#krisonomics by Ektrit Kris

  TWITTER THREAD HERE INTEREST RATES BOOST PRODUCTION Look at the graph of US interest rates. Can you spot the most prosperous and productive period of history since the 70s? 1/ The most productive period in US history post WW2 was when rates were 20%, US kept thriving when rates were kept above 5%. But why? Why do high rates spur production? 2/ Simple, folks. You DO NOT have to borrow money to start a business. To reiterate, YOU DO NOT HAVE TO BORROW MONEY TO START A BUSINESS, when rates are above 5% permanently. 3/ Why? Because medium level rates, 5-8% make it impossible for the financialization of commodities. Commodities would be used ONLY for productive deeds, not as money in shadow banking rehypothetication. 5/ Cheap commodities and cheap energy makes makes possible to boost an economy WITHOUT DEBT. Let me reiterate: Cheap commodities and cheap energy makes makes possible to boost an economy WITHOUT DEBT. 6/ Let me reiterate: Cheap commodities and cheap energy makes makes pos...

USD VS BARTER      The idea that the world has no choice but to use USD because their trade would decline and collapse, is self evidently NONSENSE as the world has chosen already to have their trade decline and collapse by gradually using Barter, just NOT to use USD. The age of getting SOMETHING (goods and services) for NOTHING (digital dollars on computers) is over. World is going BARTER, whatever the cost, including self destruction. Nobody fear US anymore, as Washington DC is in cold civil war mode, while Janet Yellen sabotages Jerome Powell. TWITTER THREAD HERE  -  FROM USD TO BARTER I am saying that the world is trying to replace USD with BARTER. This is self evident. They are declaring it, everybody is declaring it. 1/ Am I saying that they will succeed at the very end? NO, THEY WILL FAIL. What I am saying that SAYING AND TRYING is more than enough to break supply chains, which is happening. 2/ Seeing that the world is shifting from SAYING TO TRYING, Washi...

The declaration of the Saudi Arabia today being open to trade in currencies other than USD is nothing less than stunning. This is not a catastrophe yet but it's creeping up there slowly but steadily. Lacking a replacement, the world is going for Barter trade, which I call caveman economics. The results are self evident, supply chains keep breaking down, affordability in the West is crashing, social unrest is boiling up everywhere from it. I explained it here quite sucincly. Strange enough there is a precedent to it, the oil starvation period of 1970s. Saudis/Gulf oil producers held up oil supplies demanding higher interest rates from Washington DC, in order to trade in USD. Supply chains collapsed. DC replied with Paul Volcker who shot up rates to 20%, satisfying the gulf oil producers. Oil price collapsed, thus providing the energy necessary for the supply chains to recover in 10 years thus providing 50 years of prosperity for the West, that is until 2000s, when rates collapsed ag...