The Non-Recovery In Advance of A Depression

For anyone who believes that there has been an economic recovery, go buy the Brooklyn Bridge. I’m sure there are thousands who would be willing to sell it to you. There will be no recovery until the economy crashes and rebuilds from the ashes. There is too much debt outstanding can never be repaid and will not be serviced. Governments [...]

Economic Armageddon Is Coming

The US and other modern industrialized nations are headed for economic collapse. Political excesses created unwieldly and insolvent social welfare states in every modern democracy. The notion of providing for those who cannot or do not provide for themselves has limits. As Lady Margaret Thatcher expressed the problem: The trouble with Socialism is, sooner or later, you run out of [...]

Living Beyond Your Means Ultimately Means Living Beneath Your Means

The deterioration of this nation’s economy is truly mind-boggling. What we experience today is an outgrowth of several decades of misguided economic policies. Current economic policy is even more misguided than those that led us to this point. So, too is the regime uncertainty that surrounds facing economic actors. Productive people have targets painted on their backs. Business and investors [...]

An Inevitable, Unhappy Ending

Tim Price offers some important observations in this article: Credit expansion, wrote the great Austrian economist Ludwig von Mises, is not a nostrum to make people happy. “The boom it engenders must inevitably lead to a debacle and unhappiness.” That seems a pretty accurate summary of the current situation for the western economies: a debacle, and unhappiness. Von Mises also wrote that [...]

Food Price Rises Are Not Tolerated Long

Nothing creates more unrest than food prices. This video is not good news. It might also be added that central bank monetary policies are driving food prices higher than many incomes can afford. Quite simply, monetary policy is driving prices up but not wages. Note that markets, when allowed to work, correct supply and demand imbalances. They are no longer [...]

Is Bernanke Being Kept Awake By Gold?

Readers of this site know that I believe gold is a likely safe haven in the trek toward economic Armageddon. Zerohedge thinks the chart below keeps Ben Bernanke up at night. Whether that is so or not is moot. Mr. Bernanke has other things that may affect his sleep even more. Mr. Bernanke is less sophisticated than most believe. He [...]

Government Hates Gold

The debate between those favoring a gold standard and those against it drags on. The voices in favor have been drowned out, not by logic but by overbearing State propaganda. Gold standard supporters are a stubborn lot who, despite ridicule, carry on their fight in a fashion reminiscent of Don Quixote. Like that of the quixotic crusader of yesteryear, their [...]

Inflation Is Political Cowardice and Chicanery

It is no secret that politicians prefer inflation over tax increases. Zerohedge explains why: If the authorities raise taxes explicitly and openly, voters know exactly why they have less spending power. They also know how much less spending power they have. But if the authorities instead raise money by simply printing it, they raise the revenue by stealth. No one knows [...]

How Can Hyperinflation Be Avoided?

Kyle Bass, via Zerohedge, provided his thoughts on how the current economic mess might end: Trillions of dollars of debts will be restructured and millions of financially prudent savers will lose large percentages of their real purchasing power at exactly the wrong time in their lives. Again, the world will not end, but the social fabric of the profligate nations [...]

Inflation Is Theft and Fraud

Inflation, in a fiat currency world, is inevitable. It is not an economic inevitability but a political one. Politicians like to spend money and buy votes. They don’t like to raise taxes. A central bank makes it possible for them to have the best of all worlds, at least for a time. The US Fed, with its new QEternity policy, [...]

Our Fate Is Sealed

These four links from yesterday’s Drudge Report say it all: JOBLESS…  INFLATION… POVERTY… RECESSION… Five years into this mess and we are no closer to climbing out. Collapse of financial institutions was averted (temporarily?) by massive infusions of government and taxpayer funds but the economy has not budged. More and more people are beginning to think that we should have [...]