Article Archives - 2 of 11
A Visible Fall in US Money M3 Worries Some Analysts by Frank Shostak
“It is the fall in the real savings that causes banks to shrink their lending, which is mirrored by the fall in M3. This however, doesn’t imply that the Fed should start pushing more money to reverse the rate of growth of M3. Pushing more money will only make things much worse.”
Did Hoover Really Slash Spending? by Robert P. Murphy
“It is clear that the awful Great Depression was in high gear even during the period of rising budget deficits and easy Fed policy; Krugman can't say that the real pain only set in after Hoover cut spending and the Fed raised rates.”
Gold and Silver Progress Report by Peter Degraaf
“More and more people (worldwide) are becoming aware of the fact that ‘all is not well’ with the financial system. Fraud and corruption are evident in government and the banking industry. Gold will be seen as a beacon of safety. Recently in Greece people were willing to convert paper money for gold sovereigns at $399.00 ea, (the equivalent of $1,700.00 US dollars per ounce).”
If 1 + 1 Still Equals 2 Then Gold Should Explode! by Lorimer Wilson & Chris Blasi
“A key driver to the price of gold is money supply. As such, when gold is correctly understood as a monetary metal one can confidently disregard the mainstream media’s ‘chicken little’ warnings about a supposed gold bubble and realize that it is the excessive extent of global liquidity that is supporting the price of gold.”
The Post-Bubble Recriminations Ramp Up by Steve Saville
“If [U.S. policy-makers] are serious about mitigating the risk of another financial crisis then they should pass legislation that abolishes the Fed and severely crimps the activities of the government.”
Crisis and Leviathan
Observations amid the Current Episode by Robert Higgs
“When we take apart the simplistic Keynesian analysis of [WW II’s] effect on the economy and look carefully at what actually happened to the various components of the labor force, the capital stock, and the gross domestic product, we see that the economic events of the war years represent a classic case of a command economy’s sacrificing butter—not to mention life, liberty, and property—for the sake of producing and deploying more guns.”
Sell in May and Run Away . . . Fast by Gary North
“The world's capital markets are vetoing the central bankers' policies and the politicians' policies. This may change. Confidence may return. But the fiasco that is the Greek government has triggered the response of frantic and terrified politicians in the north of Europe. They did the Keynesian thing. They promised a huge bailout. It is clear that they will do it again if required. It will be required.”
Popular Misconceptions by Steve Saville
“Once it is understood that each person spends what he/she produces it becomes clear that an increase in production must precede an increase in consumer spending.
“Another way to look at it is that consumer spending involves taking something out of the economy. If people throughout the economy began taking more stuff out than they put in, how could the economy possibly grow?”
The Government as Identity Thieves by Ron Paul
“Taxpayers are of no consequence to either European or American central bankers. Even the mere desire for complete information on what they are up to in our name is rebuffed, as we saw last week in the Senate with the failure of Senator Vitter’s amendment containing my language to fully audit the fed.”
Peter Schiff on Bailout of Greek Government’s Creditors Video
The U.S. is getting a bailout from foreign central banks - China, Japan, Saudi Arabia - every single day that is much bigger than what we will borrow to recycle to participate in the Greek bailout. This is not a bailout of the Greek people. This is a bailout for the bankers who lent the Greek government more money than the Greek people could possibly repay. Message to EU members: Continue your profligacy with confidence. Bailouts are bullish for gold.
White contra Mises on Fiduciary Media by Joseph T. Salerno
“Modern free bankers would concur with Mises that there is no need for an increase in the money supply in the case of a price deflation caused by economic growth. But, in sharp contrast to the free bankers' dread of ‘monetary demand shocks,’ Mises argued that a ‘money-induced’ increase in the purchasing power of money caused by hoarding was no cause for alarm. In particular, Mises denied that an increase in the demand for money at the expense of spending on consumer goods would impede the process of transforming the additional real savings thus generated into an accumulation of new capital goods.”
