Juggling Dynamite

It is always so much easier for us humans to highlight the mistakes others have made…As we listen to this discussion of why Japan’s QE injections have not helped to boost economic growth we should realize the comments are entirely applicable to QE in the US and Europe as well.  And that the expert in this clip hails from JP Morgan, one of the key culprits that has advised and unfairly influenced current policymakers while robbing the real economy and siphoning off hundreds of billions of taxpayer funds into their own coffers.

Jacob Frenkel, chairman at JPMorgan Chase International, discusses the impact of monetary policy on inflation and explains why the Fed’s attempts were blocked in the United States.  Here is a direct video link.

After the credit-rush, people everywhere are adjusting to the reality of less free cash flow.  Some 90% of  North American households are today servicing about twice as much debt on the same level of income as they earned 25 years ago.

Figuring out how to accomplish more with less is a necessity and a growing passion, every day in every way.  Smart businesses are tapping into this trend with services to share everything from homes, vacation properties, boats, cars and bikes.

Oil and metals are not the only commodities that have been falling in price since 2011.  Grains, coffee, soy, sugar, cotton and more:  you grow it, it’s been falling, as the US dollar rebounds. Now the sharing movement is spreading through farming too.

See: The sharing economy comes to the farm. Makes perfect sense for farmers. Not so good for new equipment sales and the companies that finance it…oh well time to focus on how to rebuild the balance sheet of households and small business, rather than just finance co’s and international conglomerates…

Three months out of the year, the 5,500 members of the Heartland Co-op push their sprayers and fertilizing machines to maximum capacity in hopes of getting the most out of a million acres of central Iowa farmland planted mostly with corn and soy. The rest of the time, the machinery typically sits in barns, idle until the next season, like most of the $248 billion of equipment owned by farmers across the country.

FarmLink, based in Kansas City, Mo., seeks to turn that equation around. Run by Ron LeMay, who headed Sprint’s wireless division until 2003, the company has created a platform to help farmers rent out their unused equipment to growers who may be hundreds of miles away to take advantage of the differences in peak harvest seasons.

Farming co-ops and equipment dealers can already sign up online, and FarmLink may add a mobile app later this year. “It’s Airbnb for agriculture,” says Jeff Dema, FarmLink’s president for grower services. “Farmers are examining their bottom lines and wondering if the $500,000 in their shed might be put to better use.”

Another big swing day in global markets as HFT traders go wild and the media hangs on every syllable of central bank speak.

The global sell off to date has been vicious and abrupt and as usual, has knocked most participants off balance. It is entirely typical that we could see a bounce back of some duration; but cash remains scarce and bets heavily levered.  The secular bear is not dead yet.

A decline of just 10% in US stocks was enough to make Fed members start talking about rate hike delays again this week. As if a .25 rate move either way matters a wit in supporting anything meaningful at this point. Chinese stocks that have crashed 50% since June, managed to rally a bit in the last hour of trading as the People’s Bank stepped in to try and calm nerves before a public parade. Lest we the lose the plot here, central banks are the problem, not the solution. They have created a monster of over-valuation, capital mis-allocation and moral hazard worldwide. Fortunately not everyone has lost their mind.

Jim Grant, founder at Grant’s Interest Rate Observer, speaks with Olivia Sterns about the role played by the Federal Reserve in recent market turmoil.  Here is a direct video link.

Capital Dynamics Chief Executive Officer Tan Teng Boo discusses the China stock rout and why he’s predicting another global financial crisis. Here is a direct video link.