This week the Federal Reserve took a step closer to acknowledging reality. Unfortunately it didnt let that admission move it from a policy course firmly guided by fantasy. In its policy statement, Bernanke & Co. took the important step in noting that inflation expectations had taken hold in the country at large. However, in asserting [...]
The Archives
EuroPac.net - Last week, Warren Buffet was the latest to describe his encounter with the beast. The world’s most famous investor pronounced that the current economy is in the middle stages of a stagflation episode. Although Mr. Buffet is not typically associated with either bullish or bearish sentiment, he asserted that both the “stag’” and [...]
Freerepublic.com - Probably almost everyone is familiar with the hyperinflationary episode that engulfed Germany after the First World War. That nation’s economy was crippled by monetary problems that resulted in dreadful personal hardships, even though up to that time Germany had achieved one of the highest living standards in the world.
The newly formed German government, [...]
DollarCollapse.com - For gold bugs, the past few years have been kind of peaceful, intellectually speaking. Because they understood the dynamic of fiat currency leading to excessive borrowing leading to financial crisis, they were neither confused about what was happening nor swayed by the gibberish that passed for expert opinion. Alan Greenspan could ramble and [...]
MarketWatch.com - U.S. household finances are deteriorating rapidly under the strain of increased debt and falling home prices, threatening the health of the U.S. economy, according to a new research from Moody’s Economy.com, a division of Moody’s Analytics.
“Household credit quality is rapidly eroding, and overleveraged households are at the heart of the economy’s problems,” said [...]
The Latin term “fiat” roughly translates to “there shall be”. When we refer to fiat money, we are referring to money that exists because the government declares it into existence. It is not based on production or earnings, and not backed by any commodity. It is solely based on trusting the government. Fiat money is [...]
EueoPac.net - This week, with the nations financial infrastructure crumbling before our very eyes, the nations top two economic policy makers made their way to the Congress for an extraordinary episode of political theater. Fannie Mae and Freddie Mac, the quasi-government entities that form the backbone of Americas gargantuan mortgage market, appeared to be cracking. [...]
Instead of building its full faith and credit, the United States government is becoming increasingly faithless and is losing credit by the second while sucking individual Americans into ever-greater debt. Yet, against all expectations, Americans seem to be waking up
Wealth cannot be borrowed. For some not-so-unknown reason, Americans seem oblivious of that fact. The reason: [...]