Gold ATM Debuts in Abu Dhabi by CNN Money
The world’s first gold vending machine is drawing crowds to The Emirates Palace, the most expensive hotel in the world.
Deficit Landmines Dead Ahead! by Chris Wood, Jake Weber, and Vedran Vuk
“[I]n February President Obama issued an executive order to create a bipartisan fiscal commission. The commission’s task is to deliver recommendations to the president by December 1 for limiting future deficits to 3% of GDP. . . . Unfortunately, when it comes to government debt, the facts aren't pretty. They show that the country is already sliding towards financial collapse and hyperinflation in a way not dissimilar to the Weimar Republic.”
Trillion Dollar Madness by Robert Wenzel
“European policy makers have unveiled an unprecedented loan package worth almost $1 trillion and a program of bond purchases to stop the sovereign-debt crisis. The Federal Reserve will also play a role through currency swaps. . . . ‘The message has gotten through: the euro zone will defend its money,’ French Finance Minister Christine Lagarde told reporters in Brussels early today. How opening up the printing presses defends the euro, she did not explain. The last I looked printing money destroyed a currency.”
Fed Audit Under Fire by Ron Paul
“For the first time since the Federal Reserve was created nearly a century ago, they have hired an actual lobbyist to pound the pavement on Capitol Hill. This is a desperate effort to hang on to the privilege of secrecy and lack of accountability they have enjoyed for so long. Last week showed they are getting their money’s worth in the Senate.”
Ron Paul on the Riots in Greece Video
The world has shifted from a financial crisis to the inevitable currency crisis. Though the dollar has been strong in relation to other fiat currencies, it has declined sharply with respect to gold. What we’re seeing is an attack on the dollar. People are giving up on it and turning to gold.
Gold: Needed Now More Than Ever by James Turk
“Gold is the best way to avoid counterparty risk, which is essential today as the sovereign debt bubble continues to lay bare the stark reality that governments throughout the world are bankrupt, and more to the point, that the bubble has popped.”
Paying people to break windows by Steve Saville
“Greek banks are in trouble in part because they hold a lot of Greek government debt. So, what we now have is the Greek government borrowing money to support banks that are failing partly because they loaned money to the Greek government. It doesn't get any more absurd than this.”
The Euro is Screwed by Kevin Brekke and David Galland
“As is so clearly evidenced in the drama now playing out in Greece, when a government is forced to solve its debt problem by issuing more debt, the end is nigh.”
On Auditing the Fed: The Doddering Senate by Gary North
“For the first time since 1914, there are millions of voters who are aware of the destructive power of the Federal Reserve System. They want it audited. [Ron] Paul's book, End the Fed, is a bestseller. This would have been inconceivable in mid-2008.
“This has the FED on the defensive. The Senate will not adopt any FED-audit provision. If the bank reform bill passes, it will go back to the House for reconciliation. There may be a battle over the audit issue, but I doubt it. The House leadership of both parties will agree to remove the section.”
To Peg or Not to Peg? by Peter Schiff
“[I]f China were to stop manipulating the dollar higher, it would remove the props currently supporting our dysfunctional economy. American interest rates and consumer prices would soar, and our economy would collapse. Meanwhile, China would experience the opposite effect.”
Beware of Analysts Bearing Equations by Steve Saville
“Analysts who base their economics analyses on mathematical equations usually fail to properly account for cause and effect. They see what's on the surface, such as if one side of an equation rises then the other side must also rise, but they fail to see that cause and effect are inter-connected via such complex feedback mechanisms that their beloved equation is useless in the real world.”
Congress, financial regulations, and Goldman Sachs video by Peter Schiff
Schiff explains how government caused the 2008 crisis and why more government will only guarantee a bigger mess in the future.
Owning Gold and Silver: The Unsafe Method by Richard Daughty
‘“Ya gotcher paper in your hand.
