When I saw that Illinois cleverly solved its budget crisis by just not paying its bills, I knew that the end is near, or would be, if we still had a dollar that was not a stupid fiat currency, because nowadays it would be child's play for the Federal Reserve to just create as money as any state wanted! And they can do it in less time than it takes to tell you about it, too!
[Read more...]Is Your Money What You Think It Is?, Part II
March 18, 2010 By Leave a Comment
Doug: There’s a titanic battle right now between the forces of inflation and deflation. When a big corporation like General Motors, or Fannie or Freddie, defaults on its debt, hundreds of billions of dollars disappear. Assets people thought they had and could have been converted into cash disappear. That’s deflationary. In a sound banking system, in which money is a commodity like gold, money can’t disappear. It can change ownership, but it can’t disappear. But in our current system, it can dry up and blow away as easily as it can be created.
[Read more...]US Economic Outlook: Default, Hyperinflation or Both
March 18, 2010 By Leave a Comment
Bill Bonner here at The Daily Reckoning reports that “Even if America taxed 100% of all household wealth, it would not be enough to put its balance sheet in the black”, which I note seems exactly right to me, and I am able to corroborate Mr. Bonner’s analysis because it seems to me that I seem to remember that just the federal budget deficit – alone! – would consume all federal income taxes paid by people and businesses!
[Read more...]US Economic Outlook: Default, Hyperinflation or Both
March 18, 2010 By Leave a Comment
Bill Bonner here at The Daily Reckoning reports that “Even if America taxed 100% of all household wealth, it would not be enough to put its balance sheet in the black”, which I note seems exactly right to me, and I am able to corroborate Mr. Bonner’s analysis because it seems to me that I seem to remember that just the federal budget deficit – alone! – would consume all federal income taxes paid by people and businesses!
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US Government Redefines “Fixing the Economy�
The keen-eyed David Galland, Managing Director of Casey Research and regular contributor to The Daily Reckoning, notices something amiss.
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