The Rating Agencies Feel Heat – It’s About Time

Shah Gilani writes: Sometimes it’s all about time. Things take time. Time catches up to things. In the case of the many crimes and misdemeanors that led up to the credit crisis, time seems to be finally catching up with some crooked institutions.



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How Government Uses “Efficiency� as an Excuse to Steal

Gary Galles writes: Scarcity makes efficiency — getting the most value from given resources —important. The more efficient individuals are, the more they benefit from their actions. That’s why economists are always talking about efficiency. Unfortunately, some things said to be efficient are not. A major reason is that while efficiency is usually described in terms of mutual benefits, in public policy discussions, economists and governments who employ them actually use an efficiency standard known as “potential compensation.” In a nutshell, this means that the “winners” gain more than the “losers” lose, so that the winner could potentially compensate the loser enough that they would both come out ahead.



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Ukraine: What To Do When Economic Growth Is Gone

“The fact that the coalition has fallen apart, that laws haven’t been voted on, that soldiers can’t be paid, that there is no money to buy rifles, that there is no possibility to fill gas storages. What options do we have now?” This is, as per Bloomberg, what US handpicked handpuppet and – now former – Ukraine PM Yatsenyuk told the Kiev parliament earlier today during a speech in which he announced the resignation of his “government”. Several of his coalition partners, including right wing Svoboda, had left the government not long before.



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Where to Invest: With Macroinvestors or Macroeconomists

Stanley Druckenmiller, the justly renowned investor, spoke at the Delivering Alpha conference on Wednesday, July 16, 2014. Quoting Druckenmiller: "As a macro investor, my job for 30 years was to anticipate changes in the economic trends that were not expected by others - and therefore not yet reflected in securities prices. I certainly made my share of mistakes over the years, but I was fortunate enough to make outsized gains a number of times when we had different views from various central banks."



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Stock Market Clear and Present Danger Zone

Ding, Ding, Ding! The bell tolls, not for the 1%, but for the remaining 99% in Europe, the UK, Japan, and the US. What Danger Zone? The powers-that-be must find a way to keep the masses under control, raise taxes, enrich themselves and monetize the debt. The result will be currency devaluations, blood, inflation, distractions (such as downed airliners and new wars), banker bonuses, continued payoffs to politicians, and so much more.



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Winners and Losers in the Battle of Economic Stupidity

Turn on the tube and economic ignorance seems to be everywhere. There is constant shilling for more government. Business is demonized. Man is said to be trashing the environment. “Workers and women are oppressed” is the constant mantra.

And members of the clueless media nod their heads in unison.

[Read more...]



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The Five Elements to Creating a Something-for-Nothing Society

This week's TedBits is as important a commentary as any I have ever written in my 10+ years writing Austrian analysis of the unfolding world macroeconomics and geopolitical situation. It covers the origins, causes and destinations we are headed for, the participants, historical context and the future based upon past episodes: Past, present and future so to speak. I hope you enjoy it. Best wishes Ty.



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Instability is the New Normal?

Once upon a time, there were safe havens in this world, places where investors could hide when the going got rough. If you believe this fairy tale world will persist, pinch yourself. In our assessment, not only are there no safe havens left, but instability may be the new normal. Is your portfolio ready?



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The End Of Nations Or The End Of History?

Dancing at the Victims' Ball By July 1794, with the surprise execution of ace executioner Maximilien de Robespierre, who himself had probably ordered more than 5000 killings by the then-newfangled and dreaded guillotine in the French revolution, faction rivalry akin to the type that sets Al Qaeda against ISIS in the Middle East today was so intense that a new wave of Terror was at hand. Called counter-revolution by some, and even the “death of History” by others, the call for Saving the Nation was going to be a powerful excuse for new purges, plots and bloody repression.



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Israel’s Suicide Bombers Over Gaza

New York, New York: For years, the term “suicide bombers” has been synonymous with terrorist attacks, especially in Israel. The idea of a martyr willing to give his life for a cause while taking out an “enemy” became a feature of modern conflict especially with resistance movements confronting modern armies. Oddly enough, the phrase, seems to have blown back today into Israel itself, as its military engages in a much deadlier “suicide mission,” acting like Ahab in Melville’s Moby Dick determined to slay the monster whale while killing themselves.



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