Posts Tagged ‘money printing’

Dr. Doom, Marc Faber joins us on Political Badger today to discuss economic troubles in China, Greece, and the U.S.

http://www.gloomboomdoom.com/

Please check out the latest podcast from Peter Schiff:

Click here to listen to The Peter Schiff Show Episode 77

Listen to all of Peter Schiff’s podcasts at SchiffRadio.com. Visit Peter’s gold company at SchiffGold.com

On our latest podcast I was extremely fortunate to interview John Mauldin: noted financial expert, best-selling author, and chairman of Mauldin Economics.  John gave us his unique insight into our economy today and what we can expect in the future.  It was fun to have someone on with Austrian influences, but who is not a strict Austrian.  He has a unique perspective and I’m happy he was kind enough to share it with us.  Please enjoy.

 

http://www.mauldineconomics.com/

Today we spoke with Dr. Paul Craig Roberts on a number of topics including our troubled economy, how we created the mess in Iraq, and the possibility of nuclear war with Russia.  I hope you enjoy this really interesting conversation.

http://www.amazon.com/How-America-Was-Lost-Warfare/dp/0986036293

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:

As I’ve written before our economy is based on bubbles. The Fed inflates a bubble, we have a crash, they reinflate and round and round we go. Right now we are seeing the cheap money find its way into stocks. Last time it was housing. Today’s report of an unexpected 0.5% increase in producer prices in March makes one think the freshly printed dollars may be finding their way into the economy at large. The dollar has taken a bit of a beating this week on the FX market. It was down 2.5% against the Yen which is tough to do given Prime Minister Shinzo Abe’s rampant money printing. Who knows if this is the beginning of a trend but, if nothing else, its a harbinger of things to come.

The main way by which the Federal Reserve seeks to “stimulate” the economy is by manipulating interest rates. It does this through its so called open market operations. In other words, it attempts (most often) to force interest rates down by changing the money supply, i.e. printing money. (more…)

Moral Hazard is a very simple concept that has immense and sweeping repercusions. It is at the very root of the decay we see in America today. It causes people, companies, and other entities to behave in a manner they otherwise would not… a manner which is often reckless and destructive. The biggest proliferator of moral hazard in this country is our government along with it’s partner in crime, the federal reserve.

If you don’t know, Moral Hazard is the principle that says if you remove or mitigate the consequences of someone or something’s actions you remove their incentive to guard against risk associated with those actions. In other words, if one is not punished for poor choices, he or she will continue to make those same choices. To boil it down even further: people respond to incentives. Too often our government incentivizes destructive, or at the very least, non productive behavior. (more…)

I always had an inkling that Wall Street was not an accurate gauge of the real economy. I didn’t know for sure and couldn’t give you any discernible theory as to why but my gut told me this was the case. Turns out I was right. I am a pretty humble dude but am also one smart mother f€cker (I’m actually not that smart at all. This is stuff a 3rd grader could understand.) and was able to able to crack the code.

There have been several instances of real legitimate growth in America since our inception (and our sexy, sexy conception). Arguably the most explosive growth we’ve enjoyed was the period starting from roughly the end of the civil war through the 1913ish. Government was relatively nonintrusive, there was no income tax, we were innovating like nobody’s biz-nass, we got electric lights up in this piece, the telephone was invented, we were laying train tracks like mad, Henry Ford invented the assembly line, and so on… (more…)