deficit – Cantillon Consulting

Austrian Theory, Banking, Bonds, Budget, Capitalism, Central banks, Commodities, Corporatism, CPI, Credit, Cycles, Economics, Energy, Entrepreneur, Europe, Federal Reserve, Fixed Income, Government, Inflation, Macro, MMT, Money, money supply, Politics, Production, QE

Pandora’s Box

Posted on July 10, 2021February 11, 2023 by Sean Corrigan

Most people associate ‘inflation’ with rising prices, but the disease goes much deeper than that. Inflation is a phenomenon wherein money becomes so abundant it disrupts relative price formation and hence interferes with the vital transmission of information about the state of the countless interactions of supply and demand, plenty and scarcity, which take place on the market. As the fever rises, mistakes accumulate, conflicts intensify, timings clash, finances become stretched, and coherence is lost. A rising price is one thing. Prices -plural- rising at varying speeds and in an ever less predictable manner is a much more dangerous pathology.

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Agriculture, Central banks, China, Commodities, CPI, ECB, Economics, Equities, Europe, Federal Reserve, Fiscal policy, Fixed Income, Forex, Government, Inflation, Japan, Macro, Margin, Metals, money supply, Primary Dealers, Production, QE, repo, Revenues, Tech, US Treasury, USA

Paradigm Shift

Posted on April 11, 2021February 11, 2023 by Sean Corrigan

An uneasy calm has descended on the markets since the end of the first quarter put a stop to the heavy liquidation in bonds and some gained the sense that commodities were perhaps a little overcooked. The rebalancing and retracements those two entailed could yet run further, but we very much doubt that we’ve seen the last of the inflationary wave.

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Bank of England, BOE, BOJ, Bonds, Central banks, Commodities, ECB, Energy, Equities, Federal Reserve, Fiscal policy, Forex, Government, Inflation, Intervention, Macro, MMT, Money, money supply, QE

The Beggar’s Opera

Posted on February 6, 2021February 11, 2023 by Sean Corrigan

Though a lot of hot money was poured into the trade in the last quarter of 2020, there is still much reluctance on the part of economists – always prone to a spot of Under-consumption fallacy – to wholly embrace the idea that prices are beginning to rise and that the path ahead is likely to be an inflationary one. That path will inevitably not be smooth, nor its ascent uninterrupted, but it is hard to see where we slow the climb or take a different turning – or even that sufficient will exists to choose that alternative were it ever to come up on our satnav.

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Bank of England, Budget, Central banks, Economics, Fiscal policy, Fixed Income, Forex, Government, Inflation, Intervention, money supply, Revenues, UK, UK Treasury

A Great Deal of Ruin

Posted on October 3, 2020February 11, 2023 by Sean Corrigan

The Johnson government’s approach to COVID19 has been a toxic mix of contradiction, vacillation, and jackbooted authoritarianism. There seems no exit strategy and no end to the spiralling cost. We take a critical look at the impact on the budget impact and discuss what it means for inflation.

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Austrian Theory, Central banks, Corporatism, Credit, Economics, Entrepreneur, Federal Reserve, Fiscal policy, Inflation, Intervention, Liberty, Macro, MMT, money supply, Planning, Production, Saving, savings glut, Technocracy

Saturn Devours His Children

Posted on June 25, 2020September 8, 2020 by Sean Corrigan

A recent Wall St Journal article gave vent to a scare-story full of Underconsumptionist claptrap, carried under the catchy headline: “The Coronavirus Savings Glut”. Ironically, and only a day later, the paper ran a second piece entitled “How Coronavirus Upended a Trillion-Dollar Corporate Borrowing Binge and Kicked Off a Wave of Bankruptcies

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