Government Employment Bubble Pops, Governments to Lay Off 500,000: Bloomberg
Government employees are paid with tax money. When the economy is booming, so are tax revenues. What does government do with extra tax money? Return it to the people? Heavens no! They hire more government employees! When we’re in the middle of a financial bubble, we think we can afford all sorts of things we [...]
Royal Bank of Scotland tells clients to prepare for “monster” money printing by the Federal Reserve
On June 2nd, 3rd and 4th, respectively, I reported a growing chorus of financial pundits were going on record and warning of a coming sovereign debt crisis. Most of you are aware of the G-20 meeting that is closing in Toronto tonight. The G-20 members are a self-appointed group of governments and various government agency, [...]
Recovery? WHAT Recovery?!
(Data sources are US CBO and Federal Reserve) The chart above (click, then click again to enlarge) shows three data sets: 1) in red, the federal budget deficit; 2) in dark blue, US Gross Domestic Product (GDP), the supposed size of the US economy; 3) in highlighted light blue, shows what US GDP would be [...]
Financial Reform Bill: Bank Lobbyists too Big to Fail, but Fed Can Spy on YOU!
Far from being an effective measure that protects anyone but the banks, the Senate’s Financial Reform Bill is itself a testament to the power of money. Two thousand banking lobbyists descended on Washington to ensure that any effective restrictions on banks’ power and guaranteed profitability were stripped away. They succeeded. The bill does virtually nothing [...]
The Financial Condition of the World: Excerpts from the Alternative and Mainstream Financial Press (Part I)
For quite a number of years, many decades in fact, members of the Austrian School of Economics have been trying to convince Western governments that the Keynesian fiscal path they’d embraced could only end in a disaster of insolvency that devolved into a currency collapse. In 1940 in his landmark text Human Action Ludwig von [...]
Save Virginia: Make Something
Let’s talk about economics. In fact, let’s call this Econ 101. But I’m not an economist, so this is a layman’s view. The first part of this essay is preaching to the choir for Tea Partiers, but it’s important to the later parts, so bear with me. In order for wealth to be available for [...]
How The Fed Steals From Savers
A recent article by Charles Schwab merits our attention: http://online.wsj.com/article/SB10001424052702303429804575149633264117248.html In February 2006, when Ben Bernanke was first sworn in as chairman of the Federal Reserve, the federal-funds target rate stood at 4.5%. That same year, the average yield on a one-year certificate of deposit was 5.4%. A retiree who diligently saved for a lifetime [...]
Financial Regulation – Cui Bono?
We are all being treated right now to the spectacle of Washington DC functioning at its finest: shaking down a major industry for campaign contributions. They just did it with “Health Care Reform”, and now they’re doing it again with the banks. Think of the tens, or even hundreds of millions of dollars that are [...]
Unlimited Bailout Authority to Feds – Stop Senate Bill 3217
This Friday Senate Bill 3217, also known as the Restoring American Financial Stability Act of 2010, introduced by Democrat Senator Chris Dodd of Connecticut, is scheduled to hit the floor of the US Senate where it must wait 72 hours before it comes up for a full vote. CLICK HERE to read the actual 1,421 [...]
