What's Mr Kondratieff Saying?

Regrettably Mr Kondratieff died in the vicious Stalinist purge of nonconformists in the 1930's. But his long economic cycle lives on and remains dominant in the world economy. Unfortunately he has been condemned to obscurity again, this time by those who misunderstood, misused, and marketed their own "intellectual" products on his name. Most analysts who still apply the logical implications of his work no longer mention his name as it has been cheapened by multiple marketers of junk economics.

But just this morning I read a brilliantly-written report by Sean Corrigan of Diapason Commodities which is as good an explanation of Kondratieff long cycle moves of interest rates, commodities, and stock equities as you will find in the dumbed-down 21st century. http://www.zerohedge.com/print/377456

Corrigan is a master of the English language in all its beauty and style! He does not mention Mr K by name, but he explains thoroughly how and and why interest rates, commodities, and equities are now and have been trading together or against each other, and why we are in a longer term worldwide commodity bull market.

Corrigan pretends to be a wee bit baffled by the "running together" of commodities and stock equities. Mr K would say that equities part company with commodities when commodity prices get "too high" and when interest rates also get "too high". The classic example within living memory was the 1965-72 rollover tops in equities as both commodity and interest rate pressures became too great for sustainable real corporate earnings growth.

Of course we now have a cabal of cretins at the wheel of government finance who will not allow rates to rise, and who cannot understand that keeping rates down increases what were already inflationary pressures for the past decade. Corrigan properly excoriates the cabal as comparable to a major traitor of the 1940's in their drive to destroy the value of the US dollar.

Corrigan's report is one to print, bind, put on your bookshelf, and read many times.