Terrifying headline? Certainly so if you work for the Fed, or ever worked for the Fed. Yet, it is what is called for according to law. Having experienced the harmful results of a paper currency manufactured at will, early US statesmen tried to forbid it from ever happening again. Article [...]

I suppose I shouldn’t laugh, but I found humor in Eric Fry‘s description of Chairman Bernanke’s performance at Jackson Hole: Like a guy who falls down a flight of stairs, then stands up and says, “I meant to do that,” Bernanke insisted the economy’s dismal trajectory is neither particularly surprising [...]

Fed Chairman Ben Bernanke is out of options and luck. Of course, he couldn’t say that at Jackson Hole. Instead, he had to pretend that his magic was still strong and would be used, if necessary. By customizing mixtures of various powders (some apparently never used before), he would produce [...]

John Williams of ShadowStats concisely summarizes all you need to know in his reaction to the recently revised GDP data: Economic Data Will Get Much Worse. The kindest thing I can say about a stock market that rallies on the “stronger than expected” news that annualized growth in second-quarter GDP [...]

Here is an interesting piece of information about the US housing market: The high-end market, in particular, is under tremendous pressure. In fact, it is becoming non-existent. Guess how many homes prices above $750k managed to sell in July. Answer — zero, nada, rien; and for the second month in [...]

Readers know that I am a big fan of Chris Martenson and his “Crash Course.” Everyone should watch it to understand where we have been, are and likely to go. Chris is in the midst of what some might call a survival series. I think it is more valid to [...]

For those wanting a primer on QE and its effect on the value of currency, I recommend that you read John Hussman’s article. As a teaser, Hussman had this to say about Ludwig von Mises and Ben Bernanke regarding their views on inflation/devaluation: My impression is that Ben Bernanke has [...]

From the Hoover Institute, an interview with Dr. Thomas Sowell. Recorded on December 11, 2009 Thomas Sowell discusses his new book Intellectuals and Society with guest Thomas Sowell interviewed by Peter M. Robinson Thomas Sowell introduces his new book Intellectuals and Society and expounds on what he calls “the fatal misstep of intellectuals” [...]

William Black was one of the tough regulators during the S&L crisis. He knows what is going on and knows what needs to be done. According to Mr. Black: The FDIC is sitting there knowing that it has both the residential disaster and the commercial real estate disaster [and] knowing [...]

The inflation-deflation debate continues. James Quinn, however, questions how real deflation is. WHERE’S THE DEFLATION BENNIE? The data doesn’t format well when I copy it from the BLS website. Here is a link to the PDF version: http://www.bls.gov/news.release/pdf/cpi.pdf The government keeps telling you about the dangers of deflation. The July [...]

David Rosenberg may be the best financial/economic analyst on the North American continent. This video interview with the WSJ is his current view of where the economy is and is heading. Economy Not RecoveringMartenson Rates FedDesperate Economic Action Ahead?

One of the earliest to understand what was happening and where it ultimately had to end was Chris Martenson. For those who have not watched his “Crash Course,” I recommend it highly. It can be found on his website. Here is his latest take on markets: Thumbs Down For the [...]

EconomicPolicyJournal‘s take on what the Fed did yesterday: Thus, at this point, this move has to be classified as jawboning in the sense that it is not a clear money supply booster as say a cut in the interest rate on excess reserves would be. That said, under perfect storm conditions, [...]

The economic condition of the country continues to decline toward its rendezvous with an, as yet, unknowable catastrophe. Speculation regarding this outcome is natural because self-interest, if not self-preservation, is at stake. Here is but one possibility. It is not a prediction, but a look at a series of not [...]

I have always been an admirer of the work of John Williams of shadowstat.com. He has been ahead of the curve consistently in terms of what was going to happen. His statistical analysis is first-rate and has exposed a lot of tomfoolery in government-issued numbers. When he speaks, it is [...]

There was good response to yesterday’s quiz, both on-line and off-line. The following quotes were presented: The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves. Deficit spending is simply a scheme for the confiscation of wealth. … the [...]

Inflation is neither strategy nor solution; it is the last gasp of a desperate ruling class. Inflation is the inevitable ending of this awful economic crisis. The only questions are how much and when. Rising support champions inflation as a salvation strategy. Richard Russell in a recent newsletter provides the [...]

I recommend highly an interview by Daily Bell with Dr. Walter Williams. The interview conveys what Dr. Williams is about and what America is supposed to be about. Very worthwhile and he is a breath of fresh air and sense. Daily Bell described Williams thusly: Yes, throughout his career Dr. [...]

Many years ago Dr. Walter Williams wrote a book entitled The State Against Blacks. It was a book that I believed would be excellent required reading in an elementary economics course. I especially thought this for the brief time when I taught at an historically black university. Of course that [...]

The “Pretence of Knowledge” was the title of economist Friedrich Hayek’s 1974 Nobel speech. In his first few sentences, he described the then-prevailing economic condition in words appropriate to today: … [this economic condition] has been brought about by policies which the majority of economists recommended and even urged governments [...]

Karl Denninger rants often, but usually accurately. Here is his take on this economy: Green Sharts! Chicago Fed Index -0.63 by nospam@example.com (Karl Denninger) Oops…. Led by deterioration in production- and employment-related indicators, the Chicago Fed National Activity Index declined to –0.63 in June, down from +0.31 in May. Three of [...]

Readers here know my views on the economy. For those who don’t, this quote from Doug Casey captures them nicely: This is the Greater Depression…and it’s going to be worse…far worse…than the Depression of the ’30s. We’re just in the eye of the hurricane now. It seems calm. But the [...]

Dave Rosenberg is one of the best analysts around. He out daily reports for investors that are timely and incisive. You might want to subscribe. Current email with embolding added by me: David A. Rosenberg Chief Economist & Strategist Market Musings & Data Deciphering Breakfast with Dave Read full article [...]

The Fed is clueless. Fed Chair Ben Bernanke now describes the condition of the economy as “unusually uncertain,” a descriptive phrase fogged up enough to have been invented by his predecessor, Alan Greenspan. The Fed has little idea what the economy is doing or why. Mr. Bernanke, despite his pomposity, [...]