In 2022, geopolitical analyst Peter Zeihan coined the term “hyperfinance” to describe China’s economic system – government investments in unprofitable enterprises aimed at creating jobs and maintaining social stability above creating wealth. The United States, albeit inadvertently, developed its own version: an economic environment where excess capital chases too few investment opportunities, resulting in capital flows into uneconomic
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The StudioCo Story
Act 1: A Legacy on the Brink
StudioCo was a small independent film studio with 16 sound stage lots in the heart of Los Angeles, which began as a beacon of Hollywood’s Golden Age. Founded in 1918 during the Silent Film Era, it produced cinematic landmarks such as Gone With the Wind (1939), Citizen Kane (1941), and E.T. the Extra-Terrestrial…
Why American Healthcare is Screwed
The health of America’s healthcare system is in decline. Costs continue to rise, the availability of care is diminishing, and the quality of care is problematic. The capacity for providing healthcare in America is simply not keeping pace with the aging population and their growing healthcare needs. Healthcare providers need to adapt to the changing business environment to survive.
Providing…
Why The Hell Hasn’t The Supply Chain Been Fixed?
When it comes to the supply chain, few things have captured people’s imaginations more than last year’s shipping queues off of the California coast. While those lines are long gone, the supply chain is not only worse off today, but quickly approaching a near and total logjam.
Production in China
Let’s examine today’s supply chain woes by following the path…
There Is A Growing Revolution In Private Equity
Written by: Dillon Zwick
Edited by: Jon Nash
In the early 1980s, the junk bond king Michael Milken and his investment banking firm Drexel Burnham Lambert ran into a difficult problem: they were too successful. They were so good at selling junk bonds that they ran out of junk bonds to sell. To solve this problem, they realized a company…
Econ Update: Hey, What’s Going On?
Currency Crisis and Dollarization
In the past few months, there have been a lot of discussions about de-dollarization in response to the weaponization of finance, but in the markets, we have seen the exact opposite. Since November, the dollar index is up 8.5% and continues a precipitous rise.
So, What’s Going on?
Over the past several decades, the global economic…
The Price Of Food Is Too Damn High!
The rapid increase in food prices will be one of the biggest challenges of 2022. In 2021, US grocery prices rose 7%, while world food prices jumped 28%. Absent substantial government intervention, global food prices are on pace to reach all-time highs during the spring harvest. Cost increases are being driven by Covid, labor shortages, supply chain issues,…
Age Of Disruption Part 4: Between a Rock And a Hard Place
The US economy, while recovering, is now at a pivotal juncture. We are facing both slowing growth and increasing supply-side inflation. The Federal Reserve Board (FED) has to decide between two different paths, maintain its dovish easy money policy in an attempt to keep growth strong or switch to a hawkish path of less stimulus and higher rates to keep…
The Age of Disruption Part 3: It’s Getting Hot In Here
We are on the precipice of two global crises that will have significant bearing over the next decade: the climate crisis and the sovereign debt crisis.
According to the most conservative models, the climate crisis will cause historic and unpredictable weather patterns, endangering supply chains and the food supply. The result will be increased food insecurity, political instability, mass migration,…
The Age of Disruption Part 2: Step Aside Globalization, It’s Time For Near Sourcing
In 1944, the Brenton Woods agreement established the US Dollar as the global reserve currency, with all other currencies pegged to the dollar. That link came undone in 1971 when the US went off the gold standard, which caused all currencies previously tied to the US Dollar to have free-floating exchange rates. The initial result was a significant devaluation of…