Politicians will always falsely blame inflation on businessmen’s “greed.” But only government deficit spending using fiat money can create inflation. Inflation consists in increasing the money supply faster than the increase in production of goods that people want, the condition we endure today, in spades. If it were true, as liberal-progressives and politicians of...
Inflation that affects the entire economy originates with government action. Price increases that arise from temporary imbalances between supply and demand in specific product markets are not examples of general inflation. If bad weather or other factors reduce the yield of food crops like wheat or corn, the lowered supply (or anticipation of reduced...
The Japanese government has kept unprofitably invested capital in place with fiscal and monetary stimulus as well as central bank policy that continues to keep bad debt frozen on the books of zombie banks.
Tragically, the Fed appears to have learned little from its mistakes. Its current policy of “quantitative easing†continues its long tradition of creating bubbles by deliberately implementing inflationary policies.
The U.S. economy is a dead man walkingâ€â€a zombie on life support. If we don’t bite the proverbial bullet and go through a painful cleansing, a healing period of deflation, the ultimate price we pay will be even worse.
Now that the elections are over, attention is turning to the economy.  The stock market rose steadily from the end of August up to the elections. Since the stock market tends to be forward-looking, its recent strong and steady rise suggests that investors have been optimistic. In my opinion, two factors have generated...
By mid-December of this year, the “99ers†will appear. All 1,470,000 of them will ride in on the first wave. These are people who have been on unemployment benefits for 99 weeks and will see their benefits expire. The next wave will come by April of next year...
Declining prices are not necessarily bad. The Fed plans to add massively to the supply of phony money by monetizing the Federal debt with QE2, its latest multi-trillion dollar intervention to manipulate the financial system and to control business production and employment decisions. The effect, in the short run, is to inflate further the...
Gold recently hit a high of over $1,250 an ounce. Gold advertisers and gold investment newsletters continue touting their wares as though gold only goes up in value. Commercials are promising cash for gold, and people who normally don’t concern themselves with investments are asking if they should buy gold. But now may not...
A bill was just introduced in Maryland to increase child support obligations for households at most incomes.  It would impose a massive increase of nearly 30 percent, for a couple with one child making $3400 a month! Maryland residents, who recently had their taxes increased, will face new burdens under the bill,  SB 252 (HB 500), which raises already excessive child support...
Federal Reserve chairman Ben Bernanke is a devotee of Keynesian economics, which is to say that he is incapable of learning from experience. Either he can’t comprehend that the Fed’s excessive fiat money creation always precedes bubbles of economic exuberance, or he insanely proposes to continue repeating the Fed’s cheap money policies, ever hopeful...
With that level of insight you can now go out and make major decisions for your own future, such as, whether or not to buy a house, upgrade your car, perhaps even fly to Europe on the wings of hope. No?
The White House accusing the holdouts of acting against the national interest, is injecting the government directly into the management and decision making process governing the funds. This is a pretense that the activity of bankruptcy is somehow unnatural and un-American. ??
As noted here previously, this President’s First Hundred Days should have been spent understanding the complexities permeating the economy of the great nation he was taking charge of, and most of all he should have established for himself a thorough grasp on the nature of this peculiar economic ingredient we call inflation.
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