Up The Creek Without A Paddle

The contrast between what we see in our every day lives is not consistent with what government tells us is happening in the economy. The so-called recovery certainly doesn’t feel like one; it is certainly unlike any of the others over the last 50 or so years. If inflation is not a problem, one can only wonder how government obtains [...]

The Greenspan Contra Indicator

According to Financial Armageddon, we are assured of going into a double-dip because Alan Greenspan has said we won’t.

An Indictment of Central Planning

“Until the debt is cleared and capital starts to be properly allocated, economic growth per unit of additional debt will continue to sour.” Andy Lees A powerful indictment of Central Planning offered by Andy Lees via Tyler Durden: Must Read: UBS’ Andy Lees On Why The US Economy Is, All Else Equal, Doomed “With all the mess going on at [...]

Austrian Business Cycle Theory

For those interested in a simple explanation of Austrian Business Cycle Theory, this 8 minute video from Thomas Woods might be very useful:

Understanding the Fed — Video

The Federal Reserve is probably the least understood government agency (technically, it is not even a part of government). This intro by the Mises Institute provides background for an informative video: Wednesday, May 18, 2011 – by Mises Institute Thomas Jefferson and Andrew Jackson understood “The Monster”. But to most Americans today, Federal Reserve is just a name on the dollar [...]

From “The Maestro” to “Genius Professor” to Disaster

Henry Simons, one of the early pillars of the Chicago School of Economics and a student of Frank Knight’s, emphasised monetary rules as opposed to monetary discretion. Milton Friedman, a more recent Chicago School economist, argued that the Fed would do a better job of managing monetary policy if it were required to increase the money supply by some defined [...]

QE is the End of America as We Know It

Quantitative Easing is confusing for many people. That, of course, is for the Federal Reserve, the Federal Government and major financial interests. If people knew what was happening and what must result, there would likely be a revolt. Elsewhere, I have written that QE is nothing more than a euphemism for “money printing.” It is a policy of inflation dressed [...]

Fiat Currencies Under Enormous Pressure, Inflation Flood Coming

Fiat currencies around the world are coming under enormous pressure as a result of “printing” money everywhere. The world is analogous to the story of the little Dutch boy who puts his finger in the dike saving the village from a flood. In the US, the Federal Reserve plays that role, trying to stave off inflation. The analogy is imperfect [...]

More on Mr. Greenspan

This reply from “Retired” was posted on American Thinker in response to an article similar to Mr. Greenspan: Please Go Away. The points are appropriate. Monty,we are all in for a wild hairraising ride in the next 5-10 years. Many People may salivate at the idea of $6,300.00 gold but what they may not realize is that Gold did not [...]

Mr. Greenspan: Please Go Away!

Things I never expect to hear include the following: Harry Reid and Nancy Pelosi admit that George Bush was correct The Pope admits there is no God George Bush admits he dodged the draft The Supreme Court admits public opinion rather than precedent and the Constitution determine rulings President Obama admits he has no abilities other than reading words in [...]

Nothing Worse than Hyperinflation

Tyler Durden of Zerohedge has an important piece about John Williams of Shadowstats and his (hyper)inflation forecast. John Williams is a data geek who understands economics. His forecasting abilities should not be ignored. There is nothing worse than hyperinflation. A Great Depression without hyperinflation is a blessing compared to the effects of hyperinflation. Hyperinflation makes a Great Depression unavoidable. With [...]