Tuesday, 12 December 2017

Debt

Bernanke Hangs Loose

Posted by Gonzalo Schwarz
December 26, 2012
in Blog

by Frank Shostak On Wednesday December 12, 2012 Fed policy makers announced that they will boost their main stimulus tool by adding $45 billion of monthly Treasury purchases to an existing program to buy $40 billion of mortgage debt a month. This decision is likely to boost the Fed’s balance sheet from the present $2.86 trillion […]

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Phase Out the Fed With Sound Money Laws

Posted by Gonzalo Schwarz
August 20, 2012
in Blog

Although it is very encouraging that the House voted 327 to 98 to audit the Fed last month, it is virtually certain that the Senate will not concur this year. Moreover, it is virtually certain that Congress will not act to end or phase out the Fed any time soon. So, what’s to be done about […]

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David Stockman on the Debt Supercycle and Unsound Money

Posted by Gonzalo Schwarz
July 24, 2012
in Blog

At the latest Casey Research Conference, “Recovery Reality Check” in Weston, Florida, Casey Research’s Chief Technology Investment Strategist Alex Daley sits down with David Stockman, former Director of the Office of Management and Budget under President Ronald Reagan.   For more visit the cobdencentre.org… image: flickr.com/newamerica

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Power to China in the I.M.F. – Does this mean Gold to be Mobilized?

Posted by Gonzalo Schwarz
June 22, 2012
in Blog

by Julian D. W. Phillips  Contributions to the I.M.F. Come with Conditions  While the B.R.I.C.S nations are contributing to the I.M.F.’s funding with the purpose of shoring up the global financial system, they’ve stipulated that they want more power in the I.M.F. China is contributing $43 billion, so as it races to become the world’s leading economic and financial nation it wants a bigger part of the decision making process, commensurate with its rising power. So the first question to be asked is, “Will it get it?” The emerging countries –China, Brazil, Mexico, India and Russia— announced contributions to the IMF’s global firewall, nearly doubling the fund’s resources to $456 billion, at the G-20 summit in Mexico this last weekend as global efforts to restore confidence in the […]

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Lies, Damn Lies, and Government Statistics

Posted by Gonzalo Schwarz
June 11, 2012
in Blog

Just counting something as a part of “GDP” doesn’t actually make it a “product.” by Peter Schiff Last week in an interview on CBS Network News, Economist Mark Zandi, the chief economist for Moody’s, unwittingly revealed a central error of the global economic establishment. Zandi has made a career out of finding the middle ground between republican and […]

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The CBO Will Need A Bigger Chart To Forecast Exponentially-Rising US Debt

Posted by Gonzalo Schwarz
June 6, 2012
in Blog

 “They’re gonna need a bigger chart!” Submitted by Tyler Durden Courtesy of previous Zero Hedge disclosures, namely that the CBO has been in the past bothperpetually and grossly overoptimstic (their 2001 forecast of 2011 public debt was negative $2.4 trillion; instead the real number was positive $10.4 trillion, a delta of only $12.8 trillion) as well as explicitly biased by political and financial […]

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Think The US Student Loan Bubble Is Bad? You Ain’t Seen Nothing Yet

Posted by Gonzalo Schwarz
April 24, 2012
in Blog

Note to the Federal Government: Champagne bubbles are good. The bubbles you’ve been giving us? Not so much. Submitted by Tyler Durden By now virtually everyone has seen some combination of the two charts, showing the  magnitude of the student loan bubble, a topic which even Goldman Sachs decided to take on last week: The amount of student […]

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The Eternal Sunshine of the Spotless Conscience…

Posted by Gonzalo Schwarz
April 17, 2012
in Blog

If you’re at a table full of politicians and you can’t find the scapegoat, it’s you. by Monty Pelerin Sometimes a seminal event passes unnoticed.  Subsequent developments and hindsight eventually place it in proper perspective. Just such an event may have happened or be in the process of playing out regarding Ben Bernanke, Chairman of […]

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There Are Two Ways to Fix Monetary Policy: the Fast Way, and the Right Way

April 4, 2012
in Blog

…and the government way. The expectations of modest growth in January by the Fed deflated to moderate growth in mid-March. The monetary policy that the Fed and the Treasury have followed have failed to have the desired effects. But that doesn’t stop policy makers from trying the same medicine – even if the name for […]

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Do Government’s Love Debt Even More Than War?

