Archive for the ‘Finance’ Category

By: Mark Thornton

We live in a world of massive monetary inflation and extremely low interest rates. Mortgage rates are near historic lows and yet it seems that people cannot get loans. Home sales are up, but with a near record percentage of sales made with cash, rather than a mortgage. The unemployment rate is nearing “full employment” and yet a record number of people do not have jobs.

We are repeatedly told that the unprecedented monetary stimulus by the Federal Reserve and other central banks is necessary to stimulate the economy, create jobs, and generate economic growth. The truth is that this scheme is designed to stealthily steal from the productive classes in order in enrich the unproductive financial class and the counterproductive political classes. It is a con game.

Financial Repression 

With politicians and central bankers seemingly gone made with their obsession of money printing and ultralow interest rates, it is nice to know that academic economists have a term, i.e. financial repression, for the policies that have created our current economic conditions.

However, it is not a new term. Its use dates back to at least 1973 when two Stanford University economists, Edward Shaw and Ronald McKinnon, used the term in separate publications. The phrase was initially meant to criticize various policies that reduced economic growth in undeveloped countries, rather than as an indictment of the world’s leading modern economies.

Financial repression is a revolving set of policies where the government insidiously takes wealth from the private sector, and more specifically makes it easier for government to finance its debt. In today’s environment this includes: (more…)

Advertisements

Please check out Jeff Deist’s (of the Mises Institute) interview with John O’Donnell of the Online Trading Academy and Power Trading Radio.  John will be a guest on our show soon! 

Click here to listen!

If you haven’t seen this video, please check it out. Peter Schiff (brother of Andrew Schiff who we’ve had on the podcast) correctly called the ’08 financial collapse while all the talking heads laughed in his face. He had specifics. He knew the causes, the effects, and knew exactly how it would unfold. The scary part is he is predicting a much worse crisis ahead and, again, all the blowhards on cnbc, etc. are laughing at him… calling him a kook, etc. Check out his stuff on youtube and you’ll get an idea of what he’s calling for and the typical response he gets.

From http://www.davidstockmanscontracorner.com today:

http://davidstockmanscontracorner.com/how-financial-bubbles-fester-and-burst-even-as-the-fed-says-not-to-worry/

Recently Robert Wenzel of http://www.economicpolicyjournal.com spoke with Jack to give the listeners the basics of Austrian Economics.

http://www.economicpolicyjournal.com

http://www.amazon.com/The-Fed-Flunks-Federal-Reserve/dp/1312047232

With the Fed propping up the the stock market with their cheap money policies, what’s a person to do? Andrew Schiff of Euro Pacific Capital says invest abroad:

http://www.schiffradio.com

http://www.europac.net

http://www.amazon.com/How-Economy-Grows-Why-Crashes/dp/1118770277

He’s a contrarian. He’s a prognosticator. He’s a bear on the US economy. He’s Dr. Doom and he was kind enough to chat with us recently:

Coming up in the next 2 weeks, Political Badger talks with Amity Shlaes, Ed Krayewski, Dinesh D’Souza, Kmele Foster and Marc Faber. Please stay tuned!!!

Many of you have read his pieces on his blog bionic mosquito. You have seen his stuff all over the place: on lew rockwell, economic policy journal, lions of liberty

After hearing some talking head on CNBC refer to Ron Paul as a mosquito, the author thought to himself, “If Ron Paul is a Mosquito, he is a powerful one.” Hence the name. Jonathan Goodwin is bionic mosquito and was kind enough to give us a peek into his not-so-mosquito-sized brain.

Political Badger: What was the impetus for starting your blog?

Bionic Mosquito: I had been thinking about doing something like this for quite some time. I thought it would be a good way for me to improve my thinking on several subjects – economics, libertarianism, politics, and empire (I think history wasn’t originally on my mind); I am not trained in any of these. I felt that the act of writing, and posting it publicly, would force an improvement of discipline in my thought. I also thought that receiving feedback online would be a wonderful, free, learning tool. Finally, I wanted to document my own learning / progression.

But what drove me finally to take the step was a minor technical problem (you asked). For a time I was a regular feed-backer at The Daily Bell. Early on, I was not able to post a comment of more than a few characters (it turned out to be a browser problem on my end). In order to get around this, I would post my longer comments on my blog, and DB graciously copied the comments from my blog to their thread.

Pretty dull, I know.

PB: When did it really take off?

BM: Have you looked at the alexa ratings? “Take off” is not a phrase I would use, but thank you.

I guess bionic mosquito first started gaining some recognition (beyond the comments section of Daily Bell, EPJ, and Mises) when Lew Rockwell ran a post a couple of years ago – something I wrote about Pearl Harbor, based on a book by George Victor, “The Pearl Harbor Myth: Rethinking the Unthinkable”. Since then, Lew has re-posted many of my blog posts, as has Robert Wenzel at EPJ and Marc Clair at Lions of Liberty. A few other sites occasionally pick up a post as well.

(more…)

Investing is like a lot of things we in the libertarian/small government/no government movement observe. If you are a sheep and tend to follow the herd (and not a badger who thinks for himself), you are likely to be at a disadvantage. The crowd is very often dead wrong. Jim Rogers has made a fortune by adhering to this simple philosophy. He is very clear that one shouldn’t go against the crowd simply for the sake of being a contrarian. However, he says and proves that when the whole world thinks one way, the exact opposite may just be the right answer.

If you pay attention to financial media even the slightest bit, you have no doubt heard the talking heads freak out over the prospect of deflation. Bloomberg, CNBC, Fox Business, Wall Street Journal, you name it… they all mindlessly repeat the bloviations of Bernanke, Yellen, Krugman, etc. that what we need is for people to spend (not save), to borrow, and for prices to rise. All of this is wrong.

To give you a real basic econ lesson, this attitude is largely inspired by the economist John Maynard Keynes. Bernanke and company are devout Keynesians. They believe an economy is built on consumption and is stimulated by spending. Paul Krugman is outspoken in his conviction that the US does not carry enough debt. That $18 trillion is not nearly enough. He believes we need to spend much, much more and that increasing the debt does not matter in the least. I sh%t you not. These are the people running our economy. Bernanke, Yellen, Jack Lew, the financial media, republicans and democrats alike all believe we must spend our way out of this funk we’re in. And as Shaq once said, “Don’t fake the funk on a nasty dunk.” That literally means nothing, sorry.

(more…)

Great zerohedge.com article today called The Typical Characteristics of a Stock Market Mania. On Wall Street history repeats itself over and over and over… and no one ever notices a pattern. Read the article and decide whether you think we’re in a boom phase:

The Typical Characteristics of a Stock Market Mania

All headlines from today:

California drove Toyota out of state: Torrance Mayor

Apple borrows, Pfizer goes British—blame the US tax code

US doesn’t have a rational tax policy: Jack Welch

Makes you wonder when Atlas is going to shrug…