Federal government of the United States

Virtually every Western Democratic Government is insolvent.

Virtually every Western democratic government is insolvent.  And governments utilized the same practices as General Motors to reach this point. In GM’s case, poor management was exposed by Honda, Toyota and other foreign competitors.  In government’s case, the same poor management provided by Santa Claus politicians provided the damage. They continuously promised and implemented “bread and circuses” that could not [...]

Dracula Government Meets Its Nemesis

There is no greater scam than that being perpetuated by fiat money. It is plausible that the gold market might be manipulated because of its critical importance to the current economic crisis. Gold is to Central Bankers and governments as The Cross was to Dracula. It threatens their existence. Before governments got into the state of bankruptcy, gold hindered them [...]

No End to Economic Stupidity

We know there is virtually no business experience amongst the President’s advisors. That has been documented in various places. Yet that could have been inferred  from the number of wrongful policies that have been proposed or implemented. There are so-called economists in the Administration. Larry Summers, for example, is a legend amongst the economic community, or at least in his [...]

Crowding Out Your Future

“Crowding out” is an effect claimed to occur when governments run deficits and have to borrow to finance the deficits. It refers to the government using funds via borrowing that otherwise would go to private borrowers. Hence, they are “crowding out” the private borrowers. In normal times, when government deficits are small relative to the economy, crowding out probably has [...]

The Claude Rains Recovery

“No Recovery?” In the best Claude Rains fashion, “I am shocked, shocked!” There is no economic recovery, and there will be no economic recovery this year and probably not next. Yet the media, mainstream economists and the Administration insist we are in the midst of one. Things are definitely getting better, at least according to them. This concerted propaganda effort [...]

Obama’s “Ides-of-March” Moment is Near

In Jimmy Carter’s reign, the Wall Street Journal editorialized about “Ratcheting to Ruin.” The title derived from the fact that each cycle high in unemployment was higher than previous ones, and each cycle high in inflation was also. “Stagflation” was coined to describe what up until then was believed to be impossible in the Keynesian world. This period ushered in [...]

Must Reads: How This Ends

These three articles are must reading for anyone interested in the future of the economy.  No investor or citizen should be ignorant of the possibilities raised in these articles. Ponzi Scheme by Puru Saxena Editor, Money Matters Let’s face it, the government-bond market in the West is a gigantic Ponzi scheme.  Most governments in the ‘developed’ world are drowning in [...]

In an Economy (Galaxy) Far, Far Away …

“US government debt is a safe haven the way Pearl Harbor was a safe haven in 1941.” Niall Ferguson The idea that our debt is somehow a safe-haven is a sad reflection on the rest of the world. Europe may be in a pickle with the Greece (and more generally, PIGS) problem, but it is not unique. All western economies [...]

Free Markets Don’t End Like This

“My long view for the US is high inflation which will not show up in the government’s fraudulent statistics, along with a declining standard of living, increasing decay and ultimately leading to chaos, societal and government collapse in the US within a decade or two, maybe sooner.” Craig Harris The following article will seem extreme to some. The above quote [...]

U.S. Government’s Road to Perdition

Image by Francisco Diez via Flickr James Quinn has posted another very informative piece. It is especially useful for those who don’t comprehend the degrees of financial chicanery and deceit to which our politicians have resorted . The article will also enable you to understand the mathematical impossibility of the Federal Government honoring its social promises and debt obligations. There [...]

Economic Summit Insult to the Intelligence of Citizens or Revelation of Obama’s IQ

Any Econ 101 student would flunk the course if he showed the aptitude of this Administration regarding basic economics. It is likely most Americans have never taken an economics course, yet would be able to discern why recent economic policies, either proposed or already implemented, destroy jobs. Simple common sense or a modicum of “street smarts” is all that is [...]

The Fed Is Nothing But An ATM Machine

The Fed has reached the point where there are two choices — Allow the government to shut down or allow itself to be the Treasury’s ATM machine. Inflation is, as Milton Friedman was fond of saying, “always and everywhere a monetary phenomenon.”  It is insidious. It becomes a part of everyday life, sometimes overlooked. It is cumulative and devastating. The [...]