“Liquidate labor, liquidate stocks, liquidate farmers, liquidate real estate… it will purge the rottenness out of the system. High costs of living and high living will come down. People will work harder, live a more moral life. Values will be adjusted, and enterprising people will pick up from less competent people.”
[Read more...]How to Ruin Your Economy and Influence People
February 13, 2012 By Leave a Comment
We can learn a lot from the Argentines. When it comes to messing up an economy, they’re Numero Uno. They’re Olympians of financial legerdemain and masters of the old false shuffle.
In 2001, the country was deeply in debt. The government was out of money. And the currency was losing value fast. What did the Argentines do?
[Read more...]Let the Depression Burn Itself Out
December 21, 2011 By Leave a Comment
The year is winding down. The sun is low in the sky. There soon won’t be anything left of 2011.
The Dow put in a good performance yesterday — up more than 300 points when we last looked. Housing starts were at a 19-month high…which caused investors to think recovery is right around the corner.
[Read more...]More Upside for Gold as Government Spending Continues Unabated
December 16, 2011 By Leave a Comment
Have yourself a merry little depression.
Dow up 45 points. Gold down $9.
We’re still waiting for a major correction in the gold market. Each time one begins, it seems to run out of steam before doing any real damage. At yesterday’s closing price, $1,577, gold is still solidly ahead for the year.
[Read more...]Unpopular Cures for Unemployment and Economic Depression
December 14, 2011 By Leave a Comment
So far, so good.
Things keep happening, more or less as they should.
That is, the US and European economies keep falling apart. And the fixers keep failing to put them back together again.
Just as we expected.
Trying to fix a depression it is not only expensive…. The US government spends $1.60 for every $1 it receives in taxes. This is a recipe for a disaster, not for a recovery.
[Read more...]Printing Money to Combat a Global Depression
November 7, 2011 By Leave a Comment
Last week produced nothing but more disappointment. At the center of it was the Europeans’ inability to make their debt disappear. They had hoped that they could just announce a plan to take care of it…and that would be enough.
But then, the Greeks said they wanted to vote on it…and then, they didn’t. ‘Papandenomium,’ the papers called it. If the voters were allowed to give their opinions everybody knew what would happen; the whole fix would be unfixed quix. So, they all got together and twisted Papandreou’s arms…and his arms gave way.
[Read more...]More Debt for Your Money
July 27, 2011 By Leave a Comment
We’re here in Vancouver at Addison’s “Fight or Flight” investment symposium. More on that as the week progresses…
Yesterday, stocks went down another 90-some points on the Dow. Oil stayed just under $100. And gold is still hitting records.
According to the papers, investors are on the edge of their seats. They’re waiting to see what happens in Washington. Everybody knows that a default would be disastrous. That’s why everybody also doesn’t worry about it; ‘they won’t let it happen,’ they say to themselves.
[Read more...]
Correction Fighting: How Feds Prolong Economic Depressions
“Liquidate labor, liquidate stocks, liquidate farmers, liquidate real estate… it will purge the rottenness out of the system. High costs of living and high living will come down. People will work harder, live a more moral life. Values will be adjusted, and enterprising people will pick up from less competent people.”
[Read more...]