Modern Monetary Theory is correct in stating that a sovereign currency issuer cannot “run out” of the money they alone can produce. This means that the true constraint for a [ … ]

the widening by the high yield bond spread from an April 2011 average of 442 bp to a recent 732 bp warns of a possible quick end to the current credit cycle upturn. Each previous widening by the high yield bond spread to a width in excess of 700 bp occurred in the context of a credit cycle downturn that included a harsh and extended slump by high yield debt issuance. The record also shows that recessions tend to occur whenever the high yield bond spread’s month-long average tops 700 bp.

The misery index measures the supposed “misery” in the economy by adding the rate of inflation and the rate of unemployment.  Despite the historically benign rate of inflation the misery [ … ]

Credit Suisse says the recent action is nothing unusual in a post recession period.  They maintain that the markets are declining right in-line with past recovery ranges and will look [ … ]