party “Strategic Committee” leaker that laid out a plan where the Canadian federal government, in collusion with world governments everywhere, were going to use the Coronavirus pandemic to impose a New World Order, distinctly communist in nature, replacing private property with Universal Basic Income and immunity passports.

I wrote it up at the time pointing out the various holes in the narrative, not the least of which was that it was completely unsourced. You had to decide to believe something like that.

One of things that I’ve really had a hard time grappling with since all this began came out of my introductory study of General Semantics. Facing the reality that none of us really knows anything and that we only think we know is so much harder than just stumbling through life dead certain about your assumptions and oblivious to your own ignorance and biases. At least that way you just bounce around between successes, failures and misadventure but at least you think you’ve got things under control or at least understand what is happening.

None of that is true, and when you realize that, it can be terrifying.

All the more so because when I think about a crazy, unhinged conspiracy theory like this one, the reasons why I would normally dismiss it: that it was just somehow untenable for governments anywhere to just rescind everybody’s civil liberties and basic human rights at the stroke of a pen with zero due process, no constitutional basis, no public consultation, no legal review or any right to appeal. When I think about how things have played out over the past year,  I realize that these assumptions weren’t actually anchored to anything.

These days I’m reading Marco Papic’s Geopolitical Alpha, and in it, his core premise, is this:

“Preferences are optional and subject to constraints, whereas constraints are neither optional nor subject to preferences.”

By this he means: many investors factor their assumptions around how governments will impact their plans on what turn out to be policy preferences. But what actually happens, and what actually does impact their activities will be shaped by constraints, not preferences.

Said differently, a lot of capital gets allocated on what people think governments want to do, but what actually matters is what is preventing or constraining the government from doing what they want to do.

The five big constraints on governments are: political, economic, financial, geo-political and legal/constitutional.

Seen in this light, even if true, that governments wanted to impose a totalitarian communist regime globally, surely they are constrained from doing so. Right? RIGHT? They can’t just fscking do it.

But… all kinds of things I thought governments couldn’t just come out and do over the last year…. well they just came right out and did it. And just to really mess with my head, Papic added two wildcard constraints to his list: terrorism and pandemics.

The problem is, those wildcards, they aren’t wildcard constraints – they’re wildcard enablers. Those two wildcards seem to have the ability to trump all normal constraints. Every one of those constraints went out the window because of the wildcards.

Where does that leave us?

Speaking for myself, I’m losing my moorings as I no longer have any clear idea what, if any, policy constraints exist anymore.

So I have no grounding in the arena of what’s possible, how arbitrarily policy makers can act, what’s to stop them from simply confiscating my wealth (except for my crypto), or nationalizing the business I’ve built up over 22 years, and doing the same to everybody else. This is Canada. We’re generally meek as fuck here.

Second passport and expat strategies won’t work if, as per the “World Debt Reset Program” outlined in the conspiracy theory, this happens simultaneously everywhere. Granted that seems farfetched, but the boundaries of the word “farfetched” have shifted dramatically since all this began.

The question I keep coming back to is “What’s to stop them from trying it?”

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