Posted by admin
March 21, 2012
in Blog

Right now it’s a race, and though it’s hard to tell who’s winning, it’s obvious who’s losing. Submitted by Tyler Durden from ZeroHedge In a succinct and chart-laden presentation, Professor Antony Davies, of Duquesne, offers a simple perspective on just how bad things are for the US (in terms of debt or obligations). Putting the interest […]

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Taxes: The Seen and the Unseen

February 27, 2012
in Blog

If an inflation tax falls in the forest, and not one in a million understand it, does it make a sound?[1] According to a recent news report by Reuters, “President Barack Obama called on Monday for new spending to boost growth and higher taxes on the rich, laying out an election-year vision for America in […]

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Vicious Armed Robbery versus Sweet, Sweet Embezzlement

Posted by Gonzalo Schwarz
February 27, 2012
in Blog

All We Like Sheep   A classic by Joseph Sobran fitzgerald griffin foundation Once upon a time, my father bought Time magazine every week, as I do now. He paid 20 cents per issue; I’m paying $3.95. In my teens I bought paperback editions of Shakespeare’s plays for 35 cents each; now they cost about five bucks. I’m […]

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What Does Regime Uncertainty Look Like?

February 1, 2012
in Blog

To follow the development of the Euro crisis it sometimes feels like watching a slow motion movie where we know the final result, but we don’t know how is it going to be played out. News and uncertainty, again, about the future of the Euro and a potential default by Greece is like following the […]

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While You Were Reading This Headline…

Posted by Gonzalo Schwarz
January 27, 2012
in Blog

…the Federal Government just added $100 to your kid’s credit card debt. If you took the time to read this sentence also, there goes another $100.  And if you ask some bureaucrat how to end this, he will tell you to either have more children (to lower the per capita debt burden), or stop reading. […]

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The Financial System Drinking Game

Posted by Gonzalo Schwarz
January 27, 2012
in Blog

This will make you think twice about opening that bar tab. Explaining Modern Finance And Economics Using Booze And Broke Alcoholics Submitted by Tyler Durden on 01/27/2012 14:08 -0500 Courtesy of reszatonline, who brings us the following allegory by way of Tim Coldwell, we are happy to distill (no pun intended) all of modern economics and finance […]

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What Really Caused the Eurozone Crisis?

Posted by admin
December 29, 2011
in Blog

World leaders probably spent more time worrying about the eurozone crisis than anything else in 2011. And that was in the year that featured the Arab Spring, the Japanese tsunami and the death of Osama Bin Laden. What’s more, 2012 looks set to be not much different. But as eurozone governments hammer out new rules […]

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Oh, Nigel! “The Euro is a Failure”

Posted by Gonzalo Schwarz
December 28, 2011
in Blog

Bombastic European Speaker Nigel Farage MEP, UKIP, Co-President of the EFD Group in the European Parliament (Europe of Freedom and Democracy) shows American representatives how it should be done.  He attacks the failed currency union, unelected bureaucrats, and buying debt with debt.  People would actually tune in to C-Span if we had this kind of entertainment […]

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Is Deleveraging “Bad for the Economy”?

Posted by Tyler Watts
December 19, 2011
in Blog

A while back there was a story in the Wall Street Journal (“America’s Debt Cutting Hampers Growth,” Oct. 22) about deleveraging in the U.S. economy. American households, burned by the recession, have a new-found frugality and are reducing their overall debt loads for the first time in decades. Looks like a lot of people learned […]

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Choose Austerity, Before It Chooses You

Posted by Tyler Watts
December 15, 2011
in Blog

Strange and amazing things happen when sovereign debt levels get out of hand. In Europe, the strikes, massive street protests, and riots build energy by the day. The US is not quite at that stage of affairs yet, but large deficits and debt still loom large, so large, in fact, that some pundits have the […]

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The First International Financial Crisis: Free Banking Failure or Regulatory Failure?

