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 [...]

Slouching To Armageddon

Brace yourselves for continuing headlines like these from yesterday’s DrudgeReport: Chinese Yuan Hits Record High Against US Dollar… Starving Horses Serious Problem As Hay Prices Continue To Skyrocket… Stocks continue post-election drop… Faber: Prepare for Massive Market Meltdown… Wealthy Dump Assets… Budget deficit rises to $120 billion in October… …jumps 22% SECESSION MOVEMENT EXPLODES This economy is not improving; it [...]

Peter Schiff on World Economy

The future is bleak and you must protect yourself against what is coming. Peter Schiff discusses the impact of the election on the economy and precious metals and what is likely to happen. His take is similar to mine.

More Of The Same Will Not Work

The Wall Street Journal describes President Obama’s economic strategy: Keep borrowing more than $1 trillion a year and keep the Fed printing money at historic levels, in return for mediocre growth and stagnant incomes. The alternative is to stop punishing the employers, investors and workers who are the real source of growth. The Romney plan to cut tax rates, reform [...]