Enterprise "Zones" for Chronically Unemployed Individuals
Monday, the 16th of August 2010
Special Economic Zones (SEZ), or enterprise zones are known the world over for their ability to stimulate business. In China, they were begun in the 1980s as a way to increase foreign direct investment. Why not adapt them to reduce unemployment?
Debunking Deflation
Thursday, the 12th of August 2010
Now that almost every Wall Street economist is looking for the arrival of a Great Deflation, we think investors should begin looking the other way. Keep an eye out for inflation, we say.
Two Roads to Bankruptcy
Thursday, the 29th of July 2010
The U.S. government debt is climbing by the second (see the debt clock). And that doesn’t count Medicare, Social Security, the states (which will need to be bailed out), and the European countries that are grossly over-extended.
Keeping Interest Rates Low
Friday, the 25th of June 2010
Many people believe the Fed should keep interest rates low because low interest rates make it easier to service debt and they allow restructuring of the financial industry to occur more quickly. Still others…
The gold standard: generator and protector of jobs
Monday, the 21st of June 2010
The abandonment of the gold standard in 1971 is closely tied to the massive unemployment the industrialized world has suffered in recent years…
Inflation Causing Decline in U.S. Standard of Living
Wednesday, the 19th of May 2010
The Bureau of Labor Statistics (BLS) today released their Consumer Price Index (CPI) report for the month of April, which showed year-over-year price inflation of 2.24%. This was down from March's year-over-year increase of 2.31%. As discussed in NIA's new documentary 'Meltup'…
There Are Two Prices: Which One's for You?
Monday, the 17th of May 2010
Most people probably think I mean bid and ask, but that's not what I'm talking about. I mean...
Unwitting Speculators
Thursday, the 22nd of April 2010
In The Swaps That Swallowed Your Town, Gretchen Morgenson refers to the credit default swaps that hid Greece’s obligations, the costs to New York State to close out swaps in which Lehman Brothers was the counter-party, and swap-imperiled Jefferson County, Alabama, which is on the verge of bankruptcy. Apparently, part of the problem lies with swap advisers, who have a vested interest in seeing to it that a swap is purchased.
Hyperinflation Looms—The Dollar Arrives at Its ‘Havenstein Moment’
Wednesday, the 21st of April 2010
There is an interesting article in Canada’s Globe & Mail about the lack of growth in the US money supply. Ignoring for the moment that the quantity of dollars in circulation is significantly underreported, it observes…
Healthcare Bill to Cause U.S. Hyperinflation By 2015
Wednesday, the 7th of April 2010
The National Inflation Association today issued a warning to all Americans of a potential outbreak of hyperinflation in the U.S. by year 2015 caused primarily by the healthcare bill and rising interest payments on our national debt. Medicare was created in 1966 at a cost of $3 billion per year and the House Ways and Means …
Government for the People or Over the People?
Wednesday, the 31st of March 2010
How can you tell whether a government is for the people or over the people? Here are some tell-tale signs:
U.S. Decline, Sloth Look a Lot Like End of Rome
Tuesday, the 30th of March 2010
Historians cite the late second century as the turning point of the Roman Empire, when the once-proud, feared society began its descent into infamy. As the ruling class was undermined by civil wars and attacks by outsiders, the …
US Dollar Money Supply Is Underreported
Wednesday, the 17th of March 2010
As the financial crisis has unfolded over the last two years, the Federal Reserve has been responding in a variety of unprecedented ways. Therefore, it is logical to assume that these never-before-used actions have altered long-established ways of viewing things. One area that has been impacted is the US dollar money supply.
The Composition of Wealth
Thursday, the 25th of February 2010
Back in college (early 1970s), I remember in Dr. Sennholz's U.S. Economic History class his comments about the composition of wealth in a socialistic country versus a capitalistic country. At the time, he compared India's wealth during the late 1800s with that of the United States during the same time frame.
The U.S.: Land of the Free and Home of a Nearly Failed Treasury Auction of Its Own
Thursday, the 18th of February 2010
While most of the investment world focuses on the various ”senior officials” (none of whom seem to have actual names or positions) commenting on whether Greece will or will not be bailed out / receive an emergency loan / be offered moral support, a far more significant debt story is emerging in the US.
John Embry: Why gold will keep going up for years
Monday, the 1st of February 2010
Good afternoon. It is once again a great pleasure for me to address a knowledgeable gathering at Joe Martin's always excellent Cambridge Conference.
When I was here last year gold was around $850 and there was the usual angst among mainstream commentators fearing a drop to $600 per ounce or worse. Today the price is roughly $300 higher and the same individuals continue to try to frighten the public with prophesies of vertiginous falls in the gold price. Despite this ongoing aggravation, I am even more bullish on the prospects for gold than I was a year ago.
However, despite my consistent enthusiasm for the yellow metal once termed a "barbarous relic" by Lord Keynes, I still have …
Some Problems with Nationalizing Businesses
Tuesday, the 26th of January 2010
Whether governments nationalize their country’s farms (Zimbabwe), oil industry (Venezuela), or mortgage industry (U.S. -- Federal Home Loan Mortgage Corporation and Federal National Mortgage Association), they all have several things in common.
Timothy Geithner Meets Vladimir Lenin
Wednesday, the 6th of January 2010
“The best way to destroy the capitalist system is to debauch the currency.”
Vladimir Lenin, leader of the 1917 Russian Revolution
Last week, while Congress and the nation were preoccupied with the holidays, the Treasury made a Christmas eve announcement that it would be providing Fannie Mae and Freddie Mac unlimited financial support for the next three years.
Is it all just a Ponzi scheme?
Monday, the 28th of December 2009
In our May/June Markets at a Glance, "The solution…is the Problem", we discussed how much debt the US government would need to issue in order to balance the budget for fiscal 2009. We calculated they would need to sell $2.041 trillion in new debt - or almost three times the new debt that was issued in fiscal ...
Gold bull has many years, thousands of dollars to go
Monday, the 28th of December 2009
The gold market powered its way to a succession of new all-time highs in the wake of India's stunning purchase of 200 tonnes of IMF gold and mounting concern about the fate of the U.S. dollar. There is little doubt that India's actions drew widespread attention to a historic shift in the attitude of central banks towards gold.
Inflation: The War Against Money
Wednesday, the 23rd of December 2009
It's a two-pronged attack: people are forced to accept a money-substitute instead of money; and propaganda is used to convince them that the money-substitutes (paper money) are OK—confusion reigns.
Will Sovereign Debt Defaults Bring the End of Socialism?
Tuesday, the 22nd of December 2009
Socialism has come to mean many different things to many people, but regardless how it is defined, in the months immediately ahead it will be put to a rigorous test. The test will be visible to everyone as countries around the globe run out of money and confront overwhelming debts that cannot be repaid as well as other wide-ranging financial promises that can no longer be met. In short, the ideological bankruptcy of socialism will be laid bare by…