Sunday , February 28 2021
Home / Charles Hugh Smith
Charles Hugh Smith
At readers' request, I've prepared a biography. I am not confident this is the right length or has the desired information; the whole project veers uncomfortably close to PR. On the other hand, who wants to read a boring bio? I am reminded of the "Peanuts" comic character Lucy, who once issued this terse biographical summary: "A man was born, he lived, he died." All undoubtedly true, but somewhat lacking in narrative.

Charles Hugh Smith

Trapped!

Kill authentic price discovery, you also kill markets, and in killing markets, you kill allocation of capital and risk management, and in killing those, you kill the economy. Back when prosperity was authentic, the Federal Reserve had little need for public relations. But now that "prosperity" is an illusion that must be managed lest the phantasm vanish, the Fed's public relations pronouncements are a ceaseless flood as the The Babble-On 7 are the spokespeople for a propaganda...

Read More »

Oil and Debt: Why Our Financial System Is Unsustainable

How much energy, water and food will the "money" created out of thin air in the future buy? Finance is often cloaked in arcane terminology and math, but the one dynamic that governs the future is actually very simple. Here it is: all debt is borrowed against future supplies of affordable hydrocarbons (oil, coal and natural gas). Since global economic activity is ultimately dependent on a continued abundance of affordable energy, it follows that all money borrowed against future...

Read More »

Anatomy of a Bubble and Crash

Needless to say, few are expecting bubble symmetry to manifest now, because, well, of course, "this time it's different." Indeed. It's always different and yet always the same, too. Let's indulge in some basic logic: 1. All speculative bubbles pop, regardless of source, time or place. (100% of all historical evidence supports this.) 2. The current "Everything Bubble" is a speculative bubble. 3. Therefore the current speculative bubble will pop. Now that we got that out of the way, the...

Read More »

The Babble-On 7: The Fed and Yellen

So babble on, Babble-On 7; it won't change anything. The forces in motion are like tides, and you can't talk the tide into reversing. Allow me to introduce the Babble-On 7: the six board members of the Federal Reserve and Treasury chief Janet Yellen. (The Fed board has seven slots but one is vacant at the moment, so 6 + Yellen = 7.) These seven lackeys of the Financial Aristocracy babble on, endlessly repeating the same disconnected-from-reality fantasies and delusions, apparently on...

Read More »

Next Up: Global Depression

This madness is now global, so next up: global depression. A few days after the Covid pandemic was officially announced last year on 1/23/20, I prepared a chart projecting the course of the pandemic. In my view it still stands, with two updates: "vaccines months away" has been updated to "mass vaccinations months away" and "Wave 2" has been updated to "Wave 4." (see chart below) The end-point--global depression--is up next. Very few are prepared for this eventuality because they put...

Read More »

What Poisoned America?

America's financial system is nothing more than a toxic waste dump of speculation, fraud, collusion, corruption and rampant profiteering. What Poisoned America? The list of suspects is long: systemic bias, special interests dominating politics, political polarization, globalization and the offshoring of productive capacity, over-regulation, the rise of rapacious cartels and monopolies, Big Tech's gulag of the mind, the permanent adolescence of consumerism, permanent global war, to name...

Read More »

GBOAT: Is This the Greatest Bubble of All Time?

The lifestyle you ordered in the euphoria will be out of stock in the panic. Humans running Wetware 1.0 (which is all of us) love to gamble, and we are entranced by the thrill of victory and the agony of defeat. When there's a market for speculation, these wild swings of emotion manifest as euphoria (I'm winning!) and fear (I'm losing). Thus the soaring price of goats due to speculation in 1740 B.C. Babylon so vexed Hammurabi that he ordered the execution of those he deemed responsible...

Read More »

Presidents Day: Carter’s Prescient Farewell Address in 1981

Regardless of our opinions about President Carter and his legacy, his Farewell Address is worthy of our attention and study. On Presidents Day 2021, I invite you to read/watch President Carter's Farewell Address from 40 years ago. As a Washington outsider, Carter was relentlessly mocked and undermined by the Establishment, as insiders' loathing of outsiders knows no bounds. In a similar fashion, the loathing of the corrupt and self-absorbed for the faithful aspiring to better world...

Read More »

The Green Market – Episode 1: Charles Hugh Smith, Julian Morris and Martí Jiménez-Mausbach

Local and Decentralised Economies: The Start Of A New Environmentalism This weeks host, Richard Bonugli, CEO of Cedargold, talks with Charles Hugh Smith (OfTwoMinds.com), Julian Morris (Senior Fellow at Reason Foundation), and Martí Jiménez-Mausbach (Head of Research at the Ostrom Institute) on the works of Hayek, Elinor Ostrom and whether local and decentralised economies can promote Market Environmentalism to the masses, who are looking to find a sustainable solution to the...

Read More »

Gains Are Unreal, Losses Are Real

Why would anyone sell when further gains are guaranteed? Because the gains are unreal but the losses are real. When markets are soaring and your portfolio is rocketing higher, the gains seem unreal. Did I really make that much in one day, week, month? Wow! With the gains higher every time you look, it would be foolish to sell because look at the flood of media reports on "the Roaring 20s" that are predicted with such certitude that it's essentially guaranteed, the reflation that's...

Read More »