December 2, 2011
in Blog

The Baring Crisis of 1890 is pointed out as the first modern international emerging financial crisis. The collapse of the banking system in Argentina came very close to triggering a financial crisis in London, the major international financial center. Banks in the United Kingdom were highly exposed to Argentinean debt, especially the Baring Brothers & […]

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Can the European Monetary Union Survive Greece?

Posted by Gonzalo Schwarz
September 26, 2011
in Blog

Failure to act carries the “threat of cascading default, bank runs and catastrophic risk,” [U.S. Treasury Secretary Timothy F.] Geithner said in a Sept. 24 statement to the IMF, his strongest public lobbying yet.

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Gold Standard or Bust

Posted by Intern
July 25, 2011
in Blog

Article and photo originally published at The Weekly Standard August 1, 2011 As the truth-or-dare battle over raising the debt ceiling moves toward a resolution of some sort, we are witnessing a unique political moment, with attention finally riveted on our nation’s fiscal future. We are about to learn whether there is such a thing […]

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“Gold Bubble, Debt Bubble, or Both?” – Seeking Alpha

Posted by Tom Duncan
May 24, 2011
in Blog

“To begin, the national debt has provoked concern over the stability of US debt. Last month Standard and Poor’s revised its sovereign credit rating of the U.S. in the long-term from stable to negative. Last week the US reached its debt limit, which, justified or not, has perpetuated this anxiety. The cause of these fears […]

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The Central Planning Elephant in the Room

Posted by Tyler Watts
May 23, 2011
in Blog

Roberts and Papola have done it again: a rap video that explains the divergent views of two of the most prominent economists of the 20th century. It’s  better than most textbooks, and entertaining to boot. It’s “Fight of the Century.” The video is a follow-up to their 2009 Youtube hit, “Fear the Boom and Bust.” […]

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“Who’s Gonna Bail Out the Fed?” – Forbes

Posted by Tom Duncan
May 23, 2011
in Blog

“In ordinary times it would be ignorant to ask, “Who’s going to bail out the Fed?” — but then again these aren’t ordinary times. Solvency of the Federal Reserve Bank shouldn’t be an issue because it carries the full faith and credit of the United States of America. In theory, the only way the Fed […]

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“Why the U.S. Needs to Stop Dodging the Debt Bullet” – Forbes

Posted by Tom Duncan
May 17, 2011
in Blog

“Practically speaking,a ceiling that is raised automatically is no ceiling at all. Given that, why not dispense with the pretense? The reason is politics. No Congressman wants to be on the record voting for unlimited debt, yet most are willing to rail against fiscal recklessness while raising the ceiling every time it’s reached. Any Congressman […]

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“Slow Growth, Inflation Makes US Bonds Bad Buy: Gross” – CNBC

Posted by Tom Duncan
May 16, 2011
in Blog

“The US economy is headed for a period of higher inflation and lower growth that makes the nation’s debt unappealing when measured against its global competitors, Pimco’s Bill Gross told CNBC. The head of the world’s largest bond firm, with nearly $1.3 trillion under management, explained the firm’s position further as it has cut out […]

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“U.S. Government Spending Is the Biggest Threat to Economic Recovery” – Money Morning

Posted by Tom Duncan
May 12, 2011
in Blog

“Bernanke continues to dismiss inflation as a big U.S. economic concern, and the Fed decided last week to keep interest rates between 0.00% and 0.25% “for an extended period.” But U.S. consumers have complained that sky-high gasoline prices are eating away at household budgets and now some retailers are starting to raise prices. The U.S. […]

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“From Pleasant Deficit Spending to Unpleasant Sovereign Debt Crises” – White

Posted by Tom Duncan
May 5, 2011
in Blog

“Economists have long disagreed seriously about the costs and benefits of government budget deficits and debt. Following the Second World War, a clash between Keynesian and―orthodox fiscal policy views arose. The debate waned as fiscal Keynesianism won the day, then resumed as monetarist and new classical economists challenged Keynesian thinking in the 1970s. Economists became […]

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“Can the Federal Reserve Print to Prosperity?” – Forbes

