Wednesday, December 4, 2013

The Amazing Tyler Cowen and His Lost Memory of Austrian Business Cycle Theory

Tyler Cowen seems confused as to why manufacturing sales have soared in the United Kingdom. (New orders were the strongest in almost 20 years, according to the Markit/CIPS UK Manufacturing PMI survey.)This confusio from Cowen despite the fact that the Bank of England has been pumping money into the capital goods (manufacturing) sector at double digit rates.

The increase in manufacturing sales, however, comes as no surprise to students of ABCT, since this is exactly where a manipulated boom would take place. Yet, Cowen, who once was a student of ABCT, tells us:
I will reiterate that this trend was not very well predicted by any macroeconomic school of thought[...]

(ht  Ash Navabi)


  1. Poor Tyler, perhaps he needs a subscription to the EPJ Daily Alert.

  2. If Paul Krugman is the biggest waste of intellect on the planet then Tyler Cowen is a close second.

  3. The Bank of England easy money policy, better said money printing operation, has been driving the GBP/JPY, that is the FXB:FXY, parabolically higher. But the loose monetary policies of the world central banks have finally made money good investments bad, as is seen in US Treasuries, TLT, and World Treasury Bonds, BWX, and now Nation Investment, such as the UK, EWU, EWUS, Global Financial Institutions, such as Lloyds Banking Group, LYG, and Prudential, PUK, trading lower in value. Their drop is in inverse proportion to the steepening of the Steepner ETF, STPP, steepening, and in inverse proportion to the rise of the Interest Rate on the US Ten Year Note, ^TNX, coming from the call of the bond vigilantes who now are in control of interest rates globally.

    The monetary authority of the world central banks ended on October 23, 2013, when the bond vigilantes called the Benchmark Interest Rate, ^TNX, higher from 2.48%, with the result that fiat money, consisting of Credit, AGG, and Major Currencies, DBV, and Emerging Market Currencies, CEW, died. Yes fiat money died on October 23, 2013. And now with the rise in the Benchmark Interest Rate, ^TNX, higher to 2.84% on December 4, 2013, fiat wealth died as well.

    Liberalism as an age and as a paradigm has ended with the death of fiat money and fiat wealth. Now, Authoritarianism is rising as an age and a paradigm, where diktat money, and truly sovereign wealth, that being economic rule by nannycrats, and the physical possession of gold bullion, will be real wealth.

    The world entered into Kondratieff Winter, that is the final phase of the Business Cycle, on December 2, 2013, as Nation Investment, EFA, -0.8%, World Stocks, VT, -0.7 Global Financial Institutions, IXG, -0.5, being led so by the European Financials, EUFN, and the Brazil Financials, BRAF, on the failure of fiat money. The banker regime and nation state democracy is literally disintegrating on the failure of fiat money. The beast regime and regional governance is rising out of waves of sovereign insolvency, banking insolvency, and corporate insolvency, as foretold in Revelation 13:1-4; it will provide regional governance and diktat money for one’s life experience.