The Gryning | Essay's
Hi All
I've been asked about the possibility of writing longer form notes or comprehensive overviews, similar to monthly or quarterly investment manager letters. In light of the current state of affairs, financially and politically, this is how I have put the major inflection points into context and looked to add some value.
The Gryning Essay’s offers a comprehensive understanding of the major talking points in the world of finance this year. Featuring 9 essays, written in real time, the book delves into the most important topics facing investors and financial professionals in 2022 - from the impact of rising interest rates to the future of cryptocurrency.
The essay’s are put together to be a valuable resource for anyone looking to gain a deeper understanding of the financial landscape and make informed decisions about their investments.
If I should be so bold, click below to stay ahead of the curve and position yourself for financial success in 2023.
Introduction
“The thing that hath been, it is that which shall be; and that which is done is that which shall be done: and there is no new thing under the sun.” – Ecclesiastes.
The Gryning | Essay’s applies this principle to the subject of credit bubbles.
The ancient Greeks discovered that debt could magnify wealth;
· The debtor feels richer from the use of the borrowed property.
· The lender feels richer from the compounding interest yielded by his claim.
· Both indulge in consumption more freely.
As long as the accumulating claims remain contingent, the bubble grows. But, eventually, someone asks to be paid, and the expanding claims on wealth must be reconciled to tangible wealth, much of which has been consumed.
The first recorded credit bubble popped in 594 B.C. Athens.
Threatened with a civil war of creditor versus debtor, the Athenian ruler Solon pulled down the mortgage stones to free the debtors and devalued the drachma by 27% to relieve the bankers. Every credit collapse since – from the Panic of A.D. 33 to John Law’s Mississippi Bubble to the Great Depression and many others besides – has followed Solon’s template of debt default and currency devaluation.
“The natural remedies, if the credit-sickness be far advanced, will always include a redistribution of wealth: the further it is postponed, the more violent it will be. Every collapse of a credit expansion is a bankruptcy, and the magnitude of the bankruptcy will be proportionate to the magnitude of the debt debauch. In bankruptcies, creditors must suffer.” – Freeman Tilden, 1936
And against what is currency and debt devalued? Carl Menger, founder of the Austrian School of economics, was the first to explain that money is liquidity and that gold is the most liquid asset. Thus, gold has served as the reference point of value since the origins of money and is that against which currency must be devalued to relieve debts.
Paper promises depreciate.
“The faith is lost. All with one impulse people rush to seize the gold itself as the only reality left—not only people as individuals; banks, also, and the great banking systems and governments do it, in competition with people. This is the financial crisis.” – Garet Garrett, 1932
The Gryning | Essay’s chronicle the collapse of the current, global credit bubble – the largest and broadest in history – analyzing current events from the perspective of Austrian economics and placing them in historical context.
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