Maxims

* Martin Armstrong, There Are No Coincidences - Why History Repeats, armstrongeconomics.com/blog, April 18, 2019:

I have usually explained that history repeats because human nature never changes. Only technology does. Given the same circumstances, humans will ALWAYS respond in the same manner. Just examine the same facts and you will see how there is NEVER any rule of law. It does not matter what century, for it is always the same. It is all a joke. Whatever the desire of those in power, they will always manipulate the law to produce the desired outcome.

* Martin Armstrong, Could the Great Depression Have Been Prevented? armstrongeconomics.com/blog, June 7, 2019:

There was nothing the government could have done to prevent the Great Depression. The best that one can hope for is to understand the business cycle and prepare for the downturns. In that manner, it becomes more like Joseph warning the Pharaoh of 7 years of plenty to be followed by 7 years of drought. If we accept that the business cycle is complex and not a single source that can be controlled, then we will live with the cycle and understand it.

News

* TSI blog, The Boom Continues, 321gold.com, May 11, 2021:

The major trends in monetary inflation result in a boom-bust cycle. In particular, a rising trend in the money-supply growth rate leads to increased consumption and investment spending, ushering-in the boom phase of the cycle. A subsequent decline in the rate of money-supply growth reveals the investing errors of the boom and leads to a liquidation process, which is the bust phase of the cycle. In other words, monetary inflation causes the boom and the boom causes the bust.

* Adam Hamilton, Big US Stocks' Q1'21 Fundamentals, 321gold.com, May 7, 2021:

In March 2020 as stocks plummeted in a lockdown-induced panic, Fed officials were terrified the negative wealth effect would spawn another depression. So they spun up and overclocked their printing presses to truly-dizzying speeds. From the ends of Q1'20 to Q1'21, the Fed's balance sheet skyrocketed 46.3% or $2,435b!

Those extreme monetary inflows are why the S&P 500 soared 53.7% higher in that same span. In the year leading into that stock panic, the Fed's balance sheet grew a normal 4.6% or $184b. In the year after, it mushroomed a monstrously-grotesque 82.5% or $3,431b! It should be no surprise that such a radically-unprecedented diluvian torrent of liquidity directly catapulted the US stock markets far higher.

* Kara Byers, A third of Aussies believe they will always be in debt, news.com.au, April 12, 2021:

"Australia has the second largest ratio of household debt to income in the world..." says Fiona Guthrie CEO National Debt Helpline.

The latest figures from The Organisation for Economic Co-operation and Development (OECD), show the ratio of Australian household debt to net disposable income stands at 217 per cent - meaning the average household owes twice what it makes in a year. The Bank of International Settlements puts Australian household debt at 119 per cent - second only to the Swiss.

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