“You think that you’re so hot.
“You think that you got some silver,
“But paper’s all you got. Chump!”’
Explaining Gold Price Fluctuations by Steve Saville
“If a speculator has bought a financial asset using borrowed US dollars and something happens to make him suspect that the asset in question has begun to trend downward, then he may be prompted to sell whatever he can -- including gold -- to reduce his debt.”
Ron Paul Squares Off Against Bernanke Video, 4/14/2010 at Joint Economic Committee
Ron Paul tries to get Chairman Bernanke to admit that he stands ready to bail out any politically important entity by creating money out of thin air.
A Republic, If You Can Keep It by Ron Paul (2000)
“[T]here have been too many special interests benefiting by our fiat currency, too much ignorance and too much apathy regarding the nature of money. We will surely pay the price for this negligence.”
World Monetary System Collapse and Gold’s Parabolic Rise by Hubert Moolman
“The monetary system as we know it today, which is backed by a changing (non stable dollar), appears to be in its final stages and just waiting for a fierce run to gold, silver and certain other non monetary assets, to provide the death blow.”
Long-Term Bearish On China by Steve Saville
“We think it's a good bet that China's government will make the same mistakes that were made by the US government during the 1930s, Japan's government post-1990 and the current US government, thus setting the stage for a long-term decline once the bubble eventually bursts.”
Stable Money Supply: The Real Way to Help the Poor by Richard Daughty
“[W]hen a government deficit-spends, it does so by borrowing the money, but since the poor don’t have any money to loan to the government, the rich end up borrowing the money to loan to the government, whereupon the rich, over time, get all their money back, plus interest, making them richer, while, unfortunately, the poor get poorer because prices have risen.”
Going the Way of France (1790) by C. J. Maloney
“We have substituted for the steady, disinterested hand of gold the arbitrary, rapacious vagaries of the politician; yet we wonder why prices do nothing but float upward, year after year, until grandma is eating cat food.”
The Fed's Last Hurrah by Peter Schiff
“During the 1990s, inflationary Federal Reserve policy fueled a tech stock bubble. When that bubble burst, the Fed inflated a larger one in real estate. Now that the real estate bubble has burst, the Fed is inflating the biggest bubble of them all - a bubble in government. While the earlier booms at least provided the illusion of prosperity and some fun while they lasted, the government bubble will cripple the economy and deliver widespread misery to the vast majority of Americans.”
Futile Attempts To Reflate The Housing Bubble & The Deadly Cost
by Daniel R. Amerman, CFA
“The politicians have made the decision that there is no limit to the cost they're willing to pass on to all of us to get housing to a politically acceptable place, and there is no limit to the relative risk that they are willing for us to take. In other words, there is no limit to the financial risk for you that the government is willing to take to stay in power.”
The Federal Reserve as a Confidence Game: What They Were Saying in 2007
by Mark Thornton
“[Fed officials’] public pronouncements, while heavily nuanced and hedged, uniformly present the American people with a rosy scenario of the economy, the future, and the ability of the Fed to manage the market. . . . These are the people who said that there was no housing bubble, that there was no danger of financial crisis, and then that a financial crisis would not impact the real economy.”
Measuring the Money Supply by Steve Saville
“Judging by M2, M3 and MZM the US is now in, or bordering on, monetary deflation. However, TMS (True Money Supply) has risen by more than 13% over the past 12 months.” If Bernanke believes the money supply increase is flat or falling, he could crank up the presses even more. “Under the current monetary system, nothing promotes inflation more effectively than fear of deflation.”
Another recession is coming by Jim Rogers (CNBC video 3-17-2010)
Rogers: “Governments around the world are printing a lot of money and spending a lot of money. If you get some of that money, you think things are much better off -- and they are for you: You’re better off. But somewhere that money has to come from, and eventually the people who are putting up that money, either through taxes, or borrowings, or printing, realize that things aren’t better off, and then you have more problems.”
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