Risk for the Economy is Deflation, NOT Inflation

Presently, the federal government is increasing spending that in the end may actually retard economic activity, and is also proposing tax increases that will further restrain private sector growth. In other words, fiscal policy is executing a program that is 180 degrees opposite from what it should be to stimulate the economy. How is it possible to get an inflationary cocktail out of deflationary ingredients? Words: 1461

See larger image Deflation: Current and Historical Perspectives (Studies in Macroeconomic History) (Hardcover) List Price: $86.00 USD New From: $69.99 In Stock Used from: $82.37 In Stock

Is Gold a Buy at Today’s Price?

There is enormous embedded inflation already and more to come. The high-powered money has already been created; it is leveragable and it is there to increase velocity. It is politically expedient for policy makers to inflate away the burden of existing and future US debt repayment. As such, higher prices must follow. Words: 908

See larger image Dissolving Dollars: Exposing The Debt-Based Insanity Behind Modern Money (2Nd Edition) (Paperback) By (author) Alex Marchand List Price: $12.95 USD New From: $12.95 In Stock Used from: $32.68 In Stock

Sovereign Debt Defaults now Possible/Likely?

Governments the world over have spent the past year bailing out, backstopping, insuring, and stimulating their financial sectors and economies throwing around trillions of dollars, euros, yen, and pounds like Halloween candy. Officials have assured us there’s little risk to that strategy but I believe that the opposite is true – that if you borrow and spend too much, all you’re going to do is transform a Wall Street debt crisis into a Washington debt crisis. Words: 882

See larger image The Great Depression Ahead: How to Prosper in the Debt Crisis of 2010 - 2012 (Paperback) By (author) Harry S. Dent List Price: $16.00 USD New From: $9.24 In Stock Used from: $9.25 In Stock

What Is the Fed Planning for the Bond Market?

Could the Fed be preparing another stock crash to flood the bond market with demand? Who knows but it would make plenty of sense to me. Words: 680

See larger image Inside the Fed: Monetary Policy and Its Management, Martin through Greenspan to Bernanke (Hardcover) By (author) Stephen H. Axilrod List Price: $24.95 USD New From: $13.17 In Stock Used from: $11.50 In Stock

It’s Payback Time – Big Time!

The recession has forced a financial reckoning for Americans across the income spectrum. The pressure is especially acute for the low-income Americans who relied on borrowing for daily expenses or to gain the trappings of middle-class life. Shifting credit practices over several decades had enabled them to live beyond their means by borrowing nearly as readily as the more affluent. Now it is payback time – big time! Words: 875

Debt-to-GDP in U.S. Unsustainable

Central banking makes it possible for the government to expand the money supply by any amount, at any time deemed necessary and once (hyper)inflation is publicly seen as being the lesser evil of all options available for the government meeting its debt service, it cannot be dismissed out of hand that (hyper)inflation would be the consequence of an unsustainable debt-to-GDP ratio. Words: 928

Congress’ Drugs of Choice: More Spending, More Debt, and a Cheaper Dollar

Politicians don’t care about budgets, inflation, or the value of the U.S. dollar. They seem to only care about power, personal enrichment and being re-elected. Words: 529

Spending Hangover to be with us Throughout 2010 and Beyond

As we move further into 2010, no doubt the horns will be blowing for the long-awaited U-shaped recovery. I suspect it won’t be long before we realize we’ve drunk too much, and that the second dip of a W-shaped recession awaits us. Words: 522

Is the United States Bankrupt?

Increases in spending and liabilities along with decreases in foreign lending equals a recipe for disaster. So, where will the money come from? This is a job for the printing press. While we are certainly facing deflation in the near term and a very choppy market, the groundwork has been laid for hyperinflation, soaring interest rates and exploding gold and silver prices. Words: 910

U.S. Must Continue to Monetize Debt to Avoid Bankruptcy

It’s one of those numbers that’s so unbelievable you have to actually think about it for a while… Within the next 12 months, the U.S. Treasury will have to refinance $2 trillion in short-term debt and that’s not counting any additional deficit spending, which is estimated to be around $1.5 trillion. Put the two numbers together. Then ask yourself, how in the world can the Treasury borrow $3.5 trillion in only one year? That’s an amount equal to nearly 30% of our entire GDP. Where will the money come from? Words: 815

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