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Jim Grant: The World Created by Upside-Down Interest Rates

Central banks are trapped.

“Five years into the negative rate experiment, and a decade on in radical monetary improvisation, the central bankers are looking for a way back to normalcy. Not finding it, they are casting around for new ways to control what they seem unable to understand.”

“The unintended consequences of public policies are usually more consequential than the ones the policy makers had banked on. Lest the central bankers forget, interest rates are prices, not policy levers. And as prices, they set investment hurdle rates and measure credit risk. Artificially low rates therefore call forth artificial investments.”

Yemen’s Houthi rebels are not Iran proxies

Samuel Ramani writes in the Washington Post that the Houthi rebels targeting of Saudi oil facilities has more to do with internal Houthi issues than with any desire to retaliate against US sanctions on Iran.

Although Houthi drone strikes can be plausibly explained by Iran’s desire to retaliate against Washington’s exclusion of Tehran from global energy markets, this argument tells us only part of the story. My research on the Yemeni civil war suggests that these drone strikes can be partially explained by internal insecurities within the Houthi movement, as numerous Houthi officials have defected to Saudi Arabia in recent months. By targeting Saudi oil facilities, the Houthis can increase their popular support in northern Yemen. Houthi drone strikes play into the popular desire for revenge against Saudi Arabia’s alleged theft of Yemen’s oil wealth, showcase the Houthis’ ability to counter Saudi bombardments, and counter Saudi depictions of the Houthis as a terrorist group that targets civilians.

 

‘It’s Pain Compliance’

Parents send their child to government school. Chaos ensues.

Jeez, Honey, I don’t know. The Gestapo sure has murdered a lot of people this year. But they’re still the best game in town when it comes to teaching our kids how to read. Who else is going to do it, us? Hahaha.

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