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IT’S. ABOUT. THE. MONEY.

By Ben Hunt | 13 Comments

If you were a smart guy like MicroStrategy CEO Michael Saylor and you thought a stagflationary tsunami of enormous proportion was going to wash over the US economy regardless of who wins in November, what would you be doing right now?

I think you might be doing whatever you can to get liquid in the global reserve currency without spooking the marks.

I Think The Gun Helps

By Rusty Guinn | 24 Comments

Our kids are being rewired.

The data implicating the smartphone-based childhood are compelling but not conclusive – and may never be.

So how should governments, communities, schools and families decide what to do?

City of God / City of Man

An AI in the City of God

By Ben Hunt

The City of Man always wins.

The Visigoths always sack Rome. The Vandals always sack Hippo. Augustine always dies in the siege. Bad things always happen to good people … at scale.

Here’s how we use generative AI to flip the script.

Men of God in the City of Man, Part 1: Virus

By Rusty Guinn

This is a story about a virus and the gain-of-function research that produced it.

It’s not what you think.

Men of God in the City of Man, Part 2: Carriers

By Rusty Guinn

Every virus needs carriers to spread. Even a Narrative virus.

We can learn a lot from what they have in common.

Men of God in the City of Man, Part 3: Memetics

By Rusty Guinn

In the same way that genetics governs how physical viruses reproduce within a host, memetics governs how narrative viruses reproduce within a culture.

And the memes which govern our narrative virus are powerful.

Men of God in the City of Man, Part 4: Epimemetics

By Rusty Guinn

Every narrative is built on memes that have evolved and adapted to human culture over centuries.

But some environments change the way that those memes are expressed. The effects can be explosive.

Men of God in the City of Man, Pt. 5: Epidemic

By Rusty Guinn

Men of God prophesied as early as 2007 that God would make Donald Trump the President of the United States.

Our narrative virus gave these predictions fertile ground to take root.

Men of God in the City of Man, Pt. 6: Pandemic

By Rusty Guinn

Surprising outcomes in reality world that seem to confirm a narrative often produce explosive growth in its scale.

But also in its scope.

Men of God in the City of Man, Pt. 7: Mutation

By Rusty Guinn

Narrative viruses are not immune to events in reality world – especially when we have made those narratives part of our identity.

And when a narrative becomes part of our identity, it changes what we need to be true.

Men of God in the City of Man, Part 8: Zoonosis

By Rusty Guinn

Physical viruses sometimes jump from one species to another.

Narrative viruses sometimes jump from one culture to another.

All it takes is the right virus and a susceptible host.

Men of God in the City of Man is a nine part series about a narrative virus that infected the charismatic and Pentecostal churches in the United States. It isn't a story about Christian Nationalism. It isn't a story about January 6th. It isn't a story about why people voted for Trump. It is a story about a story. It is a story about the language that created a self-sustaining movement defined by its unwavering belief in a fundamentally corrupt electoral system.

Recent Notes

No Free Lunches

By Peter Cecchini

ET Contributor Pete Cecchini looks at the monetary and fiscal policy stimulus coming out of Washington and sees a staggering price to pay in lost real growth and massive institutional corruption.

A Truth That’s Told With Bad Intent

By Ben Hunt

A truth that’s told with bad intent
Beats all the lies you can invent.
– William Blake

Our narratives of COVID-19 are all lies.

They are lies of a particular sort, political narratives that have a nugget of truth within them, but are told with bad intent. They are told this way because it works. Because the nugget of truth hides a deeper, unpleasant truth. And a Big Lie.

Hateful Memes and Election Season

By Rusty Guinn

There’s light at the end of the pandemic tunnel, and there’s light at the end of the pandemic narrative tunnel. No, on second thought I think that’s an oncoming train called “election season.”

American Idol

By Ben Hunt

Take away a great performer’s live audience, and you take away their source of narrative power.

That’s true for American Idol. That’s true for Warren Buffett.

It’s also true for Donald Trump.

Too Connected to Fail

By Rusty Guinn

We have written that one of the major social changes occurring at present is the transformation of capital markets into public utilities.

The COVID-19 pandemic and policy response have accelerated that transformation. It is now the water in which we swim.

Office Hours – 4.28.2020

By Rusty Guinn

Join us this afternoon for the Pandemic Edition of Office Hours! As usual, we start promptly, so if you don’t have video within a short…

That Old Canard

By Rusty Guinn

We are now in the Flooz.com phase of the “how is COVID-19 going to change the world forever” process. Be careful out there.

Bear Stearns and the Narratives of Systemic Risk

By Ben Hunt

The systemic risk question you need to ask yourself today is the same question you needed to ask in 2008.

What is the micro-level truth of the potential real-world shock, and does that micro-level truth threaten the Common Knowledge surrounding a levered business model and securitized asset class of enormous size?

Through No Fault of Their Own

By Ben Hunt

I, for one, am delighted to learn of the “Through No Fault of Their Own” exemption to stock market risk.

One day, and soon, there will be a reckoning. Time to choose a side.

One for the Road

By Rusty Guinn

There was no greater sin between 2009 and 2020 than enduring a ‘constant drag on returns’. This is the Meme of Yay, Efficiency!, and it permeates every layer of our economy and markets.

Exigent Circumstances

By Peter Cecchini

ET contributor Peter Cecchini makes a strong case that the Fed is playing a dangerous game with its constant use of the “exigent circumstances” exception to Section 14 of the Federal Reserve Act.

Does the alphabet soup of new facilities and SPVs established by the Fed in recent weeks amount to an illegal taking of assets? It’s a reasonable question.

Even more reasonable: if not here, where do you draw the line?

Inception

By Ben Hunt

We’re going to change the world, you know … you and me. We’re going to create points of failure for the system of sociopathic oligarchy AT SCALE.

First the People

By Rusty Guinn

This is not a chronicle of errors and mistakes made during COVID-19.

This is the story about the inevitable, simultaneous failure of each of the institutions designed to operate in our interest.

It is the story of how we respond to fragility with resilience.

Frenemies

By Peter Cecchini

The oil narrative is not as it seems.

The White House and others assume the Saudis and Russians are at odds. Don’t be so sure. Their interests are aligned around disabling U.S. production. Period.

Our Finest Hour

By Ben Hunt

There is no country in the world that mobilizes for war more effectively than the United States. And I know you won’t believe me, but I tell you it is true:

This will be #OurFinestHour.

Until Further Notice

By Rusty Guinn

We have been asked to discuss our views about the CARES Act. In order to facilitate future such requests, we have provided what we hope to be a helpful rubric.

The Miracle Max of MBS

By Rusty Guinn

Sometimes investors and corporate executives will beg for a miracle to bring mostly dead assets back to life. That’s OK. But we don’t have to give it to them. And we don’t have to treat their requests as news in themselves.

Once in a Lifetime

By Ben Hunt

We are led by high-functioning sociopaths, in our politics and our economy, and nowhere is this more apparent than in our war against COVID-19.

How do we protect ourselves? Not by allying with the sociopaths, but by finding our pack.

When the Story Bends

By Rusty Guinn

Saying that “America needs to reopen for business” isn’t the same thing as doing what we need to reopen America for business. Words matter, but actions matter more.

Let’s do the right things. Now.

Getting PPE to Healthcare Workers and First Responders

By Ben Hunt

This is our personal effort to help identify *need*, *sources*, and *money* for personal protective equipment distributions to healthcare workers and first responders.