Repent, The End May Be Near!

This religious advice might be appropriate for financial markets. That certainly was the way it felt over the last couple of days. Gold and silver, as well as other commodities, have been pummeled. Today the Dow is off about 200 points as I write. What happened to our economic recovery? If you have been reading this website, you know there is [...]

For Investors — The New Normal

This morning’s pre-market report from MarketWatch leads with the following: FRANKFURT (MarketWatch) — Stock index futures pointed to an early dip for Wall Street on Wednesday, taking a cue from steep losses in Europe after efforts to form an Italian governing alliance stumbled. But strategists said downside may remain limited by further evidence of an improving U.S. economy. The news [...]

The Final Con

The stock market has now been up for ten straight days. Many on Wall Street are singing “Happy Days Are Here Again.” For them, that is probably the case. They finally have something to sell that will bring the rubes back into the markets. We are not in Kansas anymore. Fear is ebbing and greed is coming back. Those on [...]

Government Treating Cancer With Aspirin

There are times someone makes a point or points you have tried to make for years and you are captured with their succinctness. It is what you have been trying to communicate but seems to be done so easily and skillfully. For years I (and others) have argued that what the Federal Reserve was doing was merely cosmetic. It was [...]

For Simple-Minded Keynesians

For those who haven’t yet grasped the uselessness of government policy, please read Charles Hugh Smith’s simple fourteen point explanation below. It details the steps government has taken, why they are failing and why the middle and poorer classes must get poorer. It also suggests that we are close to the end of the Ponzi scheme that has provided the [...]

The Zombie Economy Is Dying

It is easy to rant about the economic condition of this country and the world. It is, quite simply, horrible and terminal. The US economy, like a zombie, staggers around half alive and half dead in its own special purgatory. The other developed social welfare states of the world are in similar condition. This blog frequently discusses why there can be [...]

President Obama’s Next Excuse

His shameful behavior reveals just how much he cares about the people he pretends to help and the country he pretends to lead. President Obama is inept, mendacious and destructive. In my opinion, his has been a failed presidency. Jimmy Carter must be relieved to be off the hook as “worst president of my lifetime.” For the rest of us, [...]

The Beast Is On The Prowl

As the economic collapse approaches, be aware that government will become more desperate and resort to measure(s) that will enable it to survive. The myth of government as a good, necessary and positive force in society is coming unraveled. To understand how we got to this point, it is useful to review some economic history..  The US has gone through many [...]

Manny Pacquiao — Tax Expert

It happens slowly and in ways never imagined. High US tax rates are destructive to the economy. Anyone with material income is changing his behavior, whether it is with respect to current earnings, investment income or even emigration. These microeconomic decisions, people altering their behavior to adjust or offset the pain government wants to inflict on them, is what makes [...]

Why Don’t People See?

I meet people that still believe that the world is fine. They believe things like: The US government has plenty of money. Government cares for its citizens. The economy cannot crash. We are not in a recession (Depression). The lives of their children will be better than their own. The government can continue to print money to fund promises they [...]

The Statist of the Union Address

Ron Hart closes his recent column with this: Al Qaeda could not have done as much damage to the U.S. as this administration has, working to destroy our economy with a morass of entrenched bureaucracies. The terrorists can now retire. They set about to weaken and destroy America, which task is now in the capable hands of the Left. Here [...]

Economics Is A Subset Of Common Sense and Logic

I argue that the economy won’t improve from the standpoint of economics. Many do not (justifiably) trust economic analysis or reasoning. They feel more comfortable with what is sometimes called “good old common sense.” Along those lines, a reader sent in a comment that provides a common sense conclusion identical to the less common (and perhaps less sense) economic analysis. [...]