Public Availability: Initially released to Subscribers 06/24/14

July Monthly Market Commentary

The Fed Can't Create Wealth & Only Temporary Collateral

I spent a lot of time in 2012 and 2013 talking about Monetary Malpractice and where it would lead. I discussed extensively the consequences of Moral Hazard and Unintended Consequences and how they could lead to Dysfunctional Financial Markets.

I additionally showed how Misinformation & Manipulation of CPI Inflation measures, GDP deflators and Labor Statistics was Monetary Malpractice and how it would lead to Malfeasance, Mispricing and Malinvestment as the Price discovery process was corrupted. The Mispricing of Risk would be a logical consequence.

Liquidity is Neither Wealth nor Collatoral