Posted by Tom Duncan
May 4, 2011
in Blog

“The side affect of all of the money supply and low interest rates is that commodity prices continue to rise, which is hitting the middle class rather hard. And with consumers making up 70% of the economy, this is a real drag on real economic growth. We have printed a lot of money but the […]

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“Federal Reserve’s Politicization Is Dangerous”

Posted by Tom Duncan
May 2, 2011
in Blog

“It might help getting our minds around what is so wrong in America today by thinking about the local police force. It’s not hard to understand that the job of the police is to protect lives and property. Suppose we decided to broaden their mandate. Suppose each municipality decided that the job of the police […]

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“Debt Limit Standoff: 10 Things to Watch” – The Hill

Posted by Tom Duncan
April 27, 2011
in Blog

“Republicans and Democrats on Capitol Hill are strategizing for what is expected to be a bruising debate on raising the nation’s debt limit and reining in government spending. The Obama administration has set an early-July deadline for lifting the $14.3 trillion debt ceiling, a move that congressional leaders agree must be done.But some Tea Party […]

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“Debt-Ceiling Strategies” – NRO

Posted by Tom Duncan
April 26, 2011
in Blog

“The conventional wisdom in Washington — on the left and among many on the right — is that the debt ceiling must be raised in order to avoid defaulting on the national debt, a potentially catastrophic scenario, the thought of which has business and financial leaders lobbying hard to raise the ceiling. Plenty of conservatives […]

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Deficit Spending on the Backs of the Poor

Posted by Tyler Watts
April 25, 2011
in Blog

Rejecting any serious cuts to government spending, President Obama stated recently, “Nothing is easier than solving a problem on the backs of people who are poor, for people who are powerless and don’t have lobbyists or don’t have clout.” Exactly. In the context of Obama’s much-discussed budget speech of a few days ago, one would […]

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Stop Printing Money, Inc.

Posted by Tom Duncan
April 18, 2011
in Blog

“America currently has $14 trillion in debt on the books and another $70 trillion or so in unfunded entitlements and pensions that are not yet on the books. These debts will never be repaid with dollars at current value. Either America will devalue its currency through inflation or it will default on its promises and […]

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“Welfare and Inflation Create Endless Spiral” – Henry Hazlitt

Posted by Tom Duncan
April 7, 2011
in Blog

“As to where the money is coming from, Humphrey announced, “We can pay for it out of a growing, expanding economy. And it is actuarially sound.” It is depressing to record that three days later, on Sept. 28, Richard Nixon also proposed that Social Security benefits be increased automatically to offset cost-of-living increases. The blunt […]

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“ECB Cannot Tailor Monetary Policy to Individual Countries” – FT

Posted by Tom Duncan
March 30, 2011
in Blog

“The benefit of maintaining price stability in the eurozone as a whole, and thereby keeping the inflation risk low, becomes even greater in times of crisis. At the height of the financial crisis, the ECB lowered interest rates aggressively in the face of downside risks to price stability. To the extent that these risks tilt […]

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“Crises Nudge Debt Loads to Brink” – WSJ

Posted by Tom Duncan
March 28, 2011
in Blog

“The financial strains created by crises in Japan and Europe highlight a growing problem: The rich world is getting close to the point where it won’t be able to bear the costs of another disaster. Japan and Europe face very different crises—one brought on by nature, the other man-made. But from a financial perspective, they’re […]

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“Taming Leviathan” – The Economist

Posted by Tom Duncan
March 25, 2011
in Blog

“Costly though it has been, the financial crisis has merely brought forward a fiscal reckoning. In most of the rich world ageing populations have been driving up the cost of public health care and state pensions. Emerging countries that are becoming richer, such as China and India, are now wondering what sort of state they […]

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Like fish in a barrel.

