I have made it a practice to keep on file notable correspondence both written and emailed. From time to time, I go through these archives. Some of this correspondence is quite timeless and still relevant.I encountered the text of one such letter as I…

“Called a Long-Term Equity Anticipation Security (LEAPS), the trade was matched by the platform this morning and is set to expire on December 28, 2018. Such long term futures options have long been seen in the industry as a much needed sign of maturity, and could in part help pave the way for even more institutional money to enter the space.”

“The Chinese yield curve has now been inverted for 10 straight days – the longest period of inversion ever. Qin Han, chief fixed-income analyst at Guotai Junan Securities Co., doesn’t mince his words when it comes to the rout in Chinese bonds. ‘Considering the pace of the slump, which is very fast, it’s fair to say we are likely in a bond disaster…'”

“Washington has suspended it way into a $5.7 trillion increase in the public debt in just six years since October 2011. That is, during a period which supposedly constitutes the third longest business expansion in US history. At the end of the day, you can’t borrow your way to prosperity. That’s the oldest rule in the book of sound money and sustainable finance. And it’s about ready to be learned all over again.”

“Credit-rating agency Moody’s estimates state, federal and local government pensions are $7 trillion short in funding. And corporate pension funds are underfunded by $375 billion. One of the big drivers behind this is that investment returns are way too low. Today with government bonds yielding 3% or less (and in some cases bond yields are NEGATIVE), they aren’t achieving their targets. One or two years with sub-optimal investment returns is not catastrophic. But it’s been like this now for a decade. And that’s just problem #1. Problem #2 is that the ratio between workers and retirees is moving in the wrong direction.”

“The infrastructure-building, law-codifying, biopolitical states of antiquity are not the starting points of universal history for Scott, as they were for both Marx and liberal historians. They are instead a kind of usurpation of a longer and quite possibly richer human practice of mobility and freedom.”