February, 2011

“Conditions are Spinning Out of Control”

For those foolish enough to fall for the government propaganda that a recovery is underway, caution and reconsideration are in order. All that governments have left is to promote the illusion of a recovery. They have exhausted their money, creditability and citizens’ patience. Gerald Celente described their actions: From the onset of the financial crisis that began in August 2007, [...]

Modern Government

An email sent by a reader conveys all you need to know about the efficiency and forthrightness of current government: All you Need to Know about non-partisan US Government and Bureaucracy: ** Pythagorean theorem: ……………………………………………….. 24 words. ** Lord’s prayer: ……………………………………………………………. 66 words. ** Archimedes’ Principle: ……………………………………………….. 67 words. ** 10 Commandments: ………………………………………………….. 179 words. ** Gettysburg address: ………………………………………………….. 286 [...]

Silver — Over or Under-Valued?

From the Daily Reckoning is this perspective on Silver. Whether it is over or under valued is your call. However, these numbers provide one basis for making a judgment. How Much More Demand Can Silver Handle? by Jeff Clark The numbers for silver demand are starting to make some market-watchers nervous. The US Mint sold over 6.4 million silver Eagles in [...]

Who is to Blame for our Mess?

It pains me to watch my country deteriorate. As many know, I consider our condition past the tipping point in terms of economics, politics and simple mathematics.  This condition did not develop overnight or in the last couple of years. It has been coming on for a very long time. What has happened recently is a massive, unnecessary acceleration of [...]

Inflation vs. Deflation

David Rosenberg summarizes the tug of war between inflation and deflation: Pricing power improving • Air fares: +2.2% and have now posted 2%+ gains in each of the past three months (during which prices have soared at a 33% annual rate). • Delivery services: +6.8% MoM in January in the third best pricing month ever, and were up four months [...]

Cairo Coming to a Town Near You

The Federal Reserve pretends that Quantitive Easing  is helping the economy. It is now obvious that it is not. At best, QE provides a political diversion. It makes the economy look like it is improving (or at least not worsening), but only for a short period of time. Eventually that effect wears off and  it results in high levels of [...]

Wisconsin is Only the Opening Act

Madison, WI may be taking up most of the domestic headlines with its budget battles, however that will change. All states and municipalities are, to various degrees, similar to Wisconsin. Government spending is not sustainable. The fantasy world of the last couple of decades produced higher GDP as a result of debt expansion. Neither the GDP nor the tax revenues [...]

Bernanke’s Road to Serfdom

The events in the Middle East are not helpful to anyone. Yes, the governments are oppressive, at least in our eyes. But sometimes the devil you know is preferable to the unknown devil that follows. Those who believe these countries deserve “democracy” don’t understand the difference between democracy and liberty. Our founders truly feared democracy, knowing that it would destroy [...]

Fed Crumbling From Within?

Federal Reserve President Thomas Hoenig breaks ranks and sounds like Dylan Ratigan, Gerald Celente, Ron Paul or Murray Rothbard. Mr. Hoenig has always been a bit of a renegade, yet his recent speech reaches into areas where he (and no other Fed official in my memory) has dared to tread. He is correct of course. It is difficult to believe [...]

Does the Market Look Undervalued?

This chart should be a scary picture for those who believe the stock market is undervalued.  From Barry Ritholtz: NYSE Market Capitalization as % of GDP by Barry Ritholtz Chart Store week continues at the Big Picture. Today’s TCS graph is the NYSE Market Capitalization, shown over time as a percentage of US GDP: > click for larger graphic ~~~

Prescient Quote

When I was a boy I was told that anybody could become President. Now I’m beginning to believe it. Clarence Darrow