Debt replaced gold as wealth. One man's debt is another man's income. But it would seem the Fed would defend bonds over stocks as the author asserts, since bonds have replaced gold as wealth.

Interesting discussion. Morgan Stanley assumes the Fed will act rationally and not break stuff. That would be news.

For some, conspiracy is easy to spot. Others not so easy. But why don't we look at a revealed conspiracy that has to do with economics? Kashkari, president of the Minneapolis Fed revealed that the Fed prunes wages. If you look at the chart it is pretty obvious. Many, like Jeffrey P. Snider says the Fed is grossly incompetent. I would agree, and that is built in. But, the liquidations over history, and this obvious pruning of wages, where a rise in wages always precedes a recession, is a proven and admitted conspiracy. You guys are so certain there are no conspiracies. Read: www.talkmarkets.com/.../kashkari-reveals-dark-secret-fed-plan-for-wages

We supported rebels associated with ISIS in Syria against a sovereign government. We invaded sovereign Iraq to dispose of weapons of mass destruction that did not exist. Now Iraq and Iran are buddies. Can you blame nations that oppose our regime change and aggressive imperialism?

Iraq started the Iran/Iraq War. The nation of Iran has not started a war for over 200 years. I am not defending Iran. It is a brutal regime towards its people. But I don't know where you are getting your information, Larry. Even Reddit analysis marks your view as incorrect: www.reddit.com/.../when_was_the_last_time_iran_attacked_another/

Larry, until we start being honest about who really did 9/11 and who was really involved our nation is headed on a slippery slope of moral decline. I take the word of firefighters. And Dan Rather. There were explosions in the buildings. The planes by themselves did not take the trade center down. There is even video proof of squibbs ejecting from lower windows.

But as far as Iran is concerned, they are a sponsor of terror because we deposed their king, the Shah of Iran, and in their history we are an ever present danger. Perhaps if we did something for the Palestinians, Iran would modify its mistrust. We have done nothing in the middle east to encourage trust. Regime change does not encourage trust. Yes, Iran has done some awful things and has awful leadership. But we have as well. You just don't want to admit it, Larry.

And we could be headed toward even greater trouble as a nation if Donald Trump's worldview is applied to the fullest: www.talkmarkets.com/.../trumps-punishment-of-china-the-start-of-a-radical-rejection-of-foreign-capital

Iran is not a national security threat to the USA but obviously that nation makes the Saudis and Israelis nervous. With Trump our allies in the middle east have become more important to us than Canada and Europe and Japan. It would be interesting to be a fly on the wall to see if big finance is buying into or even directing this shift.

Great article! I don't buy the author's argument that tariffs will bring lower unemployment and higher wages, except in cases where there is massive unemployement to start with as the author points out. But concepts in this article are very valuable in understanding our economy and global interaction.

Are we winning yet? Shrinking job market.

Central banks don't care if stock markets crash. Just makes bonds look better.