Posted by Gonzalo Schwarz
March 22, 2011
in Blog

The most important matter to anyone concerned with expanding freedom by limiting government is the matter of sound money. In fact the definition of sound money boils down to freedom of choice in money. Alternatively, control of the money is the source of a government’s unlimited growth. Any paper constraint can be washed away with […]

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“Economic Outlook: The new Greece” – UPI

Posted by Tom Duncan
February 16, 2011
in Blog

“Budget plans seldom have happy as a starting point. Spending proposed by the White House Monday is certainly no exception. Facing a Republican majority House, the budget sets up a dancing-as-fast-as-we-can scenario, like a Mexican hat dance, in which someone throws the words “budget cuts” in the middle of the floor, then everyone dances around […]

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“Fed Keeps Pedal to the Metal As Egypt Unrest Weighs on Markets”

Posted by Tom Duncan
January 31, 2011
in Blog

“The Fed’s policy statement on Wednesday afternoon said emphatically what we have discussed here endlessly: Nothing is going to stop these guys from completing their mission. Nothing. Nunca, nada, niete. The guvs said neither the most recent pick-up in up in economic growth nor the continued surge in commodity prices would deter them from continuing […]

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“Chronicle of a Debt Foretold” – Economist

Posted by Tom Duncan
January 28, 2011
in Blog

“An odd thing occurred this week. Britain’s national debt jumped by £1.3 trillion, virtually 100% of GDP, and hardly anyone paid attention. The bad news was crowded out by the surprise 0.5% drop in national output in the last quarter of 2010. There was reason to this apparent insouciance. What happened was that the figures […]

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“Transcript: GOP Response From Rep. Paul Ryan” – NPR

Posted by Tom Duncan
January 26, 2011
in Blog

“Millions of families have fallen on hard times not because of our ideals of free enterprise — but because our leaders failed to live up to those ideals; because of poor decisions made in Washington and Wall Street that caused a financial crisis, squandered our savings, broke our trust, and crippled our economy. Today, a […]

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Judy Shelton on Just Facts Radio!

Posted by Tom Duncan
January 26, 2011
in Blog

“On January 25, 2011 Jim Agresti and Steve Cardone interviewed eminent economist and global finance specialist Dr. Judy Shelton about the importance of sound money. Dr. Shelton is Co-Director of the Sound Money Project at the Atlas Economic Research Foundation. She has provided expert testimony on numerous occasions before the Joint Economic Committee, Senate Banking, […]

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“Put Off Badly Needed Budget Cuts? Austerity Doesn’t Mean No Growth” – Reynolds

Posted by Tom Duncan
January 19, 2011
in Blog

The Times’ real point was to argue that, “Whatever the sum .. . cutting billions would be foolish at a time when joblessness is high and the recovery needs stimulus, not tightening. … Spending cuts need not and should not start today, but the nation needs to put a credible plan in place now to […]

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“Dodd-Frank and the Return of the Loan Shark” – WSJ

Posted by Tom Duncan
January 19, 2011
in Blog

“Banks can also drop riskier borrowers completely. In his letter to shareholders last spring, Jamie Dimon of J.P. Morgan Chase reported that, “In the future, we no longer will be offering credit cards to approximately 15% of the customers to whom we currently offer them. This is mostly because we deem them too risky in […]

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“Foreigners Shun Europe’s Bonds, and Debt Piles Up” – NYT

Posted by Tom Duncan
January 13, 2011
in Blog

“Greece. Ireland. And now, it seems, Portugal. While the circumstances that have driven these debt-ridden members ofthe euro zone to the brink differ, they share one common characteristic: all three countries aggressively tapped their domestic banking systems for more debt long after they had been shut out of international bond markets.” Read more.  “Foreigners Shun […]

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“Could the U.S. Central Bank Go Broke?”

Posted by Tom Duncan
January 12, 2011
in Blog

“While that day seems distant now, some economists and market analysts have even begun pondering the unthinkable: could the vaunted Fed, the world’s most powerful central bank, become insolvent? Almost by definition, the answer is no. As the monetary authority, the central bank is the master of the printing press. It can literally conjure up […]

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“Bernanke Rejects Bailouts” – WSJ

Posted by Tom Duncan
January 12, 2011
in Blog

“Mr. Bernanke played down the risk of a major municipal-bond crisis, noting that muni markets have been functioning normally, with healthy trading volumes and lots of issuance. But he said that if municipal defaults did become a problem, it would be in Congress’s hands, not his. “This is really a political, fiscal issue,” he said. […]

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