The Fed’s latest inflationary scheme sounds like a technocratic innovation. It lowered the costs of currency swaps between central banks of the world with the idea that the Fed would do for the globe what Europe, England, and China are too shy to do, which is run the printing presses 24/7 to bail out failing institutions and economies. In effect, the Fed has promised to be the lender of last resort for the entire global economy.
[Read more...]Why “Constructive Inaction” is No Longer in the Feds’ Lexicon
October 21, 2011 By Leave a Comment
Question: How many finance chiefs does it take to perpetuate a monetary crisis?
Answer: Twenty…and all of them convened in Paris last weekend.
The finance chiefs from the “Group of 20” nations convened to propose and discuss various bailout schemes for the euro zone.
[Read more...]Living Well on Gold and Silver
April 12, 2011 By Leave a Comment
Naturally, I bristle at people ignoring me except to say hurtful things, like, “Eww! Gross! Eat with your mouth closed!” and who then turn right around and say, “Shut up about buying gold and silver!”
But how do I not eat and talk? Man, it has been said, cannot live on bread alone! Unless, of course, it is made into a nice, big sandwich with all the fixins, maybe with a tall, cool beverage and a fresh bag of potato chips, you’re bent over the plate like some kind of starving Neanderthal, noisily shoveling it in your mouth with both hands, perhaps while you are watching TV, necessitating changing channels by hitting the remote control with your elbow.
[Read more...]Stopping Inflation, the Federal Reserve Way
April 8, 2011 By Leave a Comment
I was explaining to my boss that firing me would not solve the company’s problems, as the corporate rot goes a lot farther than that, mostly due to the stupid Human Resources department hiring so many morons, a dismal fact I have proved over the years by merely asking each one, in turn, “Do you own any gold and silver to protect yourself from the horrendous inflation in prices that is guaranteed by the evil Federal Reserve creating so impossibly much money, and which will destroy the currency, the economy, and everyone who is not an owner of the aforesaid precious metals, to wit, gold and silver, or are you some kind of moron?”
[Read more...]The Markets React to the Fed’s Tired Response
August 11, 2010 By Leave a Comment
“DJIA Plunges 225 Points in Global Sell-Off…?
“VIX Surges…?
“US Trade Deficit Unexpectedly Widens, Exports Decline…?
The news is neither good nor bad this morning. It just is. Fellow Reckoners are advised to interpret it accordingly.
To the cheers of some and the tears of others, stocks appear to be gripped in a downward spiral today. The Fed's medicine went down like a bucket of KFC at a Miss Universe pageant, yesterday – which is to say temporarily, at best…and with immediate, violent regret.
[Read more...]Punctuating the Severity of Excess Money Creation
July 1, 2010 By Leave a Comment
I know, alas, that there is nothing that can be done to prevent unimaginable suffering and the collapse of the economy, now that the Federal Reserve has created so much excess money and credit, and, to make matters infinitely worse, are still doing it, more than ever!
The exclamation point at the end of the sentence indicates that I still register surprise at the sheer stupidity and insanity of it all; the Federal Reserve has to create more money to be used to buy up the trillions and trillions and trillions of dollars in a for-the-rest-of-your-life tsunami of new federal government borrowing and spending.
[Read more...]
Leaping Toward the Keynesian Dream
The Fed’s latest inflationary scheme sounds like a technocratic innovation. It lowered the costs of currency swaps between central banks of the world with the idea that the Fed would do for the globe what Europe, England, and China are too shy to do, which is run the printing presses 24/7 to bail out failing institutions and economies. In effect, the Fed has promised to be the lender of last resort for the entire global economy.
[Read more...]