California and The Art of Economic Suicide

Posted on February 13, 2026 by MN Gordon

“The art of economics consists in looking not merely at the immediate but at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups.”

– Henry Hazlitt, Economics in One Lesson (1946)

The Golden Fleece

Have you heard of California’s latest act of economic suicide? Once again, the Golden State’s come up with new and ridiculous ways to turn gold into lead.

If you haven’t been watching the headlines, the 2026 California Billionaire Tax Act (Initiative No. 25-0024) is officially making its way onto the stage. Sponsored by the SEIU-United Healthcare Workers West, this ballot measure wants to slap a one-time 5 percent excise tax on the net worth of every individual in the state worth over $1 billion.

The measure’s sales pitch even has a nice, philanthropic ring to it: “Eat the rich to save the sick.”

In reality, it’s a classic case of what happens when a state treats its most productive citizens like an ATM with an infinite balance. It’s also another fine example of why California’s circling the toilet bowl. Continue reading →

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The Tale of Mr. Scrap Metal

Posted on February 10, 2026 by MN Gordon

When a national economy has been completely overrun by a crooked socialist political class, hope, along with prospects for individual prosperity, fades. Decisions cease to be made for financial or economic reasons. Instead, entrenched politics and corruption direct the flow of capital to the greedy insiders at the expense of the many.

Today we return with another guest article from our friend Joel Bowman and his Notes From the End of the World. If you recall, Mr. Bowman, from his outpost in Buenos Aires, Argentina, has a front row seat to what he’s dubbed, The Greatest Political Experiment of Our Time.

Over the last two years, President Javier Milei has executed aggressive shock therapy. He’s slashed government spending, halved ministries, and eliminated thousands of bureaucratic roles to crush hyperinflation and dismantle a corrupt, statist political caste.

The best way to understand what this means, really, is through tales and anecdotes offered by elders who’ve lived through the endless decades of political and economic corruption. If this interests you, you’re in for a real treat. Continue reading →

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How to Trade the Warsh Doctrine

Posted on February 6, 2026 by MN Gordon

Over the last week, the precious metals market went through a meat grinder. Gold and silver went from moon shot to abrupt crash and back to liftoff in the span of about a week. It’s been a classic case of market psychology, leverage, and the sheer chaos that happens when Washington throws a spitball at Wall Street.

Several distinct features come to mind. The “Warsh Shock and Flaw”, for example, and why the inflation hawk narrative you’re hearing on the news is likely wrong.

To understand where we are, we have to look at how we started 2026. Quite frankly, January was insane. Gold wasn’t just rising. It was skyrocketing. By January 29, gold hit a staggering all-time high of $5,608 per ounce. Silver was even crazier, breaching $120 per ounce; up nearly 70 percent in a single month.

But, as anyone who’s followed markets for a cycle or two knows, prices cannot go vertically for long. A rapidly rising market will soon outpace the underlying economic reality. A peak is reached where the cost of assets exceeds the available pool of capital and the actual productivity of the economy. Continue reading →

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Ghosts of the Plaza Accord

Posted on January 30, 2026 by MN Gordon

Imagine you found a magical bank that lets you borrow money at 0 percent interest. Naturally, you’d take that free money and put it into a high-yield savings account or the stock market to pocket the difference, right?

That, in a nutshell, is the Yen Carry Trade. For over a decade, Japan’s interest rates were stuck near zero – or even negative. Investors, from massive hedge funds to Mrs. Watanabe (the stereotypical Japanese retail trader), borrowed trillions of yen for next to nothing, swapped them for U.S. dollars, and bought higher-yield assets like U.S. Treasuries or even high-flying tech stocks.

It was the ultimate infinite money machine until very recently. Now the glitch has started to fix itself as increased volatility ripples through global markets. The carry trade only works if the yield differential – the gap between Japan’s rates and everyone else’s – stays wide. But in 2026, that is starting to change.

The Bank of Japan (BoJ) finally blinked at inflation in early 2024 and started slowly nudging interest rates up from below 0 percent. Simultaneously, the U.S. Federal Reserve, under intense pressure from President Trump, has been slowly cutting rates. Continue reading →

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